Wood pellets market in Serbia

Earlier Report Observations

The Serbian wood pellet market expanded significantly from 2018 to 2021, with volume growing from 256.5 thousand tons to 496.9 thousand tons. This growth was driven by the entry of new producers and suppliers in the Western Balkans, supported by investments in production capacity and the opening of new pellet and boiler manufacturing plants. Regulatory developments, such as the alignment with EU quality standards for pellets and boilers, along with state subsidies and tax incentive initiatives for renewable heating, encouraged adoption. The COVID-19 pandemic boosted demand for domestic fuel sources due to supply chain concerns, while rising fossil fuel prices and regional energy crises further shifted consumers toward pellet heating for its economic and environmental benefits.

After peaking in 2021, the market volume contracted to 478.2 thousand tons in 2022 and further to 413.2 thousand tons in 2023. This coincided with a reduction in domestic production, which fell from 468 thousand tons in 2021 to 392 thousand tons in 2023, while imports also declined from their 2021 peak.

Production wood pellets in Serbia

In kind, 2017-2020, K t

Between 2017 and 2020, Serbia ranked 24th globally in wood pellets production.

Top producers of wood pellets, 2017-2020

World map of production of wood pellets, 2017-2020

Wood pellets production in Serbia increased for the third consecutive year. In 2020, Serbia produced 445.0 K t of wood pellets, which is 14.7% more than the previous year. From 2017 to 2020, production grew by 45.4%, equating to an annualized rate of 13.3%.

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

In value, 2017-2020, K $ US

Wood pellets production in Serbia rose for the third year in a row. In 2020, the output was valued at 79 010 K $ US, marking a 14.3% increase compared to the previous year. Between 2017 and 2020, production increased by 41.9%, with an annualized growth rate of 12.4%.

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

Exports wood pellets from Serbia

Exports in kind, t

The market showed volatility during the observed period. Exports reached their lowest point in 2017 and peaked in 2018, with a 2.1-fold difference between these years. In 2020, wood pellets deliveries from Serbia amounted to 63 894 t, showing a notable decrease of 19.8% year-over-year. The maximum volume was recorded in 2018 at 93 044 t, with the largest increase of 113.1% also occurring that year.

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

From 2017 to 2020, two countries—North Macedonia and Italy—accounted for most of Serbia's wood pellets exports in kind, while other markets were individually less significant.

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

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

Exports in value, K $ US

The market exhibited an unstable trend throughout the timeframe. Exports hit their lowest point in 2017 and peaked in 2018, with a 2.2-fold gap. In 2020, wood pellets deliveries from Serbia were valued at 11 344 K $ US, which is 20.1% less than in 2019. The maximum value was recorded in 2018 at 17 110 K $ US, with the largest increase of 115.4% also in that year.

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

Between 2017 and 2020, North Macedonia (with 65.5% of total flows) and Italy (18.0%) together formed 83.4% of Serbia's wood pellets exports in value terms, while other partners accounted for the remainder.

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

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

Imports wood pellets to Serbia

Imports in kind, t

Volatility characterized the market behavior during these years. Imports reached their lowest point in 2019 and peaked in 2017, with a 2.9-fold difference between these years. In 2020, Serbia imported 40 574 t of wood pellets, a sharp increase of 73.4% over the previous year. The minimum volume was recorded in 2019 at 23 401 t, and the largest decline of 60.9% occurred in 2018.

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

Throughout 2017–2020, the three largest markets—Ukraine, Bosnia and Herzegovina, and Croatia—were central to Serbia's wood pellets imports in kind, together accounting for 88.8% of total flows.

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

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

Imports in value, K $ US

There were noticeable fluctuations in market performance during the period. Imports were at their lowest in 2019 and peaked in 2017, with a peak-to-trough ratio of 2.6 times. In 2020, Serbia imported 6 467 K $ US of wood pellets, showing an increase of 80.0% versus the previous year. The minimum value was recorded in 2019 at 3 593 K $ US, and the largest decline of 56.4% was in 2018.

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

In 2017–2020, Ukraine (36.0% of imports in value terms), Bosnia and Herzegovina (26.9%), and Croatia (25.1%) were the largest suppliers of wood pellets to Serbia, together forming 88.0% of total imports in value terms.

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

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