Rising environmental consciousness has shifted the focus of small-scale forestry away from productive functions towards more diversified ownership objectives. From transition management perspective, we analyze the role of private sector voluntary sustainability initiatives as a system driver in forestry, and review research on the role of sustainability in forestry-related service markets. The focus is on the view of small-scale service-oriented businesses, and by drawing experiences from the Nordic context. Based on the literature review, sustainability is gaining deeper level interest and active engagement among small scale forest owners due to, perhaps first and foremost, increasing awareness on global sustainability challenges, and the role of forests in these. A challenge remains in diffusion of the sustainability-related niche innovations. In addition, the strong environmental-economic emphasis in sustainability may lead to the undervaluing the potential of some socially driven forest ecosystem services. The effectiveness of new methods, such as framing as a tool to nudge family owners towards more sustainable forestry practices, provides avenues for future experimentation and research.