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

Earlier Report Observations

The Finnish market for non-coniferous fuel wood chips grew steadily from 43 million USD in 2018 to over 67 million USD by 2023. This expansion was primarily fueled by the government's long-term renewable energy policy, which aimed to increase the share of biomass in combined heat and power plants. The implementation of the EU Biomass Energy Directive in May 2019 further solidified reporting requirements and accelerated bioenergy investments.

External supply shifts played a crucial role in reshaping the market. The cessation of large-scale Russian wood chip imports from 2015 onward reduced the availability of high-quality material, pushing companies toward domestic, small-diameter wood sources. This trend was accelerated by EU sanctions on Russian wood fiber imports in February 2020, which cut off 70% of import flows. Despite a temporary dip in heating demand during the COVID-19 pandemic in 2020, state support under the Renewable Energy Incentive Scheme sustained investment in biomass-fired CHP plants. Subsequent national energy strategies and rising energy prices in 2022 further incentivized the use of wood chips for energy.

The market reached its peak in 2023 before experiencing a slight contraction to 66.6 million USD in 2024. A mild winter reduced heating demand, while the national electrification strategy prompted a gradual shift away from wood-based heating. Concurrently, the enforcement of the EU's Fit for 55 package in 2024 introduced stricter CO₂ thresholds for wood fuels, increasing certification costs. A new national tax incentive that lowered VAT on wood fuels to 0% in 2024 provided some counterbalance, supporting smaller distributors.

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

In value, 2017-2020, K $ US

After rising for two consecutive years, Finland's production of non-coniferous fuel wood in chips and particles declined in value terms. In 2020, output was valued at 16 356 K $ US, representing a significant decrease of 12.1% compared to 2019. Over the 2017-2020 period, production grew by 29.2%, with an average annual growth rate of 8.9%. The highest value was recorded in 2019 at 18 604 K $ US, while the largest annual increase occurred in 2018 with a 40.3% rise.

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

In kind, 2017-2020, K t

In 2020, Finland produced 145.1 K t of non-coniferous fuel wood in chips and particles, marking a 26.3% decrease from 2019. Between 2017 and 2020, overall production fell by 18.5%, equivalent to an average annual decline of 6.6%. The peak production volume was reached in 2019 at 196.9 K t, which also saw the largest annual increase of 10.6%.

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

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

Exports in kind, K t

The data shows irregular fluctuations, indicating a volatile market environment. Exports varied dramatically, with the lowest point in 2017 and the highest in 2019, showing a 322-fold difference between these years. In 2020, Finland's exports of non-coniferous fuel wood in chips and particles amounted to 22.8 K t, reflecting a 22.1% drop from the previous year. The maximum export volume was recorded in 2019 at 29.3 K t, while the largest annual increase occurred in 2018 with a remarkable 13 922.0% surge.

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

From 2017 to 2020, Finland's exports of non-coniferous fuel wood in chips and particles were heavily concentrated on Iceland, which accounted for 92.7% of total export volumes.

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

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

Exports in value, K $ US

The market displayed an unstable trend throughout the period. Exports reached their lowest point in 2017 and peaked in 2019, with a 27-fold gap between these years. In 2020, the value of Finland's exports of non-coniferous fuel wood in chips and particles stood at 1 957 K $ US, showing a sharp decline of 41.7% compared to 2019. The highest export value was recorded in 2019 at 3 355 K $ US, while the largest annual increase occurred in 2018 with a 1 116.1% rise.

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

During 2017-2020, Iceland was the dominant market for Finland's exports of non-coniferous fuel wood in chips and particles in value terms, representing 87.9% of total export earnings. Other destinations played a minor role in comparison.

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

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

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

Imports in kind, K t

Market behavior was characterized by volatility during these years. Imports hit their lowest point in 2019 and peaked in 2020, with a 2.7-fold difference between these years. In 2020, Finland's imports of non-coniferous fuel wood in chips and particles reached 662.6 K t, representing a 168.2% increase from the previous year. The minimum import volume was recorded in 2019 at 247.0 K t, which also saw the largest annual decline of 29.1%.

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

From 2017 to 2020, Russia was the primary source for Finland's imports of non-coniferous fuel wood in chips and particles in volume terms, accounting for 85.7% of total imports. The remaining share was distributed among various smaller markets.

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

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

Imports in value, K $ US

Finland's imports of non-coniferous fuel wood in chips and particles increased for the third consecutive year in value terms. In 2020, imports amounted to 38 695 K $ US, up by 20.7% compared to 2019. Over the 2017-2020 period, import value grew by 149.7%, with an average annual growth rate of 35.7%.

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

During 2017-2020, Russia was the key supplier of non-coniferous fuel wood in chips and particles to Finland in value terms, representing 80.2% of total import spending. A diverse group of other countries accounted for the remainder.

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

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