Fuel wood in chips and particles market in Canada

Earlier Report Observations

The Canadian market for fuel wood in chips and particles began the period at a high volume of 12.2 million tonnes in 2018, supported by strong demand for wood heating fueled by state subsidies in Quebec. However, the market volume contracted over the next two years, falling to 11.1 million tonnes in 2019 due to warmer winters that reduced heating needs and then to 10.5 million tonnes in 2020. The latter decline coincided with the closure of the Abercrombie Point plant in Nova Scotia, which impacted wood supply, and a sharp rise in softwood lumber prices linked to pandemic-induced supply-demand imbalances.

Regulatory measures and sustained cost pressures continued to influence the market. In September 2021, Quebec banned the use of solid-fuel heating appliances during smog warnings, curbing consumption. Concurrently, rising lumber prices complicated the supply chain. The global energy crisis in 2022 drove prices for firewood and pellets even higher due to increased raw material and logistics costs, contributing to a further market volume decline to 9.8 million tonnes. By 2023, market volume saw a partial recovery to 10.2 million tonnes, while the market value jumped sharply to $962.6 million. This price inflation was partly driven by supply constraints from forest fires in Quebec, which raised firewood prices. During this year, Quebec also launched replacement programs for non-certified stoves and modified regulations to ban the future installation of decorative fireplaces.

Heading into 2024, the regulatory landscape tightened further with Quebec prohibiting the installation of non-certified fireplaces from January 2024 and mandating appliance declarations by April. Ongoing replacement programs for non-compliant wood-burning appliances and persistent competition among Quebec producers continued to shape market dynamics.

Production fuel wood in chips and particles in Canada

In kind, 2017-2020, K t

From 2017 to 2020, Canada ranked fifth globally in production volume of fuel wood in chips and particles.

Top producers of fuel wood in chips and particles, 2017-2020

World map of production of fuel wood in chips and particles, 2017-2020

Canada's production of fuel wood in chips and particles declined for the third consecutive year. In 2020, the country produced 8,840 K t, marking a 5.6% decrease compared to the previous year. Between 2017 and 2020, production fell by 21.6%, which translates to an annualized decline rate of 7.8%.

Annual dynamics of production in Canada in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Canada's production of fuel wood in chips and particles declined for the third consecutive year. In 2020, the output was valued at 628.9 M $ US, down 14.8% from the previous year. Over the 2017-2020 period, production decreased by 28.9%, with a compound annual growth rate (CAGR) of -10.7%.

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

Exports fuel wood in chips and particles from Canada

Exports in kind, K t

Fuel wood in chips and particles exports from Canada declined for the third consecutive year. In 2020, exports totaled 65 K t, a 42.7% drop compared to 2019. Between 2017 and 2020, exports decreased by 79.5%, with a CAGR of -41.1%.

Annual dynamics of product's exports from Canada in kind, 2017-2020, K t

From 2017 to 2020, Turkey, the United States, and Iceland were the core markets for Canada's exports in kind. Turkey accounted for 53.7% of exports, the United States for 9.9%, and Iceland for 9.3%, together representing 72.9% of total flows.

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

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

Exports in value, M $ US

Fuel wood in chips and particles shipments from Canada declined for the third consecutive year. In 2020, exports stood at 4.6 M $ US, reflecting a sharp 48.3% drop from 2019. Between 2017 and 2020, exports decreased by 81.4%, equating to an annualized decline rate of 43.0%.

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

Over the 2017-2020 period, Turkey, the United States, and Iceland were the main markets for Canada's exports in value terms. Turkey represented 51.3% of exports, the United States 18.9%, and Iceland 8.4%, together accounting for 78.6% of total flows.

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

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

Imports fuel wood in chips and particles to Canada

Imports in kind, K t

The market showed an unstable trend during this period. Imports reached their lowest point in 2017 and peaked in 2019, with a 59,150-fold difference between these years. In 2020, foreign supplies to Canada amounted to 1,730 K t, a 4.4% decrease year-over-year. The maximum value was recorded in 2019 at 1,810 K t, while the largest increase occurred in 2018 at 5,660,011.8%.

Annual dynamics of product's imports to Canada in kind, 2017-2020, K t

From 2017 to 2020, the United States dominated the partner structure of imports in kind, consistently accounting for 100.0% of total flows.

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

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

Imports in value, M $ US

Fuel wood in chips and particles imports to Canada declined for the second consecutive year. In 2020, imports amounted to 96.0 M $ US, indicating a moderate 4.5% reduction from 2019. Between 2017 and 2020, imports increased by 28.1%, with an annualized growth rate of 8.6%. The maximum value was recorded in 2018 at 100.9 M $ US, with the largest increase also in 2018 at 34.6%.

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

Over the 2017-2020 period, Canada's dependence on the United States was pronounced, with this market accounting for 99.7% of total imports in value terms of fuel wood in chips and particles.

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

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