Non coniferous wood fuel market in Chile

Earlier Report Observations

Between 2018 and 2023, Chile's non-coniferous wood fuel market volume tripled from 4.5 million m³ to 12.4 million m³, primarily due to a multi-year regulatory push to formalize the sector. The government initiated legislation in late 2018 to classify firewood as a fuel, culminating in the Solid Biofuels Law approved in 2023. This law established mandatory quality standards, registration for producers and traders, and a prohibition on uncertified biofuels, supervised by the Electricity and Fuels Superintendency (SEC). By creating a regulated domestic market for quality firewood, the policy redirected supply from export channels to local consumption, evidenced by a steep drop in exports from 9.1 million m³ to 1.2 million m³ over the period.

Concurrently, rising prices for wood pellets—a processed derivative—made traditional firewood a more affordable heating option. Pellet prices increased from CLP 187 per kg in 2018 to CLP 243 per kg in 2022, reinforcing the economic appeal of unprocessed firewood, especially in the cold central-southern regions where cultural preference and biomass availability already sustained high demand. The COVID-19 pandemic in 2020 further highlighted the market's fragility and accelerated calls for a resilient, formalized supply chain.

The full implementation of the Solid Biofuels Law in 2023 aimed to reduce air pollution and curb informal trade, setting five-year plans to modernize the solid biofuels market. Despite the growth in volume, the market continued to face challenges from informality, requiring state support to maintain price stability and promote clean combustion standards without disadvantaging consumers.

Production non coniferous wood fuel in Chile

In kind, 2018-2021, K m³

From 2018 to 2021, Chile ranked 27th globally in terms of production volume for non-coniferous wood fuel.

Top producers of non coniferous wood fuel, 2018-2021

World map of production of non coniferous wood fuel, 2018-2021

In 2021, Chile produced 13 598 K m³ of non-coniferous wood fuel, showing relative stability compared to 2020. The largest decline occurred in 2019, at 0.0%, while the largest increase was also recorded in 2019, at 0.0%.

Annual dynamics of production in Chile in kind, 2018-2021, K m³

In value, 2018-2021, M $ US

Non-coniferous wood fuel production in Chile declined for the second consecutive year. In 2021, the output was valued at 605.0 M $ US, reflecting a moderate reduction of 3.5% year-over-year. Between 2018 and 2021, production increased by 3.9%, equivalent to an annualized rate of 1.3%. The maximum value was recorded in 2019 at 652.6 M $ US. The largest decline occurred in 2020, at 3.9%, while the largest increase was in 2019, at 12.0%.

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

Exports non coniferous wood fuel from Chile

Exports in kind, K m³

Non-coniferous wood fuel shipments from Chile to abroad declined for the third consecutive year. In 2021, exports totaled 5 779 K m³, representing a 19.9% decrease year-over-year. Between 2018 and 2021, exports decreased by 36.7%, equating to an annualized rate of 14.1%.

Annual dynamics of product's exports from Chile in kind, 2018-2021, K m³

From 2018 to 2021, Japan and China dominated exports in kind, accounting together for 98.1% of total flows, with other destinations making smaller individual contributions.

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

Chile's non-coniferous wood fuel export volume declined for the second consecutive year. In 2021, the export volume stood at 257.1 M $ US, which is 22.7% lower than the previous year. Over the period 2018-2021, exports decreased by 34.2%, with a compound annual growth rate (CAGR) of -13.0%. The maximum value was recorded in 2019 at 395.1 M $ US, and the largest increase occurred in 2019, at 1.0%.

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

From 2018 to 2021, Japan and China remained the main markets for exports in value terms, jointly accounting for 98.0% of total flows, while other partners formed the remaining share.

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

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

Imports non coniferous wood fuel to Chile

Imports in kind, K m³

There were noticeable fluctuations in market performance during the period. Imports bottomed in 2018 and peaked in 2021, with a threefold difference between these years. In 2021, imported non-coniferous wood fuel volumes in Chile amounted to 1 K m³, which is 57.1% higher compared to the previous year. The largest decline was recorded in 2020, at 7.5%, while the largest increase occurred in 2019, at 105.4%.

Annual dynamics of product's imports to Chile in kind, 2018-2021, K m³

From 2018 to 2021, France (28.9% of imports in kind), Bolivia (27.9% of imports in kind), and the United States (21.6% of imports in kind) formed the main cluster of markets for imports in kind, with a combined share of 78.4% of total flows.

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

In 2021, non-coniferous wood fuel deliveries to Chile amounted to 3.1 M $ US, reflecting a gain of 65.6% compared to the previous year. Over the period 2018-2021, imports increased by 77.3%, with a compound annual growth rate (CAGR) of 21.0%. The largest decline was recorded in 2020, at 22.4%.

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

From 2018 to 2021, France (49.1% of imports in value terms), the United States (27.6% of imports in value terms), and Spain (17.1% of imports in value terms) were the main markets for imports in value terms, together accounting for 93.8% 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