Fuel wood in chips and particles market in Latin America and the Caribbean

Earlier Report Observations

From 2018 to 2020, the market volume for fuel wood chips and particles in Latin America and the Caribbean remained stable at approximately 10 000 thousand tons per year. This stability was underpinned by the region's reliance on wood as a primary energy source for cooking and heating in rural communities, where seasonal cold spells drive consumption. In Brazil, rising gas prices and higher unemployment in 2019 prompted households to shift toward wood-fired stoves, sustaining demand despite broader economic pressures.

Market volume began to climb from 2021 onward, reaching 10 407 thousand tons that year. The most pronounced expansion occurred in 2022 and 2023, when the market grew to 12 463 thousand tons and then to 14 018 thousand tons, respectively. A key driver was the surge in natural gas prices following the war in Ukraine, which made fuel wood a more affordable alternative for many consumers. In 2023, forestry production in Brazil hit a record value, with the southern states contributing 61% of national firewood output, further supporting market growth.

Production fuel wood in chips and particles in Latin America and the Caribbean

In kind, 2017-2020, K t

Top producers of fuel wood in chips and particles, 2017-2020

World map of production of fuel wood in chips and particles, 2017-2020

Latin America and the Caribbean saw a second consecutive annual decline in fuel wood chips and particles production. In 2019, production stood at 17 953 K t, dropping to 16 642 K t in 2020—a moderate decrease of 7.3%. Over the period from 2017 to 2020, production fell by 5.5%, averaging an annualized decline of 1.9%. The peak production volume was recorded in 2018 at 19 073 K t, which also marked the largest annual increase of 8.3%.

Annual dynamics of production in Latin America and the Caribbean in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Following two years of growth, Latin America and the Caribbean experienced a decline in the value of fuel wood chips and particles production. In 2019, output was valued at 1 495 M $ US, falling to 1 261 M $ US in 2020—a drop of 15.6%. The highest value was recorded in 2019, while the largest annual increase occurred in 2018 at 12.7%.

Annual dynamics of production in Latin America and the Caribbean in value, 2017-2020, M $ US

Exports fuel wood in chips and particles from Latin America and the Caribbean

Exports in kind, K t

Latin America and the Caribbean's exports of fuel wood chips and particles declined for the second year in a row. In 2019, exports totaled 7 937 K t, decreasing to 6 656 K t in 2020—a year-over-year drop of 16.1%. From 2017 to 2020, exports fell by 19.6%, equating to an annualized decline of 7.0%. The peak export volume was in 2018 at 9 070 K t, which also saw the largest annual increase of 9.5%.

Annual dynamics of product's exports from Latin America and the Caribbean in kind, 2017-2020, K t

From 2017 to 2020, Japan and China dominated the export structure for fuel wood chips and particles, together accounting for 84.3% of total flows, with other markets forming a long tail.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Latin America and the Caribbean in kind, 2017-2020

Exports in value, M $ US

Latin America and the Caribbean's export value of fuel wood chips and particles fell for the second consecutive year. In 2019, exports were valued at 660.5 M $ US, dropping to 504.6 M $ US in 2020—a reduction of 23.6%. Between 2017 and 2020, exports decreased by 16.3%, averaging an annualized decline of 5.8%. The highest value was recorded in 2018 at 687.3 M $ US, which also experienced the largest annual increase of 14.0%.

Annual dynamics of product's exports from Latin America and the Caribbean in value, 2017-2020, M $ US

During 2017–2020, Japan and China were the primary destinations for fuel wood chips and particles exports in value terms, with their combined share reaching 80.2% of total flows, while other destinations played a secondary role.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Latin America and the Caribbean in value, 2017-2020

Imports fuel wood in chips and particles to Latin America and the Caribbean

Imports in kind, K t

The import market for fuel wood chips and particles in Latin America and the Caribbean showed volatility over the observed period. In 2019, imports hit a low of 11 K t, surging to 55 K t in 2020—a dramatic increase of 396.2%. This resulted in a 5-fold difference between the low in 2019 and the high in 2020. The largest annual decline occurred in 2019 at 44.3%.

Annual dynamics of product's imports to Latin America and the Caribbean in kind, 2017-2020, K t

From 2017 to 2020, the United States (55.5% of imports in kind), Portugal (3.8%), and Germany (1.4%) were the key partners for imports in kind, together accounting for 60.7% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Latin America and the Caribbean in kind, 2017-2020

Imports in value, M $ US

Latin America and the Caribbean's import value of fuel wood chips and particles increased for the second year in a row. In 2019, imports amounted to 7.8 M $ US, rising to 10.7 M $ US in 2020—a year-over-year improvement of 36.5%. Over the period 2017-2020, imports grew by 2.7%, with a compound annual growth rate of 0.9%. The lowest value was recorded in 2018 at 7.6 M $ US, which also saw the largest annual decline of 27.2%.

Annual dynamics of product's imports to Latin America and the Caribbean in value, 2017-2020, M $ US

Between 2017 and 2020, the United States (53.7% of imports in value terms), France (18.0%), and Spain (5.6%) contributed the most to imports in value terms, jointly accounting for 77.3% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Latin America and the Caribbean in value, 2017-2020