Coniferous wood fuel market in Russia

Earlier Report Observations

The Russian coniferous wood fuel market saw a contraction in 2019, despite the entry of new players, as tightened control over sustainable forest management by state-owned companies and stricter environmental requirements limited raw material availability and raised production costs. The decline continued in 2020 due to supply chain disruptions caused by the COVID-19 pandemic. Previously, in 2018, the market had been supported by state incentives for bioenergy and the expansion of production capacities.

From 2021, the market recovered, aided by the launch of new production facilities and continued state support. Growth accelerated in 2022 as global energy price rises boosted demand for wood fuel, and state companies invested in expanding production. In 2023, the market volume saw a modest contraction.

Production coniferous wood fuel in Russia

In kind, 2017-2020, K m³

From 2017 to 2020, Russia ranked fifth globally in the production of coniferous wood fuel.

Top producers of coniferous wood fuel, 2017-2020

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

Coniferous wood fuel production in Russia declined for the second year in a row. In 2020, Russia produced 10,752 thousand cubic meters of coniferous wood fuel, a slight decrease of 0.6% compared to 2019. Over the 2017-2020 period, production grew by 2.2%, with an average annual growth rate of 0.7%. The highest production level was recorded in 2018 at 11,693 thousand cubic meters, which represented an 11.1% increase. The largest decline occurred in 2019, with a drop of 7.5%.

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

In value, 2017-2020, M $ US

Coniferous wood fuel production in Russia declined for the second consecutive year. In 2020, the output was valued at 351.8 million US dollars, remaining relatively stable compared to 2019. Between 2017 and 2020, production increased by 21.1%, translating to an annualized growth rate of 6.6%. The peak value was reached in 2018 at 391.1 million US dollars, marking a 34.6% increase. The most significant decline was in 2019, with a 9.9% drop.

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

Exports coniferous wood fuel from Russia

Exports in kind, K m³

Coniferous wood fuel deliveries from Russia increased for the third consecutive year. In 2020, Russia exported 3,825 thousand cubic meters of coniferous wood fuel, showing a sharp rise of 35.5% compared to the previous year. From 2017 to 2020, exports surged by 75.9%, with an average annual growth rate of 20.7%.

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

From 2017 to 2020, the export structure for coniferous wood fuel in kind was heavily concentrated on Finland, which accounted for 88.5% of total flows. Other markets played a much smaller role.

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

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

Exports in value, M $ US

Russia's coniferous wood fuel exports increased for the third year in a row. In 2020, exports reached 125.2 million US dollars, up 36.3% from 2019. Over the 2017-2020 period, exports grew by 108.6%, with a compound annual growth rate of 27.8%.

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

From 2017 to 2020, Finland dominated the export structure in value terms, holding an 88.9% share of total flows. Other markets had relatively minor shares.

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

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

Imports coniferous wood fuel to Russia

Imports in kind, K m³

The market showed volatility during these years. Imports peaked in 2019 at 9 thousand cubic meters, then fell to their lowest point in 2020 at 0.0 thousand cubic meters, a swing of 473 times. In 2020, Russia imported 0.0 thousand cubic meters of coniferous wood fuel, a 99.8% decrease year-over-year. The largest increase was recorded in 2019, with a jump of 376.4%.

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

From 2017 to 2020, Belarus was the dominant and nearly exclusive source for imports of coniferous wood fuel in kind to Russia, accounting for 98.1% of the total.

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

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

Imports in value, M $ US

The market displayed an unstable trend throughout the period. Imports reached their highest level in 2019 at 0.1 million US dollars and their lowest in 2020 at 0.0 million US dollars, reflecting a 9.4-fold gap. In 2020, Russia imported 0.0 million US dollars of coniferous wood fuel, an 89.3% decline compared to the previous year. The largest increase occurred in 2019, with a rise of 188.8%.

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

From 2017 to 2020, the import structure in value terms was primarily shaped by Belarus and Germany, which together made up 84.8% of total flows. Other markets contributed to a long tail of smaller shares.

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

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