Wood charcoal market in Chile

Earlier Report Observations

The wood charcoal market volume in Chile experienced moderate fluctuations between 2018 and 2023, with a notable peak in 2021. Domestic production gradually declined each year, while import volumes varied significantly, becoming the key driver of market size changes. During the initial years, the Chilean government, with international support, began designing an emissions trading system and carbon pricing instruments, laying groundwork for future climate regulation that could intersect with bioenergy and wood charcoal sectors.

Market volume surged to 321.4 thousand tons in 2021, an 11.9% increase from the previous year, largely due to a doubling of imports to 82.9 thousand tons. This compensated for the ongoing decline in local production. In the following two years, imports retreated to 68.5 and 63.0 thousand tons respectively, pulling the total market volume down to 299.2 thousand tons by 2023. Concurrently, in 2022, the Ministry of the Environment advanced a regulation for emission reduction certificates under the Climate Change Framework Law, which may have influenced carbon‑credit related activities and indirectly affected the wood charcoal market.

Over the full six‑year period, the Chilean wood charcoal market expanded by 5.5%, from 283.7 thousand tons in 2018 to 299.2 thousand tons in 2023, despite a consistent yearly drop in production. Imports remained volatile but finished the period well above their 2018 level, underscoring their role in satisfying domestic demand in a market with negligible exports.

Production wood charcoal in Chile

In kind, 2018-2021, K t

Top producers of wood charcoal, 2018-2021

World map of production of wood charcoal, 2018-2021

Chile's wood charcoal production volume declined for the third consecutive year. In 2021, production reached 238.4 thousand tonnes, remaining virtually unchanged from the previous year.

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

Exports wood charcoal from Chile

Exports in kind, t

In 2021, Chile's wood charcoal export volume stood at 3 tonnes, staying virtually the same year-over-year. Between 2019 and 2021, exports decreased by 99.4%, which equates to an annualized decline rate of 81.4%.

Annual dynamics of product's exports from Chile in kind, 2018-2021, t

From 2018 to 2021, Chile's wood charcoal exports in kind were highly concentrated, with Germany accounting for 99.4% of total flows.

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, K $ US

In 2021, wood charcoal shipments from Chile to abroad amounted to 1 thousand US dollars, remaining virtually unchanged compared to 2020. Between 2019 and 2021, exports decreased by 99.4%, representing an annualized decline rate of 82.2%.

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

From 2018 to 2021, Germany effectively monopolized Chile's wood charcoal exports in value terms, capturing 99.4% of total flows.

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

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

Imports wood charcoal to Chile

Imports in kind, t

The data reveals irregular changes, indicating a volatile market environment. In 2019, imported wood charcoal volumes in Chile reached their lowest point at 41 056 tonnes, declining by 2.0% that year. By 2021, imports peaked at 82 949 tonnes, marking a 74.2% increase year-over-year. Overall, imports changed by a factor of 2 between the trough in 2019 and the peak in 2021.

Annual dynamics of product's imports to Chile in kind, 2018-2021, t

Over the period 2018 to 2021, Chile's wood charcoal imports in kind were largely concentrated on Argentina, which accounted for 79.1% of total flows, with other countries together forming the residual share.

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, K $ US

After a two-year reduction, wood charcoal imports to Chile increased in 2021, reaching 20 125 thousand US dollars, which represents a sudden gain of 59.3% year-over-year. The minimum value was recorded in 2020 at 12 635 thousand US dollars, following the largest decline of 10.7% in 2019. Over the entire 2018-2021 period, imports increased by 37.3%, with a compound annual growth rate of 11.1%.

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

Throughout 2018 to 2021, Argentina played the leading role in Chile's wood charcoal imports in value terms, holding a share of 70.7% of total flows, while other markets together accounted for the remainder.

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

World map of product's imports to Chile in value, 2018-2021