Wood pellets market in Lithuania

Earlier Report Observations

From 2018 to 2019, the Lithuanian wood pellet market expanded significantly, with production rising from 445 thousand tons to 606 thousand tons and market volume increasing by 54% to 249 thousand tons. This growth was driven by the rising popularity of pellet heating systems, viewed as a convenient and ecological alternative to fossil fuels, alongside higher prices for gas and coal that made wood pellets more attractive.

Between 2020 and 2021, the market contracted, with volume falling to 174 thousand tons and then to 110 thousand tons. Production initially declined but stabilized around 527 thousand tons in 2021. During this period, local biofuel boiler manufacturers maintained a strong presence, and producers emphasized pellet quality through controlled drying and grinding processes, while new labeling rules required composition disclosure on packaging.

From 2022 onward, the market recovered, reaching 228 thousand tons in 2023 as production rebounded to 605 thousand tons. Imports dropped sharply from 168 thousand tons in 2022 to 54 thousand tons in 2023, reflecting a consumer preference for higher-quality local pellets over imports from Ukraine or Belarus. Exports also declined, allowing more pellets to remain in the domestic market, and by 2025, imports had fallen to 10 thousand tons while exports showed a gradual increase from 2024.

Production wood pellets in Lithuania

In kind, 2018-2021, K t

From 2018 to 2021, Lithuania ranked 19th globally in wood pellet production volume.

Top producers of wood pellets, 2018-2021

World map of production of wood pellets, 2018-2021

In 2021, Lithuania produced 527.1 K t of wood pellets, marking a 3.7% increase from the previous year. Over the 2018-2021 period, production grew by 18.4%, with an average annual growth rate of 5.8%. The highest production level was recorded in 2019 at 606.0 K t, which saw a significant increase of 36.2%. However, in 2020, production experienced its largest decline, dropping by 16.1%.

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

In value, 2018-2021, M $ US

In 2021, the value of wood pellet production in Lithuania reached 94.9 M $ US, up 1.1% from 2020. Between 2018 and 2021, production value increased by 8.5%, translating to an annualized growth rate of 2.7%. The peak value occurred in 2019 at 117.9 M $ US, with a notable increase of 34.6% that year. In contrast, 2020 saw the largest decline, with a drop of 20.3%.

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

Exports wood pellets from Lithuania

Exports in kind, K t

Wood pellet exports from Lithuania have risen for the third consecutive year. In 2021, exports totaled 618.9 K t, a 1.3% increase compared to 2020. Over the 2018-2021 period, exports grew by 29.2%, with an average annual growth rate of 8.9%.

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

From 2018 to 2021, Italy, Latvia, and Estonia were the primary markets for Lithuania's wood pellet exports in volume terms. Italy accounted for 41.2% of exports, Latvia for 20.3%, and Estonia for 9.6%, together making up 71.1% of total export flows.

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

Wood pellet exports from Lithuania declined for the second year in a row. In 2021, export value stood at 111.5 M $ US, down 1.2% from 2020. However, between 2018 and 2021, exports increased by 18.3%, with an annualized growth rate of 5.7%. The highest value was recorded in 2019 at 116.4 M $ US, which saw a substantial increase of 23.4%. The largest decline occurred in 2020, with a drop of 3.0%.

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

From 2018 to 2021, Italy, Latvia, and Denmark were the main destinations for Lithuania's wood pellet exports in value terms. Italy represented 47.2% of exports, Latvia 16.0%, and Denmark 8.4%, collectively accounting for 71.7% of total export value.

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 pellets to Lithuania

Imports in kind, K t

After two years of growth, wood pellet imports into Lithuania declined. In 2021, imports amounted to 201.5 K t, a sharp decrease of 27.2% compared to 2020. Over the 2018-2021 period, imports increased by 2.8%, with an annualized growth rate of 0.9%. The highest import volume was in 2020 at 277.0 K t, while the largest increase occurred in 2019, rising by 23.1%.

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

Between 2018 and 2021, Belarus and Russia consistently dominated Lithuania's wood pellet imports in volume terms, accounting for 96.7% of total imports. This indicates a highly concentrated market, with other countries making up only a small share.

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

Following two years of increase, wood pellet imports into Lithuania fell. In 2021, imports were valued at 25.7 M $ US, a steep decline of 30.8% from 2020. Over the 2018-2021 period, imports decreased by 12.1%, with an average annual decline of 4.2%. The peak value was in 2020 at 37.1 M $ US, while the largest increase was in 2019, up by 19.1%.

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

From 2018 to 2021, Belarus and Russia formed a dominant pair for Lithuania's wood pellet imports in value terms, jointly accounting for 95.0% of total flows. Other countries represented the remaining share.

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

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