Wood pellets market in Spain

Earlier Report Observations

The Spanish wood pellet market expanded from 506 thousand tons in 2018 to 713 thousand tons in 2023, driven by two major demand surges. The introduction of a national Renewable Heat Incentive (RHI) for pellet heating systems in March 2019 significantly boosted residential consumption, contributing to the market's growth to 608 thousand tons that year. Later, the global energy crisis in 2022 dramatically increased the appeal of pellets as an alternative fuel, pushing the market volume to a peak of 783 thousand tons as both industrial and domestic demand soared.

Market contractions were linked to specific industrial shifts. In 2020, the closure or conversion of most co-combustion power plants, such as Drax Power Station, reduced large-scale industrial offtake, leading to a drop in market size to 507 thousand tons. The subsequent recovery in 2021 to 530 thousand tons was supported by a 31% increase in industrial co-combustion at coal plants aiming to cut emissions. The market correction in 2023, down to 713 thousand tons, coincided with persistent global port congestion and container shortages, which constrained raw material logistics and supply.

Underlying these fluctuations, the market's production base evolved. From 2018, companies like ECOFRICALIA installed pelletizing plants at woodworking facilities to convert sawdust and scrap into fuel for self-consumption or sale, valorizing industrial waste. Technological advances, such as the launch of new shredding equipment, improved production efficiency. Furthermore, revised Ecodesign regulations in Europe imposed stricter efficiency and emission standards on biomass boilers, steering the sector towards higher-quality, sustainable pellet production.

Production wood pellets in Spain

In kind, 2017-2020, K t

Between 2017 and 2020, Spain ranked 17th globally in wood pellets production.

Top producers of wood pellets, 2017-2020

World map of production of wood pellets, 2017-2020

Spain's wood pellets production increased for two consecutive years before declining. In 2019, output peaked at 617.0 K t, but fell to 530.9 K t in 2020, a decrease of 14.0% from the previous year. The largest annual increase occurred in 2018, at 8.3%.

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

In value, 2017-2020, M $ US

Wood pellets production in Spain saw two years of growth before a downturn. The value reached its highest point in 2019 at 122.3 M $ US, but dropped to 102.3 M $ US in 2020, down 16.3% year-on-year. Over the 2017-2020 period, production value rose by 21.3%, with a compound annual growth rate of 6.7%. The most significant increase was in 2018, at 35.6%.

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

Exports wood pellets from Spain

Exports in kind, K t

Following two years of decline, Spain's wood pellets exports increased in 2020. Shipments rose to 89.2 K t, up 1.8% from 2019. However, over the 2017-2020 period, exports decreased by 24.6%, with a compound annual decline of 9.0%. The lowest volume was recorded in 2019 at 87.6 K t, which also saw the largest drop of 20.7%.

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

From 2017 to 2020, Italy, France, and the United Kingdom were the primary destinations for Spain's wood pellets exports by volume. Italy accounted for 33.9% of exports, France for 28.7%, and the United Kingdom for 21.5%, together making up 84.1% of total flows.

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

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

Exports in value, K $ US

Spain's wood pellets exports declined for the second year in a row in 2020, reaching 17 191 K $ US, a 1.0% decrease from 2019. Between 2017 and 2020, exports fell by 8.8%, equivalent to an annualized rate of 3.0%. The highest value was in 2018 at 22 037 K $ US, which also experienced the largest increase of 16.9%. The most significant decline occurred in 2019, down 21.2%.

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

During 2017-2020, France, Italy, and the United Kingdom led as the top buyers of Spanish wood pellets by value. France represented 34.2% of exports, Italy 30.1%, and the United Kingdom 19.7%, collectively accounting for 84.1% of total export value.

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

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

Imports wood pellets to Spain

Imports in kind, K t

Spain's wood pellets imports showed volatility from 2017 to 2020. The lowest volume was in 2017, while the highest was in 2019, with a 1.9-fold difference between these years. In 2020, imports fell to 65.1 K t, a 17.5% decrease from 2019. The peak was 78.9 K t in 2019, which also saw the largest increase of 79.6%.

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

From 2017 to 2020, Portugal dominated Spain's wood pellets imports by volume, holding an 88.2% share of total flows, with other markets contributing minimally.

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

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

Imports in value, K $ US

Spain's wood pellets imports exhibited volatility between 2017 and 2020. The lowest value was in 2018 at 10 702 K $ US, and the highest in 2019 at 32 158 K $ US, reflecting a threefold gap. In 2020, imports totaled 22 322 K $ US, down 30.6% from the previous year. The largest increase occurred in 2019, surging by 200.5%.

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

Between 2017 and 2020, Portugal was the main source for Spain's wood pellets imports by value, accounting for 84.0% of the total, while other origins played a smaller role.

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

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