Fuel wood in chips and particles market in Chile

Earlier Report Observations

At the start of the period, the market volume remained stable near 2.2 million tonnes. Environmental regulations, such as the declaration of particulate-saturated zones in the O’Higgins region, began influencing consumption by demanding higher-quality wood. The adoption of advanced production technologies like Hakki Pilke processors simultaneously improved manufacturing efficiency and product quality, helping the market adapt to the new norms.

The COVID-19 pandemic increased household consumption of firewood during lockdowns, boosting demand and contributing to market growth, which reached 2.9 million tonnes by 2021. Pressure from environmental reports, notably the AQAir 2021 study highlighting severe PM2.5 pollution in Chilean cities, accelerated public stove‑replacement programs, sustaining demand for certified, higher‑quality wood chips.

Ongoing energy‑transition policies emphasizing stove replacement and pellet‑market development, coupled with stricter quality and price monitoring by SERNAC, raised industry standards. Market volume surged to 4.5 million tonnes in 2023 as exports contracted sharply, redirecting a larger share of domestic production to local consumption.

Production fuel wood in chips and particles in Chile

In kind, 2018-2021, K t

On a global scale, Chile ranked as the 9th largest producer of fuel wood in chips and particles between 2018 and 2021.

Top producers of fuel wood in chips and particles, 2018-2021

World map of production of fuel wood in chips and particles, 2018-2021

Chile's production of fuel wood in chips and particles declined for the third consecutive year. In 2021, the country produced 6 637 K t, marking a 4.5% decrease compared to 2020. Over the 2018-2021 period, production fell by 19.7%, with an average annual decline of 7.0%.

Annual dynamics of production in Chile in kind, 2018-2021, K t

In value, 2018-2021, M $ US

Fuel wood in chips and particles production in Chile declined for the second consecutive year. In 2021, the output was valued at 454.2 M $ US, representing a 7.5% year-on-year decrease. Between 2018 and 2021, production dropped by 16.5%, equating to an annualized rate of 5.8%. The highest value was recorded in 2019 at 556.5 M $ US. The largest decline occurred in 2020 at 11.7%, while the largest increase was in 2019 at 2.3%.

Annual dynamics of production in Chile in value, 2018-2021, M $ US

Exports fuel wood in chips and particles from Chile

Exports in kind, K t

Fuel wood in chips and particles exports from Chile declined for the third consecutive year. In 2021, exports totaled 3 758 K t, reflecting a significant 20.4% decrease compared to the previous year. Between 2018 and 2021, exports fell by 37.5%, with an annualized decline of 14.5%.

Annual dynamics of product's exports from Chile in kind, 2018-2021, K t

Between 2018 and 2021, Japan and China were the leading markets for exports in kind, together accounting for 98.2% of total flows, while the remaining share was distributed among other destinations.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Chile in kind, 2018-2021

Exports in value, M $ US

Cross-border shipments of fuel wood in chips and particles from Chile declined for the third consecutive year. In 2021, exports amounted to 257.1 M $ US, which is 23.0% less than the previous year. Over the 2018-2021 period, exports decreased by 35%, with an average annual decline of 13.4%.

Annual dynamics of product's exports from Chile in value, 2018-2021, M $ US

Throughout 2018-2021, Japan and China remained the key partner countries for exports in value terms, with a combined share of 98.0% of total flows; other partners accounted for the remainder.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Chile in value, 2018-2021

Imports fuel wood in chips and particles to Chile

Imports in kind, K t

There were noticeable fluctuations in market performance during the period. Imports reached their lowest point in 2018 and peaked in 2021, showing a 2.8-fold variation between these years. In 2021, Chile's imports of fuel wood in chips and particles came to 1 K t, amounting to a sharp 53.2% increase from the previous year. The largest decline was recorded in 2020 at 12.8%, while the largest increase occurred in 2019 at 111.4%.

Annual dynamics of product's imports to Chile in kind, 2018-2021, K t

In 2018-2021, France (27.7% of imports in kind), Bolivia (27.0% of imports in kind), and the United States (21.1% of imports in kind) were the principal suppliers of fuel wood in chips and particles to Chile, jointly accounting for 75.8% of total imports in kind.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Chile in kind, 2018-2021

Imports in value, M $ US

The data reveals irregular changes, indicating a volatile market environment. Imports reached their minimum in 2018 and their maximum in 2021, with a 1.8-fold variation between these years. In 2021, Chile imported approximately 3.2 M $ US of fuel wood in chips and particles, up by 75.0% compared with 2020. The largest decline was recorded in 2020 at 24.6%.

Annual dynamics of product's imports to Chile in value, 2018-2021, M $ US

Throughout 2018-2021, France (48.3% of imports in value terms), the United States (27.4% of imports in value terms), and Spain (17.0% of imports in value terms) were the main markets for imports in value terms of fuel wood in chips and particles to Chile, jointly taking 92.7% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Chile in value, 2018-2021