Coniferous wood fuel market in Finland

Earlier Report Observations

The market volume for coniferous wood fuel in Finland grew from 6.1 million m³ in 2018 to 7.8 million m³ in 2021. This expansion was primarily driven by the EU Renewable Energy Directive (RED), which established sustainability criteria for wood fuels, along with state-supported energy level increases and a new fuel distribution obligation that raised the share of renewable sources. The Finnish forest industry also increased the use of side products like bark and sawdust for energy generation, boosting overall supply.

In 2022, the market volume sharply contracted to 5.6 million m³, a 28% drop from the previous year. The halt of wood imports from Russia due to the war in Ukraine constrained supply, while consumption fell because of a cold winter and a shift toward electric heating. Stricter EU sustainability rules under the RED update came into force the same year, requiring certification processes that affected market dynamics.

The market recovered slightly to 5.8 million m³ in 2023. A cold winter increased heating demand, but overall wood fuel consumption declined by 2% due to the expansion of the EU Emission Trading System, which imposed new reporting requirements, and changes in wood product demand that reduced usage in the land-use sector.

Production coniferous wood fuel in Finland

In kind, 2017-2020, K m³

From 2017 to 2020, Finland ranked as the 14th largest producer of coniferous wood fuel globally.

Top producers of coniferous wood fuel, 2017-2020

World map of production of coniferous wood fuel, 2017-2020

Finland's coniferous wood fuel production grew for the second year in a row. In 2020, the country produced 4 322 K m³, marking a 16.3% increase from 2019. Over the 2017-2020 period, production rose by 17.5%, with an average annual growth rate of 5.5%. The lowest production level was in 2018 at 3 547 K m³, which also saw the largest decline of 3.5%.

Annual dynamics of production in Finland in kind, 2017-2020, K m³

In value, 2017-2020, M $ US

Coniferous wood fuel production in Finland continued to expand for the second consecutive year. In 2020, the output was valued at 204.5 M $ US, up 0.8% from the previous year. Between 2017 and 2020, production increased by 30.5%, translating to an annualized growth rate of 9.3%. The lowest value was recorded in 2018 at 154.1 M $ US, with the largest decline that year of 1.7%. In contrast, 2019 saw the biggest increase at 31.7%.

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

Exports coniferous wood fuel from Finland

Exports in kind, K m³

Finland's coniferous wood fuel export volume rebounded after a two-year decline. In 2020, exports reached 276 K m³, a 43.7% rise from 2019. The lowest point was in 2019 at 192 K m³, while the largest drop occurred in 2018 with a 16.7% decrease.

Annual dynamics of product's exports from Finland in kind, 2017-2020, K m³

Between 2017 and 2020, Sweden dominated Finland's coniferous wood fuel exports in kind, accounting for 95.4% of the total flows.

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 coniferous wood fuel exports in value terms grew for the second straight year. In 2020, exports totaled 13.1 M $ US, a 24.5% increase from 2019. From 2017 to 2020, exports rose by 13.2%, with an average annual growth rate of 4.2%. The minimum value was in 2018 at 9.8 M $ US, which also experienced the largest decline of 15.2%.

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

From 2017 to 2020, Finland's coniferous wood fuel exports in value were heavily concentrated on Sweden, which made up 90.9% of total flows.

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 wood fuel to Finland

Imports in kind, K m³

Finland's coniferous wood fuel import volume increased for the third consecutive year. In 2020, imports totaled 3 745 K m³, up 19.7% year-over-year. Between 2017 and 2020, imports grew by 56.2%, equating to an annualized rate of 16.0%.

Annual dynamics of product's imports to Finland in kind, 2017-2020, K m³

Throughout 2017-2020, Russia was the dominant source for Finland's coniferous wood fuel imports in kind, representing 77.3% of total flows, while other countries contributed relatively small 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 coniferous wood fuel imports in value terms rose for the third year in a row. In 2020, imports amounted to 170.3 M $ US, a 10.8% increase from the previous year. From 2017 to 2020, imports surged by 87.9%, with an average annual growth rate of 23.4%.

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

Over the 2017-2020 period, Russia and Estonia were the primary sources for Finland's coniferous wood fuel imports in value, together accounting for 84.1% of total flows, with the remainder distributed among other markets.

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

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