Non coniferous wood fuel market in Eastern Europe (including Northern Asia)

Earlier Report Observations

Between 2018 and 2020, production of non-coniferous wood fuel remained relatively stable, averaging around 25-26 million cubic meters annually. During this period, the market was supported by growing exports of wood pellets to Europe, although high transport costs posed a challenge for suppliers. In 2020, a significant increase in charcoal fuel production in the Siberian Federal District began to influence the sector, while continued growth in sawnwood exports provided additional momentum for the wider wood fuel market.

A sharp expansion occurred in 2021-2022, with production rising by over 10% to reach 28 million cubic meters in 2022, and market volume growing by 13% that same year. This surge was primarily driven by the Russian government's ban on exports of unprocessed and roughly processed coniferous and valuable deciduous timber, effective January 1, 2022. The policy redirected raw materials to domestic processors, boosting internal supply. Simultaneously, sanctions and trade policy shifts led to a reorientation of exports, strengthening domestic demand for wood fuel. Further support came from a reduced railway tariff coefficient of 0.65 for the timber industry, lowering logistics costs for manufacturers.

The market corrected in 2023, with production falling by 7.2% to 26 million cubic meters. This decline coincided with a reported 22.9% drop in the production of deciduous sawnwood, a key raw material source, which likely constrained feedstock availability. Despite the overall contraction, the market saw diversification with the launch of new industrial capacity, including a carbonization line in Ust-Ilimsk with an annual capacity of up to 30,000 tons, and the first export shipments of Russian biochar to CIS and East Asian countries began, signaling development in new product segments.

Production non coniferous wood fuel in Eastern Europe (including Northern Asia)

In kind, 2017-2020, K m³

Top producers of non coniferous wood fuel, 2017-2020

World map of production of non coniferous wood fuel, 2017-2020

Non-coniferous wood fuel production in Eastern Europe (including Northern Asia) has declined for the second year in a row. In 2019, production reached 25 227 thousand cubic meters, but by 2020 it had fallen by 1.8% to 24 800 thousand cubic meters. The highest production level was recorded in 2018 at 26 034 thousand cubic meters, which represented a 1.1% increase from the previous year.

Annual dynamics of production in Eastern Europe (including Northern Asia) in kind, 2017-2020, K m³

Exports non coniferous wood fuel from Eastern Europe (including Northern Asia)

Exports in kind, K m³

Non-coniferous wood fuel exports from Eastern Europe (including Northern Asia) have increased for the second consecutive year. In 2018, exports hit their lowest point at 1 609 thousand cubic meters, marking an 18.3% decline. However, by 2020, exports had risen to 2 190 thousand cubic meters, showing a significant 20.5% increase compared to 2019. Over the period from 2017 to 2020, exports grew by 11.2%, averaging an annual growth rate of 3.6%.

Annual dynamics of product's exports from Eastern Europe (including Northern Asia) in kind, 2017-2020, K m³

From 2017 to 2020, Finland, Turkey, and Austria were the key export partners for non-coniferous wood fuel from Eastern Europe (including Northern Asia). Finland accounted for 41.6% of exports, Turkey for 7.4%, and Austria for 6.7%. Together, these three countries represented 55.7% of total export flows.

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

World map of product's exports from Eastern Europe (including Northern Asia) in kind, 2017-2020

Exports in value, M $ US

After two years of decline, non-coniferous wood fuel exports from Eastern Europe (including Northern Asia) in value terms have rebounded. In 2019, exports dropped to their lowest point at 95.0 million US dollars, following a 1.3% decrease in 2018. However, in 2020, exports surged to 108.8 million US dollars, a strong 14.4% increase from the previous year. Over the 2017-2020 period, exports grew by 11.7%, with a compound annual growth rate of 3.8%.

Annual dynamics of product's exports from Eastern Europe (including Northern Asia) in value, 2017-2020, M $ US

Between 2017 and 2020, Finland, Germany, and Austria were the top markets for non-coniferous wood fuel exports from Eastern Europe (including Northern Asia) in value terms. Together, these three countries accounted for 50.5% of total export value.

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

World map of product's exports from Eastern Europe (including Northern Asia) in value, 2017-2020

Imports non coniferous wood fuel to Eastern Europe (including Northern Asia)

Imports in kind, K m³

Following two years of decline, non-coniferous wood fuel imports into Eastern Europe (including Northern Asia) have increased. In 2019, imports fell to their lowest level at 162 thousand cubic meters, a sharp 25.0% drop. But in 2020, imports rose to 207 thousand cubic meters, representing a 27.8% increase compared to the previous year. Overall, from 2017 to 2020, imports decreased by 10.2%, with an average annual decline of 3.5%.

Annual dynamics of product's imports to Eastern Europe (including Northern Asia) in kind, 2017-2020, K m³

From 2017 to 2020, the main sources for non-coniferous wood fuel imports into Eastern Europe (including Northern Asia) were Croatia, Germany, and Europe, not elsewhere specified. Croatia contributed 5.1% of imports, Germany 5.0%, and Europe, not elsewhere specified 3.2%. Collectively, these three accounted for 13.3% of total import flows.

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

World map of product's imports to Eastern Europe (including Northern Asia) in kind, 2017-2020

Imports in value, M $ US

Non-coniferous wood fuel imports into Eastern Europe (including Northern Asia) in value terms have declined for the second year in a row. In 2018, imports peaked at 46.3 million US dollars, a 26.7% increase, but then fell by 22.2% in 2019 to 36.0 million US dollars. By 2020, imports had dropped further to 29.5 million US dollars, down 18.0% from 2019. Over the 2017-2020 period, imports decreased by 19.3%, with a compound annual decline rate of 6.9%.

Annual dynamics of product's imports to Eastern Europe (including Northern Asia) in value, 2017-2020, M $ US

During 2017-2020, imports of non-coniferous wood fuel into Eastern Europe (including Northern Asia) in value terms were spread across a diverse range of partner countries. Germany led with 13.2% of imports, followed by Europe, not elsewhere specified at 7.0%, and Croatia at 5.4%. Together, these three accounted for 25.7% of total import flows.

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

World map of product's imports to Eastern Europe (including Northern Asia) in value, 2017-2020