Tall oil market in Sweden

Earlier Report Observations

Between 2018 and 2021, Sweden's tall oil market volume in physical terms initially declined from 157.1 thousand tons to 124.8 thousand tons in 2019, before recovering to 141.9 thousand tons by 2021. The market value followed a similar pattern but saw a pronounced surge to $85 million in 2021, up from $50.5 million in 2020, reflecting a substantial increase in the unit value of tall oil products during that year.

Trade dynamics after 2021 highlighted a structural shift, with imports remaining low and exports climbing steadily. By 2024, exports had risen to 42.5 thousand tons, significantly higher than the 25.2 thousand tons shipped in 2018, indicating the market's growing orientation toward international sales.

Recent industry developments are reinforcing this export trend. In 2024, the reduction of U.S. tariffs facilitated a record export volume of tall oil fatty acids to the United States. Simultaneously, major players like Neste showed increased interest in using crude tall oil for renewable diesel, and the launch of a large-scale renewable fuel production venture in Gothenburg by St1 signaled new investment in domestic processing capacity for bio-based fuels.

Production tall oil in Sweden

In value, 2017-2020, K $ US

Sweden's tall oil production experienced a two-year growth period before declining. In 2020, the output was valued at 82 895 thousand US dollars, representing a 3.6% decrease compared to the previous year. Over the period from 2017 to 2020, production increased by 21.9%, which translates to an annualized growth rate of 6.8%. The highest value was recorded in 2019 at 86 032 thousand US dollars, while the largest annual increase occurred in 2018 at 23.7%.

Annual dynamics of production in Sweden in value, 2017-2020, K $ US

In kind, 2017-2020, K t

In 2020, Sweden produced 184.4 thousand tons of tall oil, marking an 8.6% increase from the previous year. Between 2017 and 2020, production grew by 9.7%, equivalent to an annualized rate of 3.1%. The most significant decline was observed in 2019, with a decrease of 2.0%.

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

Exports tall oil from Sweden

Exports in kind, t

The market performance showed noticeable fluctuations during this period. Exports reached their lowest point in 2018 at 25 169 tons and their highest in 2017, with a 2.1-fold difference between these years. In 2020, tall oil shipments from Sweden totaled 51 492 tons, remaining broadly stable compared to 2019. The largest decline occurred in 2018 at 53.0%, while the largest increase was recorded in 2019 at 105.5%.

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

From 2017 to 2020, Finland dominated Sweden's tall oil exports in kind, accounting for 81.3% of total flows. Other destinations contributed relatively small shares during this period.

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

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

Exports in value, K $ US

The market exhibited volatility over the observed years. Export values dropped to their minimum in 2018 at 22 645 thousand US dollars and peaked in 2019 at 38 899 thousand US dollars, representing a 1.7-fold shift. In 2020, tall oil exports from Sweden amounted to 36 184 thousand US dollars, down 7.0% from the previous year. The largest decline was recorded in 2018 at 36.2%, while the largest increase occurred in 2019 at 71.8%.

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

During 2017–2020, Finland, Germany, and Switzerland consistently led Sweden's tall oil exports in value terms. Finland accounted for 63.2% of exports, Germany for 14.2%, and Switzerland for 5.5%. Together, these three countries represented 82.9% of total export flows.

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

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

Imports tall oil to Sweden

Imports in kind, t

Tall oil imports into Sweden declined for the third consecutive year. In 2020, imports amounted to 5 498 tons, showing a significant decrease of 18.7% from the previous year. Between 2017 and 2020, imports fell by 94.3%, which equates to an annualized decline rate of 61.6%.

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

From 2017 to 2020, the United States and France were the dominant suppliers of tall oil to Sweden in kind. Together, they accounted for 81.3% of total imports, with other destinations each holding relatively small shares.

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

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

Imports in value, K $ US

Market behavior was characterized by volatility during these years. Import values varied 11.1 times from their high in 2017 to their low in 2020. In 2020, cross-border tall oil shipments into Sweden totaled 3 750 thousand US dollars, down 26.7% from a year earlier. The largest decline was recorded in 2018 at 89.0%, while the largest increase occurred in 2019 at 12.0%.

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

Over the 2017–2020 period, the United States, Finland, and the Netherlands stood out as the main sources for Sweden's tall oil imports in value terms. The United States accounted for 59.4% of imports, Finland for 13.3%, and the Netherlands for 12.2%. Collectively, these three markets represented 84.9% of total import flows.

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

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