Fuel wood in chips and particles market in Spain

Earlier Report Observations

The Spanish market for fuel wood in chips and particles grew from 63.2 million USD in 2018 to 70.5 million USD in 2020. This initial expansion was supported by the Royal Decree-Law 20/2018, which boosted economic competitiveness in industry and trade by establishing a framework for the free movement of industrial products and promoting business technological innovation. The market's trajectory was further shaped from the start of 2020 by the entry into force of the European Ecodesign Regulation (2015/1189) for solid fuel boilers and stoves, setting stricter efficiency and emission limits. A local ban on burning non-compliant wood and pellet appliances in Villanueva del Arzobispo from January 8, 2020, also signaled a regulatory push toward cleaner combustion.

Market size surged dramatically to 154.3 million USD by 2022, following the full implementation of the Ecodesign 2022 standards from January 1st, which prohibited the sale and installation of non-compliant wood and pellet stoves in Spain. Manufacturers adapted their product lines to meet the stringent emission and efficiency requirements, with companies like LACUNZA launching certified stoves. This regulatory shift drove the replacement and modernization of the installed base of heating appliances, which included a significant existing stock of nearly 300,000 modern pellet and chip units reported in 2018, underpinning demand for compliant fuel.

After a market correction in 2023 to 129.1 million USD, the value recovered to 145.4 million USD in 2024. This recovery was supported by a temporary reduction of VAT to 10% on briquettes, pellets, and fuel wood until June 30, 2024, which made solid biofuels more affordable. The sector's established infrastructure, with 163 production centers for pellets, chips, and fuel wood across the country, provided a solid supply base. However, the market also contended with increased packaging and transport costs affecting the supply chain. Further strategic support came from the Spanish government's approval of the Industry and Strategic Autonomy Law, transforming a state entity to promote industrial development, including in the biomass sector.

Production fuel wood in chips and particles in Spain

In value, 2017-2020, K $ US

Spain's production of fuel wood in chips and particles has grown for the third year in a row. In 2020, the output was valued at 76 572 thousand US dollars, representing a solid 10.5% increase from 2019. Over the 2017-2020 period, production rose by 40.2%, with an average annual growth rate of 11.9%.

Annual dynamics of production in Spain in value, 2017-2020, K $ US

In kind, 2017-2020, K t

From 2017 to 2020, Spain ranked 24th globally in the production 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

In 2020, Spain produced 1 147 thousand tonnes of fuel wood in chips and particles, up 5.6% from the previous year. Between 2017 and 2020, production increased by 7.6%, which translates to an average annual growth rate of 2.5%. The most significant drop occurred in 2019, when production fell by 2.1%.

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

Exports fuel wood in chips and particles from Spain

Exports in kind, K t

Spain's exports of fuel wood in chips and particles have risen for the second consecutive year. In 2020, exports reached 157.9 thousand tonnes, a sharp 35.7% increase compared to 2019. Over the 2017-2020 period, exports grew by 48.8%, with an average annual growth rate of 14.2%. The lowest export volume was recorded in 2018 at 77.8 thousand tonnes, which also saw the largest decline of 26.6%. In contrast, 2019 experienced the biggest increase, with exports jumping by 49.5%.

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

From 2017 to 2020, France and Portugal were the dominant markets for Spain's exports in kind, together accounting for 87.0% of total flows, while other countries made up the remaining share.

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

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

Exports in value, K $ US

Spain's exports of fuel wood in chips and particles in value terms have increased for the second year in a row. In 2020, exports amounted to 13 686 thousand US dollars, marking a notable 17.0% year-over-year rise. Over the 2017-2020 period, exports grew by 33.5%, with an average annual growth rate of 10.1%. The lowest value was recorded in 2018 at 10 019 thousand US dollars, which also saw the largest decline of 2.2%.

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

Throughout 2017-2020, the three largest markets for Spain's exports in value terms were France, Portugal, and the Netherlands, together accounting for 80.9% of total flows.

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

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

Imports fuel wood in chips and particles to Spain

Imports in kind, K t

The import market showed volatility during the observed period. Imports peaked in 2018 at 18.6 thousand tonnes and fell to their lowest point in 2019 at 8.6 thousand tonnes, resulting in a 2.2-fold difference between these years. In 2020, imports to Spain amounted to 12.0 thousand tonnes, up 40.2% from the previous year. The largest decline occurred in 2019, with a drop of 54.0%, while the biggest increase was in 2018, with a rise of 52.7%.

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

From 2017 to 2020, the main suppliers of fuel wood in chips and particles to Spain in kind were Portugal (30.3% of imports), Germany (16.5% of imports), and France (15.6% of imports), together comprising 62.4% of total imports.

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

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

Imports in value, K $ US

After two years of growth, Spain's imports of fuel wood in chips and particles in value terms declined. In 2020, imports stood at 7 617 thousand US dollars, down 1.2% from 2019. Between 2017 and 2020, imports increased by 12.3%, equating to an average annual growth rate of 4.0%. The highest import value was recorded in 2019 at 7 712 thousand US dollars, which also saw the largest increase of 12.2%.

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

In 2017-2020, France (32.0% of imports in value terms), Germany (18.8% of imports in value terms), and Sweden (16.7% of imports in value terms) consistently remained the main sources for Spain's imports, together accounting for 67.5% of total flows.

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

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