Wood fuel market in Lithuania

Earlier Report Observations

From 2018 to 2019, the wood fuel market volume in Lithuania expanded by 4% to 2 429 thousand m³. This growth was primarily driven by increasing household consumption of wood fuel, which accounted for about 34% of all final energy use in homes in 2019. Concurrently, new EU sanctions on timber from Belarus and Russia introduced additional checks and origin verification, directly affecting timber imports and shaping supply conditions.

The market contracted by 16% in 2020 to 2 032 thousand m³ due to COVID-19 pandemic disruptions, which altered supply chains and pushed up average prices. In 2021, a further slight decline to 1 983 thousand m³ coincided with the introduction of new mandatory quality standards for wood fuel, including moisture content and hardness norms, as well as compulsory stamp registration for biofuels. These regulations aimed to ensure reliability but temporarily constrained supply.

A sharp drop of 58% occurred in 2022, bringing the market to 828 thousand m³. This was largely a consequence of updated emissions and efficiency control rules that pressured biofuel producers, who accounted for 67% of natural biofuel production, leading to tightened supervision and operational adjustments. By 2023, the market recovered to 1 309 thousand m³, indicating a partial rebound as the sector adapted to the regulatory changes.

Production wood fuel in Lithuania

In kind, 2018-2021, K m³

Top producers of wood fuel, 2018-2021

World map of production of wood fuel, 2018-2021

In 2021, Lithuania produced 1 885 K m³ of wood fuel, representing a 5.5% decrease compared to the previous year. Looking at the broader period from 2018 to 2021, production grew by 3.1%, which translates to an average annual increase of 1.0%. The lowest production level was recorded in 2019 at 1 771 K m³, while the peak occurred in 2020 with 1 994 K m³. The most significant year-on-year growth was observed in 2020, when production surged by 12.6%.

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

In value, 2018-2021, M $ US

Following two years of decline, Lithuania's wood fuel production value rebounded. In 2021, the output was valued at 211.5 M $ US, showing a substantial increase of 11.7% from the previous year. Over the 2018-2021 period, production value rose by 4.5%, averaging 1.5% growth per year. The lowest value was recorded in 2020 at 189.3 M $ US, while the largest drop occurred in 2019 with a 4.6% decrease.

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

Exports wood fuel from Lithuania

Exports in kind, K m³

After two consecutive years of growth, Lithuania's wood fuel export volumes experienced a decline. In 2021, exports totaled 1 689 K m³, marking a gradual decrease of 6.2% compared to 2020. Over the 2018-2021 period, exports increased by 28.8%, with a compound annual growth rate of 8.8%. The highest export volume was recorded in 2020 at 1 801 K m³, which also saw the largest year-on-year increase of 19.8%.

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

Between 2018 and 2021, three key markets—Latvia, Italy, and Poland—collectively accounted for 59.6% of Lithuania's total wood fuel exports by volume.

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

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

Exports in value, M $ US

Lithuania's wood fuel export value continued to grow for the third year in a row. In 2021, exports reached 189.5 M $ US, reflecting a significant 10.9% increase from the previous year. From 2018 to 2021, export value rose by 30.6%, averaging 9.3% annual growth.

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

During the 2018-2021 period, Italy (30.7% of export value), Latvia (15.0%), and the United Kingdom (11.0%) formed the core group of markets for Lithuania's wood fuel exports by value, together representing 56.7% of total export flows.

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

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

Imports wood fuel to Lithuania

Imports in kind, K m³

Lithuania's wood fuel import volumes declined for the second consecutive year. In 2021, imports stood at approximately 1 787 K m³, showing a slight contraction of 2.8% compared to 2020. The highest import volume was recorded in 2019 at 2 161 K m³, which also experienced the largest year-on-year increase of 18.9%. The most significant decline occurred in 2020, with imports dropping by 14.9%.

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

From 2018 to 2021, Belarus remained the dominant source for Lithuania's wood fuel imports by volume, accounting for 72.6% of total flows, while other markets contributed smaller shares.

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

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

Imports in value, M $ US

In 2021, Lithuania imported 83.9 M $ US worth of wood fuel, representing a 5.6% increase from 2020. Over the 2018-2021 period, import value grew by 4.5%, averaging 1.5% annual growth. The lowest value was recorded in 2020 at 79.4 M $ US, while the peak occurred in 2019 at 87.7 M $ US. The largest decline took place in 2020 with a 9.5% decrease, while the most significant increase was in 2019 at 9.3%.

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

Between 2018 and 2021, Belarus (59.1% of import value), Russia (18.2%), and Latvia (14.2%) accounted for the largest share of Lithuania's wood fuel imports by value, together comprising 91.5% of total import flows.

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

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