Fuel wood in chips and particles market in Northern Europe

Earlier Report Observations

The market for fuel wood chips and particles in Northern Europe grew steadily from 22.5 million tons in 2018 to 33.0 million tons in 2021. A major surge occurred in 2020, when the market volume jumped by 29% to 29.7 million tons. This acceleration was directly linked to the energy transition in the region, exemplified by the closure of the coal-based cogeneration plant at Stockholm's Värtaverket in April 2020 and its replacement with a biofuel-based system. This shift from fossil fuels to solid biofuels like wood chips created a new, stable demand source from the district heating sector.

After peaking in 2021, the market entered a contraction phase, falling to 31.8 million tons in 2022 and further to 28.2 million tons in 2023. During this period, the broader energy crisis and sanctions against Russia continued to underline the strategic importance of domestic biofuels, leading to price increases and infrastructure investments by key players like Mellanskog. However, these factors did not prevent the overall volume decline. The merger of Assemblin and Caverion Corporation into a Nordic technical services leader in 2024 highlighted the ongoing industry focus on sustainability and energy efficiency, which may shape future demand patterns.

Production fuel wood in chips and particles in Northern 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

Northern Europe's production of fuel wood in chips and particles rebounded after a two-year decline. In 2020, output reached 25 114 K t, marking a significant 31.9% increase from the previous year. Over the 2017-2020 period, production grew by 9.1%, with a compound annual growth rate of 3.0%. The lowest production level was recorded in 2019 at 19 033 K t, while the sharpest decline occurred in 2018, when output fell by 17.1%.

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

Exports fuel wood in chips and particles from Northern Europe

Exports in kind, K t

In 2020, Northern Europe's exports of fuel wood in chips and particles to foreign markets totaled 1 147 K t, representing a substantial 14.0% decrease from the previous year. Over the 2017-2020 period, exports declined by 19.6%, with a compound annual growth rate of -7.0%. The largest drop was recorded in 2018 at 14.8%, while exports saw their biggest increase in 2019, rising by 9.8%.

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

From 2017 to 2020, Norway, Germany, and Poland were the top destinations for Northern Europe's exports of fuel wood in chips and particles in volume terms. Norway accounted for 7.6% of exports, Germany for 2.4%, and Poland for 2.1%. Together, these three countries represented 12.2% of total export flows.

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

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

Exports in value, M $ US

After two years of growth, Northern Europe's exports of fuel wood in chips and particles in value terms declined in 2020. Export value totaled 212.7 million US dollars, showing a sharp 11.1% drop from the previous year. Over the 2017-2020 period, however, export value increased by 18.7%, with a compound annual growth rate of 5.9%. The peak value was recorded in 2019 at 239.3 million US dollars, while the largest increase occurred in 2018, when export value rose by 18.7%.

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

From 2017 to 2020, the value of Northern Europe's exports of fuel wood in chips and particles was relatively evenly distributed among destinations. Norway accounted for 8.3% of export value, Germany for 3.2%, and Poland for 1.4%. Combined, these three countries represented just 12.9% of total export flows.

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

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

Imports fuel wood in chips and particles to Northern Europe

Imports in kind, K t

Northern Europe's imports of fuel wood in chips and particles increased for the third consecutive year in 2020. Import volume reached 5 705 K t, reflecting a moderate 6.3% rise from the previous year. Between 2017 and 2020, imports grew by 51.4%, equivalent to an annualized rate of 14.8%.

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

From 2017 to 2020, the main sources for Northern Europe's imports of fuel wood in chips and particles in volume terms were Russia, Belarus, and Norway. Russia accounted for 29.7% of imports, Belarus for 18.4%, and Norway for 8.3%. Together, these three countries made up 56.4% of total import flows.

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

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

Imports in value, M $ US

After two years of growth, Northern Europe's imports of fuel wood in chips and particles in value terms declined in 2020. Import value amounted to 455.2 million US dollars, down by 1.6% from the previous year. Between 2017 and 2020, however, import value increased by 62%, equivalent to an annualized rate of 17.4%. The highest value was recorded in 2019 at 462.4 million US dollars, while the largest increase occurred in 2018, when import value surged by 54.3%.

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

The structure of Northern Europe's imports of fuel wood in chips and particles in value terms from 2017 to 2020 was diversified. Russia accounted for 30.3% of import value, Belarus for 9.4%, and Norway for 6.6%. Together, these three countries represented 46.3% of total import flows, with no single country holding a clearly dominant position.

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

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