Updated Oct 26, 2022 12:53

Woolen Fabric Market in Romania

Market Overview
For the fifth consecutive year, the Romanian woolen fabric market recorded decline in sales value, which decreased by -% to $ in . In general, consumption, however, continues to indicate a abrupt downturn. Over the period under review, the market hit record highs at $ in 2007; however, from 2008 to , consumption stood at a somewhat lower figure.

In value terms, woolen fabric production dropped modestly to $ in estimated in export price. In general, the total production indicated mild growth from 2007 to : its value increased at an average annual rate of +% over the last fourteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, production decreased by -% against 2018 indices. The pace of growth was the most pronounced in 2011 with an increase of %. Woolen fabric production peaked at $ in 2018; however, from 2019 to , production remained at a lower figure.


Consumption
In , consumption of woven woolen fabrics decreased by -% to square meters for the first time since 2019, thus ending a two-year rising trend. In general, consumption saw a abrupt shrinkage. Over the period under review, consumption reached the maximum volume at square meters in 2007; however, from 2008 to , consumption stood at a somewhat lower figure.

The value of the woolen fabric market in Romania fell to $ in , which is down by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption recorded a abrupt setback. Over the period under review, the market attained the maximum level at $ in 2007; however, from 2008 to , consumption failed to regain momentum.


Market Forecast
Depressed by shrinking demand for woolen fabric in Romania, the market is expected to continue its downward consumption trend over the next eight years. The performance of the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to depress the market volume to square meters by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Woolen fabric market in Romania remained dependent on supplies from foreign countries. In , the share of imports in total consumption was % in value terms and % in physical terms. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Romania remains a net importer of woolen fabric; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of square meters, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.