Wood fuel market in Bosnia and Herzegovina

Earlier Report Observations

The wood fuel market in Bosnia and Herzegovina experienced notable fluctuations between 2018 and 2023. Market volume more than doubled from 347 thousand m³ in 2018 to a peak of 650 thousand m³ in 2020, reflecting a period of strong expansion. This trend reversed in the following years, with the market contracting to 471 thousand m³ in 2021 and further declining to 290 thousand m³ by 2023.

In 2024, specific factors began to shape the market environment. Strong demand from the European Union significantly increased pellet prices within Bosnia and Herzegovina. A government ban on pellet exports, effective until the end of October 2024, further tightened domestic supply and influenced local pricing. These conditions were accompanied by rising costs for split firewood and beech briquettes, leading industry representatives to advise consumers to secure heating supplies earlier in the season.

The market entered 2025 facing pressures from broader economic adjustments. An increase in the national minimum wage raised operational costs for businesses in the forestry and wood processing sectors, potentially affecting production expenses. Concurrently, the ongoing transition in the labor market highlighted challenges related to workforce availability and skill adaptation for the industry.

Production wood fuel in Bosnia and Herzegovina

In kind, 2018-2021, K m³

Top producers of wood fuel, 2018-2021

World map of production of wood fuel, 2018-2021

After a two-year decline, wood fuel production in Bosnia and Herzegovina increased in 2021. The country produced 1 488 K m³ of wood fuel that year, showing only a slight fluctuation compared to 2020. Looking at the period from 2018 to 2021, production decreased by 4.3%, which translates to an average annual decline of 1.5%. The lowest production level was recorded in 2020 at 1 484 K m³, with the largest year-on-year drop of 4.2% also occurring that year.

Annual dynamics of production in Bosnia and Herzegovina in kind, 2018-2021, K m³

In value, 2018-2021, M $ US

In 2021, the output of wood fuel in Bosnia and Herzegovina was valued at 128.9 M $ US, marking a 3.7% increase from the previous year. The lowest value was recorded in 2020 at 124.3 M $ US, while the highest was in 2019 at 130.6 M $ US. The most significant decline occurred in 2020, with a drop of 4.8%.

Annual dynamics of production in Bosnia and Herzegovina in value, 2018-2021, M $ US

Exports wood fuel from Bosnia and Herzegovina

Exports in kind, K m³

Following a two-year decline, wood fuel exports from Bosnia and Herzegovina rose in 2021. Exports reached 1 050 K m³ that year, representing a 23.9% increase compared to 2020. Over the 2018-2021 period, exports decreased by 15.8%, with a compound annual growth rate of -5.6%. The lowest export volume was in 2020 at 848 K m³, and the largest decline was recorded in 2019 at 20.5%.

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

From 2018 to 2021, Italy, Slovenia, and Croatia were the key partners for wood fuel exports in kind from Bosnia and Herzegovina. Italy accounted for 44.9% of exports, Slovenia for 17.4%, and Croatia for 9.9%. Together, these three countries made up 72.2% of total export flows during this period.

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

World map of product's exports from Bosnia and Herzegovina in kind, 2018-2021

Exports in value, M $ US

After a two-year downturn, wood fuel exports from Bosnia and Herzegovina in value terms increased in 2021. The country exported 91.0 M $ US of wood fuel that year, a sharp rise of 28.1% from 2020. Between 2018 and 2021, exports decreased by 12.8%, with a compound annual growth rate of -4.4%. The lowest value was recorded in 2020 at 71.0 M $ US, and the largest decline occurred in 2019 at 19.9%.

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

From 2018 to 2021, Italy, Slovenia, and Germany were the three principal markets for wood fuel exports in value terms from Bosnia and Herzegovina. Together, they accounted for 70.4% of total export value during this timeframe.

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

World map of product's exports from Bosnia and Herzegovina in value, 2018-2021

Imports wood fuel to Bosnia and Herzegovina

Imports in kind, K m³

The market for wood fuel imports in kind showed volatility from 2018 to 2021. Imports reached their lowest point in 2020 at 14 K m³ and peaked in 2018, with a 2.9-fold difference between these years. In 2021, imports amounted to 34 K m³, a 143.4% increase from 2020. The largest decline was recorded in 2019 at 51.8%.

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

Throughout 2018-2021, Croatia and Serbia were the core markets for wood fuel imports in kind to Bosnia and Herzegovina. Together, they accounted for 87.8% of total import flows, while other destinations had relatively smaller shares.

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

World map of product's imports to Bosnia and Herzegovina in kind, 2018-2021

Imports in value, M $ US

Wood fuel imports in value terms exhibited an unstable trend from 2018 to 2021. Imports bottomed in 2020 at 1.2 M $ US and peaked in 2018, with a 2.6-fold difference between these years. In 2021, imports stood at 2.5 M $ US, a 101.5% increase from 2020. The largest decline was recorded in 2019 at 44.6%.

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

Over the 2018-2021 period, Croatia, Serbia, and Indonesia were the top suppliers of wood fuel to Bosnia and Herzegovina in value terms. Croatia accounted for 46.1% of imports, Serbia for 15.8%, and Indonesia for 9.9%. Their combined share reached 71.9% of total import value during these years.

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

World map of product's imports to Bosnia and Herzegovina in value, 2018-2021