Winter is on the horizon, and even as August stretches on, households across North America are already weighing how to heat their homes when the cold months arrive. A growing trend in recent weeks is the purchase of firewood and pellets as a practical alternative. The surge in demand has been especially noticeable in certain European regions, but the underlying dynamics are echoed in North American markets as consumers seek price-stable heating options amid energy price volatility.
Wood and pellet suppliers report rising sales as families preempt rising electricity and natural gas costs. The concern over potential supply disruptions and inflation has driven many to view wood as a cost-effective heating resource for households seeking to manage winter expenses.
Price Increases
Prices for wood products have crept upward in several markets. While some brands remain the most popular choices, price hikes of around 15% have been observed in recent weeks. Demand has surged to levels not seen in years, and suppliers struggle to keep up, partly due to labor shortages in forestry and wood processing. When there are not enough workers to harvest, process, and package the product, origin costs rise, contributing to higher consumer prices.
Beyond wood, pellets have emerged as another viable heat source. Pellets have gained traction in households that prioritize a cleaner, more efficient burn, sometimes even replacing gas heating for limited periods. Yet, despite their popularity, some regions report shortages of pellet supply. In many markets, domestic production cannot fully meet demand, while exports from other regions tighten stock in local stores. Inflation further compounds the issue, sometimes doubling pellet prices over a few months.
Historical trends show that a rise in fossil fuel costs last year already boosted sales of stoves and pellet boilers across Europe, with a reported 44% increase year over year in many countries. The traditional suppliers of industrial and domestic pellets have shifted. Russia and Belarus previously exported large volumes to Europe, but since mid-2022 sanctions and supply restrictions have disrupted these channels, reshaping regional availability.
Some consumers turn to coal as a backstop, though it remains in short supply. The market’s volatility has kept coal prices volatile and availability uncertain as imports from some regions remain restricted.
Analytics from Deza’s market observations indicate that coal mined in certain regions is often redirected to higher-paying markets in Europe, affecting local supply. Transportation challenges, including imports routed through several countries, also play a role in stock levels. In many cases, even when households want to purchase, the stock simply isn’t there, and prices rise as retailers attempt to balance demand with limited supply. Some traders report a notable price uptick—around 40% in recent periods—driving households to seek the most affordable heating options available.
Consequently, families are choosing the most economical means to heat their homes this coming winter, even if it means paying a bit more for a product that was cheaper just months ago. This shift reflects growing concern for the future and, in some places, a noticeable stock shortage. The broader takeaway is clear: collective responsibility and prudent planning are essential to meet individual and family heating needs without overburdening the system.
In the North American context, households are advised to assess local market conditions, consider fuel mix options, and stay informed about regulatory changes that can affect supply chains. While wood and pellet options are attractive for their relative affordability, consumers should weigh local availability, burn efficiency, and the environmental footprint of different fuels. Balancing short-term cost with long-term reliability remains the central challenge for homeowners as winter approaches. [Source: energy market analyses and regional price reports]