Fuel wood in chips and particles market in Europe

Earlier Report Observations

The market for fuel wood in chips and particles in Europe expanded from 51.0 million metric tons in 2018 to a peak of 68.7 million metric tons in 2022. This growth was primarily driven by rising energy prices, which increased the attractiveness of fuel wood as an alternative heating source. In 2021, higher energy costs and shifting demand patterns already signaled growing reliance on wood fuel. The trend intensified in 2022 due to the energy crisis and geopolitical conflicts, which sharply raised prices for conventional fuels. Additionally, the introduction of a CO2 levy on fossil fuels and a permanent reduction of the VAT rate on fuel wood to 7% further stimulated consumer demand for this sustainable energy option.

After reaching its peak, the market adjusted downward to 60.7 million metric tons in 2023. This correction coincided with an improved supply situation and lower demand peaks, leading to a notable decrease in fuel wood prices compared to the previous year. While prices remained elevated, the easing of supply constraints and normalized demand contributed to the market's contraction. In 2024, the industry saw the entry of a new player with the launch of the X Firewood Factory by Finnish company TP Silva, indicating continued investment in production capacity.

Production fuel wood in chips and particles in Europe

In kind, 2017-2020, K t

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

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

Europe's production of fuel wood in chips and particles has grown for the second year in a row. In 2020, Europe produced 57 022 K t, marking an 11.1% year-on-year increase. Looking at the period from 2017 to 2020, production rose by 6.9%, with an average annual growth rate of 2.3%. The lowest production level was in 2018 at 49 760 K t, which also saw the largest decline of 6.7%.

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

Exports fuel wood in chips and particles from Europe

Exports in kind, K t

Europe's exports of fuel wood in chips and particles have fallen for the second consecutive year. In 2020, exports dropped to 2 788 K t, a sharp 22.0% decrease compared to 2019. From 2017 to 2020, exports declined by 28.7%, averaging a 10.6% annual reduction. The peak export volume was in 2018 at 6 369 K t, which also experienced the largest increase of 63.0%. The most significant drop occurred in 2019, with a 43.9% decline.

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

Between 2017 and 2020, the main destinations for Europe's exports in kind were Turkey, accounting for 2.7% of exports, Norway at 2.3%, and Switzerland at 1.2%. Together, these three countries represented 6.3% of total export flows.

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

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

Exports in value, M $ US

After two years of growth, Europe's export value of fuel wood in chips and particles declined. In 2020, exports amounted to 759.3 M $ US, a modest 4.7% decrease from the previous year. Over the 2017-2020 period, exports increased by 20.3%, with an average annual rate of 6.4%. The highest value was recorded in 2019 at 796.9 M $ US, while the largest increase of 24.0% occurred in 2018.

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

From 2017 to 2020, Europe's fuel wood in chips and particles was exported to a wide range of markets. Turkey, Norway, and Switzerland accounted for 3.0%, 2.7%, and 1.8% of exports in value terms, respectively, totaling 7.5% of overall exports. The remaining 92.5% was distributed among numerous smaller destinations.

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

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

Imports fuel wood in chips and particles to Europe

Imports in kind, K t

Europe's imports of fuel wood in chips and particles have decreased for the second year in a row. In 2020, imports stood at 3 971 K t, down 4.1% from the previous year. Between 2017 and 2020, imports fell by 16.8%, with an average annual decline of 6.0%. The highest import volume was in 2018 at 7 599 K t, which also saw the largest increase of 59.1%. The most substantial drop was in 2019, with a 45.5% decrease.

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

During the 2017-2020 period, the key sources for Europe's imports in kind were Uruguay, representing 5.6% of imports, Norway at 4.4%, and Brazil at 2.5%. Combined, these three countries made up 12.4% of total import flows.

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

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

Imports in value, M $ US

Europe's import value of fuel wood in chips and particles has declined for the second consecutive year. In 2020, imports reached 796.7 M $ US, a significant 15.7% drop from the year before. From 2017 to 2020, imports increased by 7.7%, averaging a 2.5% annual growth rate. The peak value was in 2018 at 958.2 M $ US, which also experienced the largest increase of 29.6%.

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

In the 2017-2020 timeframe, three primary markets—Uruguay, Brazil, and Norway—collectively accounted for 17.0% of Europe's total import value for fuel wood in chips and particles.

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

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