Coniferous fuel wood in chips and particles market in Finland

Earlier Report Observations

From 2018 to 2021, the market volume for coniferous fuel wood chips in Finland grew from 5.2 million tons to 6.1 million tons. This steady expansion was driven by national renewable energy targets, which increased the use of forest chips in heat-only and combined heat and power plants across the country.

The trend reversed in 2022 when the energy crisis caused forest chip prices to surge and imports to collapse, reducing the market size to 5.7 million tons. In 2023, mild winter conditions and the accelerated electrification of heat production further lowered demand, pushing the market down to 4.3 million tons.

In 2024, the market partially recovered to 4.6 million tons as forest chip prices began to decline, supported by greater availability of by-products from the forest industry. However, the long-term shift toward bio-based liquid fuels and heat electrification continued to temper growth.

Production coniferous fuel wood in chips and particles in Finland

In value, 2017-2020, M $ US

Finland's production of coniferous fuel wood in chips and particles, measured in monetary terms, declined after two years of growth. In 2020, output was valued at 347.1 million US dollars, representing a modest decrease of 4.3% compared to the previous year. Over the period from 2017 to 2020, production increased by 9.9%, with an average annual growth rate of 3.2%. The highest value was recorded in 2019 at 362.5 million US dollars, while the largest annual increase occurred in 2018 at 7.7%.

Annual dynamics of production in Finland in value, 2017-2020, M $ US

In kind, 2017-2020, K t

After two years of decline, Finland's production of coniferous fuel wood in chips and particles, measured in physical terms, increased. In 2020, output reached 3 587 thousand tonnes, reflecting a slight gain of 2.6% relative to the prior year. The lowest value was recorded in 2019 at 3 495 thousand tonnes, with the largest annual decline occurring in 2018 at 2.2%.

Annual dynamics of production in Finland in kind, 2017-2020, K t

Exports coniferous fuel wood in chips and particles from Finland

Exports in kind, K t

Finland's exports of coniferous fuel wood in chips and particles, measured in physical terms, increased for the second consecutive year. In 2020, exports reached 118 thousand tonnes, marking a significant rise of 27.4% year-over-year. Between 2017 and 2020, exports decreased by 15.6%, equating to an annualized decline of 5.5%. The lowest value was recorded in 2018 at 74 thousand tonnes, which also saw the largest annual decline of 47.3%.

Annual dynamics of product's exports from Finland in kind, 2017-2020, K t

From 2017 to 2020, Sweden served as the primary destination for Finland's exports of coniferous fuel wood in chips and particles in physical terms, consistently accounting for 96.4% of total export volumes.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Finland in kind, 2017-2020

Exports in value, M $ US

Finland's exports of coniferous fuel wood in chips and particles, measured in monetary terms, increased for the second year in a row. In 2020, exports reached 8.7 million US dollars, indicating a solid uptick of 21.9% from the previous year. Over the period from 2017 to 2020, exports decreased by 8.5%, with an average annual decline of 2.9%. The lowest value was recorded in 2018 at 5.0 million US dollars, which also experienced the largest annual decline of 47.5%. The largest annual increase occurred in 2019 at 43.0%.

Annual dynamics of product's exports from Finland in value, 2017-2020, M $ US

Throughout 2017 to 2020, Sweden remained the almost exclusive buyer of coniferous fuel wood in chips and particles from Finland in value terms, with a share of 93.4% of total export revenues.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Finland in value, 2017-2020

Imports coniferous fuel wood in chips and particles to Finland

Imports in kind, K t

Finland's imports of coniferous fuel wood in chips and particles, measured in physical terms, increased for the third consecutive year. In 2020, imports amounted to 2 334 thousand tonnes, reflecting a strong rise of 14.7% compared to 2019. Between 2017 and 2020, imports grew by 50%, equating to an annualized increase of 14.5%.

Annual dynamics of product's imports to Finland in kind, 2017-2020, K t

From 2017 to 2020, Russia was the principal source for Finland's imports of coniferous fuel wood in chips and particles in physical terms, accounting for 78.3% of total import volumes, while other destinations contributed smaller shares.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Finland in kind, 2017-2020

Imports in value, M $ US

Finland's imports of coniferous fuel wood in chips and particles, measured in monetary terms, increased for the third year in a row. In 2020, imports amounted to 163.8 million US dollars, which is 6.6% higher than the previous year. Between 2017 and 2020, imports surged by 81.2%, equating to an annualized growth rate of 21.9%.

Annual dynamics of product's imports to Finland in value, 2017-2020, M $ US

Throughout 2017 to 2020, Russia and Estonia remained the principal sources for Finland's imports in value terms, jointly accounting for 85.1% of total import expenditures; other partners each held significantly smaller shares.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Finland in value, 2017-2020