Wood fuel market in Hungary

Earlier Report Observations

The Hungarian wood fuel market contracted from 3 026 thousand m³ in 2018 to 2 625 thousand m³ in 2020. This decline coincided with the COVID-19 pandemic, which disrupted forestry operations and supply chains, constraining the availability of wood fuel. At the same time, increased household demand due to migration to green areas was insufficient to offset the supply-side limitations. Earlier in the period, state-supported housing renovation subsidies had underpinned demand, but a slowdown in residential construction toward the end of 2019 tempered consumption.

Market volume rebounded to 2 932 thousand m³ in 2021, driven largely by the rapid expansion of the wood pellet segment as consumers shifted toward renewable heating fuels with high thermal efficiency. The following year, however, saw a sharp drop to 2 575 thousand m³, as record-high wood and pellet prices—fueled by rising production costs, currency movements, and regional log shortages—curtailed consumption. The introduction of subsidized gas and electricity volumes for households also altered heating fuel choices, affecting demand for wood-fired boilers.

By 2023, the market recovered strongly, reaching 3 272 thousand m³, the highest level in the observed period. This growth may reflect longer-term influences such as afforestation programs and the diversification of raw material sources, which had been recommended by the Hungarian Competition Authority to improve supply stability.

Production wood fuel in Hungary

In kind, 2018-2021, K m³

Top producers of wood fuel, 2018-2021

World map of production of wood fuel, 2018-2021

Hungary's wood fuel production rebounded in 2021 after two years of decline. The country produced 2 860 K m³ of wood fuel, marking a solid 13.7% increase from the previous year. Production had reached its lowest point in 2020 at 2 516 K m³, with the largest annual decline of 6.3% also occurring that year.

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

In value, 2018-2021, M $ US

Hungary's wood fuel production value increased for the second consecutive year in 2021. Output was valued at 207.1 M $ US, representing a 26.6% rise compared to 2020. Over the 2018-2021 period, production value grew by 33.4%, with a compound annual growth rate of 10.1%. The lowest value was recorded in 2019 at 154.3 M $ US, which also saw the largest annual decline of 0.6%.

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

Exports wood fuel from Hungary

Exports in kind, K m³

Hungary's wood fuel exports increased in 2021 after two years of decline. Exports totaled 202.5 K m³, up 9.5% from the previous year. However, over the 2018-2021 period, exports decreased by 46.3%, equivalent to an annualized rate of 18.7%. The lowest export volume was recorded in 2020 at 185.0 K m³, which also experienced the largest annual decline of 32.8%.

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

From 2018 to 2021, Austria, Italy, and Slovenia formed the core markets for Hungary's wood fuel exports in kind. Austria accounted for 64.8% of exports, Italy for 11.3%, and Slovenia for 10.1%. Together, these three countries represented 86.2% of Hungary's total wood fuel export flows.

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

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

Exports in value, K $ US

Hungary's wood fuel export value increased in 2021 after two years of decline. Exports amounted to 14 663 K $ US, showing a significant 21.9% rise compared to the previous year. Over the 2018-2021 period, however, export value decreased by 29.4%, equivalent to an annualized rate of 10.9%. The lowest value was recorded in 2020 at 12 028 K $ US, which also saw the largest annual decline of 24.0%.

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

From 2018 to 2021, Austria, Italy, and Slovenia were the largest buyers of Hungarian wood fuel in value terms. Austria accounted for 50.5% of export value, Italy for 20.1%, and Slovenia for 10.8%. Together, these three markets formed 81.5% of Hungary's total wood fuel export value.

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

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

Imports wood fuel to Hungary

Imports in kind, K m³

Hungary's wood fuel import volume declined for the third consecutive year in 2021. The country imported 274.6 K m³, representing a 6.7% decrease compared to 2020. Over the 2018-2021 period, imports decreased by 53.1%, with a compound annual growth rate of -22.3%.

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

From 2018 to 2021, three main markets—Ukraine, Croatia, and Austria—together accounted for 61.3% of Hungary's total wood fuel imports in kind.

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

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

Imports in value, K $ US

Hungary's wood fuel import value increased in 2021 after two years of decline. Imports reached 20 530 K $ US, up 13.9% year-over-year. However, over the 2018-2021 period, import value decreased by 37.2%, equivalent to an annualized rate of 14.3%. The lowest value was recorded in 2020 at 18 022 K $ US, while the largest annual decline occurred in 2019 at 30.8%.

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

From 2018 to 2021, Ukraine, Croatia, and Austria formed the main group of sources for Hungary's wood fuel imports in value terms. Ukraine accounted for 27.5% of import value, Croatia for 13.5%, and Austria for 12.0%. Together, these three countries represented 53.0% of Hungary's total wood fuel import flows.

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

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