Wood fuel market in Italy

Earlier Report Observations

Between 2018 and 2021, Italy's wood fuel market volume fluctuated within a range of 15.8 to 17.0 million m³, with production stable at 10.8 million m³ each year. A slight increase in 2019 was followed by a dip in 2020 and a modest recovery in 2021, influenced by varying import levels.

The market surged by 25% to 20.2 million m³ in 2022, driven primarily by a doubling of demand as households and businesses switched to wood fuel amid soaring natural gas prices and fears of Russian gas supply disruptions. Imports rose sharply to 9.6 million m³ to meet this demand, despite reported supply tightness from some traditional exporting countries, and flooding in Emilia-Romagna damaged local production infrastructure.

In 2023, the market contracted to 15.6 million m³ as wood fuel prices fell from their 2022 peaks and demand normalized. The adoption of voluntary certifications like Biomassplus® promoted traceability and sustainability. By early 2024, prices declined further, solidifying wood fuel's cost advantage over fossil fuels for heating.

Production wood fuel in Italy

In kind, 2017-2020, K m³

Top producers of wood fuel, 2017-2020

World map of production of wood fuel, 2017-2020

Italy's wood fuel production remained broadly stable in 2020, with an output of 10 839 thousand cubic meters. This figure showed little change compared to the previous year. The largest decline was recorded in 2018 at 0.0%, while the largest increase also occurred in 2018 at 0.0%.

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

In value, 2017-2020, M $ US

Italy's wood fuel production declined for the second consecutive year in 2020, with output valued at 1 887 million US dollars, representing a 4.9% decrease from the previous year. Between 2017 and 2020, production fell by 4.2%, equating to an annualized rate of 1.4%. The peak value was recorded in 2018 at 2 268 million US dollars, with the largest decline occurring in 2019 at 12.5% and the largest increase in 2018 at 15.2%.

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

Exports wood fuel from Italy

Exports in kind, K m³

In 2020, wood fuel exports from Italy stood at 115 thousand cubic meters, marking a 9.8% decrease from the previous year. The minimum value was recorded in 2018 at 89 thousand cubic meters, while the maximum was in 2019 at 127 thousand cubic meters. The largest decline occurred in 2018 at 21.1%, and the largest increase was in 2019 at 43.3%.

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

From 2017 to 2020, Austria, France, and Germany formed the main cluster of markets for Italy's wood fuel exports in kind, accounting for 34.0%, 13.5%, and 9.6% of exports respectively. Together, these three countries represented 57.1% of total export flows during this period.

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

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

Exports in value, M $ US

Italy's wood fuel exports reached 20.0 million US dollars in 2020, showing a significant decline of 14.2% compared to the previous year. Over the 2017-2020 period, exports decreased by 2.2%, with a compound annual growth rate of 0.7%. The minimum value was recorded in 2018 at 18.6 million US dollars, while the maximum was in 2019 at 23.3 million US dollars. The largest increase occurred in 2019 at 25.4%.

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

During 2017-2020, Italy's wood fuel exports were distributed across many different markets. Even the largest destinations—France, Austria, and Germany—together accounted for only 40.4% of total exports in value terms, highlighting the diversity of the export market.

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

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

Imports wood fuel to Italy

Imports in kind, K m³

After two years of growth, Italy's wood fuel imports declined in 2020, totaling 5 082 thousand cubic meters. This represented a strong contraction of 19.6% year-over-year. The maximum value was recorded in 2019 at 6 320 thousand cubic meters, with the largest increase occurring in 2018 at 18.4%.

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

The country composition of Italy's wood fuel imports in kind from 2017 to 2020 was dispersed. Austria, Croatia, and Slovenia were the top sources, accounting for 24.1%, 9.5%, and 9.5% of imports respectively, but together they formed just 43.1% of total flows. The remaining 56.9% was split among a wide range of other destinations.

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

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

Imports in value, M $ US

Following a two-year improvement, Italy's wood fuel imports declined in 2020, totaling 614.1 million US dollars, which is 17.6% lower than in 2019. Between 2017 and 2020, imports increased by 18.5%, equating to an annualized rate of 5.8%. The maximum value was recorded in 2019 at 745.6 million US dollars, with the largest increase occurring in 2018 at 26.8%.

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

From 2017 to 2020, wood fuel imports to Italy came from many different markets. Even the largest sources—Austria, Croatia, and Germany—together represented only 39.0% of total imports in value terms, indicating a highly diversified import structure.

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

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