Since the transition to a market economy in the early 1990s, the forest sectors of the Baltic states (Lithuania, Latvia, Estonia) have recovered and progressed quite rapidly. A boom in the timber processing industry can be observed in all three countries. At present, the Baltic states rank second globally in wood pellet exports (behind the USA) and are significant exporters of sawn timber, birch plywood, OSB plywood, and prefabricated houses. Sawn timber production volumes have increased at least fourfold over the last 25 years, while plywood production has increased sixfold. The forest sector accounts for around 5% of the added value in the region.