Wood pellets market in Sweden

Earlier Report Observations

The Swedish wood pellets market expanded from 1 868 thousand tons in 2018 to 2 023 thousand tons in 2019, supported by the competitiveness of biofuels enhanced by taxes and environmental fees on fossil fuels, along with a steady supply of raw materials from sawmill and wood industry residues. Market volume contracted to 1 642 thousand tons in 2020, while large state-owned and private actors like SCA maintained strong production capabilities and Sweden's unique position in utilizing forestry residuals for bioenergy.

After stabilizing around 1 626 thousand tons in 2021, the market rebounded sharply to 1 780 thousand tons in 2022. This surge was driven by heightened demand following Russia's invasion of Ukraine, which led to soaring prices for natural gas and other fuels, making wood pellets more attractive. The commissioning of four new pellet plants with a total capacity of 180 000 tons per year also expanded production potential, though reduced sawmill output limited raw material availability.

Market volume continued to grow, reaching 1 833 thousand tons in 2023, as industry players like Söderenergi secured volume contracts and increased imports to build winter stocks. By 2024, persistent price increases for wood fuels—up to 36% for by-products to heating plants—reflected ongoing raw material shortages from lower sawmill production and reduced supply of recycled wood chips, alongside intensified international competition.

Production wood pellets in Sweden

In kind, 2017-2020, K t

From 2017 to 2020, Sweden ranked sixth globally in wood pellet production.

Top producers of wood pellets, 2017-2020

World map of production of wood pellets, 2017-2020

In 2020, Sweden produced 1,660 thousand tonnes of wood pellets, marking a 2.5% decrease compared to the previous year. Over the 2017-2020 period, production declined by 4.7%, with a compound annual growth rate of 1.6%. The lowest production level was recorded in 2018 at 1,642 thousand tonnes, which saw the largest decline of 5.7%. In contrast, 2019 experienced the highest increase at 3.7%.

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

In value, 2017-2020, M $ US

Following two years of growth, wood pellet production in Sweden saw a decline. In 2020, the output was valued at 317.6 million US dollars, down 6.9% from the previous year. Over the 2017-2020 period, production increased by 13.1%, with a compound annual growth rate of 4.2%. The peak value occurred in 2019 at 340.9 million US dollars, which also recorded the largest increase of 17.3%.

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

Exports wood pellets from Sweden

Exports in kind, K t

After a two-year decline, Sweden's wood pellet export volume rebounded. In 2020, exports reached 137.5 thousand tonnes, showing a 19.1% increase over the past year. Over the 2017-2020 period, exports decreased by 31.1%, with a compound annual growth rate of 11.7%. The lowest export level was in 2019 at 115.4 thousand tonnes, which saw the largest decline of 25.2%.

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

From 2017 to 2020, Denmark was the primary buyer of wood pellets from Sweden, accounting for 75.7% of total exports in volume, while a diverse group of other countries made up the remainder.

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

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

Exports in value, K $ US

Following a two-year downturn, wood pellet exports from Sweden increased. In 2020, Sweden exported 26,306 thousand US dollars worth of wood pellets, indicating a solid rise of 13.8% compared to 2019. Over the 2017-2020 period, exports decreased by 18.3%, with a compound annual growth rate of 6.5%. The lowest value was recorded in 2019 at 23,113 thousand US dollars, which saw the largest decline of 15.4%.

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

Throughout 2017 to 2020, Denmark remained the main destination for exports in value terms, taking 73.7% of total flows, with the remaining share distributed across various smaller markets.

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

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

Imports wood pellets to Sweden

Imports in kind, K t

The market showed noticeable fluctuations during this period. Imports reached their lowest point in 2020 and peaked in 2019, with a 3.7-fold difference between these years. In 2020, cross-border shipments of wood pellets to Sweden stood at 119.3 thousand tonnes, which is 72.6% lower than the previous year. The maximum value was recorded in 2019 at 435.6 thousand tonnes, while the largest increase occurred in 2018 at 41.3%.

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

From 2017 to 2020, Russia, Estonia, and Finland accounted for the largest share of imports in volume, with Russia at 55.8%, Estonia at 23.3%, and Finland at 6.8%, together comprising 85.8% of total flows.

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

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

Imports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. A 3.7-fold variation was recorded between the minimum in 2020 and the maximum in 2019. In 2020, wood pellet imports to Sweden amounted to 19,401 thousand US dollars, which is 73.0% lower than in 2019. The peak value was in 2019 at 71,775 thousand US dollars, while the largest increase was in 2018 at 63.7%.

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

From 2017 to 2020, Russia and Estonia jointly absorbed 80.4% of total imports in value terms of wood pellets to Sweden, with the rest of the volume scattered across smaller markets.

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

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