European parquet consumption continued to decline in the first three quarters of 2024, albeit at a slower pace, reflecting still subdued construction activity and increasing pressure from Chinese imports, the board of the European Parquet Federation (FEP) recently noted. With consumer purchasing power affected, cheaper alternatives are now being considered more frequently. However, these could soon face higher tariffs.

Country situation

After a weak third quarter of 2024, Austria recorded a 5% decline in its parquet consumption compared to the same period last year. Forecasts for 2025 are not positive, partly due to the low number of new constructions. Raw material costs are stable, but the quality of oak from Croatia is low due to long storage in wet forests after storms. Energy costs are high compared to China, the USA and others.

Croatia reports a 3% increase for Q1-3 2024 compared to the same period last year, when Croatian parquet consumption was very low. Nevertheless, the boom driven by the construction industry is not expected to continue in 2025. There is inflation and salaries will increase next year, while energy costs are quite high. And as a small country, Croatia needs to find new markets, as the German market is very weak.