Coniferous wood fuel market in Southern Europe

Earlier Report Observations

The coniferous wood fuel market in Southern Europe experienced significant volatility between 2018 and 2023. Market volume plummeted from 4 025 thous. m³ in 2018 to 2 388 thous. m³ in 2019, a sharp contraction of 41%. It then recovered partially to 2 596 thous. m³ in 2020 and further to 3 253 thous. m³ in 2021.

After reaching a peak in 2021, market volume entered a moderate downward trend, declining to 3 125 thous. m³ in 2022 and 2 997 thous. m³ in 2023. The global energy crisis following the war in Ukraine increased the attractiveness of wood biomass as an alternative to fossil fuels, supporting underlying demand. However, price volatility and shifting market conditions contributed to the slight contraction in 2022. In 2023, the decline was more pronounced, driven by a slowdown in demand, particularly from the pallet and packaging sector, and ongoing instability in raw material prices.

For 2024, market sources point to a slight recovery in Galicia, stable pine wood prices, and continued regulatory emphasis on decarbonization, which favors wood use in construction and energy. The local supply chain for wood chips has helped maintain price competitiveness for heating applications.

Production coniferous wood fuel in Southern 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

In Southern Europe, coniferous wood fuel production reached 2 746 thousand cubic meters in 2020, marking an 11.0% increase from 2019. Over the 2017-2020 period, production declined by 5.6%, with a compound annual growth rate of -1.9%. The lowest production level was recorded in 2019 at 2 474 thousand cubic meters, while the peak occurred in 2018 with 3 982 thousand cubic meters. The most significant drop was observed in 2019, falling by 37.9%, whereas the largest rise took place in 2018, surging by 36.9%.

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

Exports coniferous wood fuel from Southern Europe

Exports in kind, K m³

Following two years of decline, Southern Europe's coniferous wood fuel exports rebounded in 2020, totaling 740 thousand cubic meters—a 15.0% increase from 2019. Over the 2017-2020 span, exports decreased by 15%, with a compound annual growth rate of -5.3%. The lowest export volume was recorded in 2019 at 644 thousand cubic meters, and the sharpest decline occurred in 2018, dropping by 17.1%.

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

From 2017 to 2020, Southern Europe exported coniferous wood fuel to a diverse range of markets. Austria accounted for 25.9% of exports in volume, Hungary for 5.6%, and France for 3.6%, collectively making up 35.2% of total exports. The remaining 64.8% was distributed among numerous smaller destinations.

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

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

Exports in value, K $ US

Coniferous wood fuel exports from Southern Europe grew for the third consecutive year, reaching 70 574 thousand US dollars in 2020—a 14.0% year-over-year increase. Over the 2017-2020 period, exports rose by 27.6%, with a compound annual growth rate of 8.5%.

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

Between 2017 and 2020, the export value of coniferous wood fuel from Southern Europe was spread across a wide array of partners. Austria contributed 22.3% of the total value, the Netherlands 7.7%, and France 3.8%, together comprising 33.8% of exports. The majority, 66.2%, flowed to many other countries.

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

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

Imports coniferous wood fuel to Southern Europe

Imports in kind, K m³

After two years of contraction, coniferous wood fuel imports into Southern Europe increased in 2020, totaling 590 thousand cubic meters—a moderate 5.8% rise from 2019. From 2017 to 2020, imports fell by 42.4%, translating to an annualized decline of 16.8%. The lowest import volume was recorded in 2019 at 558 thousand cubic meters, with the largest drop occurring that same year at 27.1%.

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

During 2017-2020, coniferous wood fuel imports into Southern Europe in volume terms were widely distributed across markets. Austria represented 34.1% of imports, Bulgaria 7.2%, and France 3.0%, together accounting for 44.2% of total flows.

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

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

Imports in value, K $ US

Cross-border shipments of coniferous wood fuel into Southern Europe declined for the third year in a row, with imports recorded at 41 458 thousand US dollars in 2020—down 4.8% from the previous year. Between 2017 and 2020, imports decreased by 40.4%, equating to an annualized rate of -15.8%.

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

From 2017 to 2020, the value of coniferous wood fuel imports into Southern Europe was dispersed across numerous partner countries. Austria accounted for 23.2% of the import value, Bulgaria for 11.6%, and France for 6.2%, collectively making up 41.0% of total flows.

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

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