Non coniferous wood fuel market in Italy

Earlier Report Observations

From 2018 to 2021, the Italian non-coniferous wood fuel market volume fluctuated between 10 000 and 10 700 thousand m³ against a stable domestic production background. The introduction of a reduced 6.4% VAT compensation rate for firewood starting in 2019 provided a tax incentive for agricultural producers, enhancing price competitiveness against fossil fuels. Concurrently, the tightening of traceability and Biomassplus® certification requirements aimed to ensure legal and sustainable supply chains.

Market volume surged to 12 019 thousand m³ in 2022, driven by massive heating demand following skyrocketing gas bills and energy inflation, which led to record imports. Severe flooding in Romagna during September 2022 damaged forests and interrupted local harvesting, further straining domestic supply and amplifying import needs. The market then contracted to 10 114 thousand m³ in 2023 as a relatively warm winter reduced heating consumption, coupled with tax uncertainty due to the absence of a VAT compensation decree for that year.

In 2024, the reinstatement of the 6.4% VAT rate for the 2024-2025 period restored fiscal stability for producers. Continued price declines for firewood, influenced by mild weather and lower fossil energy demand, supported import levels, which reached 663 thousand m³.

Production non coniferous wood fuel in Italy

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

In 2020, Italy produced 9 659 K m³ of non-coniferous wood fuel, showing little change from the previous year. The most significant decline occurred in 2018, at 0.0%, while the largest increase was also recorded in 2018, at 0.0%.

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

In value, 2017-2020, M $ US

Non-coniferous wood fuel production in Italy declined for the second consecutive year. In 2020, output was valued at 1 421 M $ US, remaining relatively stable compared to 2019. Over the 2017-2020 period, production decreased by 10%, with a compound annual growth rate of 3.5%. The highest value was recorded in 2018 at 1 667 M $ US. The largest decline occurred in 2019, at 14.7%, while the most significant increase was in 2018, at 5.6%.

Annual dynamics of production in Italy in value, 2017-2020, M $ US

Exports non coniferous wood fuel from Italy

Exports in kind, K m³

Italy exported 66 K m³ of non-coniferous wood fuel in 2020, marking a sharp drop of 27.1% from the previous year. Between 2017 and 2020, exports increased by 9.3%, equivalent to an annualized rate of 3.0%. The lowest volume was recorded in 2018 at 54 K m³, while the highest was in 2019 at 91 K m³. The largest increase occurred in 2019, at 66.7%.

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

From 2017 to 2020, Austria, France, and Germany were the main buyers of non-coniferous wood fuel from Italy, accounting for 42.7%, 19.1%, and 14.3% of exports in kind, respectively. Together, they comprised 76.1% of total exports in kind.

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

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

Exports in value, K $ US

In 2020, Italy's cross-border shipments of non-coniferous wood fuel amounted to 9 712 K $ US, representing a steep loss of 27.2% compared to the previous year. The minimum value was recorded in 2018 at 9 383 K $ US, while the maximum was in 2019 at 13 346 K $ US. The largest increase occurred in 2019, at 42.2%.

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

During 2017–2020, France, Austria, and Germany continued to lead as the top buyers of non-coniferous wood fuel from Italy in value terms, with shares of 26.5%, 20.6%, and 17.5%, respectively. Their combined share reached 64.5% of total exports in value terms.

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

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

Imports non coniferous wood fuel to Italy

Imports in kind, K m³

After a two-year rise, foreign supplies of non-coniferous wood fuel to Italy declined. In 2020, Italy imported 1 136 K m³, representing a steep reduction of 49.6% year-over-year. Over the 2017-2020 period, imports decreased by 39%, with a compound annual growth rate of 15.2%. The maximum volume was recorded in 2019 at 1 136 K m³, and the largest increase occurred in 2019, at 19.6%.

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

From 2017 to 2020, Bosnia and Herzegovina, Croatia, and Slovenia stood out as the main sources for imports in kind, accounting for 45.4%, 17.7%, and 6.9% of imports, respectively. Together, they represented 69.9% of total flows.

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

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

Imports in value, K $ US

After a two-year rise, non-coniferous wood fuel deliveries to Italy declined. In 2020, imports came to 45 355 K $ US, indicating a steep decrease of 48.5% versus the previous year. Between 2017 and 2020, imports decreased by 30.5%, equating to an annualized rate of 11.4%. The maximum value was recorded in 2019 at 88 060 K $ US, and the largest increase occurred in 2019, at 19.4%.

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

Over 2017–2020, Bosnia and Herzegovina, Croatia, and France headed the ranking of suppliers of non-coniferous wood fuel to Italy in value terms, with shares of 44.6%, 15.1%, and 6.2%, respectively. Their combined share reached 65.9% of total imports in value terms.

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

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