Wood charcoal market in ASEAN

Earlier Report Observations

The ASEAN wood charcoal market volume grew slightly from 2.7 million tons in 2018 to 2.7 million tons in 2019, supported by rising global demand for affordable and renewable energy sources and a growing consumer preference for natural, sustainable fuels in the region. Product diversification, including hardwood charcoal and briquettes, and the entry of new players focused on sustainable production helped expand the market. This trend was interrupted in 2020 when the COVID-19 pandemic caused temporary disruptions to supply chains and production, leading to a drop in market volume to 2.6 million tons, despite increased household consumption during lockdowns.

Market volume declined further to 2.4 million tons in 2021 amid a gradual post-pandemic recovery phase. During this period, governments in the region implemented policies to promote wood charcoal use in specific industries like pharmaceuticals, while stricter environmental regulations and certification requirements for sustainable sourcing were introduced, shaping the market's structure. By 2022, the market rebounded to 2.6 million tons, driven by the launch of new sustainable product lines such as nut shell and bamboo charcoal, coupled with policies supporting sustainable forest management, though global raw material price fluctuations and logistics challenges affected market access.

In 2023, the wood charcoal market in ASEAN continued its upward trajectory, reaching 2.8 million tons, reflecting a sustained recovery and growth in consumption.

Production wood charcoal in ASEAN

In kind, 2017-2020, K t

Top producers of wood charcoal, 2017-2020

World map of production of wood charcoal, 2017-2020

ASEAN produced 3 353 thousand tonnes of wood charcoal in 2020, marking a controlled year-on-year decrease of 4.6%. Production declined by 3.9% between 2017 and 2020, which translates to an annualized rate of 1.3%. The peak was reached in 2019 at 3 515 thousand tonnes, with the largest annual increase of 0.7% also recorded that year.

Annual dynamics of production in ASEAN in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Following a two-year decline, ASEAN's wood charcoal production saw an upturn. In 2020, the output was valued at 1 899 million US dollars, up by 2.7% compared to 2019. The lowest value was recorded in 2019 at 1 849 million US dollars, which also saw the largest annual decline of 3.2%.

Annual dynamics of production in ASEAN in value, 2017-2020, M $ US

Exports wood charcoal from ASEAN

Exports in kind, K t

Wood charcoal exports from ASEAN declined for the second consecutive year. In 2020, exports stood at 755.9 thousand tonnes, down by 8.9% from the previous year. Between 2017 and 2020, exports increased by 16.3%, equating to an annualized growth rate of 5.2%. The highest volume was recorded in 2018 at 839.7 thousand tonnes, with the largest annual increase of 29.2% also occurring that year.

Annual dynamics of product's exports from ASEAN in kind, 2017-2020, K t

An analysis of exports in volume terms from 2017 to 2020 reveals a broad distribution across many markets. China accounted for 16.4% of exports, South Korea for 14.1%, and Japan for 12.2%, together making up 42.7% of total flows. The remaining 57.3% went to other partners, indicating a diversified export structure.

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

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

Exports in value, M $ US

Wood charcoal shipments from ASEAN to abroad declined for the second consecutive year. In 2020, ASEAN exported 428.1 million US dollars worth of wood charcoal, representing a slight contraction of 1.9% compared to the previous year. Between 2017 and 2020, exports increased by 19.7%, with an annualized growth rate of 6.2%. The peak value was recorded in 2018 at 459.8 million US dollars, which also saw the largest annual increase of 28.6%. The largest annual decline occurred in 2019 at 5.1%.

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

From 2017 to 2020, South Korea and Japan each accounted for 14.0% of exports in value terms, while Saudi Arabia represented 11.8%. Together, these three markets made up 39.8% of total exports, highlighting a broadly diversified partner base for ASEAN's wood charcoal exports.

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

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

Imports wood charcoal to ASEAN

Imports in kind, K t

The data reveals irregular changes, indicating a volatile market environment. Imports peaked in 2018 and fell to their lowest point in 2020, with a 12.8-fold difference between these years. In 2020, wood charcoal deliveries to ASEAN were recorded at 4.3 thousand tonnes, marking a steep decline of 91.1% compared to the previous year. The maximum volume was recorded in 2018 at 55.2 thousand tonnes, with the largest annual increase of 48.4% also occurring that year.

Annual dynamics of product's imports to ASEAN in kind, 2017-2020, K t

Throughout 2017 to 2020, China accounted for 1.8% of imports in volume terms, India for 1.2%, and Colombia for 1.0%. Together, these three countries formed the core of imports, representing 4.0% of total flows.

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

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

Imports in value, M $ US

Cross-border shipments of wood charcoal to ASEAN declined for the second consecutive year. In 2020, imports totaled 30.6 million US dollars, indicating a year-on-year decline of 21.6%. Over the period from 2017 to 2020, imports increased by 5.4%, with a compound annual growth rate of 1.8%. The maximum value was recorded in 2018 at 48.4 million US dollars, which also saw the largest annual increase of 66.6%.

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

Throughout 2017 to 2020, imports in value terms of wood charcoal to ASEAN were not concentrated on a few key markets. China accounted for 5.6% of imports, India for 2.0%, and Sri Lanka for 1.2%, jointly representing only 8.8% of total flows.

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

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