Coniferous fuel wood in chips and particles market in Sweden

Earlier Report Observations

The market volume for coniferous fuel wood chips grew from 13.8 million tons in 2018 to 14.6 million tons in 2019, then eased to 14.0 million tons in 2020.

A sharp expansion to 17.2 million tons occurred in 2021, coinciding with the first signs of rising chip prices that autumn, which increased costs for district heating operators. The following year, the outbreak of war in Ukraine halted trade with Russia and Belarus, reducing the supply of forest raw materials and by-products such as chips and pushing biofuel prices sharply upward. At the same time, a new pulpwood classification system further constrained the availability of fuel wood. These supply-side pressures, alongside record consumption of chips for energy, kept the physical market volume stable near 17.1 million tons in 2022, while the market value declined.

In 2023 and 2024, supply remained tight due to increased competition for biofuels from other European countries and lower wood raw material output from sawmills. Prices continued to climb on reduced availability and higher skidding, chipping, and transport costs. Consequently, the physical market volume contracted to 15.4 million tons by 2024, yet the market value rose above $1 billion, driven by sustained high prices. New emission factors for certain wood chip categories introduced in 2024 also began influencing the environmental profile of district heating, while a weaker Swedish krona boosted foreign demand for Swedish biofuel.

Production coniferous fuel wood in chips and particles in Sweden

In value, 2017-2020, M $ US

In 2020, Sweden's output of coniferous fuel wood in chips and particles was valued at 674.9 million US dollars, marking an 8.1% increase from the previous year. Over the period from 2017 to 2020, production grew by 8.8%, with an average annual growth rate of 2.9%. The largest decline occurred in 2019, when production fell by 0.8%.

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

In kind, 2017-2020, K t

In 2020, Sweden produced 12 848 thousand tonnes of coniferous fuel wood in chips and particles, which remained nearly unchanged from 2019. The minimum production level was recorded in 2018 at 12 393 thousand tonnes, while the maximum was in 2019 at 12 860 thousand tonnes. The largest decline of 2.9% occurred in 2018, followed by the largest increase of 3.8% in 2019.

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

Exports coniferous fuel wood in chips and particles from Sweden

Exports in kind, K t

Sweden's cross-border shipments of coniferous fuel wood in chips and particles declined for the third consecutive year. In 2020, exports totaled 129 thousand tonnes, showing a significant decrease of 14.9% compared to the previous year. From 2017 to 2020, exports fell by 44.8%, with an average annual decline of 18.0%.

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

Throughout the period from 2017 to 2020, Norway played the leading role in Sweden's exports in kind, accounting for 73.9% of total flows, while other markets together made up the remaining share.

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

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

Exports in value, M $ US

Coniferous fuel wood in chips and particles shipments from Sweden to abroad declined for the third consecutive year. In 2020, export volume reached 13.8 million US dollars, reflecting a 6.9% decrease from the previous year. Between 2017 and 2020, exports dropped by 24.2%, equating to an annualized rate of decline of 8.8%.

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

From 2017 to 2020, Norway and Denmark were the dominant destinations for Sweden's exports in value terms, jointly accounting for 89.6% of total flows, with other markets making up the remainder.

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

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

Imports coniferous fuel wood in chips and particles to Sweden

Imports in kind, K t

In 2020, Sweden's cross-border shipments of coniferous fuel wood in chips and particles totaled 1 328 thousand tonnes, showing a reduction of 29.4% compared to 2019. Between 2017 and 2020, imports decreased by 20.6%, with an annualized rate of decline of 7.4%. The maximum value was recorded in 2019 at 1 880 thousand tonnes, which also saw the largest increase of 18.7%.

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

Over the period from 2017 to 2020, Latvia, Norway, and Estonia were the top suppliers of coniferous fuel wood in chips and particles to Sweden in kind. Latvia accounted for 38.9% of imports, Norway for 25.7%, and Estonia for 14.5%, with their combined share reaching 79.1% of total imports in kind.

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

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

Imports in value, M $ US

After a two-year gain, foreign supplies of coniferous fuel wood in chips and particles to Sweden declined. In 2020, import volume amounted to 85.8 million US dollars, which is 22.0% lower than the previous year. The maximum value was recorded in 2019 at 110.0 million US dollars, which also experienced the largest increase of 14.1%.

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

From 2017 to 2020, Latvia, Norway, and Estonia accounted for the largest share of Sweden's imports in value terms. Latvia contributed 45.5%, Norway 18.5%, and Estonia 14.7%, together comprising 78.7% of total flows.

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

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