Coniferous wood fuel market in Hungary

Earlier Report Observations

The coniferous wood fuel market in Hungary opened the period at 266.9 thousand m³ in 2018, supported by an influx of lower-quality raw material from sanitary logging across Europe and boosted demand from state housing renovation subsidies. Market volume then contracted sharply to 161.8 thousand m³ in 2019, before a slight recovery to 163.9 thousand m³ in 2020, as the COVID-19 pandemic weakened the timber economy while a growing trend of moving to green areas increased demand for fuelwood in suburbs and holiday homes.

The market declined again to 129.8 thousand m³ in 2021, pressured by soaring wood prices driven by rising labor and service costs, coupled with a tightening supply due to reduced illegal logging and imports. A significant turnaround followed in 2022, with volume rising to 160.6 thousand m³, largely driven by the government's launch of a social fuelwood program that introduced regulated prices for up to 10 m³ to help households with rising utility costs, aided by expanded rail infrastructure improving timber distribution. Growth accelerated in 2023, with the market reaching 220.1 thousand m³, sustained by the continued social fuel program and supply pressures from drought and extreme weather affecting forestry.

In the later years, while comprehensive market size data is not available, key influencing factors persisted. In 2024, fuelwood prices initially softened due to weaker demand from a mild winter and market corrections, but an upward trend began in the second half. The market continued to be shaped by labor shortages and climate change transforming the forestry sector. Through 2025, the government maintained its social fuelwood program for needy residents in settlements under 5,000 people, with no price caps introduced as supply was deemed sufficient.

Production coniferous wood fuel in Hungary

In kind, 2018-2021, K m³

Top producers of coniferous wood fuel, 2018-2021

World map of production of coniferous wood fuel, 2018-2021

In 2021, Hungary produced 97.9 thousand cubic meters of coniferous wood fuel, marking a 31.0% year-over-year decrease. Production peaked in 2020 at 142.0 thousand cubic meters, which represented the largest annual increase of 42.4%. Over the period from 2018 to 2021, production declined by 7.3%, averaging an annualized decrease of 2.5%.

Annual dynamics of production in Hungary in kind, 2018-2021, K m³

Exports coniferous wood fuel from Hungary

Exports in kind, K m³

Hungary's exports of coniferous wood fuel declined for the third consecutive year. In 2021, exports reached 14.2 thousand cubic meters, showing a significant drop of 21.5% compared to the previous year. From 2018 to 2021, exports decreased by 57.9%, with a compound annual growth rate of -25.0%.

Annual dynamics of product's exports from Hungary in kind, 2018-2021, K m³

Between 2018 and 2021, Austria and Romania were the dominant destinations for Hungary's coniferous wood fuel exports, jointly accounting for 82.0% of total export volumes, while other markets made up the remaining share.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Hungary in kind, 2018-2021

Exports in value, K $ US

Hungary's exports of coniferous wood fuel in value terms declined for the third year in a row. In 2021, exports totaled 1 374 thousand US dollars, which was 13.4% lower than the previous year. From 2018 to 2021, exports decreased by 33.3%, with an annualized rate of decline of 12.6%.

Annual dynamics of product's exports from Hungary in value, 2018-2021, K $ US

From 2018 to 2021, Austria, Romania, and Italy were the top contributors to Hungary's coniferous wood fuel exports in value terms. Austria accounted for 54.7%, Romania for 21.0%, and Italy for 19.4%, together making up 95.2% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Hungary in value, 2018-2021

Imports coniferous wood fuel to Hungary

Imports in kind, K m³

After two years of decline, Hungary's imports of coniferous wood fuel increased in 2021. Imports amounted to 46.1 thousand cubic meters, up 15.0% from the previous year. The lowest import volume was recorded in 2020 at 40.1 thousand cubic meters, which saw the largest decline of 57.8%. Over the 2018-2021 period, imports decreased by 76.4%, with a compound annual growth rate of -38.2%.

Annual dynamics of product's imports to Hungary in kind, 2018-2021, K m³

Between 2018 and 2021, Poland, Austria, and Slovakia were the main sources of coniferous wood fuel imports to Hungary in volume terms. Poland accounted for 30.7%, Austria for 21.5%, and Slovakia for 20.9%, together representing 73.1% of total import volumes.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Hungary in kind, 2018-2021

Imports in value, K $ US

Following a two-year reduction, Hungary's imports of coniferous wood fuel in value terms rose in 2021. Imports reached approximately 3 296 thousand US dollars, an increase of 27.5% compared to the previous year. The lowest value was recorded in 2020 at 2 585 thousand US dollars, while the largest decline occurred in 2019 at 61.0%. From 2018 to 2021, imports decreased by 70.2%, with an annualized decline rate of 33.2%.

Annual dynamics of product's imports to Hungary in value, 2018-2021, K $ US

In the 2018-2021 period, Poland, Austria, and Slovakia remained the principal suppliers of coniferous wood fuel to Hungary in value terms. Poland contributed 37.0%, Austria 27.5%, and Slovakia 11.8%, jointly accounting for 76.3% of total import value.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Hungary in value, 2018-2021