China's furniture export companies may face new challenges by March next year. Recently, the European Union introduced the "Wood and Wood Products Regulations and New Environmental Design Directive," which requires that all wood products imported into the EU must be certified by the Forest Stewardship Council (FSC). This certification applies to forest farms, processing enterprises, and trading companies involved in the production of wood products. As a result, furniture OEMs exporting to the EU will need to source raw materials that meet these new FSC standards. The directive is an updated version of the existing EU Wood and Wood Products Regulation (EU) 995/2010 and will come into effect in March 2025.
Industry insiders suggest that this regulation adds another layer of complexity for Chinese furniture exporters. Currently, only about 10% of global wood is certified, and in China, less than 1% of the wood used in the furniture market is FSC-certified. Moreover, different countries have varying certification standards, and there is no mutual recognition among them, making it difficult for companies to obtain legitimacy.
Most of the furniture sold in the European market is imported from countries like China. The EU’s new regulations on wooden furniture are seen as a move toward trade protectionism. Once implemented, they are expected to significantly increase the costs for furniture exporters, especially small and medium-sized enterprises. Some smaller companies may even be forced to exit the European market altogether.
To adapt, many businesses are considering adjusting their market strategies. Reducing their reliance on the European market and shifting focus to emerging markets in the Middle East or other regions could be a viable solution. Diversifying their target markets not only helps reduce risks but also opens up new opportunities for growth in the long term.
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