The total forestry area of Bulgaria accounts to approximately 3 million ha, or 30% of the state’s territory. While a sizeable share of the woodland is qualified as a forest reserve, Bulgaria still enjoys significant and sustainable timber resources and a potential for a growing timber processing sector. The country’s present resources are estimated to be worth 67 billion leva.

Currently, 193 Bulgarian companies are officially authorized to operate to distribute timber. They are not price competitive on an international level, partly because of large share of the grey sector. As for furnishing, the sector occupies approximately 2,300 Bulgarian companies, most of which are very small businesses. Those companies, along with the ones from the wood industry, have access to significant financial aid from European funds under the Competitiveness and Rural Development programs.

As a member of the EU, Bulgaria has free access to the European market and exports products worth 397 million leva or more than 60% of Bulgarian furniture output. Imports almost balance these levels and are assessed to reach 322 million leva.

Disregarding the current economic recession, the sector shows clear signs of an anticipated growth in internal demand, as well. Demand is diversifying and as a result boutique furniture has seen increased interest. School and public institutions infrastructure in the country is old and requires renovation. Additionally, a vast number of construction projects (hotels, residential and business buildings, trading centers) are yet to be completed and to create additional demand. An important event for the development of the sector is IKEA’s entering of the market, scheduled for 2010. The prospects for growth of the Wood & Furniture sector are assessed as very attractive.

Index of furniture sales; year 2000 = 100

Sourse: National Statistical Institute

 !!!!!!!!!!!!!!!! Map on the concentration of wood-processing and furniture SMEs