Fuel wood in chips and particles market in Hungary

Earlier Report Observations

Between 2018 and 2019, the Hungarian market for fuel wood chips and particles grew from 1,084 thousand tonnes to 1,123 thousand tonnes. This expansion was supported by increasing consumer demand and efforts to curb illegal timber imports, which tightened supply. However, in 2020 the market volume contracted sharply to 836 thousand tonnes. Despite continued strong demand and rising prices noted in 2021, the market remained nearly flat at 840 thousand tonnes, indicating that supply constraints were preventing any recovery.

The energy crisis triggered by the Russia-Ukraine war in 2022 spurred household demand for wood as an alternative heating source. However, the Hungarian government's introduction of administratively set prices for firewood and strict new transport documentation rules simultaneously constrained commercial supply. This combination led to a severe market contraction to 524 thousand tonnes in 2022. The price cap was lifted in April 2023, but supply was further hampered by drought conditions affecting forest stocks, contributing to a further decline to 488 thousand tonnes.

Market volume continued to fall in 2024, reaching 398 thousand tonnes. Strict transport regulations, including mandatory waybills for shipments, persisted. While Verteserdo Zrt. launched an online shop to facilitate consumer access, this did not offset the broader supply limitations. Looking to 2025, the government has stated it does not plan to reintroduce price controls, but drought and storm damage remain risks to the sustainable supply of wood.

Production fuel wood in chips and particles in Hungary

In value, 2018-2021, K $ US

Hungary's production of fuel wood in chips and particles, measured in monetary terms, increased in 2021 after two consecutive years of decline. The output was valued at 31 017 thousand US dollars, marking a slight year-on-year increase of 1.4%. However, looking at the broader period from 2018 to 2021, production fell by 38.3%, which translates to an annualized decline rate of 14.9%. The lowest value was recorded in 2020 at 30 590 thousand US dollars, with the largest single-year drop of 35.2% also occurring that year.

Annual dynamics of production in Hungary 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

In 2021, Hungary produced 813 thousand tonnes of fuel wood in chips and particles, representing a 1.6% increase compared to 2020. Over the four-year span from 2018 to 2021, production decreased by 17.5%, with a compound annual growth rate of -6.2%. The minimum output was recorded in 2020 at 800 thousand tonnes, while the peak was in 2019 with 1 074 thousand tonnes. The most significant decline occurred in 2020 at 25.5%, whereas the largest increase was in 2019 at 9.0%.

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

Exports fuel wood in chips and particles from Hungary

Exports in kind, K t

Hungary's exports of fuel wood in chips and particles, measured in volume, declined for the third year in a row in 2021. The country exported 20.3 thousand tonnes, which is 50.2% lower than the previous year. From 2018 to 2021, exports dropped by 76.3%, corresponding to a compound annual decline rate of 38.1%.

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

Between 2018 and 2021, Hungary's export structure for fuel wood in chips and particles, in volume terms, was heavily concentrated on Austria. Austria accounted for 86.8% of total exports, with all other trading partners making up the remaining share.

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

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

Exports in value, K $ US

Hungary's exports of fuel wood in chips and particles, in value terms, fell for the third consecutive year in 2021. Exports reached 1 152 thousand US dollars, a decrease of 55.2% compared to the previous year. Over the period from 2018 to 2021, exports declined by 79.2%, equating to an annualized rate of 40.7%.

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

From 2018 to 2021, Austria dominated Hungary's exports of fuel wood in chips and particles in value terms, holding a 79.4% share of total flows. Other markets collectively accounted for the remainder.

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

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

Imports fuel wood in chips and particles to Hungary

Imports in kind, K t

Hungary's imports of fuel wood in chips and particles, measured in volume, decreased for the third straight year in 2021. The country imported 48.0 thousand tonnes, down by 37.5% from 2020. Over the 2018-2021 period, imports fell by 73.9%, with a compound annual decline rate of 36.1%.

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

During 2018-2021, the main sources for Hungary's imports of fuel wood in chips and particles, in volume terms, were Croatia, Poland, and Slovakia. Croatia accounted for 40.3% of imports, Poland for 17.6%, and Slovakia for 14.9%, together representing 72.8% of total import flows.

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

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

Imports in value, K $ US

Hungary's imports of fuel wood in chips and particles, in value terms, declined for the third year in a row in 2021. Import volume stood at 4 392 thousand US dollars, a 20.1% drop compared to 2020. From 2018 to 2021, imports decreased by 70.5%, corresponding to an annualized decline rate of 33.4%.

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

In the 2018-2021 period, Croatia, Poland, and Austria were the primary suppliers of fuel wood in chips and particles to Hungary in value terms. Croatia held a 32.4% share of imports, Poland 23.9%, and Austria 19.7%, collectively forming 76.0% of total import value.

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

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