Wood charcoal market in Bangladesh

Earlier Report Observations

The wood charcoal market in Bangladesh saw modest growth in 2019, with volume reaching 336 thousand tons, supported by the entry of new producers like Syntax Corporation and Grameen ICT. These companies established jute stick charcoal production facilities in 2018, leveraging local agricultural resources and tapping into export demand from countries such as China and the United States. However, consumption did not regain its earlier peak momentum, and the COVID-19 pandemic in 2020 led to stabilized market volume around 335 thousand tons due to global supply chain disruptions.

Market volume remained relatively stable from 2021 to 2022 before declining to 329 thousand tons in 2023. This drop coincided with the implementation of the Charcoal Policy of 2022, which promoted export-oriented, sustainable production and encouraged investments in advanced technologies by key players like Green Delta Carbon Limited. The policy focus on exports contributed to a rise in shipments abroad, reducing domestic availability. During this period, new product segments such as activated charcoal powder from jute sticks gained prominence, reflecting a broader industry shift towards eco-friendly alternatives.

Throughout the period, the industry expanded with about 40 factories operating across districts like Faridpur and Rajbari, increasingly focusing on sustainable practices to address environmental concerns and comply with evolving regulations like the Air Pollution Control Rules. Consumer preference for low-cost, eco-friendly fuels and government initiatives supporting sustainable charcoal production shaped market dynamics, leading to moderate fluctuations in overall volume.

Production wood charcoal in Bangladesh

In kind, 2017-2020, K t

Top producers of wood charcoal, 2017-2020

World map of production of wood charcoal, 2017-2020

Wood charcoal production in Bangladesh has increased for the third consecutive year. In 2020, the country produced 340.6 K t of wood charcoal, showing only a marginal fluctuation compared to 2019.

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

In value, 2017-2020, M $ US

Bangladesh's wood charcoal production value has risen for the second consecutive year. In 2020, the output was valued at 178.7 M $ US, marking a 5.8% increase from the previous year. Between 2017 and 2020, production grew by 11.1%, which translates to an annualized rate of 3.6%. The lowest value was recorded in 2018 at 143.2 M $ US, with the largest decline of 11.0% occurring that year. In contrast, the largest increase of 17.9% was observed in 2019.

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

Exports wood charcoal from Bangladesh

Exports in kind, t

The data shows irregular changes, indicating a volatile market environment. The lowest export volume was recorded in 2019 at 4 163 t, while the highest was in 2018 at 9 236 t, resulting in a peak-to-trough ratio of 2.2 times. In 2020, cross-border shipments of wood charcoal from Bangladesh amounted to 5 429 t, representing a dramatic uptick of 30.4% compared to the previous year. The largest decline of 54.9% occurred in 2019, and the largest increase of 41.9% was recorded in 2018.

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

From 2017 to 2020, China clearly dominated as the primary buyer of wood charcoal from Bangladesh, accounting for 99.4% of total exports in kind.

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

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

Exports in value, K $ US

In 2020, wood charcoal deliveries from Bangladesh amounted to 2 847 K $ US, marking a gain of 37.7% from a year earlier. Between 2017 and 2020, exports decreased by 8%, equating to an annualized rate of 2.8%. The minimum value was recorded in 2019 at 2 068 K $ US, while the maximum was in 2018 at 3 902 K $ US. The largest decline of 47.0% occurred in 2019.

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

Over the period 2017–2020, China was the key and almost sole market for exports in value terms of wood charcoal from Bangladesh, accounting for 98.8% of total flows.

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

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

Imports wood charcoal to Bangladesh

Imports in kind, t

Wood charcoal import volumes in Bangladesh have increased for the second consecutive year. In 2020, imports reached 85 t, marking a sharp rise of 36.6% year-over-year. Over the period 2017-2020, imports decreased by 24.1%, with a compound annual growth rate of 8.8%. The minimum value was recorded in 2018 at 49 t, with the largest decline of 56.5% occurring that year.

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

Throughout 2017–2020, China, Paraguay, and Indonesia were the main sources for imports in kind of wood charcoal to Bangladesh, accounting for 44.8%, 34.8%, and 9.1% of imports, respectively. Together, they represented 88.6% of total flows.

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

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

Imports in value, K $ US

Foreign wood charcoal supplies to Bangladesh have declined for the third consecutive year. In 2020, imports totaled 32 K $ US, which is 40.2% lower year-over-year. Over the period 2017-2020, imports decreased by 71%, with a compound annual growth rate of 33.8%.

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

In 2017–2020, China concentrated 72.1% of total imports in value terms of wood charcoal to Bangladesh, while the remaining flows were distributed among multiple smaller partners.

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

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