The wood heating market - France (2024)

1.2 A growing European market

Biomass, the material derived from plants and animals, now accounts for a significant proportion of energy production in many countries. Northern and Eastern European countries are the main users of this energy. For example, it accounted for **% of the energy available in Latvia in ****. [***] In ****, the main final consumers of wood energy are Germany and Poland. France is in *ᵉ position.

Main countries producing energy from biomass Europe, ****, millions of MSE Source: ****

however, on a European Union scale, biomass still represents a minority energy source, suffering from competition from fossil fuels and other renewable energy sources (***). [***]

Nevertheless, European wood-energy consumption has been rising steadily over the past ** years , reaching a peak of *,*** TOE in **** (***).

Development of energy production and energy from biomass Europe, ****-****, million TOE Source: ****

1.3 Important imports for the market

Over the years, imports (***) . for information, the share of imports was **% in ****[***]

Share of imports and exports for the France market, ****-****, % Source: ****

Indeed, French players were positioned mainly in the low-efficiency closed hearth and insert segment. However, with advances in efficiency, French players have had to face increasing pressure from European players (***).

By ****, France will be exporting almost exclusively closed hearths and inserts, while importing more than three-quarters of its stoves, stoves and boilers.

Nevertheless, the wood heating market in France remains one of great potential. Wood is the leading source of renewable energy in France. France has ** million hectares of forest, or **% of its total land area. Total sales of domestic wood-burning appliances are expected to reach *** million euros in ****, up **% on the previous year. [***]

1.4 The French market

Sales trends in the domestic wood-burning appliances market France, **** -****, in millions of euros Observ'ER

After a dip in ****, sales have really jumped: sales in **** are **% higher than in ****.

On the one hand, growing concern for the environment is driving many people to opt for a cleaner, renewable heat source. On the other hand, the rising costs of traditional energy sources such as gas and electricity are encouraging consumers to look for more economical alternatives. Technological advances in the design of wood-burning appliances have also improved their efficiency and reduced emissions, making them more attractive. In addition, government incentives and subsidies have reinforced this trend, while offering consumers a means of preparing for emergencies. Finally, the charm of the warm, friendly atmosphere created by a wood fire also contributes to their growing popularity.

2.1 Consumption of wood energy (biomass)

Energy from biomass is not only intended for domestic use, even if this is the case in France (***). In France, by ****, the residential sector will be the largest consumer of wood energy, accounting for **% of total consumption, followed by the energy branch at **%, industry at *%, agriculture at *% and the tertiary sector at *%.

Breakdown of final energy consumption from biogas France, ****, % Source: ****

Breakdown of final energy consumption from biomass in industry Europe, ****, %, Source: Bioenergy Europe Source: ****

In France in ****, half of final biomass energy consumption in industry will come from domestic wood heating, followed by aerothermal heat pumps (***).

2.2 Focus on domestic wood heating

In ****, sales of domestic wood-burning appliances were up **.*% on ****. (***). **** was the best year since ****, particularly in the boiler segment, which set a record with nearly **,*** units sold. **** surpassed this record, with stoves in particular reaching almost ***,*** units sold.

Sales of wood-burning heating systems by type France, ****-****, thousands of units Source: ****

This change in demand can be explained in particular by the fact that pellets have become the fuel of reference for individuals equipping themselves with a wood heating system for the first time, and for new-builds, much more so than logs.

In ****, *.* million households were equipped with a wood-burning appliance, rising to almost * million by ****, according to ADEME. The proportion of households using stoves has risen, while the share of other appliances has stagnated or fallen. The government has set a target of * .* million homes heated with wood by **** and **.* million by ****.

Number of wood-heating households, by type France, ****, **** and ****, millions of households Source: ****

nB: for ****, the breakdown by appliance type is not available.

This growth in demand for pellet stoves is explained by their energy performance and relatively low price (***).

Manufacturers such as Invicta and Deville have also understood the importance of positioning themselves quickly in this market, and ...

2.3 User profile

In France, almost a quarter of households use a wood-burning heating system, whether as a primary or secondary source. This rate peaked in ****. [***]

It is possible to determine user profiles according to the type of heating appliance. While open fireplaces are of particular interest to the elderly in older homes, other heating appliances are aimed at a wider population, from different socio-professional categories, generally living with their families.

Source: ****

Independent appliances, closed hearths, inserts and stoves are in the majority, accounting for **% of all *.* million wood-burning appliances in France in ****.

Breakdown of installed base by type of domestic wood-burning appliance France, ****, % (***) Source: ****

Household equipment rates also vary widely depending on the region in which they are located. To find out how wood heating is distributed across the national fleet, we can look at heat production from domestic wood-burning appliances. The regions where wood heating is most widespread are as follows: Grand Est, Auvergne Rhône-Alpes and Nouvelle-Aquitaine.

Overall, **% of users with wood heating use it as their main source of heat. The remainder use it for supplementary or occasional heating. [***]

Self-supply represents the main source of supply for wood heating users (***), while short and professional circuits account for only ** million and ...

3.1 Fierce foreign competition

Environmental concerns have encouraged the government and consumers to promote much more efficient heating appliances, with the Flamme Verte label. These appliances must meet a number of requirements:

Efficiency greater than **% Low emissions of fine particles and less than *.*% for carbon monoxide

Share of appliances sold with Flamme Verte certification France, **** and ****, in % Source: ****

Wood heating purchase rate, by region France, ****, number of appliances purchased in **** per **** households Source: ****

Auvergne-Rhône-Alpes is the leading region for wood-burning appliances in ****. The distribution of sales across the region has changed little compared with ****. The market therefore remains balanced between the various regions of mainland France.

Competition between manufacturers has intensified in recent years. The domestic market has become more attractive to foreign manufacturers, who have succeeded in developing more efficient and modern products, while French manufacturers have remained focused on more traditional equipment. [***]

This is why the share of imported appliances has risen from **% in **** to **% in ****. [***]

As a result, manufacturers have experienced many difficulties, with some being bought out by foreign competitors (***).

3.2 Distribution mainly through installers and wholesalers

Manufacturers have several distribution channels for their products:

Direct sales, in stores generally located close to production plants. Wholesalers, who deal with manufacturers and buy part of their production from them. Installers, sometimes on their own or organized into networks, who decide not to go through a wholesaler and buy from several manufacturers. Exclusive installer networks, which have an exclusive contract with a manufacturer. DIY superstores, which sometimes buy directly from manufacturers and offer their products to consumers.

However, depending on the technical nature of the product, manufacturers choose to sell to different customers. Boilers, for example, are mainly sold to wholesalers, while closed hearths and inserts are mainly sold to installers. [***]

Overall, installers (***) and wholesalers account for the bulk of sales by manufacturers of wood-burning heating systems.

Sales breakdown by type of wood heating system and distribution channel France, ****, % of sales Source: ****

Sales breakdown by distribution channel France, ****, % Source: Observ'ER Observ'ER Stoves are mainly sold in specialist stores (***). In terms of distribution channels, specialist stores appear to be the most popular channel for all appliance types, with the exception of boilers. Wholesalers play a key role in the distribution of boilers and stoves. Online sales remain low for all appliance ...

3.3 Structure of wood-burning appliance sales

Sales of wood-burning appliances by market segment France, ****, in euros Observ'ER

The most profitable appliances are boilers, with average sales of €****.

Sales of wood-burning appliances by market segment France, ****, in millions of euros Observ'ER

[***]

Stoves account for **% of the total market, although they are the least profitable appliances, with average sales of just €*,***. The sales structure is relatively balanced between pellet stoves and manual stoves.

It's worth noting that all segments have seen their sales increase between **** and ****, and for some, we're seeing a very significant rise (***), to the detriment of boiler stoves, which are down by **%.

3.4 Production costs

[***]

Air-to-water heat pumps have the highest production costs. Private wood and industrial/collective biomass have the lowest production costs.

3.5 Value chain

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4.1 Four main product categories

There are many types of wood-burning appliance, the most common being closed hearths, inserts and stoves (***).

Source: ****

The choice of wood-burning appliance depends on needs and available fuel. For example, a household that is self-sufficient in logs is more likely to choose a log heater.

Source: ****

Then, within the same category, the different appliances are distinguished according to criteria of aesthetics, power, ease of use (***). [***]

Efficiency and the presence of the Flamme Verte label are less and less differentiating factors, given that the presence of the label is becoming more widespread and imposes a minimum efficiency.

4.2 A very wide price range

Appliance prices vary greatly according to the type of model chosen. A boiler, for example, is systematically more expensive than a stove. [***]

Delivery and installation costs are often added to the price of the appliance. It may also be necessary to rebuild the heating system in the house, which can represent an additional expense.

Source: ****

The price of wood-fired boilers is much higher than the price of traditional boilers, which range in price from €*** to €*,*** for top-of-the-range models. [***]

Consumers may be led to choose wood-fired boilers when they have sufficient wood resources to save on the price of electricity.

Similarly, traditional radiant panel or inertia heaters cost a maximum of €*,*** per unit, which is equivalent to the minimum price of pellet stoves, for example. [***]

Theequipment price increases observed on the **** market are the highest recorded in the last twelve years. (***). [***]

It turns out that households choose to buy a wood heating system because they want to save money on the price per kWh, which is lower for wood than for electricity, or because they want to save money on the price per kWh, which is lower for wood than for electricity. electricity, or because they are able to source the wood ...

5.1 Current regulations

A major source of pollution, many inefficient wood-burning sources have been banned in certain regions. A **** inter-prefectoral decree, for example, introduced restrictions on the use of certain types of heating in the Île-de-France region (***).

Source: ****

These restrictions could be extended to other regions if they see a rise in air pollution (***). [***]

This requires manufacturers, both French and foreign, to obtain the Flamme Verte label to demonstrate the efficiency of their appliances. This label, which only includes "*-star" and "*-star" ratings, since lower ratings were abolished on January*, ****, is awarded on the basis of:

Energy efficiency Carbon monoxide emission levels Fine particulate emissions Level of nitrogen oxide emissions (***)

Expectations vary according to the appliance (***). [***]

5.2 Environmental performance and subsidies

A major issue in the energy transition, this solution is highly advantageous, since it is less polluting than other energy sources, and relatively less expensive too.a pellet boiler saves €*,*** a year in fuel costs compared with an oil-fired boiler. [***]

However, the French Environment and Energy Management Agency (***) stresses theimportance of supporting the replacement of older appliances with new ones that are more efficient and up to ** times less polluting than older models.

This renewal is partly made possible by government support via the energy transition tax credit (***).

The CITE allows relatively modest households to receive assistance, in the form of tax savings, when carrying out work on their main home designed to reduce energy consumption. The amount of work covered is **%, and is limited to €*,*** for a couple subject to joint taxation. [***]

For collective housing, the Fonds Chaleur, with a budget of €*.* billion for the period ****-****, has enabled the development of *,*** energy projects using renewable energies (***). [***]

Environmental concerns have also led the French government to impose restrictions on the award of the Flamme Verte label, which will only be granted to *-star Flamme Verte appliances, in application of the Eco Design directive. [***]

This decision could have consequences for the ...

6.1 Player segmentation

• Lorflam (Novadev Groupe)
• Invicta
• Cheminées Seguin
• Ökofon
• Fröling France
• Bourgogne Granulés industrie BGI
• Poujoulat
• Supra (Taurus grupo)
• Dixneuf
• Picardie Granulation
• Valeor
• Cimaj
• Brazeco
• Eligo Chauffage
• Simply Feu
• Leroy sarl
• Kali - Gica biomasse
• France Bois Bûche
• Bûche Eco