Non coniferous wood fuel market in Europe

Earlier Report Observations

From 2018, the European market for non-coniferous wood fuel was shaped by a growing societal shift towards renewable energy and environmental awareness, which sustained interest in wood fuel as an alternative to fossil fuels. The emergence of wood pellets as a distinct and growing product segment added further momentum. The onset of the COVID-19 pandemic in 2020 notably increased demand for firewood across the continent, as consumers sought economical and locally available renewable heating sources during the crisis.

A major expansion occurred from 2021, driven by the broader European energy crisis and soaring prices for natural gas and other fossil fuels. This significantly boosted demand for both firewood and wood pellets as cost-saving heating alternatives, propelling market size to 116.1 million m³ in 2022. The market for wood-burning stoves also grew during this period, further stimulated by high energy prices.

The market reached a plateau in 2023, with production stabilizing and market size slightly contracting to 115.1 million m³. High prices for wood fuel and pellets persisted, partly due to the ongoing energy crisis, which also led some countries to implement export restrictions and price caps. Environmental concerns over fine particle emissions from wood burning prompted regulatory reviews, while new investments like the X Firewood Factory in Finland aimed to innovate production. Market dynamics in 2024 were further influenced by policy measures such as Spain's VAT reduction on wood fuel to 10% to tackle the energy crisis, alongside increasingly stringent EU-wide environmental regulations on biomass fuel quality and emissions.

Production non coniferous wood fuel in Europe

In kind, 2017-2020, M m³

Top producers of non coniferous wood fuel, 2017-2020

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

Europe's production of non-coniferous wood fuel has declined for the third year in a row. In 2020, European production reached 105.7 million cubic meters, marking a slight year-over-year decrease of 0.6%. Looking at the period from 2017 to 2020, production fell by 3.4%, which translates to an average annual decline of 1.1%.

Annual dynamics of production in Europe in kind, 2017-2020, M m³

Exports non coniferous wood fuel from Europe

Exports in kind, K m³

The data shows irregular fluctuations, pointing to a volatile market environment. Europe's exports of non-coniferous wood fuel hit their lowest point in 2018 at 356 thousand cubic meters, with a significant decline of 39.7% that year. By 2020, exports surged to 1 650 thousand cubic meters, representing a sharp increase of 348.6% compared to the previous year. The difference between the peak in 2020 and the trough in 2018 was 4.6-fold.

Annual dynamics of product's exports from Europe in kind, 2017-2020, K m³

From 2017 to 2020, Turkey, Norway, and Switzerland were the main destinations for Europe's non-coniferous wood fuel exports by volume. Turkey accounted for 2.4% of exports, Norway for 1.3%, and Switzerland for 1.2%. Together, these three countries absorbed 4.9% of total export volumes.

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

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

Exports in value, M $ US

Europe's exports of non-coniferous wood fuel in value terms declined for the second consecutive year. In 2020, exports amounted to 506.2 million US dollars, showing little change from 2019. The highest value was recorded in 2018 at 534.9 million US dollars, with a notable increase of 15.6% that year. However, 2019 saw the largest decline of 4.9%. Over the period from 2017 to 2020, exports grew by 9.4%, averaging an annual increase of 3.0%.

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

Between 2017 and 2020, the United States, Norway, and Turkey were the principal destinations for Europe's non-coniferous wood fuel exports by value. The United States accounted for 4.1% of exports, Norway for 2.6%, and Turkey for 1.6%. Collectively, these three countries represented 8.3% of total export value.

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

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

Imports non coniferous wood fuel to Europe

Imports in kind, K m³

Europe's imports of non-coniferous wood fuel increased for the third consecutive year. In 2020, imports totaled 2 675 thousand cubic meters, reflecting a strong rise of 13.7% compared to the previous year. From 2017 to 2020, imports grew by 65.3%, with an average annual growth rate of 18.2%.

Annual dynamics of product's imports to Europe in kind, 2017-2020, K m³

From 2017 to 2020, Brazil, Uruguay, and Norway consistently remained the main sources for Europe's non-coniferous wood fuel imports by volume. Brazil accounted for 6.4% of imports, Uruguay for 5.1%, and Norway for 3.2%. Together, these three countries made up 14.7% of total import volumes.

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

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

Imports in value, M $ US

After two years of growth, Europe's imports of non-coniferous wood fuel in value terms declined. In 2020, imports amounted to 469.8 million US dollars, indicating a drop of 22.2% from the previous year. The highest value was recorded in 2019 at 604.0 million US dollars, while 2018 saw the largest increase of 28.5%. Over the period from 2017 to 2020, imports increased by 3.8%, averaging an annual rise of 1.3%.

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

Between 2017 and 2020, Uruguay, Brazil, and Norway accounted for the largest share of Europe's non-coniferous wood fuel imports by value. Uruguay represented 7.6% of imports, Brazil 5.8%, and Norway 2.9%. Together, these three countries comprised 16.3% of total import value.

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

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