Fuel wood in chips and particles market in Sweden

Earlier Report Observations

The Swedish market for fuel wood in chips and particles saw a period of significant expansion from 2018 to 2023. After a moderate increase to 9.3 million tons in 2019, the market volume surged by over 50% in 2020, reaching 14.5 million tons. This rapid growth established a new, much higher baseline for domestic consumption.

From 2021, rising prices for pulpwood and primary forest fuels began to influence the market, supporting continued growth in value. The market's volume peaked at 17.4 million tons in 2021 and remained at a similar high level in 2022. This stability was underpinned by a European energy crisis following the Russian invasion of Ukraine, which caused extreme gas prices and a consequent boom in demand for forest fuels from Sweden's neighbors, including the Baltics, Germany, Denmark, and Finland.

In 2023, the market volume saw a slight adjustment to 17.1 million tons. This coincided with reduced supply as lower sawmill production decreased the output of chip by-products, and a weaker construction economy limited the availability of recycled wood chips. During this period and into 2024, the market was characterized by strongly rising prices, a shift to short-term contracts favoring sellers, and new regulatory measures such as emission factors for chips with fossil content and sanctions affecting wood product imports from Russia and Belarus, which further influenced supply conditions.

Production fuel wood in chips and particles in Sweden

In value, 2017-2020, M $ US

Annual dynamics of production in Sweden in value, 2017-2020, M $ US

In kind, 2017-2020, K t

Between 2017 and 2020, Sweden ranked as the world's 8th largest producer 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

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

Exports fuel wood in chips and particles from Sweden

Exports in kind, K t

Sweden's exports of fuel wood in chips and particles declined for the third consecutive year. In 2020, exports totaled 141 thousand tons, marking a 6.9% decrease from the previous year. Over the period from 2017 to 2020, exports fell by 39.4%, which translates to an annualized decline of 15.4%.

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

From 2017 to 2020, Norway was the primary market for Sweden's fuel wood in chips and particles exports, accounting for 72.6% of total exports in volume. Other destinations played a smaller role in the export structure.

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

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

Exports in value, M $ US

Sweden's export value of fuel wood in chips and particles dropped for the third year in a row. In 2020, exports reached 14.8 million US dollars, showing a slight decline of 1.6% compared to the prior year. Between 2017 and 2020, the export value decreased by 19.2%, averaging an annualized rate of 6.9%.

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

During 2017–2020, Norway and Denmark together absorbed 89.6% of the total export value of fuel wood in chips and particles from Sweden, with the remaining share distributed among smaller markets.

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

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

Imports fuel wood in chips and particles to Sweden

Imports in kind, K t

After two years of growth, Sweden's imports of fuel wood in chips and particles in volume declined. In 2020, imports totaled 1 492 thousand tons, down by 26.3% from the previous year. Over the 2017–2020 period, imports fell by 16.6%, equating to an annualized decrease of 5.9%. The peak import volume was recorded in 2019 at 2 023 thousand tons, with the largest increase of 8.1% also occurring in that year.

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

From 2017 to 2020, Latvia, Norway, and Estonia were the key partners for Sweden's imports of fuel wood in chips and particles in volume. Latvia accounted for 37.6% of imports, Norway for 23.2%, and Estonia for 13.2%, together making up 74.0% of total import flows.

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

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

Imports in value, M $ US

Sweden's import value of fuel wood in chips and particles declined for the second consecutive year. In 2020, imports amounted to 96.3 million US dollars, representing a significant drop of 20.3% year-over-year. The highest import value was recorded in 2018 at 124.9 million US dollars, which also saw the largest increase of 31.5%.

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

In the 2017–2020 period, Latvia, Norway, and Estonia formed the main cluster of markets for Sweden's imports of fuel wood in chips and particles in value terms. Latvia held a 41.6% share, Norway 16.0%, and Estonia 12.9%, collectively accounting for 70.5% of total import value.

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

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