Non-coniferous fuel wood in chips and particles market in Austria

Earlier Report Observations

The Austrian market for non-coniferous fuel wood chips began the period at 238.2 thousand tons in 2018, buoyed by state subsidy programs that compensated for higher upfront costs of wood heating systems versus fossil fuels and by rising fossil fuel prices which maintained the competitive appeal of wood fuel. Market volume then receded to 170.8 thousand tons by 2020.

A sharp recovery followed in 2022, with volume climbing to 270.4 thousand tons. This expansion was catalyzed by a decisive BFH tax ruling in April 2022, which clarified a preferential 7% VAT rate for wood chips used as fuel, stimulating demand. Concurrently, increased supply of damaged wood from pest infestations and storms bolstered raw material availability for chip production. The following year, soaring energy costs pushed wood chip prices up by around 20%, resulting in a market value of 21.5 million USD in 2023 even as physical volume dipped to 227.9 thousand tons, underpinned by ongoing political promotion of wood chip heating as a carbon-neutral alternative.

In 2024, market volume contracted further to 158.8 thousand tons. The reduced VAT rate was permanently codified from January 2024, providing long-term tax certainty. However, significant price increases for wood driven by market scarcity and climate-related forest damage tempered physical consumption, despite continued federal grant programs supporting the adoption of wood chip heating systems.

Production non-coniferous fuel wood in chips and particles in Austria

In value, 2017-2020, K $ US

In 2020, Austria's production of non-coniferous fuel wood in chips and particles was valued at 6 886 K $ US, remaining broadly stable compared to the previous year. Over the period from 2017 to 2020, production increased by 15.7%, which translates to an annualized growth rate of 5.0%. The minimum value was recorded in 2018 at 5 820 K $ US, while the maximum value occurred in 2019 at 6 921 K $ US. The largest decline was observed in 2018, with a drop of 2.2%, whereas the largest increase took place in 2019, rising by 18.9%.

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

In kind, 2017-2020, K t

Austria's production of non-coniferous fuel wood in chips and particles increased for the second consecutive year. In 2020, the country produced 119.3 K t, marking a 3.3% rise compared to the previous year. From 2017 to 2020, production grew by 11.2%, with a compound annual growth rate of 3.6%. The minimum value was recorded in 2018 at 103.7 K t. The largest decline occurred in 2018, with a decrease of 3.4%, while the largest increase was in 2019, with an 11.4% rise.

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

Exports non-coniferous fuel wood in chips and particles from Austria

Exports in kind, K t

Austria's exports of non-coniferous fuel wood in chips and particles increased for the third consecutive year. In 2020, exports reached 18.7 K t, reflecting a robust advance of 15.2% from the previous year. Between 2017 and 2020, exports surged by 436%, equating to an annualized growth rate of 75.0%.

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

From 2017 to 2020, Italy and Hungary remained the principal destinations for Austria's exports in kind, jointly accounting for 89.4% of total flows. Other partners each held significantly smaller shares during this period.

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

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

Exports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. The lowest value was observed in 2017, while the highest occurred in 2019, with a peak-to-trough ratio of 3 times. In 2020, Austria's exports of non-coniferous fuel wood in chips and particles were valued at 1 759 K $ US, showing a small drop of 2.5% compared to 2019. The maximum value was recorded in 2019 at 1 804 K $ US, with the largest increase that year at 84.9%.

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

From 2017 to 2020, Italy, Hungary, and Slovenia were the main destinations for Austria's exports of non-coniferous fuel wood in chips and particles in value terms. Italy accounted for 57.0% of exports, Hungary for 21.6%, and Slovenia for 10.7%, together representing 89.3% of total flows.

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

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

Imports non-coniferous fuel wood in chips and particles to Austria

Imports in kind, K t

Austria's imports of non-coniferous fuel wood in chips and particles declined for the third consecutive year. In 2020, imports amounted to 70.1 K t, indicating a dramatic fall of 26.2% from the previous year. Over the period from 2017 to 2020, imports decreased by 67.6%, with a compound annual decline rate of 31.3%.

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

From 2017 to 2020, Germany, Hungary, and Czechia were the main suppliers of non-coniferous fuel wood in chips and particles to Austria in kind. Germany accounted for 30.6% of imports, Hungary for 25.2%, and Czechia for 20.7%, together comprising 76.5% of total imports.

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

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

Imports in value, K $ US

Austria's imports of non-coniferous fuel wood in chips and particles in value terms declined for the third consecutive year. In 2020, imports were valued at 8 781 K $ US, constituting a fall of 3.4% year-over-year. Over the period from 2017 to 2020, imports decreased by 49.9%, with a compound annual decline rate of 20.6%.

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

Throughout 2017 to 2020, Germany, Czechia, and Hungary formed the core group of markets for Austria's imports in value terms. Germany accounted for 42.3% of imports, Czechia for 18.5%, and Hungary for 17.7%, together representing 78.5% of total flows.

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

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