Roundwood coniferous market in Latvia

Earlier Report Observations

The coniferous roundwood market in Latvia expanded from 7.7 million cubic meters in 2018 to 9.5 million cubic meters in 2021. This growth was primarily driven by increased household spending on home construction and renovation during the COVID-19 pandemic, which boosted demand for wood products. Concurrently, a significant reduction in the volume of beetle-damaged timber—by 5% in 2020 and 24% in 2021—eased supply constraints, allowing local sawmills to increase their production volumes.

Market volume declined to 9.1 million cubic meters in 2022 and further to 8.1 million in 2023. The downturn was triggered by Russia’s invasion of Ukraine and subsequent EU sanctions, which disrupted trade flows, introduced market uncertainty, and reduced European construction activity. Higher interest rates from the European Central Bank also dampened demand for sawn wood. By 2023, the market showed signs of stabilization as increased production capacity and warehouse filling led to a notable decrease in wood prices, particularly for fuelwood.

Throughout the period, beetle infestations remained a key supply-side factor, peaking in 2019 and pressuring timber availability. Industry actors such as the forest owners' cooperative 'Mežsaimnieks' and the Forest and Wood Products Research Institute 'MeKa' actively monitored market trends and price dynamics, reflecting the sector's adaptation to evolving conditions.

Production coniferous roundwood in Latvia

In kind, 2018-2021, K m³

From 2018 to 2021, Latvia maintained the 26th position globally in terms of roundwood coniferous production volume.

Top producers of coniferous roundwood, 2018-2021

World map of production of coniferous roundwood, 2018-2021

Roundwood coniferous production in Latvia grew for the third consecutive year. In 2021, Latvia produced 8 976 K m³ of roundwood coniferous, representing a moderate year-over-year increase of 3.3%. Over the period from 2018 to 2021, production rose by 13.6%, with a compound annual growth rate of 4.3%.

Annual dynamics of production in Latvia in kind, 2018-2021, K m³

In value, 2018-2021, M $ US

After a two-year decline, roundwood coniferous production in Latvia rebounded. In 2021, the output of roundwood coniferous was valued at 658.8 M $ US in Latvia, indicating a 17.3% increase over the previous year. The lowest value was recorded in 2020 at 561.6 M $ US, which also saw the largest decline of 8.6%.

Annual dynamics of production in Latvia in value, 2018-2021, M $ US

Exports coniferous roundwood from Latvia

Exports in kind, K m³

Following a two-year decline, cross-border shipments of roundwood coniferous from Latvia increased. In 2021, exports reached 1 072 K m³, up by 16.6% year-over-year. Over the period from 2018 to 2021, exports decreased by 16.3%, with a compound annual growth rate of -5.7%. The lowest value was recorded in 2020 at 920 K m³, which also experienced the largest decline of 17.0%.

Annual dynamics of product's exports from Latvia in kind, 2018-2021, K m³

From 2018 to 2021, Sweden (47.3% of exports in kind), Finland (18.2% of exports in kind), and Estonia (17.5% of exports in kind) were the principal destinations for exports in kind, jointly accounting for 83.1% of total flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Latvia in kind, 2018-2021

Exports in value, M $ US

After a two-year decrease, foreign roundwood coniferous supplies from Latvia increased. In 2021, exports reached 78.7 M $ US, reflecting a 32.4% uptick compared to the previous year. Between 2018 and 2021, exports decreased by 26%, equating to an annualized rate of -9.6%. The lowest value was recorded in 2020 at 59.4 M $ US, which also saw the largest decline of 27.1%.

Annual dynamics of product's exports from Latvia in value, 2018-2021, M $ US

From 2018 to 2021, Sweden (39.2% of exports in value terms), Estonia (22.2% of exports in value terms), and Finland (13.8% of exports in value terms) consistently held leading positions in the country structure of exports in value terms, jointly accounting for 75.2% of total flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Latvia in value, 2018-2021

Imports coniferous roundwood to Latvia

Imports in kind, K m³

Roundwood coniferous volumes imported by Latvia increased for the second consecutive year. In 2021, Latvia imported approximately 1 562 K m³ of roundwood coniferous, indicating a sharp rise of 29.8% from the previous year. Between 2018 and 2021, imports grew by 38.5%, equating to an annualized rate of 11.5%. The lowest value was recorded in 2019 at 1 070 K m³, which also experienced the largest decline of 5.1%.

Annual dynamics of product's imports to Latvia in kind, 2018-2021, K m³

From 2018 to 2021, Lithuania and Norway dominated imports in kind, accounting together for 83.2% of total flows, with other destinations making smaller individual contributions.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Latvia in kind, 2018-2021

Imports in value, M $ US

Volatility characterized the market behavior during these years. The lowest imports were recorded in 2020, while the highest were in 2021, reflecting a 1.9-fold gap. In 2021, Latvia's roundwood coniferous import volume amounted to 171.9 M $ US, marking an 88.1% improvement from 2020. The minimum value was recorded in 2020 at 91.4 M $ US, and the largest decline occurred in 2019 at 14.2%.

Annual dynamics of product's imports to Latvia in value, 2018-2021, M $ US

From 2018 to 2021, Lithuania and Norway remained the main markets for imports in value terms, jointly accounting for 86.0% of total flows, while other partners constituted the remaining share.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Latvia in value, 2018-2021