Wood pellets market in Bulgaria

Earlier Report Observations

From 2018 to 2020, the wood pellet market volume in Bulgaria declined from 157.5 thousand tons to 142.2 thousand tons. During this period, the market experienced the opening of new production facilities, such as Radmari Group's new pellet shop, and the emergence of new manufacturers offering high-quality A1 class pellets. Legislative requirements for declarations of conformity for solid fuels, including pellets, were also introduced, raising quality standards across the industry.

The market reversed course in 2021 and 2022, with volume jumping to 194.2 thousand tons and then to 234.5 thousand tons. This growth was driven by high demand and a shortage of pellets, leading to speculation and wide price fluctuations in 2021. In 2022, despite soaring raw material costs and production cuts at some factories, the supply was bolstered by imports of Russian pellets via Turkey, circumventing European sanctions. Additionally, state subsidies for biofuel production under rural development programs supported market activity.

In 2023, the market volume contracted sharply to 140.8 thousand tons. The market maintained a focus on quality control and consumer preference for eco-certified pellets, but these factors did not prevent the decline. For 2024, import and export data show a continued downturn, though full market volume is not calculated for the year.

Production wood pellets in Bulgaria

In kind, 2017-2020, K t

Top producers of wood pellets, 2017-2020

World map of production of wood pellets, 2017-2020

Bulgaria's wood pellets production declined for the second year in a row. In 2020, the country produced 219.0 K t of wood pellets, which represents a significant 12.2% decrease from 2019. Looking at the period from 2017 to 2020, production fell by 2.4%, translating to an average annual decline of 0.8%. The highest production level was recorded in 2018 at 269.5 K t, with the largest year-on-year increase of 20.2% also occurring that year.

Annual dynamics of production in Bulgaria in kind, 2017-2020, K t

In value, 2017-2020, K $ US

Bulgaria's wood pellets production value also dropped for the second consecutive year. In 2020, the output was valued at 41 862 K $ US, marking a 16.3% decline compared to the previous year. Over the 2017-2020 period, however, production value increased by 2.9%, averaging a 0.9% annual growth rate. The peak value was reached in 2018 at 56 239 K $ US, which saw the largest increase of 38.2% that year.

Annual dynamics of production in Bulgaria in value, 2017-2020, K $ US

Exports wood pellets from Bulgaria

Exports in kind, K t

Following two years of growth, Bulgaria's wood pellets exports declined. In 2020, exports amounted to 175.2 K t, reflecting a modest 5.6% decrease from 2019. From 2017 to 2020, exports overall increased by 14%, with an average annual growth rate of 4.5%. The highest export volume was recorded in 2019 at 185.5 K t, which also experienced the largest increase of 15.0% that year.

Annual dynamics of product's exports from Bulgaria in kind, 2017-2020, K t

Between 2017 and 2020, Bulgaria's wood pellets exports in kind were heavily concentrated on Greece, which accounted for 71.1% of total flows, while other partners made up the remainder.

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

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

Exports in value, K $ US

After two years of expansion, Bulgaria's wood pellets export value decreased. In 2020, exports were valued at 33 489 K $ US, showing a 9.9% drop compared to 2019. Over the 2017-2020 period, export value rose by 20%, averaging a 6.3% annual growth rate. The maximum value was achieved in 2019 at 37 175 K $ US, with the largest increase of 20.7% occurring in 2018.

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

From 2017 to 2020, Greece and Italy were the dominant markets for Bulgaria's wood pellets exports in value terms, collectively accounting for most of the trade, while other markets played smaller individual roles.

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

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

Imports wood pellets to Bulgaria

Imports in kind, K t

Bulgaria's wood pellets imports grew for the third consecutive year. In 2020, imports reached 98.4 K t, indicating a 15.8% increase from the previous year. Between 2017 and 2020, imports surged by 185%, with an average annual growth rate of 41.8%.

Annual dynamics of product's imports to Bulgaria in kind, 2017-2020, K t

During 2017-2020, Ukraine, Romania, and Greece were the top contributors to Bulgaria's wood pellets imports in kind, with shares of 44.5%, 35.4%, and 7.6% respectively, together making up 87.5% of total imports.

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

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

Imports in value, K $ US

Bulgaria's wood pellets import value continued to rise for the third year in a row. In 2020, imports stood at 16 411 K $ US, showing a strong 12.1% increase year-over-year. Over the 2017-2020 period, import value grew by 185%, with a compound annual growth rate of 41.8%.

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

From 2017 to 2020, Ukraine, Romania, and Greece remained the key suppliers of wood pellets to Bulgaria in value terms, with shares of 40.8%, 39.0%, and 7.6% respectively, collectively accounting for 87.4% of total import value.

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

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