Wood fuel market Ukraine

Earlier Report Observations

In 2018, the wood fuel market in Ukraine was supported by rising demand for biomass heating in rural areas, driven by state energy-saving programs. Production reached 10.72 million m³ that year. The following year, output fell to 8.58 million m³ as state forestry enterprises invested in modernizing their production capacities, a process that temporarily reduced volumes. New market players also emerged, starting production of wood pellets and briquettes, which expanded the available product range. In 2020, the COVID-19 pandemic caused significant disruptions in raw material supply chains, leading to a further decline in production to 7.78 million m³ and a contraction of the overall market.

The market rebounded in 2021, with production increasing to 8.45 million m³. This recovery was primarily fueled by changes in state support policy specifically aimed at stimulating the use of biomass in the energy sector, which boosted demand for wood fuel. In 2022, production grew again to 8.69 million m³ and the market size expanded, despite the onset of war which introduced severe logistical challenges and raw material supply interruptions. During this period, environmental norms and product labeling requirements were also tightened to align with European standards, shaping market conditions.

By 2023, production had stabilized at 8.61 million m³, while the domestic market size measured 6.58 million m³.

Production wood fuel Ukraine

In kind, 2017-2020, K m³

Top producers of wood fuel, 2017-2020

World map of production of wood fuel, 2017-2020

Ukraine's wood fuel production has declined for the third year in a row. In 2020, the country produced 7 777 thousand cubic meters of wood fuel, which represents a decrease of 9.4% compared to the previous year. Looking at the period from 2017 to 2020, production fell by 33.1%, translating to an average annual decline of 12.5%.

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

Exports wood fuel to Ukraine

Exports in kind, K m³

Ukraine's wood fuel exports have decreased for the third consecutive year. In 2020, export volumes reached 1 817 thousand cubic meters, showing a year-on-year reduction of 9.1%. Between 2017 and 2020, exports dropped by 45%, with an average annual decline of 18.1%.

Annual dynamics of product's exports to Ukraine in kind, 2017-2020, K m³

From 2017 to 2020, Romania, Poland, and Turkey were the main destinations for Ukraine's wood fuel exports, accounting for 56.1% of total export volumes. Romania led with 24.9%, followed by Poland at 15.7%, and Turkey at 15.6%.

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

World map of product's exports to Ukraine in kind, 2017-2020

Exports in value, M $ US

Ukraine's wood fuel exports in value terms have declined for the second year in a row. In 2020, exports amounted to 164.3 million US dollars, a modest drop of 7.7% compared to the previous year. Over the period from 2017 to 2020, exports decreased by 5.5%, with an average annual decline of 1.9%. The highest value was recorded in 2018 at 217.5 million US dollars, which marked a 25.1% increase from the previous year. The largest decline occurred in 2019, with an 18.1% decrease.

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

Between 2017 and 2020, Ukraine's wood fuel exports in value terms were distributed across many countries. Poland accounted for 21.9% of the total, Romania for 14.5%, and Germany for 13.1%, together making up 49.5% of the export value.

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

World map of product's exports to Ukraine in value, 2017-2020

Imports wood fuel in Ukraine

Imports in kind, K m³

Ukraine's wood fuel imports have increased for the third consecutive year. In 2020, imports totaled 3 thousand cubic meters, a slight rise of 2.4% compared to the previous year. From 2017 to 2020, imports grew by 59.9%, with an average annual growth rate of 16.9%.

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

From 2017 to 2020, Indonesia was the primary source for Ukraine's wood fuel imports, accounting for 72.1% of total import volumes. Other countries contributed smaller shares, forming a diverse group of minor partners.

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

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

Imports in value, M $ US

Ukraine's wood fuel imports in value terms have risen for the third year in a row. In 2020, import value reached 2.5 million US dollars, a modest increase of 3.3% compared to 2019. Between 2017 and 2020, imports grew by 78.6%, with an average annual growth rate of 21.3%.

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

In the period from 2017 to 2020, Indonesia dominated Ukraine's wood fuel imports in value terms, accounting for 86.0% of the total. The remaining imports came from a variety of smaller partners.

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

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