Wood pellets market in Southern Europe

Earlier Report Observations

The wood pellets market in Southern Europe opened at 4 401 thousand tons in 2018. Strong demand growth followed, pushed by national and regional incentives to replace fossil fuel heating systems with pellet boilers, lifting the market volume to 5 327 thousand tons in 2019. This upward trend reversed in 2020 when the market shrank to 4 646 thousand tons, largely due to the closure or conversion of co-combustion power plants in the United Kingdom, which reduced European demand for pellets in the energy sector.

After a slight further decrease to 4 407 thousand tons in 2021, the market surged dramatically to 6 493 thousand tons in 2022. This spike was primarily driven by stricter EU energy efficiency and emission regulations, which increased the attractiveness of wood pellets as a cleaner heating fuel, and by strategic agreements among producers to optimize supply chains. However, in 2023 the market volume fell back to 4 620 thousand tons.

Industry developments in 2024 point to continued evolution, with leading pellet producers investing in new drying and production technologies to expand capacity, alongside enhanced labeling and certification rules aimed at ensuring product quality and sustainability.

Production wood pellets in Southern Europe

In kind, 2017-2020, K t

Top producers of wood pellets, 2017-2020

World map of production of wood pellets, 2017-2020

Wood pellets production in Southern Europe saw a decline following two years of growth. In 2019, production reached its peak at 3 223 K t, but by 2020 it had fallen to 2 979 K t, representing a 7.6% decrease from the previous year. The most significant annual increase occurred in 2019, when production rose by 11.9%. Over the entire 2017-2020 period, production grew by 8.1%, translating to an average annual growth rate of 2.6%.

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

In value, 2017-2020, M $ US

In 2020, the value of wood pellets production in Southern Europe stood at 1 263 M $ US, showing minimal change compared to 2019. The highest value was recorded in 2019, also at 1 263 M $ US. The most substantial annual increase occurred in 2018, with a rise of 12.3%. From 2017 to 2020, the total value of production increased by 14.4%, which corresponds to an average annual growth rate of 4.6%.

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

Exports wood pellets from Southern Europe

Exports in kind, K t

Wood pellets exports from Southern Europe rebounded in 2020 after two consecutive years of decline. In 2019, exports hit their lowest point at 954 K t, but by 2020 they had recovered to 1 166 K t, marking a 22.2% year-over-year increase. The most significant annual decrease occurred in 2018, when exports fell by 17.6%. Over the 2017-2020 period, exports experienced a slight overall decline of 2.3%, with an average annual decrease of 0.8%.

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

Between 2017 and 2020, wood pellets exports from Southern Europe were distributed across a diverse range of markets. The top three destinations—Denmark (14.9% of exports in kind), the United Kingdom (14.6%), and France (2.6%)—collectively accounted for 32.1% of total exports. The remaining 67.9% was spread among numerous smaller markets.

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

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

Exports in value, M $ US

After two years of growth, the value of wood pellets exports from Southern Europe declined in 2020. The peak was reached in 2019 at 272.7 M $ US, but by 2020 the value had dropped to 256.7 M $ US, a decrease of 5.8% from the previous year. The most significant annual increase occurred in 2018, with a rise of 20.1%. Over the 2017-2020 period, the total export value increased by 24.4%, equivalent to an average annual growth rate of 7.5%.

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

From 2017 to 2020, the value of wood pellets exports from Southern Europe was spread across a wide array of partner countries. The United Kingdom (12.3% of exports in value terms), Denmark (12.2%), and France (3.2%) together represented just 27.8% of total export value, with the remaining 72.2% coming from various other markets.

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

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

Imports wood pellets to Southern Europe

Imports in kind, K t

Wood pellets imports into Southern Europe declined in 2020 after two years of increase. Imports peaked in 2019 at 3 058 K t, then fell to 2 834 K t in 2020, a decrease of 7.3% compared to the previous year. The most substantial annual increase occurred in 2019, with a rise of 22.1%. Over the 2017-2020 period, imports grew by 27.3%, corresponding to an average annual growth rate of 8.4%.

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

During 2017-2020, wood pellets imports into Southern Europe originated from a broad set of suppliers. The top three sources—Austria (21.6% of imports in kind), Germany (7.2%), and Poland (5.1%)—collectively accounted for 34.0% of total imports. The remaining 66.0% came from a variety of smaller markets.

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

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

Imports in value, M $ US

After two years of growth, the value of wood pellets imports into Southern Europe declined in 2020. The peak was recorded in 2019 at 683.0 M $ US, but by 2020 the value had fallen to 593.7 M $ US, a decrease of 13.1% from the previous year. The most significant annual increase occurred in 2018, with a rise of 28.7%. Over the 2017-2020 period, the total import value increased by 32.2%, equivalent to an average annual growth rate of 9.8%.

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

From 2017 to 2020, the value of wood pellets imports into Southern Europe was distributed across a large number of markets. Austria (23.4% of imports in value terms), Germany (7.7%), and Poland (5.2%) together accounted for 36.2% of total import value, with the remaining 63.8% coming from various other sources.

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

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