Iceland has very limited forest cover, and as a result, its timber market is relatively small. The country mostly relies on importing timber and wood products for construction and other purposes. However, the Icelandic government has been promoting the reforestation of the country to increase its forest cover, which is currently estimated to be less than 1% of its land area.

Due to the limited forest cover, there are very few timber companies operating in Iceland, and the market for timber products is primarily focused on small-scale, locally sourced products such as firewood and decorative wood.

There are also a few companies that import larger-scale timber products, such as structural lumber and plywood, to meet the demands of the construction industry.

Overall, while Iceland does have a small timber market, it is not a significant contributor to the country's economy.