In recent years, there has been a growing interest in many parts of the world for more effective biomass utilization due to legislative and public interest in sustainable development. Whilst much of the effort has been on energy generation from biomass, there is considerable interest on biomass availability and utilization for other end uses. With about 1% of the world’s commercial forest areas, Sweden provides about 10% of the sawnwood, and pulp and paper that is traded on the global market. The Swedish agricultural sector also contributes to biomass availability, not only by production of sustainable food crops, but also by utilizing side streams and underutilized land for biomaterial purposes. To meet the challenges that climate change presents, there has to be a shift to sustainable biomass production and increased interest in promoting a circular bioeconomy. This review presents a systematic assessment on the availability of biomass and its utilization potential in Sweden. The review also focuses on biomass production and trade in the Swedish forest industry. In addition, the environmental impact of biomass utilization is discussed.