Wood charcoal market in Central America

Earlier Report Observations

Between 2018 and 2023, the wood charcoal market in Central America showed considerable volatility in volume. After a substantial increase to 216.9 thousand tons in 2019, the market size remained nearly unchanged in 2020. A dramatic decline followed in 2021, with volume dropping to 115.4 thousand tons, and this lower level persisted through 2022. The market partially rebounded in 2023, reaching 155.1 thousand tons.

These shifts in domestic market volume were accompanied by notable changes in production and foreign trade. Production gradually increased from 211.6 thousand tons in 2018 to 217.5 thousand tons in 2020, then fell to 180.3 thousand tons in 2021 before recovering slightly in subsequent years. Concurrently, export volumes, which were exceptionally high in 2018 and again from 2021 to 2022, significantly reduced the amount of charcoal available for local consumption during those periods.

In value terms, the market followed a similar pattern, rising to 106.0 million US dollars in 2019 before falling to 57.5 million in 2021 and recovering to 87.7 million in 2023.

Production wood charcoal in Central America

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 Central America has increased for the third consecutive year. In 2020, the region produced 217.5 thousand tonnes of wood charcoal, marking a slight gain of 1.1% compared to 2019. Looking at the period from 2017 to 2020, production grew by 13.6%, which translates to an annualized growth rate of 4.3%.

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

In value, 2017-2020, M $ US

In contrast to the volume increase, the value of wood charcoal production in Central America declined for the second consecutive year. In 2020, output was valued at 100.5 million US dollars, down by 3.7% from 2019. Over the 2017-2020 period, however, production value increased by 17.2%, with a compound annual growth rate of 5.4%. The peak value was recorded in 2018 at 121.6 million US dollars, which saw the largest increase of 41.8%. The most significant decline occurred in 2019, with a drop of 14.2%.

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

Exports wood charcoal from Central America

Exports in kind, t

The export market for wood charcoal from Central America showed significant volatility during these years. In 2018, exports reached their maximum at 66 289 tonnes, but then plummeted to a minimum of 2 851 tonnes in 2019, representing a dramatic 95.7% decline. This created a 23-fold variation between the two years. In 2020, exports recovered slightly to 2 982 tonnes, showing a gradual year-over-year increase of 4.6%. The largest increase was recorded in 2018, with a staggering rise of 1 343.5%.

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

From 2017 to 2020, wood charcoal exports from Central America were heavily concentrated, with the United States accounting for 97.2% of total export volumes.

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

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

Exports in value, K $ US

Export values also exhibited irregular changes, reflecting a volatile market environment. In 2018, exports peaked at 38 107 thousand US dollars, but then dropped sharply to a low of 1 378 thousand US dollars in 2020, creating a 28-fold variation between these years. The 2020 figure showed little change from the previous year. The largest decline occurred in 2019, with a 96.4% drop, while the largest increase was in 2018, with a remarkable rise of 1 752.3%.

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

In value terms, the United States dominated wood charcoal exports from Central America between 2017 and 2020, capturing 98.3% of total export flows.

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

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

Imports wood charcoal to Central America

Imports in kind, t

After two years of growth, wood charcoal imports into Central America declined. In 2020, imports totaled 2 273 tonnes, which is 52.2% lower than in 2019. Over the 2017-2020 period, imports decreased by 17.5%, equating to an annualized decline rate of 6.2%. The maximum import volume was recorded in 2019 at 4 758 tonnes, which also saw the largest increase of 39.5%.

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

From 2017 to 2020, the United States (38.8% of import volumes), Paraguay (34.3%), and Vietnam (3.2%) were the leading sources of wood charcoal imports into Central America, together accounting for 76.4% of total import flows.

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

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

Imports in value, K $ US

Similarly, after two years of advance, the value of wood charcoal imports into Central America declined. In 2020, imports reached 1 763 thousand US dollars, down by 42.2% from the previous year. Over the 2017-2020 period, import value decreased by 7.8%, with a compound annual decline rate of 2.7%. The peak value was recorded in 2019 at 3 049 thousand US dollars, which also experienced the largest increase of 32.5%.

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

In value terms, the United States (44.3% of import value), Paraguay (31.0%), and China (3.9%) were the top suppliers of wood charcoal to Central America from 2017 to 2020, with their combined share reaching 79.2% of total import value.

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

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