Non coniferous wood fuel market in MERCOSUR

Earlier Report Observations

The market volume for non-coniferous wood fuel in MERCOSUR fluctuated between 2018 and 2023, starting at 130.5 M m³ in 2018, dipping to 127.8 M m³ in 2019, and then rising steadily to reach 139.2 M m³ in 2022 before a slight stabilization at 138.8 M m³ in 2023. In value terms, the market expanded from $7.8 billion in 2018 to $9.7 billion in 2023, despite a temporary drop to $7.4 billion in 2020.

From 2022 onward, new regulatory pressures began shaping the industry. The European Union's Deforestation-Free Products Regulation (EUDR), which requires geolocation certificates for wood exports to the EU, prompted adjustments in supply chain traceability across MERCOSUR's forestry sector. This was followed by the finalized EU-MERCOSUR trade agreement, which phases out tariffs for wood products but imposes strict sustainability and origin certification rules, driving investments in technology and production processes.

Concurrently, the region's biofuel policies, particularly in Brazil and Argentina, aimed at higher mandatory ethanol blends in gasoline, stimulated overall renewable fuel demand. While primarily focused on liquid biofuels, these policies reinforced a regional shift toward renewable energy sources, providing a broader context for the wood fuel market.

Production non coniferous wood fuel in MERCOSUR

In kind, 2017-2020, M m³

Top producers of non coniferous wood fuel, 2017-2020

World map of production of non coniferous wood fuel, 2017-2020

In 2020, MERCOSUR produced 132.7 million cubic meters of non-coniferous wood fuel, representing a slight increase of 0.7% compared to 2019. Production reached its highest level in 2018 at 134.6 million cubic meters, which marked a 3.2% increase from the previous year. The most significant decline occurred in 2019, with a drop of 2.1%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, M m³

Exports non coniferous wood fuel from MERCOSUR

Exports in kind, K m³

Cross-border shipments of non-coniferous wood fuel from MERCOSUR declined for the second consecutive year in 2020. Exports totaled 2,930 thousand cubic meters, showing a sharp decrease of 24.5% compared to 2019. Over the period from 2017 to 2020, exports fell by 17.9%, with a compound annual growth rate of -6.4%. The peak was recorded in 2018 at 4,094 thousand cubic meters, which represented a 14.7% increase from the previous year.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K m³

From 2017 to 2020, Portugal, Japan, and China were the largest destinations for MERCOSUR's non-coniferous wood fuel exports in volume terms. Portugal accounted for 34.9% of exports, Japan for 28.6%, and China for 26.2%. Together, these three countries comprised 89.6% of total export flows.

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

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, M $ US

After two years of growth, MERCOSUR's non-coniferous wood fuel export value declined in 2020. Exports amounted to 167.2 million US dollars, reflecting a significant drop of 35.7% compared to the previous year. From 2017 to 2020, export value decreased by 22.4%, with a compound annual growth rate of -8.1%. The highest value was recorded in 2019 at 259.9 million US dollars, while the largest increase occurred in 2018 with a 14.2% rise.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, M $ US

Between 2017 and 2020, Portugal, Japan, and China were the largest buyers of non-coniferous wood fuel from MERCOSUR in value terms. Portugal represented 38.9% of export value, Japan 30.2%, and China 23.3%. Collectively, these three markets accounted for 92.4% of total export value.

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

World map of product's exports from MERCOSUR in value, 2017-2020

Imports non coniferous wood fuel to MERCOSUR

Imports in kind, K m³

The import market for non-coniferous wood fuel in MERCOSUR showed volatility during this period. Imports reached their lowest point in 2017 and peaked in 2019, with a threefold difference between these years. In 2020, imports totaled 2 thousand cubic meters, a 6.6% decrease compared to 2019. The largest increase was recorded in 2018, with a jump of 146.9%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K m³

From 2017 to 2020, the United States, Germany, and Chile were the main sources of non-coniferous wood fuel imports to MERCOSUR in volume terms. Together, these three markets supplied 82.0% of total imports.

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

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, M $ US

Import values for non-coniferous wood fuel in MERCOSUR exhibited volatility over the observed period. The lowest value was recorded in 2017, while the peak occurred in 2019, showing a 3.8-fold increase between these years. In 2020, import value stood at 3.5 million US dollars, indicating a moderate decline of 8.0% compared to 2019. The most substantial increase took place in 2018, with a surge of 275.2%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, M $ US

Throughout 2017 to 2020, the United States, France, and Chile were the key sources for non-coniferous wood fuel imports to MERCOSUR in value terms. The United States accounted for 47.1% of import value, France for 24.1%, and Chile for 20.2%. Combined, these three countries represented 91.4% of total import flows.

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

World map of product's imports to MERCOSUR in value, 2017-2020