Wood in the rough market in Estonia

Earlier Report Observations

The Estonian wood in the rough market experienced significant fluctuations between 2018 and 2023. Initially, revival in the construction and real estate sector supported demand, keeping the market volume around 5.6 million tonnes. The COVID-19 pandemic in 2020 disrupted labor markets and supply chains, but also altered trade flows, helping push the market size to 6.4 million tonnes. However, a continued decline in wood prices through 2021 reduced producer profitability, leading to a drop in production and bringing the market down to 5.7 million tonnes.

By 2022, the energy crisis dramatically changed the landscape: high natural gas and electricity prices made wood a cheaper alternative for heating, while demand from the renewable energy sector pushed chip prices up. This surge in energy-related consumption lifted the market back above 6.0 million tonnes. In 2023, despite growing investment in wood chemistry and higher-value processing, which increased sector employment, constrained raw material availability became a key limiting factor, pulling the market volume down to 5.8 million tonnes.

Production wood in the rough in Estonia

In kind, 2018-2021, K t

Top producers of wood in the rough, 2018-2021

World map of production of wood in the rough, 2018-2021

In 2021, Estonia produced 6 554 K t of wood in the rough, marking a significant year-on-year decline of 10.7%. Over the period from 2018 to 2021, production decreased by 17.5%, with a compound annual growth rate (CAGR) of -6.2%. The largest increase occurred in 2020, at 2.7%.

Annual dynamics of production in Estonia in kind, 2018-2021, K t

In value, 2018-2021, M $ US

Following a two-year decrease, Estonia's wood in the rough production volume increased in 2021. The output was valued at 481.3 M $ US, showing a modest improvement of 0.9% compared to the previous year. Between 2018 and 2021, production decreased by 34.3%, which translates to an annualized rate of -13.1%. The lowest value was recorded in 2020 at 477.2 M $ US, while the largest decline took place in 2019, at 22.1%.

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

Exports wood in the rough from Estonia

Exports in kind, K t

After two years of decline, exported wood in the rough volumes from Estonia increased in 2021. Exports amounted to 1 498 K t, representing a modest gain of 8.0% compared to the previous year. Over the period from 2018 to 2021, exports decreased by 41.3%, with a compound annual growth rate (CAGR) of -16.3%. The minimum value was recorded in 2020 at 1 387 K t, and the largest decline occurred in 2020, at 34.6%.

Annual dynamics of product's exports from Estonia in kind, 2018-2021, K t

From 2018 to 2021, Sweden and Finland were the primary buyers of wood in the rough from Estonia, together accounting for 85.5% of total exports in kind, with other countries making up the remainder.

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

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

Exports in value, M $ US

Following a two-year fall, foreign wood in the rough supplies from Estonia increased in 2021. Estonia exported 110.0 M $ US of wood in the rough, up by 22.0% year-on-year. Over the period from 2018 to 2021, exports decreased by 53.3%, with a compound annual growth rate (CAGR) of -22.4%. The minimum value was recorded in 2020 at 90.2 M $ US, and the largest decline occurred in 2020, at 46.7%.

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

Between 2018 and 2021, Sweden (47.0% of exports in value terms), Finland (32.9% of exports in value terms), and China (9.8% of exports in value terms) were the main markets for exports in value terms, collectively accounting for 89.7% of total flows.

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

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

Imports wood in the rough to Estonia

Imports in kind, K t

Wood in the rough volumes imported by Estonia increased for the third consecutive year in 2021. Imports totalled 602 K t, equivalent to a significant increase of 48.4% compared to the previous year. Over the period from 2018 to 2021, imports increased by 213.6%, with a compound annual growth rate (CAGR) of 46.4%.

Annual dynamics of product's imports to Estonia in kind, 2018-2021, K t

From 2018 to 2021, Latvia (51.3% of imports in kind), Russia (13.4% of imports in kind), and Finland (10.4% of imports in kind) formed the main group of destinations for imports in kind of wood in the rough to Estonia, with a combined share of 75.0% of total flows.

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

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

Imports in value, M $ US

Wood in the rough deliveries to Estonia increased for the third consecutive year in 2021. Imports amounted to 87.0 M $ US, which is 67.3% higher compared with 2020. Over the period from 2018 to 2021, imports increased by 163.6%, with a compound annual growth rate (CAGR) of 38.1%.

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

Over the period from 2018 to 2021, Latvia (49.5% of imports in value terms), Finland (15.9% of imports in value terms), and Poland (9.4% of imports in value terms) remained the leading destinations in the country structure of imports in value terms, with a combined share of 74.9% of total flows.

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

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