Coniferous wood fuel market in Sweden

Earlier Report Observations

Between 2018 and 2019, the coniferous wood fuel market in Sweden expanded by 9.9% to 5 395 thousand m³, driven by increased demand for renewable energy sources and supportive state policies promoting bioenergy through subsidies. State-owned companies in the forestry and energy sector also invested in production capacity, while new players entered the market, particularly in wood pellets.

The COVID-19 pandemic disrupted supply chains in 2020, leading to a 17.8% contraction in market volume to 4 432 thousand m³. However, state-owned firms intensified green investments as part of recovery efforts, and regulatory changes introduced stricter sustainability certification for wood fuel. By 2021, the launch of new large pellet production facilities and tighter emissions legislation helped stabilize the market around 4 397 thousand m³. After a modest dip to 4 263 thousand m³ in 2022, the market rebounded to 4 638 thousand m³ in 2023.

Production coniferous wood fuel in Sweden

In kind, 2017-2020, K m³

Sweden was one of the world's leading producers of coniferous wood fuel from 2017 to 2020, ranking 17th globally by production volume during this period.

Top producers of coniferous wood fuel, 2017-2020

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

Sweden's coniferous wood fuel production declined for the third consecutive year in 2020. The country produced 2 550 K m³ that year, marking a moderate drop of 5.6% compared to 2019. Over the entire 2017-2020 period, production decreased by 22.7%, which translates to an annualized decline rate of 8.2%.

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

In value, 2017-2020, M $ US

In 2020, Sweden's coniferous wood fuel output was valued at 170.1 M $ US, reflecting a small year-over-year decline of 2.4%. The minimum value was recorded in 2018 at 147.2 M $ US, while the maximum occurred in 2019 at 174.3 M $ US. The largest decline of 14.9% took place in 2018, followed by the largest increase of 18.4% in 2019.

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

Exports coniferous wood fuel from Sweden

Exports in kind, K m³

Sweden's volume of coniferous wood fuel exports declined for the third consecutive year in 2020, totaling 244 K m³. This represented a decrease of 1.2% from the previous year. Between 2017 and 2020, exports fell by 33.8%, equating to an annualized decline rate of 12.8%.

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

From 2017 to 2020, Norway and Denmark served as the core markets for Sweden's coniferous wood fuel exports in kind, jointly accounting for 86.8% of total flows. Other destinations had comparatively modest shares during this period.

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

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

Exports in value, M $ US

After a two-year decline, Sweden's cross-border shipments of coniferous wood fuel increased in 2020, with export value reaching 16.2 M $ US. This showed a gain of 2.1% relative to the prior year. However, between 2017 and 2020, exports decreased by 15.7%, which corresponds to an annualized decline rate of 5.5%. The minimum value was recorded in 2019 at 15.9 M $ US, with the largest decline of 9.6% occurring in 2018.

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

During 2017-2020, Norway and Denmark remained the key destinations for Sweden's coniferous wood fuel exports in value terms, jointly taking 88.5% of total flows. Other trading partners were much less significant individually.

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

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

Imports coniferous wood fuel to Sweden

Imports in kind, K m³

In 2020, Sweden's volume of coniferous wood fuel imports totaled 2 126 K m³, which was 27.7% lower than the previous year. Between 2017 and 2020, imports decreased by 21.2%, equating to an annualized decline rate of 7.6%. The maximum volume was recorded in 2019 at 2 942 K m³, with the largest increase of 17.8% also occurring that year.

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

From 2017 to 2020, the leading sources for Sweden's coniferous wood fuel imports in kind were Latvia (38.1% of imports), Norway (25.2% of imports), and Estonia (14.2% of imports). Together, these three countries accounted for 77.5% of total import flows.

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

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

Imports in value, M $ US

After a two-year rise, Sweden's coniferous wood fuel imports declined in 2020, with a value of 89.1 M $ US. This constituted a drop of 20.7% from 2019. The maximum value was recorded in 2019 at 112.4 M $ US, when the largest increase of 12.7% also occurred.

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

During 2017-2020, Latvia (44.6% of imports in value terms), Norway (18.0% of imports), and Estonia (15.1% of imports) were the principal sources for Sweden's coniferous wood fuel imports by value. Collectively, they accounted for 77.7% of total import flows.

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

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