Surging Demand in Europe Highlights Need for North American Wood Fiber Production
Demand for wood fiber insulation in Europe is projected to grow by 12.7% annually, resulting in nearly $1 billion in annual revenue by 2023, according to a market assessment report prepared by Freedonia Custom Research. Several of the major manufacturers in Europe are building new production facilities to meet the growing demand in the EU, which is being driven by several factors.
The pandemic has forced millions of people across the continent to spend much of the last year inside their homes. All that time at home has led to a surge in renovations of existing dwellings, and as homeowners in Europe plan out these improvements, they’re taking advantage of government incentives, especially in Germany and France, to retrofit existing structures and build new ones using ecologically sustainable materials.
The increase in demand overseas is having an impact on U.S. building materials suppliers who source wood fiber insulation for the American market. Suppliers are reporting longer wait times of up to six months for wood fiber boards, as European manufacturers struggle to meet demand on the continent and COVID-19 continues to impact shipping worldwide.
The changing dynamics in Europe offer a preview of the tremendous market opportunity in the U.S., as the Biden Administration pushes plans to reduce carbon emissions through sustainability-focused retrofits of buildings and existing housing stock and the construction of energy-efficient new homes with diminished carbon footprints.