Spring 2026 is characterised by a slow but steady recovery—albeit from low levels. In Sweden, there are indications that the construction sector has turned a corner, with forecasts suggesting that construction investments could increase during the year. At the same time, residential building activity remains significantly below previous peak levels, and continued global uncertainty may still affect the outlook.
A similar development can be seen in Norway. The market is showing signs of improvement, but the recovery is gradual. New construction is not expected to return to earlier levels in the near term, and high interest rates continue to dampen momentum.
For wood-based building materials, this creates a market where demand exists, but purchasing decisions are more considered. Buying is increasingly driven by immediate needs rather than stock-building, and factors such as delivery reliability, product quality and clear communication are becoming increasingly important.
At the same time, the Swedish forest industry is under pressure from reduced production, lower deliveries and changing trade flows. This makes the balance between supply, pricing and demand more sensitive than before.
Three Key Observations
Stable Demand – but Limited Growth
Demand for building products has stabilised, but there are still no clear signs of growth. The market is driven more by renovations, refurbishments and smaller projects than by new construction. Even if investments are expected to increase, many customers remain cautious.Selective Purchasing Is Shaping Pricing
Price remains a key consideration. Customers prioritise securing the right product at the right time rather than buying in large volumes. Differences between dimensions, qualities and applications are becoming more pronounced, while cost levels, raw material availability, currency fluctuations and international competition continue to influence pricing.Timber Choice Becomes a Strategic Issue
Wood remains a strong material in sustainable and industrialised construction—but the industry may need to broaden its perspective. Increasing the use of pine, alongside spruce, will be important to secure long-term raw material availability and climate benefits. Pine has solid technical performance and is suitable for many applications. Using both pine and spruce more evenly helps balance raw material supply and makes better use of forest resources—an important condition for future competitiveness and delivery capacity.
A More Demanding Market Landscape
In today’s market environment, staying close to the customer is crucial. Success depends not only on product quality, but also on understanding changing needs, offering flexibility, and building long-term relationships in a more selective and complex market.
