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IKEA is one of the world’s largest consumers of wood. Almost 15 million cubic metres of the material are used every year in cheap IKEA products with millions of trees felled for the mass production machine. Source: Danish Film Institute IKEA Loves Wood (‘IKEA elsker træ’) is a Danish investigative documentary that looks at IKEA’s forestry practices in the Rumanian Carpathian Mountains, an area with some of the last old-growth forests of Europe. Biologists, environmental groups and local activists say the Swedish furniture giant’s timber production is having a significant impact on old-growth forests and biodiversity. IKEA, however, states that it doesn’t tolerate illegal or unethical practices and that its suppliers are carefully selected. A trailer in English for the documentary is at: https://www.youtube.com/watch?v=IodzOvrrfNA The documentary is available to view in Danish with English subtitles at: https://www.dw.com/en/ikea-loves-wood/video-77861212

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A research initiative has demonstrated that there is “major potential” for English-grown timber in sustainable construction. The Building from England’s Woodlands project, funded by the Forestry Commission’s Woods into Management Forestry Innovation Fund, has demonstrated that England’s broadleaf forests could play a role in delivering low-carbon buildings, supporting biodiversity and strengthening domestic supply chains. Source: Inside housing The project, led by the New Model Institute for Technology and Engineering (NMITE), Edinburgh Napier University, Built Environment – Smarter Transformation (BE-ST), Ecosystems Technologies and dRMM Architects, explored how English-grown timber can be used more effectively in modern building systems. It found that English hardwoods can play a significant role in structural applications when selected and specified appropriately. The project also developed hybrid engineered timber products that combine hardwood and softwood within the same structural element. Testing showed that hybrid cross-laminated timber and glued-laminated timber products (glulam) met all required strength and durability criteria using existing manufacturing methods. The use of hardwood in key structural zones also allowed for material savings of approximately between 10% and 15%. Real-world examples included the Building from Forests display at the Victoria and Albert Museum in London, and the installation of a hybrid hardwood-softwood glulam beam in NMITE’s new Skills Hub building in Hereford. The project also found that the greater use of English timber could reduce embodied carbon, increase long-term carbon storage in buildings, support more resilient and biodiverse forests, and strengthen rural economies through local manufacturing and value-added processing. The findings mark a step towards a future where forests, manufacturing and construction work together to create sustainable buildings while supporting healthier landscapes and stronger local economies, the research said. The research also aligns with the UK government’s Timber in Construction Roadmap and wider net zero ambitions. David Bole, head of green economy and skills at the Forestry Commission, said: “By unlocking the potential of our forests, we can reduce reliance on imported and carbon-intensive materials, support healthier and more resilient woodlands, and create new opportunities for sustainable growth across the forestry, manufacturing and construction sectors.” Louise Rogers, impact manager of housing and manufacturing at BE-ST, said: “This work directly supports the ambitions of the Timber in Construction Roadmap by providing evidence that innovation, domestic manufacturing capability and supply chain collaboration can help accelerate the transition to a lower-carbon built environment.” Last month, researchers at the University of Manchester found that future climate change will need a clear shift in the sector towards summer cooling requirements in social housing. In April, a housing association urged social landlords to step up their efforts to improve biodiversity, saying it is “in the sector’s interest” to invest in nature recovery.  

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How is an energy shock driving up costs across the wood products supply chain and clouding the 2026 housing recovery. Source: Fastmarkets The North American wood products market entered 2026 carrying the weight of a difficult 2025. Weaker housing starts, modest repair and remodeling activity and declining furniture production kept demand under pressure across major product categories. Now, a new force is moving through the market: an energy shock tied to the Iran war. To understand why it matters, we need to compare where the market stood in 2025 with what the 2026 outlook now shows. From soft demand in 2025 to a cost-driven 2026 In 2025, the story was largely about weak demand. While softwood lumber demand declined, other wood products also saw a downturn, including US hardwood lumber, OSB, plywood, particleboard, MDF, I-joists, and LVL. Pricing for softwood lumber was weak in the third and fourth quarters, because demand decreased in the second half of the year and inventory built up. Now firmly into 2026, demand pressure remains, but a major energy disruption sits at the centre of the outlook. Approx 20% of global LNG supply and 15% of oil supply have been disrupted, representing what is the biggest energy supply shock in history. The result is a market dealing with both soft demand and rising input costs; a stagflationary shock. How the energy shock moves through the supply chain The effects are already visible across multiple stages of the wood products supply chain: Logging operations are feeling the squeeze from soaring fuel costs. We anticipate that a sharp rise in diesel prices in early 2026 could have a serious impact on logging activity in the coming quarters as consumer demand continues to be soft. Mills and wholesalers. Mills and wholesalers have introduced fuel surcharges to deal with the spike in fuel costs. These surcharges continue to challenge the middle part of the supply chain, with downstream users having little ability to absorb the cost increases. Resin and wax costs. For panel producers, resin and wax costs are a source of further pressure. These petrochemical products account for anywhere between 10-35% of variable production costs for products like OSB, plywood, particleboard and MDF. Shipping disruption is spreading from Europe to the Middle East, Africa and Asia as freight rates rise. That disruption creates additional uncertainty on key wood product trade routes. Consumer spending. Higher energy prices act as a tax on consumers. They reduce household wealth and weigh on discretionary spending, including home purchases and repair and remodeling activity. The energy story is therefore both a cost issue and a demand issue.   The key variables for a housing recovery Our analysis of the 2026 housing market suggests a potential recovery, but several challenges could stand in its way. Key variables, such as inflation and interest rates, will play a significant role. Uncertainty around these factors could influence Federal Reserve decisions, potentially keeping mortgage rates elevated. Additionally, we expect lower real disposable income, partly due to higher energy costs, to impact residential construction activity. Our forecast reflects this pressure on both new construction and remodeling projects, with the energy situation being a major influence on demand trends for 2026 and a potential rebound in 2027. So, why is this important for wood products? The sectors most crucial to this industry—housing, repair and remodelling, freight and logging—are very exposed to the unprecedented supply disruptions in energy markets, either through direct costs or the effect of higher energy costs on interest rates. While we don’t believe a recession is likely, discretionary and rate-sensitive parts of the economy that drive wood products demand remain vulnerable. The most direct signal to monitor is the pace of inflation, which has spiked due to the current energy supply chain disruptions. The inflation picture influences interest rates, which are a key headwind on housing affordability and discretionary spending for home improvement. Both of these are key to driving wood product demand. The quicker this inflation shock is resolved, the quicker a more sustained rebound in wood products demand will be realized. You can view the full report at https://www.fastmarkets.com/forest-products/wood-products/wood-products-market-analysis-2026/

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