In 2024 Türkiye’s parquet industry, despite domestic headwinds and volatility in raw-material costs, focused on preserving production capacity while pursuing export potential. Developments in construction and housing remained the sector’s primary drivers.
Domestic Market Dynamics and Demand
The industry is directly influenced by new housing construction and renovation activity.
- Impact of home sales: Nationwide home sales rose 6% versus the prior year in 2024. The 27.6% increase in new-home sales supported project-driven demand for parquet. The 10.8% drop in mortgaged sales pointed to financing pressure on overall demand.
- Renovation and remodeling: Upgrades to the existing housing stock continued to play a key role. Consumers’ aesthetic expectations with durability needs kept interest in quality parquet high.
- Product variety and trends: Natural wood looks, wide planks and light tones stayed popular. Engineered, solid and laminate parquet addressed different budgets with use cases. Water resistance with easy installation remained important purchase criteria.
Raw Materials and Cost Management
Inputs, especially wood, with energy costs directly affected profitability.
- Input prices: Prices of wood and wood-based materials (MDF, HDF etc.) fluctuated throughout 2024. Global supply-demand balance, exchange-rate moves with higher energy costs exerted strong pressure on input costs. Domestic forestry supply issues or logistics costs also affected prices.
- Inflation and FX: A high-inflation environment with FX uncertainty forced producers to reassess costs with pricing strategies continuously. Firms relying on imported inputs were affected more.
Exports and Global Competition
Beyond the domestic market, Turkish producers sought to sustain their presence abroad.
- Export volume: Although exports in the broader Furniture, Paper with Forest Products category fluctuated, parquet shipments to certain markets continued. Europe, the Middle East with North Africa remained key destinations.
- Competitiveness: Producers aimed to defend share via quality, design variety with pricing, yet competition from Europe with the Far East was intense. Branding with a shift toward higher value-added products stood out as core export strategies.
Challenges and Outlook
- Uncertainty in construction: Despite higher home sales, project-level volatility with financing constraints caused episodic unpredictability in demand.
- Cost pressure: Rising raw-material, energy with labor costs continued to squeeze margins.
- Global softness: Slowdowns in some markets weighed on exports.
- Urban-transformation potential: Larger budgets and investments for urban renewal with reconstruction in earthquake-affected regions created significant demand potential in late 2024 and into 2025, signaling a revival for the sector.
In 2024 the parquet industry in Türkiye benefited from stronger housing sales yet grappled with cost pressures and global uncertainty. While relying on domestic drivers such as urban renewal with remodeling, the sector also targeted higher export potential. Sustainability, quality manufacturing with technological adaptation will remain key to future success.