Non coniferous wood fuel market in Finland

Earlier Report Observations

The Finnish non-coniferous wood fuel market remained stable at around 4.7 million m³ in 2018 and 2019. This period was marked by a significant reliance on birch pulpwood imported from Russia, with challenges in substituting it with domestic softwood. The forest industry responded to market competition by shifting from hardwood to softwood pulp lines, and authorities lowered the minimum diameter for pulpwood to boost competition.

Market volume jumped sharply to 5.6 million m³ in 2020. Consumption remained at a high level in 2021, supported by substantial use of solid wood fuels at heat and power plants, underscoring the fuel's role in energy generation. The Russian invasion of Ukraine in 2022 rapidly altered market dynamics, emphasizing domestic fuels for supply security and contributing to a contraction to 5.4 million m³ as demand patterns adjusted.

By 2023, the market recovered to 5.7 million m³. This growth was driven by record-high prices for pulp and energy wood, a direct consequence of reduced imports from Russia and increased demand for domestic wood as an energy source.

Production non coniferous wood fuel in Finland

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

Finland's production of non-coniferous wood fuel has increased for the second year in a row. In 2020, the country produced 4 615 thousand cubic meters, marking a moderate 7.4% gain compared to 2019. Looking at the period from 2017 to 2020, production grew by 8%, which translates to an average annual growth rate of 2.6%. The lowest production level was recorded in 2018 at 4 212 thousand cubic meters, which also saw the largest decline of 1.4%.

Annual dynamics of production in Finland in kind, 2017-2020, K m³

Exports non coniferous wood fuel from Finland

Exports in kind, K m³

The market displayed volatility during the observed period. Exports reached their lowest point in 2017 and peaked in 2019, with a 20-fold difference between these years. In 2020, Finland's exports of non-coniferous wood fuel stood at 37 thousand cubic meters, down 21.8% from the previous year. The highest export volume was recorded in 2019 at 48 thousand cubic meters, while the largest increase occurred in 2018 with a surge of 854.4%.

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

From 2017 to 2020, Iceland was the dominant destination for Finland's non-coniferous wood fuel exports, absorbing 84.6% of the total volume. The remaining 15.4% was distributed among a variety of smaller markets.

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

Market behavior was characterized by volatility in these years. Exports hit their lowest point in 2017 and peaked in 2019, showing a 10.4-fold difference. In 2020, the value of Finland's non-coniferous wood fuel exports amounted to 2 209 thousand US dollars, representing a 39.2% decrease year-over-year. The maximum value was recorded in 2019 at 3 632 thousand US dollars, while the largest increase occurred in 2018 with a jump of 422.9%.

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

During the 2017–2020 period, Iceland remained the leading buyer of non-coniferous wood fuel from Finland in value terms, accounting for 76.1% of total exports. The rest was spread across numerous other countries.

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 wood fuel to Finland

Imports in kind, K m³

The market showed an unstable trend throughout this timeframe. Imports reached their minimum in 2017 and peaked in 2020, with a 2.5-fold variation between these years. In 2020, Finland's imports of non-coniferous wood fuel amounted to 1 045 thousand cubic meters, which is 131.8% higher than in 2019. The largest decline was recorded in 2019 at 17.4%.

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

From 2017 to 2020, Russia held the dominant position in Finland's imports of non-coniferous wood fuel by volume, accounting for 85.6% of total flows. The remaining share was split among various smaller destinations.

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

Cross-border shipments of non-coniferous wood fuel to Finland have increased for the third consecutive year. In 2020, import volume reached 40 723 thousand US dollars, showing a significant advance of 13.6% from 2019. Over the period from 2017 to 2020, imports grew by 148.6%, with a compound annual growth rate of 35.5%.

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

Over the 2017–2020 period, Russia was the primary source for Finland's imports of non-coniferous wood fuel in value terms, accounting for 79.9% of total flows. Other markets formed a long tail of smaller partners.

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

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