Logging in Russia is losing players: a third more enterprises are closing than opening

In 2026, the Russian logging industry faced a significant reduction in the number of active participants. In January–August, the number of registrations of companies and individual entrepreneurs in the field of forestry and logging decreased by almost 20%, while the number of liquidations, on the contrary, increased. As a result, there were 31.3% more closed enterprises than new ones.

    According to Rusprofile, about 1.21 thousand companies and sole proprietors were registered in the first eight months of 2026, which is 19.9% less year-on-year. The number of liquidations reached 1.59 thousand, an increase of 9.6%. As of September 1, there were 19.64 thousand operating companies and individual entrepreneurs in the industry — 5.4% less than a year earlier.

The logging market has moved to reduce the number of participants

    The dynamics of 2026 is noticeably different from the situation of previous years. In 2021-2024, the number of new companies in the forestry industry has consistently decreased. In 2025, registrations increased slightly — by 3.6%, to 2.14 thousand, but the figure still remained more than a quarter below the level of 2021.

    At the same time, the number of liquidations decreased in previous years: from 4.46 thousand in 2021 to 2.32 thousand in 2025. In 2026, the trend changed — the number of closures began to grow again, and the number of new market participants decreased.

    This dynamic shows that the logging business is facing not just a slowdown in the opening of new companies, but an actual reduction in the existing business base.

Why are loggers leaving the market

    One of the main reasons is the deterioration of the logging economy. Enterprises incur fixed costs for machinery, fuel, personnel, logging and logistics, while revenue depends on the ability to sell harvested wood at an affordable price.

    It is especially difficult for small and independent loggers who do not have their own deep processing and therefore are more dependent on the state of the raw material market.

    The industry also notes the problem of deferral between the cost of organizing logging and receiving money from the sale of products. With a decrease in demand, this model becomes significantly more risky.

    According to Kommersant's sources, the increase in liquidations in 2026 is largely a delayed effect: enterprises continued to operate in anticipation of a recovery in demand, but after exhausting their financial reserves, they were forced to leave the market.

Small and microenterprises are shrinking in the Arkhangelsk region

    The situation in the Arkhangelsk region, one of the largest forest regions in Russia, is indicative.

    According to the data provided by the head of the relevant committee of the Legislative Assembly of the region, Alexander Dyatlov, in the first half of 2026, the number of organizations in the field of forestry and logging decreased by 6.8%. The number of individual entrepreneurs decreased by 12.2%. The main reduction was accounted for by small and microenterprises.

    Among the factors, regional experts identify high competition with a limited amount of available forest resources, the complexity of forest management and government regulation.

    Additional pressure is exerted by the state of woodworking. Lower prices in certain foreign markets, increased logistical costs and difficulties in purchasing machinery worsen the situation of processors, and this directly affects the demand for wood raw materials.

The decrease in harvesting is reflected in the roundwood market

    The reduction in the number of logging enterprises is already affecting physical production volumes. According to data provided by industry analysts, in January–July 2026, the volume of logging decreased by about 5% compared to the same period last year.

    For the market, this means a change in the balance of supply of wood raw materials. At the same time, a decrease in harvesting does not necessarily indicate a shortage of timber: the reason may be a decrease in economically feasible harvesting.

    For enterprises that continue to operate, the situation may mean a change in the terms of purchase of raw materials and the regional distribution of supply.

    Current roundwood offers can be tracked in the roundwood purchase section, and producers and loggers can place products in the roundwood sales section.

Logging directly depends on the lumber market

    The chain of forestry business begins with a raw material base, but the economy of logging is largely determined by the final demand for woodworking products.

    If sales of lumber decrease, processing companies reduce their workload. This, in turn, reduces the need for roundwood and can lead to a decrease in harvesting volumes.

    Thus, the logging situation is one of the indicators of the general state of the Russian timber market.

    Current offers on the lumber market are available to manufacturers and buyers: buy lumber and sell lumber.

The financial condition of the industry is also deteriorating

    The reduction in the number of companies is accompanied by a deterioration in the financial performance of existing enterprises.

    According to Rosstat, in January–July 2026, the share of profitable organizations in the field of forestry and logging amounted to 40.7%, whereas a year earlier it reached 58.7%. The share of unprofitable organizations increased to 59.3%.

    In the first half of the year, the situation also looked tense: the share of profitable organizations was 43.1%, and the share of unprofitable organizations was 56.9%.

    This means that the problem of the industry is not only the number of registered enterprises. A significant number of companies continue to operate in conditions of low or negative profitability.

Why is it increasingly difficult for new players to enter the forestry business

    Logging becomes less attractive for new investors due to the high initial entry threshold.

    Full-fledged work requires equipment, qualified personnel, access to forest resources, organization of a logging area, transport infrastructure and working capital.

    At the same time, the industry requires highly specialized expertise. Errors in estimating the cost of a cutting area, the quality of raw materials, or logistics can quickly turn a potentially profitable project into an unprofitable one.

    Therefore, the market is now sifting out weak business models rather than creating conditions for the mass emergence of new logging companies.

The reduction of players can accelerate the consolidation of the industry

    One of the possible consequences of the current situation will be the further consolidation of the logging business.

    Large enterprises with their own processing facilities, a stable financial base and well-developed logistics have more opportunities to survive a period of weak demand. It is more difficult for small independent companies.

    At the same time, the departure of some of the players may gradually lead to the redistribution of the timber resource base, equipment, personnel and contracts between the remaining enterprises.

    In the long term, this can contribute to business consolidation and enhance the role of companies that are able to control several stages of the chain, from harvesting wood to processing and selling finished products.

What can change the situation

    Market participants attribute the further development of the industry to the search for a more sustainable economic model of logging, optimization of logistics and expansion of processing.

    The production of products with higher added value may be of particular importance. The more wood is processed within the country, the less the company's dependence solely on the sale of raw materials.

    An additional direction is the introduction of new technologies, increasing the efficiency of the use of wood raw materials and the development of modern woodworking industries.

    For loggers, this means the need to look not only at the volume of harvesting, but also at the final economy of the entire chain.

What does the reduction of logging companies mean for the Russian market?

    The reduction in the number of logging participants is an important signal for the entire Russian timber industry.

    On the one hand, the withdrawal of weak enterprises may be part of a natural market consolidation. On the other hand, if the reduction occurs simultaneously with a decrease in procurement volumes and a deterioration in the financial situation of enterprises, this indicates a more serious pressure on the industry.

    In the near term, the key factors for the market will remain:

• demand from woodworking enterprises;
• prices for roundwood and sawn timber;
• fuel and logistics costs;
• availability of logging equipment;
• provision of qualified personnel;
• the possibility of obtaining financing;
• the state of export markets;
• development of deep wood processing.

    Thus, the Russian logging market in 2026 is going through a stage of structural adjustment. The number of new companies is decreasing, liquidations are growing, and the financial burden on the existing business is increasing. At the same time, further dynamics will depend not only on the cost of wood raw materials, but primarily on the recovery of final demand and the ability of enterprises to increase production efficiency.

    It is especially important for market participants to monitor the movement of roundwood and sawn timber at the same time, since changes in one segment are quickly transmitted throughout the entire chain of the timber industry.

Tags: #Logging #Forestry #LPC #Logging business #Roundwood #Lumber #Wood market #Forestry #Woodworking #Forestry Business #Forest market #Russia #Russian Timber Industry #Raw materials