The pace and direction of development of the domestic forestry market
In 2022, the Russian forest industry complex faced the need for a large-scale reorientation: due to the loss of European markets, companies began to more actively promote their products within the country. This strategy gradually yielded results. According to the results of 2024, the volume of output in monetary terms increased by 21.2% and reached 3.78 trillion rubles, while exports added only 7.4%, amounting to 840 billion rubles.
Over the past five years, the share of Russian forest industry products on the domestic market has increased from 82 to 89%. In each of the segments - from sawn timber to pulp - new investment projects are being launched, and the domestic market is becoming increasingly important for companies.
Focus on wooden housing construction
One of the drivers of demand is industrial wooden housing construction. Even now, wood is the most popular material in individual housing construction: according to the results of the first quarter of 2025, it accounted for 28% of all houses built.
Companies are increasing their capacities for the production of prefabricated houses. Segezha Group plans to double the production of CLT panels and by 25% - glued laminated timber. Production for new projects is being launched by Luzales, Nodverk Glu Lam, and Domokomplekt.
Wooden structures are also in demand outside of individual housing construction - in modular hotels and social facilities. State programs subsidize the construction of glamping sites and modular housing, and the regulatory framework for multi-story wooden construction is close to completion.
Biofuels are being introduced to the Russian market
After 2022, pellet producers faced a sharp decline in exports. In response, the state initiated a large-scale program to convert boiler houses to biofuels.
23 block-modular pellet boiler houses are being built in the Komi Republic, 20 in the Arkhangelsk Region, and 12 in the Vologda Region. The Ustyansky plant in the Arkhangelsk Region has begun producing equipment for such facilities. And in the Vologda region, by 2032, a boiler assembly shop of the StroyTEK company will appear.
In the Krasnoyarsk region, Segezha Group is developing pellet production. In 2024, domestic sales increased sixfold - to 17 thousand tons. In 2025, the volume may reach 64 thousand tons. Almost a third of sales are accounted for by private households.
Pulp and paper segment: demand in the domestic market remains
The pulp and paper industry has proven resilient to external shocks. In 2024, paper and cardboard production increased by 5.4% - to 10.7 million tons. Demand is supported by the development of e-commerce and an increase in the production of consumer goods.
Ilim Group in 2024 increased sales in Russia and the CIS by more than 30% by 2022 - to 1.3 million tons. However, the excess of containerboard on the market and the decrease in consumption led to the utilization of waste paper capacities by only 70-80%. Nevertheless, Ilim expects that by 2028 the demand for corrugated cardboard will grow by 700 thousand tons, and the capacity utilization - to 87%.
Lumber and plywood: no breakthrough yet
The lumber and plywood segments continue to experience pressure. Since 2021, lumber production has decreased by 22%, exports - by 35%. The domestic market has not yet compensated for the loss of demand. According to Rosstat, in the first three months of 2025, sawn timber production amounted to 6.9 million m³. Production volumes in most areas remain at last year's level.
The plywood industry is also going through a difficult period. After reorienting itself to the domestic market, enterprises increased production in anticipation of the high season, but the expected increase in sales did not occur. According to Neo analysts, production is expected to grow by 2.1% and the average price to increase by 10% in 2025.
