Wood Sector

1098

Companies

6319

People Employed

1B€

Turnover Last 5 Years

ABOUT WOOD SECTOR

In Kosova, furniture and kitchen manufacturing is a major sector, attracting many newcomers. About 40% of companies specialize in builder’s carpentry and joinery, presenting diverse investment opportunities. Export growth is notable, with a 35.6% surge in 2020 alone, signaling promising prospects for investors in the wood processing market.
Exports play a pivotal role in Kosova’s woodworking sector, with notable increases across various sub-sectors. Notably, the manufacture of furniture saw an impressive 119.12% rise in exports in 2020, reflecting a buoyant market ripe for investment. Key products such as kitchen cabinets, chairs, and tables dominate production, offering a glimpse into the sector’s thriving potential for expansion and profitability.
Kosova’s woodworking industry extends its reach globally, with Kosovar brands thriving in Switzerland and the EU. Leveraging abundant natural resources and strategic positioning, Kosova’s woodworking sector drives economic growth and environmental sustainability. With a focus on value addition and export-oriented production, the sector offers investors an appealing opportunity for long-term prosperity and positive environmental impact.

Sector divisions

01

FLAT FURNITURE PRODUCERS

02

SOLID WOOD PRODUCERS

03

UPHOLSTERY PRODUCERS

04

CONTRACT FURNITURE PRODUCERS

05

PREFAB PRODUCERS

Sector business associations and organizations

https://kosovowood.org/

OPPORTUNITIES

Family-owned wood processing companies can capitalize on the opportunity to modernize their business models by investing in branding, export market development, and quality control. The lack of online sales and limited representation in target export countries can be seen as investment prospects.
Kosova wood processors can explore online sales platforms and establish business representation in international markets to participate in global procurements and sub-contracting. Businesses can invest in advocacy and collaboration to address the issue of inconsistent customs rules and the return of Value Added Tax (VAT) on imports.
This could streamline the purchase of raw wood and reduce financial hurdles. Investing in transportation and logistics solutions within Kosova can help mitigate challenges related to product transportation to the EU and Switzerland, reducing dependence on neighboring countries’ services.

550€

Average wage

0-10%

Personal Income Tax

TREND ANALYSIS

Numerous wood processing companies have shown impressive growth, marked by increased turnover, expanded value-added production, enhanced employment, and boosted exports. These achievements underscore the sector’s robustness and its significant contribution to Kosova’s economy.
Key export markets for Kosova’s woodworking industry encompass Germany, Austria, and Switzerland, featuring a diverse range of products such as doors, windows, kitchens, and furniture, showcasing the sector’s quality and versatility.
The remarkable growth demonstrated by these companies in terms of increased turnover, expanded value-added production, enhanced employment opportunities, and boosted exports not only underscores the robustness of the sector but also highlights its substantial contribution to Kosova’s economy and its pivotal role in driving socio-economic development within the nation.