Fuel wood in chips and particles market in Western Europe

Earlier Report Observations

The market volume for fuel wood in chips and particles in Western Europe started at 11 887 thousand tons in 2018, supported by government subsidy programs that offset the higher acquisition costs of wood heating systems compared to fossil fuels due to stable wood prices and rising fossil fuel prices. However, the market then contracted to 11 351 thousand tons in 2019 and further to 10 290 thousand tons in 2020.

In 2021, geopolitical conflicts triggered an energy crisis, which sharply increased wood prices through higher roundwood purchase prices and elevated production and labor costs. This price surge led to a significant reduction in market volume, which fell to 8 853 thousand tons.

The market recovered in 2022, reaching 10 554 thousand tons, and continued to grow in 2023 to 11 767 thousand tons, driven by increased demand for sustainable heating solutions and an improved supply situation. In 2024, legislative changes in the Annual Tax Act defined wood chips as subject to a reduced VAT rate when considered an alternative to firewood for consumers, while wood harvesting in Germany declined by 13.3%, affecting raw material availability, and demand remained high due to the ongoing energy crisis.

Production fuel wood in chips and particles in Western 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

In 2020, Western Europe produced 10 452 K t of fuel wood in chips and particles, marking a modest 6.5% decrease from the previous year. Over the 2017-2020 period, production fell by 14.6%, with a compound annual growth rate of 5.1%. The most significant decline occurred in 2018, dropping by 10.8%, while the largest increase was recorded in 2019, rising by 2.4%.

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

In value, 2017-2020, M $ US

Fuel wood in chips and particles production in Western Europe declined for the third consecutive year. In 2020, the output was valued at 2 145 M $ US, reflecting a sharp 33.2% decrease compared to the prior year. Between 2017 and 2020, production decreased by 51.7%, equating to an annualized rate of 21.5%.

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

Exports fuel wood in chips and particles from Western Europe

Exports in kind, K t

The data shows irregular changes, indicating a volatile market environment. Exports varied significantly, with a minimum of 827 K t in 2019 and a maximum of 2 593 K t in 2018, representing a 3.1-fold difference. In 2020, exports from Western Europe reached 1 316 K t, which is 59.0% higher than in 2019. The largest decline was recorded in 2019, falling by 68.1%, while the largest increase occurred in 2018, rising by 157.5%.

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

From 2017 to 2020, the partner structure for exports in kind was balanced rather than concentrated. Italy accounted for 8.0% of exports, Switzerland for 7.6%, and Denmark for 6.5%, together representing 22.1% of total flows. The remaining 77.9% was distributed among many other countries.

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

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

Exports in value, M $ US

Fuel wood in chips and particles shipments from Western Europe declined for the second consecutive year. In 2020, exports reached 187.0 M $ US, showing a limited 3.7% decrease compared to 2019. Over the 2017-2020 period, exports increased by 8.6%, with a compound annual growth rate of 2.8%. The maximum value was recorded in 2018 at 210.6 M $ US. The largest decline occurred in 2019, falling by 7.7%, while the largest increase was in 2018, rising by 22.3%.

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

During 2017-2020, Italy, Switzerland, and Denmark were important buyers of fuel wood in chips and particles from Western Europe, accounting for 6.7%, 6.5%, and 5.0% of exports in value terms, respectively. Their combined share reached only 18.2% of total exports, with the remaining 81.8% distributed among many other partners.

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

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

Imports fuel wood in chips and particles to Western Europe

Imports in kind, K t

Volatility characterized the market behavior during these years. Imports varied widely, with a minimum of 999 K t in 2019 and a maximum of 3 558 K t in 2018, reflecting a 3.6-fold gap. In 2020, foreign supplies to Western Europe amounted to 1 154 K t, marking a strong 15.5% year-over-year increase. The largest decline was recorded in 2019, falling by 71.9%, while the largest increase occurred in 2018, rising by 76.4%.

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

From 2017 to 2020, fuel wood in chips and particles was supplied to Western Europe from a broad set of markets. Slovakia accounted for 11.0% of imports in kind, Czechia for 9.8%, and Poland for 7.3%, together representing only 28.1% of total imports. The remaining 71.9% came from many smaller destinations.

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

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

Imports in value, M $ US

Western Europe's imports of fuel wood in chips and particles declined for the second consecutive year. In 2020, imports stood at 171.2 M $ US, which is 3.7% lower than in 2019. Over the 2017-2020 period, imports decreased by 20.5%, with a compound annual growth rate of 7.4%. The maximum value was recorded in 2018 at 231.9 M $ US. The largest decline occurred in 2019, falling by 23.3%, while the largest increase was in 2018, rising by 7.7%.

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

From 2017 to 2020, fuel wood in chips and particles was supplied to Western Europe from a broad set of markets. Spain accounted for 10.3% of imports in value terms, Slovakia for 7.4%, and Czechia for 7.3%, together representing only 24.9% of total imports. The remaining 75.1% was distributed among many smaller destinations.

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

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