Coniferous wood fuel market in Northern Europe

Earlier Report Observations

The market for coniferous wood fuel in Northern Europe grew steadily from 2018 to 2020, with the total market volume expanding from 16 927 thousand m³ to 19 610 thousand m³. This period established a strong baseline of consumption and supply in the region.

A shift occurred from 2021, when the market volume contracted to 17 239 thousand m³. This decline coincided with high international demand for coniferous wood in the US and Europe, which likely boosted exports and reduced domestic availability. State-led increases in timber harvesting, including for energy wood, provided more raw material but could not offset the net outflow. The downturn deepened in 2022, with the market volume falling further to 14 582 thousand m³. Although a record coniferous timber harvest that year increased domestic supply, persistent strong demand from the construction and energy sectors, both domestically and abroad, continued to support high export levels while imports declined.

The market rebounded in 2023, reaching 16 843 thousand m³. This recovery was primarily driven by another record timber harvest in Denmark, which significantly boosted production. Continued high demand and rising prices, exacerbated by reduced wood imports from Russia, characterized the period. New capacity and investments in wood-based energy production further stimulated consumption. By 2024, harvests remained historically high, and regulatory measures in Sweden aimed at reducing emissions from wood burning began influencing long-term consumption patterns.

Production coniferous wood fuel in Northern Europe

In kind, 2017-2020, K m³

Top producers of coniferous wood fuel, 2017-2020

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

Coniferous wood fuel production in Northern Europe increased for the second consecutive year. In 2020, production reached 13 332 K m³, marking a 4.7% year-over-year rise. The lowest production level was recorded in 2018 at 12 551 K m³, which also saw the largest decline of 4.4%.

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

Exports coniferous wood fuel from Northern Europe

Exports in kind, K m³

The market showed an unstable trend throughout the period. Import levels fluctuated significantly, with a 3.4-fold difference between the peak in 2017 and the low in 2020. In 2020, coniferous wood fuel deliveries from Northern Europe totaled 840 K m³, down 46.4% from the previous year. The largest decline occurred in 2018 at 62.2%, while the largest increase was in 2019 at 44.2%.

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

From 2017 to 2020, Norway, Germany, and Poland were the main buyers of coniferous wood fuel from Northern Europe, accounting for 8.5%, 3.4%, and 2.9% of exports in kind, respectively. Together, they represented 14.8% of total exports in kind.

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

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

Exports in value, M $ US

After a two-year increase, coniferous wood fuel shipments from Northern Europe to abroad declined. In 2020, exports amounted to 200.4 M $ US, down 6.8% from the previous year. Between 2017 and 2020, exports grew by 16.9%, equivalent to an annualized rate of 5.3%. The highest value was recorded in 2019 at 214.9 M $ US, with the largest increase occurring in 2018 at 18.2%.

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

From 2017 to 2020, exports in value terms of coniferous wood fuel from Northern Europe were widely distributed across markets. Norway, Germany, and Poland accounted for 9.0%, 3.7%, and 2.0% of exports in value terms, respectively, together making up only 14.8% of total flows.

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

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

Imports coniferous wood fuel to Northern Europe

Imports in kind, K m³

In 2020, Northern Europe imported 7 118 K m³ of coniferous wood fuel, a 5.4% decrease year-over-year. Between 2017 and 2020, imports rose by 23.2%, equating to an annualized rate of 7.2%. The lowest import level was in 2018 at 5 464 K m³, which also saw the largest decline of 5.4%. The highest import level was in 2019 at 7 521 K m³, with the largest increase of 37.7%.

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

From 2017 to 2020, Russia, Belarus, and Norway led the structure of imports in kind, accounting for 27.7%, 19.8%, and 8.2% of imports, respectively. Together, they represented 55.8% of total flows.

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

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

Imports in value, M $ US

After a two-year advance, coniferous wood fuel shipments to Northern Europe from abroad declined. In 2020, imports were approximately 379.7 M $ US, down 8.4% from the previous year. Over the period 2017-2020, imports increased by 51.6%, with a compound annual growth rate of 14.9%. The highest value was recorded in 2019 at 414.3 M $ US, and the largest increase occurred in 2018 at 48.5%.

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

From 2017 to 2020, imports in value terms of coniferous wood fuel to Northern Europe were spread across many countries. Russia, Belarus, and Norway accounted for 27.4%, 10.1%, and 5.7% of imports in value terms, respectively, jointly representing only 43.1% of total flows.

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

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