Wood pellets market in Germany

Earlier Report Observations

German wood pellet production expanded from 2.4 million tons in 2018 to 3.7 million tons in 2023, supported by a stable raw material base from sawdust and wood waste. Market volume grew from 2.2 million tons to 3.4 million tons over the same period, driven by a global focus on sustainability and carbon neutrality, which increased demand for renewable heating fuels.

The market's growth accelerated after 2020. The COVID-19 pandemic caused production delays and closures, affecting supply chains. Subsequently, the war in Ukraine in 2022 cut imports from Russia and Ukraine, leading to supply shortages and higher prices, which increased reliance on domestic production. This was accompanied by Germany's amended Building Energy Act (GEG) preparing stricter heating requirements and sustained subsidy programs for pellet heating systems, with grants of up to 35%, which stimulated consumer adoption.

By 2023, the market underwent rapid consolidation with a significant price correction. Production reached 3.7 million tons, supported by technological innovations such as torrefied pellets and new biomass blends. Certifications like ENplus gained importance, ensuring supply chain transparency and reinforcing market growth.

Production wood pellets in Germany

In kind, 2017-2020, K t

Germany was among the world's leading producers of wood pellets from 2017 to 2020, ranking fourth globally by production volume.

Top producers of wood pellets, 2017-2020

World map of production of wood pellets, 2017-2020

Germany's wood pellet production increased for the third consecutive year. In 2020, the country produced 3,100 thousand tonnes of wood pellets, marking a 9.9% year-over-year rise. Over the 2017-2020 period, production grew by 37.8%, with a compound annual growth rate of 11.3%.

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

In value, 2017-2020, M $ US

Wood pellet production in Germany rose for the third consecutive year. In 2020, the output was valued at 734.2 million US dollars, reflecting a controlled improvement of 4.6% compared to 2019. Between 2017 and 2020, production increased by 26.3%, equating to an 8.1% annualized growth rate.

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

Exports wood pellets from Germany

Exports in kind, K t

Germany's wood pellet exports increased for the third consecutive year. In 2020, exports reached 811.0 thousand tonnes, showing a modest 5.1% rise from 2019. Over the 2017-2020 period, exports grew by 65.5%, with an annualized rate of 18.3%.

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

From 2017 to 2020, Italy, France, and Austria remained the main buyers of wood pellets from Germany, accounting for 33.5%, 17.3%, and 16.3% of exports in kind, respectively. Together, they formed 67.1% of total exports in kind.

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

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

Exports in value, M $ US

Wood pellet exports from Germany increased for the third consecutive year. In 2020, exports amounted to 192.1 million US dollars, showing no significant change compared to the previous year. Over the 2017-2020 period, exports rose by 51.7%, with a compound annual growth rate of 14.9%.

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

From 2017 to 2020, Italy, France, and Austria were the main buyers of wood pellets from Germany in value terms, with shares of 30.8%, 18.2%, and 13.5% of exports, respectively. Together, they comprised 62.5% of total exports in value terms.

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

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

Imports wood pellets to Germany

Imports in kind, K t

Wood pellet deliveries to Germany declined for the third consecutive year. In 2020, Germany imported 301.7 thousand tonnes of wood pellets, reflecting a limited 4.7% decrease compared to 2019. Over the 2017-2020 period, imports fell by 29.9%, with a compound annual decline rate of 11.2%.

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

From 2017 to 2020, Poland, Denmark, and Belgium led as the main suppliers of wood pellets to Germany, accounting for 27.0%, 20.5%, and 14.8% of imports in kind, respectively. Their combined share reached 62.2% of total imports in kind.

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

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

Imports in value, M $ US

Germany's wood pellet import volume declined for the second consecutive year. In 2020, Germany imported approximately 58.3 million US dollars of wood pellets, down by 10.7% year-over-year. Between 2017 and 2020, imports decreased by 25.3%, equating to a 9.2% annualized decline. The maximum value was recorded in 2018 at 79.2 million US dollars. The largest decline occurred in 2019 at 17.5%, while the largest increase was in 2018 at 1.5%.

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

From 2017 to 2020, Poland, Denmark, and Belgium consistently held leading positions in Germany's import structure in value terms, with shares of 28.2%, 23.9%, and 14.0% of imports, respectively. Together, they accounted for 66.1% of total import flows.

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

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