After three difficult years marked by weak demand and thin margins, the European Union's wood pellet industry appears to be turning a corner. Total EU27 production is estimated at 19.8 million metric tons for 2025, only a modest increase from 2024, but industry data point to stronger residential heating demand and rising output heading into 2026 \u2014 led once again by Germany, the bloc's largest producer.<\/p>\n
A decade of steady, then stalling, growth<\/strong><\/p>\n EU pellet production climbed almost without interruption from 2019 to 2022, rising from 18.36 million tons to a peak of just over 20.2 million tons. That growth then reversed: 2023 and 2024 both saw production slip back below the 2022 peak, as falling pellet prices and higher costs for woody biomass squeezed producer margins across the bloc. Estimates for 2025 show output essentially flat versus 2024, with the overall total still below the 2022 high.<\/p>\n Germany remains the EU's dominant producer and the world's third-largest after the United States and Canada. Following a temporary dip in 2024, German output rebounded strongly in 2025 to an estimated 4.0 million tons, produced across roughly 60 facilities run by around 40 companies, with installed capacity of about 4.2 million tons a year. More than 90% of German pellets are made from residues of the domestic timber industry, with the rest sourced from non-sawable round logs \u2014 a production model that has helped shield the sector from some of the raw-material pressures affecting other member states.<\/p>\n France's pellet sector has grown into a cornerstone of the country's plan to reach carbon neutrality by 2050. Roughly 80 plants are currently active, with installed capacity above 2.6 million tons a year; counting facilities that are planned or have recently come online, the broader production base already numbers around 135 sites. That expansion has been driven largely by growing demand for renewable heating and continued policy support for mobilizing forest biomass.<\/p>\n Latvia, Estonia and Lithuania expanded rapidly between 2015 and 2020 but have since plateaued, constrained mainly by limited availability of raw material. Combined production is now roughly 2.1 million tons in Latvia, 1.4 million in Estonia and 0.6 million in Lithuania, feeding both domestic heating markets and export demand \u2014 chiefly to Denmark, the UK and the Netherlands. Baltic exports hit a record 4.7 million tons in 2021 before falling sharply in 2022\u20132023, then recovering to 3.4 million tons in 2024 and 3.8 million tons in 2025, helped by expanding shipments to the UK and the Netherlands.<\/p>\n Sweden's output has hovered between 1.6 and 1.8 million tons for the past decade, and in 2025 the country became a net exporter for the first time, shipping mainly to Denmark and Norway. Neighboring Finland produces around 350,000 tons a year but remains a net importer, sourcing most of its pellets from the Baltic states; Finnish output is expected to grow alongside rising residential and industrial demand.<\/p>\n Poland's production recovered in 2024 on the back of a growing residential market, a trend expected to continue in 2026. However, the industry is watching raw-material availability closely: after roughly 40 million cubic meters of timber were offered annually by Poland's State Forests between 2017 and 2024, the planned harvest for 2026 has been cut to 37 million cubic meters, a change that could constrain future output.<\/p>\n Austria is Central Europe's leading producer, running 55 pellet plants in 2025 \u2014 one more than the year before \u2014 for total output of 2.0 million tons, with production having risen steadily over the past decade. Austria remains a net exporter, shipping mainly to Italy and Germany, even as domestic demand also climbs. Czechia produces around 500,000 tons annually from sawdust and sawmill residues, making it self-sufficient; since output still exceeds domestic consumption, roughly three-quarters of Czech pellets are exported, primarily to Austria, Italy and Germany. Slovakia's production grew from about 100,000 tons in 2012 to nearly 400,000 tons at its peak, but has since eased to around 300,000 tons, with the country's forests now reportedly close to their maximum sustainable output.<\/p>\n Hungarian pellet production nearly doubled in 2023 to 109,000 tons before falling back to 69,000 tons in 2024; pellets still play a minor role in Hungary's renewable energy mix compared with firewood and other biomass such as wood-industry waste and agricultural byproducts. Romanian output has been broadly stable at around 380,000 tons a year, with stricter forest-sourcing rules and incentives for more efficient heating equipment seen as potential supports for the sector going forward.<\/p>\n In the Balkans, commercial pellet production has expanded quickly but has struggled to keep pace with rising domestic demand. Croatia's output now ranges between 430,000 and 550,000 tons a year, with about 80% exported, mostly to Italy; after a 12% drop in 2024, exports rebounded sharply in 2025 to an estimated 364,000 tons. Bulgarian producers have tried to raise domestic supply but face a difficult combination of higher wood costs and lower pellet prices, a squeeze that has driven a wave of consolidation among manufacturers.<\/p>\n Portugal and Spain, both net exporters, round out the picture. Portuguese production has held around 555,000 tons in both 2024 and 2025, against installed capacity of roughly 1.7 million tons, with output constrained mainly by limited wood supply; France, the UK, Spain and Denmark are the main export markets, and shipments to France in particular have grown over the past five years despite an overall decline in Portuguese exports. Spain, by contrast, has kept expanding: production reached about 865,000 tons in 2025 within a theoretical capacity of nearly 2.0 million tons, increasingly concentrated in large plants. Spanish exports jumped 36% in 2025 to 165,000 tons, after a decline in 2024, with France, Italy and Portugal as the leading destinations.<\/p>\n Across the bloc, the recurring theme is competition for a limited pool of woody biomass, particularly sawdust and sawmill residues. That pressure has pushed some producers toward alternative feedstocks, including agricultural residues, though industry estimates suggest these additional sources won't be enough on their own to close the gap. Even with 2026 shaping up as a stronger year for production, EU wood pellet output is expected to continue lagging behind demand growth \u2014 especially from the residential heating sector, which has emerged as the main driver of consumption across much of Western and Central Europe.<\/p>","protected":false},"excerpt":{"rendered":" After three difficult years marked by weak demand and thin margins, the European Union’s wood pellet industry appears to be turning a corner. Total EU27 production is estimated at 19.8 million metric tons for 2025, only a modest increase from … Continue reading \n
\n \nCountry<\/th>\n 2019<\/th>\n 2020<\/th>\n 2021<\/th>\n 2022<\/th>\n 2023<\/th>\n 2024<\/th>\n 2025e<\/th>\n<\/tr>\n<\/thead>\n \n Germania<\/td>\n 2,820<\/td>\n 3,100<\/td>\n 3,300<\/td>\n 3,570<\/td>\n 3,710<\/td>\n 3,695<\/td>\n 4,000<\/td>\n<\/tr>\n \n Fran\u021ba<\/td>\n 1,600<\/td>\n 1,700<\/td>\n 1,860<\/td>\n 2,050<\/td>\n 2,250<\/td>\n 2,000<\/td>\n 2,000<\/td>\n<\/tr>\n \n Latvia<\/td>\n 2,210<\/td>\n 2,265<\/td>\n 2,140<\/td>\n 1,980<\/td>\n 2,060<\/td>\n 2,060<\/td>\n 2,070<\/td>\n<\/tr>\n \n Austria<\/td>\n 1,440<\/td>\n 1,540<\/td>\n 1,610<\/td>\n 1,640<\/td>\n 1,725<\/td>\n 1,800<\/td>\n 2,030<\/td>\n<\/tr>\n \n Sweden<\/td>\n 1,700<\/td>\n 1,660<\/td>\n 1,755<\/td>\n 1,810<\/td>\n 1,740<\/td>\n 1,580<\/td>\n 1,600<\/td>\n<\/tr>\n \n Estonia<\/td>\n 1,600<\/td>\n 1,600<\/td>\n 1,650<\/td>\n 1,535<\/td>\n 1,490<\/td>\n 1,365<\/td>\n 1,370<\/td>\n<\/tr>\n \n Poland<\/td>\n 1,105<\/td>\n 1,265<\/td>\n 1,285<\/td>\n 1,270<\/td>\n 1,175<\/td>\n 1,250<\/td>\n 1,300<\/td>\n<\/tr>\n \n Portugal<\/td>\n 1,010<\/td>\n 860<\/td>\n 730<\/td>\n 745<\/td>\n 560<\/td>\n 555<\/td>\n 555<\/td>\n<\/tr>\n \n Spain<\/td>\n 615<\/td>\n 530<\/td>\n 650<\/td>\n 770<\/td>\n 800<\/td>\n 800<\/td>\n 865<\/td>\n<\/tr>\n \n Lithuania<\/td>\n 605<\/td>\n 510<\/td>\n 530<\/td>\n 525<\/td>\n 605<\/td>\n 600<\/td>\n 615<\/td>\n<\/tr>\n \n Other member states<\/td>\n 3,655<\/td>\n 3,683<\/td>\n 3,979<\/td>\n 4,332<\/td>\n 3,854<\/td>\n 3,812<\/td>\n 3,395<\/td>\n<\/tr>\n \n EU27 total<\/td>\n 18,360<\/td>\n 18,713<\/td>\n 19,489<\/td>\n 20,227<\/td>\n 19,969<\/td>\n 19,517<\/td>\n 19,800<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n Germany extends its lead<\/h2>\n
The Baltics, Nordics and Central Europe: mixed fortunes<\/h2>\n
Southern and southeastern Europe<\/h2>\n
A tightening raw material picture<\/h2>\n