Wood fuel market in Germany

Earlier Report Observations

The German wood fuel market opened the period at 22.2 million m³ in 2018, supported by state subsidies that helped offset the higher upfront costs of wood heating systems compared to fossil fuels, and by rising prices for fossil fuels which made firewood more attractive. However, market volume then contracted over the next two years, falling to 19.6 million m³ in 2019 and 18.6 million m³ in 2020, before partially recovering to 21.2 million m³ in 2021.

The market surged to 25.3 million m³ in 2022 as the energy crisis and the conflict in Ukraine drove consumers to seek alternatives to gas and fossil fuels, significantly boosting demand for wood pellets and firewood. This growth was reversed in 2023, with volume dropping to 21.6 million m³, as stringent emissions regulations presented challenges for wood heating appliances, despite continued consumer interest in energy-efficient and sustainable heating solutions.

In 2024, the market was influenced by the opening of the X Firewood Factory, a new production facility by the Finnish group TP Silva, while political uncertainty arose as the federal government did not mention firewood or wood heating in the bio-quota of the Heating Act. Additionally, low gas storage levels and empty wood depots due to prolonged cold weather affected availability, and domestic timber harvesting fell by 13.3% to 61.2 million cubic meters.

Production wood fuel in Germany

In kind, 2017-2020, K m³

Between 2017 and 2020, Germany ranked as the 19th largest producer of wood fuel globally.

Top producers of wood fuel, 2017-2020

World map of production of wood fuel, 2017-2020

Germany's wood fuel production declined for the second year in a row. In 2020, the country produced 20 242 thousand cubic meters, a slight decrease of 1.3% from 2019. Over the 2017-2020 period, production fell by 6.4%, with an average annual decline of 2.2%. The highest production level was in 2018 at 21 987 thousand cubic meters. The largest drop occurred in 2019, down 6.7%, while the biggest increase was in 2018, up 1.7%.

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

In value, 2017-2020, M $ US

Germany's wood fuel production value also declined for the second consecutive year. In 2020, output was valued at 1 681 million US dollars, a small decrease of 2.2% from the previous year. The peak value was recorded in 2018 at 1 881 million US dollars. The most significant decline happened in 2019, falling 8.6%, while the largest increase was in 2018, up 12.4%.

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

Exports wood fuel from Germany

Exports in kind, K m³

Germany's wood fuel exports grew for the third straight year. In 2020, exports reached 5 395 thousand cubic meters, a modest rise of 5.4% compared to 2019. From 2017 to 2020, exports increased by 19.2%, averaging 6.0% growth per year.

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

From 2017 to 2020, Austria, Belgium, and France were the top buyers of German wood fuel by volume. Austria accounted for 28.6% of exports, Belgium for 14.6%, and France for 10.8%, together making up 54.0% of total exports.

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

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

Exports in value, M $ US

The value of Germany's wood fuel exports also rose for the third consecutive year. In 2020, exports amounted to 448.0 million US dollars, a limited increase of 4.4% from 2019. Between 2017 and 2020, export value grew by 27.9%, with an average annual rate of 8.5%.

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

An analysis of export values from 2017 to 2020 shows a diverse market distribution. Austria, Italy, and France were key partners, accounting for 20.0%, 14.6%, and 13.3% of exports, respectively, totaling 47.9%. The remaining 52.1% went to various other countries.

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

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

Imports wood fuel to Germany

Imports in kind, K m³

Germany's wood fuel imports fell for the third year in a row. In 2020, imports totaled 3 726 thousand cubic meters, a significant drop of 10.5% year-over-year. Over the 2017-2020 period, imports decreased by 35.3%, with an average annual decline of 13.5%.

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

From 2017 to 2020, Poland, the Netherlands, and Czechia were the main sources of wood fuel imports to Germany by volume. Poland contributed 26.5%, the Netherlands 21.0%, and Czechia 8.1%, together accounting for 55.6% of total imports.

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

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

Imports in value, M $ US

Germany's wood fuel import value declined for the second consecutive year. In 2020, imports were valued at 314.4 million US dollars, a solid reduction of 11.5% from the previous year. Over the 2017-2020 period, import value fell by 22.3%, with an average annual decrease of 8.1%. The highest value was in 2018 at 436.1 million US dollars. The largest decline occurred in 2019, down 18.5%, while the biggest increase was in 2018, up 7.8%.

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

Throughout 2017-2020, Poland, Ukraine, and the Netherlands were the primary sources of wood fuel imports to Germany by value. Poland accounted for 33.9%, Ukraine for 8.6%, and the Netherlands for 7.9%, together making up 50.5% of total import value.

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

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