Tall oil market in Finland

Earlier Report Observations

The Finnish tall oil market from 2018 to 2021 was shaped by developments in the biofuel sector. The startup of UPM's Lappeenranta Biorefinery, which began commercial production of wood-based biofuels using crude tall oil as feedstock, increased demand for this raw material. This aligned with Finland's broader energy policy to phase out oil use. In 2019, Vapo's decision to discontinue energy peat production affected related biofuel markets, coinciding with a temporary dip in physical market volume. The market value, however, showed a gradual increase, reaching 241.9 million USD by 2021.

Between 2022 and 2024, regulatory shifts and geopolitical events became dominant drivers. In 2022, Finnvera's new policy restricting public finance for oil and gas, alongside draft amendments to increase biofuel distribution obligations, reinforced tall oil's role in renewable energy. The following year, Russia's invasion of Ukraine disrupted imports of forest products from Russia, leading to significant price surges for tall oil. This propelled the market value to 574.6 million USD in 2023 while physical volume remained stable at 393.3 thousand tonnes. By 2024, market prices corrected, with tall oil import and export prices falling 19% and 23.9% respectively, reducing the market value to 454.8 million USD. Concurrently, Fintoil Oy announced a major investment to build a new 200,000-tonne-per-annum crude tall oil biorefinery in Hamina Kotka, positioning Finland for future production expansion.

Production tall oil in Finland

In value, 2017-2020, M $ US

Finland's tall oil production value declined for the second year in a row. In 2020, output was valued at 132.2 million US dollars, marking a 14.4% year-over-year decrease. Over the 2017-2020 period, production increased by 8.1%, with a compound annual growth rate of 2.6%. The highest value was recorded in 2018 at 157.1 million US dollars, which also saw the largest increase of 28.4%.

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

In kind, 2017-2020, K t

Finland's tall oil production volume fell for the second consecutive year. In 2020, the country produced 228.2 thousand tonnes, reflecting a 10.8% drop from 2019. From 2017 to 2020, production decreased by 9.2%, with a compound annual growth rate of -3.1%. The peak volume was recorded in 2018 at 264.2 thousand tonnes, which also experienced the largest increase of 5.2%.

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

Exports tall oil from Finland

Exports in kind, K t

Market performance showed significant fluctuations during this period. Export volumes varied 7.7 times between the low in 2019 and the high in 2020. In 2020, Finland exported 23.3 thousand tonnes of tall oil, representing a substantial increase of 673.0% from 2019. The minimum value was recorded in 2019 at 3.0 thousand tonnes, which also saw the largest decline of 83.1%.

Annual dynamics of product's exports from Finland in kind, 2017-2020, K t

From 2017 to 2020, Finland's tall oil exports in volume terms were highly concentrated, with Sweden alone accounting for 91.3% of total flows.

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

The data reveals irregular changes, indicating a volatile market environment. Export values varied 2.8 times between the minimum in 2017 and the maximum in 2020. In 2020, Finland exported tall oil worth 11 272 thousand US dollars, equivalent to an 83.5% increase from the previous year. The largest decline occurred in 2019 at 40.7%, while the largest increase was recorded in 2018 at 159.7%.

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

Over the 2017-2020 period, Finland's tall oil exports in value terms were largely concentrated on Sweden, which accounted for 87.3% of total flows, with other countries making up the remaining share.

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

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

Imports tall oil to Finland

Imports in kind, K t

Market performance exhibited noticeable fluctuations during this period. Import volumes varied 5.6 times between the low in 2019 and the high in 2020. In 2020, Finland imported 33.3 thousand tonnes of tall oil, up by 463.2% compared to 2019. The minimum value was recorded in 2019 at 33.3 thousand tonnes, which also saw the largest decline of 76.5%.

Annual dynamics of product's imports to Finland in kind, 2017-2020, K t

From 2017 to 2020, the United States (46.1% of imports in volume terms), Sweden (27.9%), and Russia (21.7%) were the leading sources in Finland's import structure, together accounting for 95.8% of total flows.

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

Finland's tall oil import value increased for the third consecutive year. In 2020, imports amounted to 96 798 thousand US dollars, representing a sharp increase of 28.3% over the past year. Over the 2017-2020 period, imports grew by 53.2%, with a compound annual growth rate of 15.3%.

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

Over the 2017-2020 period, the United States (48.8% of imports in value terms), Sweden (29.9%), and Russia (18.5%) were the primary suppliers of tall oil to Finland, jointly accounting for 97.1% of total import value.

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

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