Wood pellets market in Poland

Earlier Report Observations

The Polish wood pellet market expanded significantly in 2019, reaching 1 098 thousand t. This growth was propelled by the launch of the Clean Air subsidy program, which required pellet boilers to be listed on the Green Devices and Materials List (ZUM) to qualify for grants, stimulating household demand. Concurrently, the number of certified producers increased, with 13 new firms obtaining ENplus® registration, bolstering supply. This trend reversed sharply in 2020 when the COVID-19 pandemic disrupted sawdust supply chains from sawmills, a key raw material, causing the market volume to contract to 703 thousand t.

Market volume recovered to 1 042 thousand t in 2021, aided by the continued entry of new certified players and ongoing regulatory work on quality standards for wood fuel. Growth persisted into 2022, though at a moderated pace to 1 117 thousand t, as rising demand from combined heat and power plants compelled to use only certified pellet under stricter emission limits was partially counterbalanced by a state moratorium on tree felling in public forests, which tightened raw material availability and pressured production costs.

In 2023, the market declined to 1 055 thousand t. A frosty winter curtailed sawmill activity and sawdust output, creating a temporary pellet shortage. Simultaneously, increased imports of cheaper pellets from the Baltic states and Ukraine intensified price competition for domestic manufacturers. Regulatory developments continued with the enforcement of mandatory ZUM labeling for boilers under the Clean Air program and the publication of new draft quality regulations for wood biomass fuels.

Production wood pellets in Poland

In kind, 2017-2020, K t

Poland was one of the world's leading producers of wood pellets from 2017 to 2020, ranking 11th globally by production volume.

Top producers of wood pellets, 2017-2020

World map of production of wood pellets, 2017-2020

Poland's wood pellet production volume declined after a two-year rise. In 2020, production reached 1 069 K t, representing a significant drop of 23.9% compared to 2019. Over the 2017-2020 period, production increased by 6.9%, with a compound annual growth rate of 2.2%. The peak was recorded in 2019 at 1 405 K t, while the largest annual increase occurred in 2018 at 20.0%.

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

In value, 2017-2020, M $ US

Poland's wood pellet production value declined after a two-year uptick. In 2020, output was valued at 207.3 M $ US, marking a sharp year-on-year drop of 29.9%. Between 2017 and 2020, production value increased by 26%, equating to an annualized growth rate of 8.0%. The highest value was recorded in 2019 at 295.7 M $ US, with the largest annual increase occurring in 2018 at 49.4%.

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

Exports wood pellets from Poland

Exports in kind, K t

Poland's wood pellet export volumes declined after a two-year increase. In 2020, exports amounted to 511.8 K t, down by 2.2% compared to 2019. Between 2017 and 2020, exports grew by 62.4%, representing an annualized rate of 17.5%. The peak volume was recorded in 2019 at 523.2 K t, while the largest annual increase occurred in 2018 at 41.5%.

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

From 2017 to 2020, the leading destinations for Poland's wood pellet exports in volume terms were Italy (37.5% of exports), Germany (28.0%), and Denmark (21.0%). Together, these three countries accounted for 86.5% of total export flows.

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

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

Exports in value, M $ US

The market exhibited an unstable trend throughout the period. Exports reached their lowest point in 2017 and peaked in 2019, with a 2.1-fold difference between these years. In 2020, Poland's wood pellet exports were valued at 99.3 M $ US, representing a modest decline of 9.8% from the previous year. The highest value was recorded in 2019 at 110.1 M $ US, with the largest annual increase occurring in 2018 at 76.2%.

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

From 2017 to 2020, Italy (38.4% of export value), Germany (28.6%), and Denmark (18.1%) were the main destinations for Poland's wood pellet exports in value terms. Combined, these three countries accounted for 85.0% of total export flows.

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

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

Imports wood pellets to Poland

Imports in kind, K t

The market showed volatility during these years. Imports reached their lowest point in 2017 and peaked in 2019, with a 2.9-fold difference between these years. In 2020, Poland's wood pellet imports amounted to 146.1 K t, down by 32.6% year-on-year. The peak volume was recorded in 2019 at 216.6 K t, while the largest annual increase occurred in 2018 at 91.0%.

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

From 2017 to 2020, Ukraine was the key supplier of wood pellets to Poland, accounting for 72.6% of total imports in volume terms. A diversified group of other countries made up the remainder.

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

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

Imports in value, M $ US

The market displayed volatility over the observed period. Imports were at their lowest in 2017 and reached their highest in 2019, with a 2.5-fold difference between these years. In 2020, Poland's wood pellet imports were valued at 21.4 M $ US, marking a steep decline of 47.3% compared to the previous year. The peak value was recorded in 2019 at 40.6 M $ US, with the largest annual increase occurring in 2018 at 73.2%.

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

From 2017 to 2020, Ukraine (48.0% of total import value) and Germany (36.1%) together accounted for 84.1% of Poland's wood pellet imports in value terms, while other partners made up the remaining volume.

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

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