Report: WP6 – Business Environment and Market Segments

Report: WP6 – Business Environment and Market Segments

What are the prospects for wood based products and which approach should be used to strengthen future market position? These are questions investigated in this report from WP6.

The aim of the overall project is to support and improve the attractiveness of wood based interior products and systems, resulting in a basis for market access. WP6, which this report is dedicated to, serves to provide recommendations regarding suitable markets and customer segments for wood based interior products. Conducted through a mapping of the value chain, the power allocation between the industry’s different actors will be analysed in the following countries: Sweden, Norway, Finland, Germany, Austria, the United Kingdom and France.

The purpose of the study is of a qualitative character and the data has been obtained through interviews as well as secondary data. In Sweden, the primary data was obtained through two field trips to manufacturers of floor and panel as well as through short questionnaires to actors within the construction industry. In the remaining countries, the primary data has been collected through interviews and an extensive questionnaire to people within the wood industry. The secondary data has been collected through reports and dissertations about the subject and from relevant internet sources.

All the gathered information was compiled in a framework, showing the most important factors. In the Nordic countries, wood is the main material used for flooring while substitution materials are used at a higher extent in UK, France, Germany and Austria. The environmental aspects are also more important for the end customers in the Nordic countries. There is a general trend that the market for builders’ merchants and do-it-yourself (DIY) retailers are consolidating at the moment. The larger actors acquire the smaller ones, which adjusts the allocation of power with the manufacturer and the type of products being sold in the stores.

It is more important to convince the end customer in the Nordic countries of wood’s superior health and environmental aspects. In the other countries, where the use of wood flooring is low, the challenge is to promote the qualities of wood in order to increase the market shares

Tomas Nord, Per Carlborg, Thomas Backman, Malin Ekerå, Sophie Hallbert, Johan Järvenhag and Jacob Nordlund
Wood2New Work Package 6 – Business environment and market segments