The UK market for softwood appearance products and the German market for components/lumber in furniture and cabinets were investigated in Year 1 of the project. In the UK, market size and species use in the softwood appearance market were quantified; supply sources and trends were identified. In Germany, material and species use in furniture components and lumber, competition, trends, and attributes demanded by furniture and cabinet manufacturers were assessed. A literature review and surveys of manufacturers in the UK and Germany were carried out. Opportunities were identified for Canadian exports of existing and new/modified products, focussing on solid wood components. In both markets, failure to match or surpass the technology, know-how and innovation of competitors in Europe and, increasingly, in Asia was identified as the greatest threat to Canadian exports of appearance products. More in-depth market research is recommended for the most promising products in the UK in Year 2 of the project, while no immediate need was found for further research in the German furniture market.