Fuel wood in chips and particles market in Czechia

Earlier Report Observations

The market for fuel wood in chips and particles in Czechia showed relative stability from 2018 to 2020, with consumption volumes hovering around 1.4 million tonnes. This period was marked by increased harvesting of wood infested by bark beetles, which boosted supply to the market, with the state-owned enterprise Lesy ČR being a dominant player influencing sales through its auction system. In 2020, energy uncertainty prompted households to seek alternative heating sources, sustaining demand for wood fuel.

A sharp surge in market volume to 2.2 million tonnes occurred in 2021, driven by rising prices for natural gas and electricity, which enhanced the appeal of wood chips. This attractiveness also drew investor interest into the wood-processing industry. However, consumption fell back to 1.4 million tonnes in 2022 as prices for wood fuel more than doubled due to the energy crisis and the war in Ukraine, compounded by an increase in VAT on wood fuel from 10% to 21% at the start of the year. The introduction of stricter Eco-design emission limits for new stoves and boilers also began reshaping market conditions.

By 2023, the market stabilized at 1.4 million tonnes as high prior-year prices and accumulated household inventories reduced immediate demand, leading to a gradual price decline. New small-scale sellers who had entered the market during the peak period began losing their foothold. In 2024, volume recovered to 1.6 million tonnes, supported by state subsidy programs for replacing old boilers with more efficient models and the impending ban on first and second emission class boilers from September 2024, which spurred upgrades in heating equipment and maintained demand for fuel wood.

Production fuel wood in chips and particles in Czechia

In value, 2018-2021, K $ US

After two years of decline, Czechia's production of fuel wood in chips and particles increased in value. In 2021, output reached 85 841 thousand US dollars, marking a significant 33.5% rise compared to 2020. The lowest value was recorded in 2020 at 64 285 thousand US dollars, following the largest decline of 17.5% in 2019.

Annual dynamics of production in Czechia in value, 2018-2021, K $ US

In kind, 2018-2021, K t

Top producers of fuel wood in chips and particles, 2018-2021

World map of production of fuel wood in chips and particles, 2018-2021

Czechia's production volume of fuel wood in chips and particles grew for the second consecutive year. In 2021, output amounted to 2 211 thousand tonnes, representing a substantial 57.7% increase over the previous year. From 2018 to 2021, production rose by 60.7%, equivalent to an annualized growth rate of 17.1%. The lowest volume was recorded in 2019 at 1 351 thousand tonnes, which saw the largest decline of 1.8%.

Annual dynamics of production in Czechia in kind, 2018-2021, K t

Exports fuel wood in chips and particles from Czechia

Exports in kind, K t

Fuel wood in chips and particles exports from Czechia declined for the third consecutive year. In 2021, export volume stood at 139.3 thousand tonnes, showing a sharp decrease of 23.2% from 2020. Between 2018 and 2021, exports fell by 41.4%, equating to an annualized decline of 16.3%.

Annual dynamics of product's exports from Czechia in kind, 2018-2021, K t

From 2018 to 2021, Germany, Austria, and Slovakia were consistently the main destinations for exports in kind. Germany accounted for 38.4% of exports, Austria for 31.6%, and Slovakia for 17.8%, together making up 87.8% of total flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Czechia in kind, 2018-2021

Exports in value, K $ US

Fuel wood in chips and particles exports from Czechia declined in value for the third consecutive year. In 2021, exports totaled 8 035 thousand US dollars, representing an 8.9% decrease from 2020. Between 2018 and 2021, exports dropped by 50.4%, with an annualized decline rate of 20.9%.

Annual dynamics of product's exports from Czechia in value, 2018-2021, K $ US

Over the period 2018–2021, Germany, Austria, and Slovakia stood out as the primary markets for exports in value terms. Germany contributed 41.2% of export value, Austria 27.2%, and Slovakia 20.9%, collectively accounting for 89.3% of total flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Czechia in value, 2018-2021

Imports fuel wood in chips and particles to Czechia

Imports in kind, K t

Czechia's imports of fuel wood in chips and particles in volume terms declined for the third consecutive year. In 2021, imports amounted to 130.7 thousand tonnes, down by 20.4% compared to 2020. From 2018 to 2021, imports decreased by 53.5%, with a compound annual growth rate (CAGR) of -22.5%.

Annual dynamics of product's imports to Czechia in kind, 2018-2021, K t

Between 2018 and 2021, Poland, Slovakia, and Germany accounted for the largest share of imports in kind. Poland represented 47.1% of imports, Slovakia 32.3%, and Germany 17.0%, together comprising 96.4% of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Czechia in kind, 2018-2021

Imports in value, K $ US

After two years of decline, Czechia's imports of fuel wood in chips and particles increased in value. In 2021, imports totaled 8 085 thousand US dollars, up by 1.8% year-over-year. However, from 2018 to 2021, imports decreased by 52.2%, equivalent to an annualized decline of 21.8%. The lowest value was recorded in 2020 at 7 943 thousand US dollars, following the largest decline of 49.5% in that year.

Annual dynamics of product's imports to Czechia in value, 2018-2021, K $ US

From 2018 to 2021, Poland, Slovakia, and Germany consistently held leading positions in the import structure by value. Poland accounted for 48.0% of import value, Slovakia for 25.9%, and Germany for 19.6%, jointly representing 93.6% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Czechia in value, 2018-2021