Wood charcoal market in Nicaragua

Earlier Report Observations

The wood charcoal market in Nicaragua saw a notable expansion in 2019, with production increasing from 13,000 t to 16,000 t and market volume growing by 27% to 15,067 t. This surge was primarily driven by electricity tariff hikes and a reform of the electricity law, which made wood charcoal a more competitive alternative energy source for thermal generation, stimulating both production and domestic consumption.

From 2020 onward, annual production stabilized at 16,000 t, while domestic market volume gradually declined to 13,415 t by 2023. The introduction of mandatory environmental and agroecological production standards, coupled with national strategies to reduce inefficient consumption of firewood and charcoal, moderated local demand. Steadily growing exports, which reached 2,613 t in 2023, helped sustain production levels despite the softer internal market.

Later regulatory developments, including the 2022 reform of the mining law and ongoing price monitoring of fuels by the Nicaraguan Energy Institute, continued to influence the sector's framework. Environmental concerns regarding forest pressure from charcoal exports to China highlighted the balance between export opportunities and the push for sustainable resource management under the country's forestry guidelines.

Production wood charcoal in Nicaragua

In kind, 2017-2020, t

Top producers of wood charcoal, 2017-2020

World map of production of wood charcoal, 2017-2020

In 2020, Nicaragua produced 16 000 tonnes of wood charcoal, remaining virtually unchanged from the previous year. Compared to 2019, production showed no significant change. Over the period from 2017 to 2020, production increased by 23.1%, with a compound annual growth rate of 7.2%. The highest production level was recorded in 2019 at 16 000 tonnes. The largest decline occurred in 2018, with a decrease of 0.0%, while the largest increase was in 2019, at 23.1%.

Annual dynamics of production in Nicaragua in kind, 2017-2020, t

In value, 2017-2020, K $ US

Wood charcoal production in Nicaragua increased for the second consecutive year. In 2020, the output was valued at 5 350 thousand US dollars, marking a notable gain of 15.8% compared to the previous year. Between 2017 and 2020, production increased by 39.9%, equating to an annualized rate of 11.8%. The minimum value was recorded in 2018 at 3 397 thousand US dollars. The largest decline occurred in 2018, with a decrease of 11.2%, while the largest increase was in 2019, at 36.0%.

Annual dynamics of production in Nicaragua in value, 2017-2020, K $ US

Exports wood charcoal from Nicaragua

Exports in kind, t

The market showed signs of volatility over the observed period. The lowest exports were recorded in 2019, with the highest in 2020, reflecting a 1.7-fold gap. In 2020, foreign wood charcoal supplies from Nicaragua totalled 1 716 tonnes, up by 72.2% from 2019. The minimum value was recorded in 2019 at 997 tonnes. The largest decline occurred in 2018, with a decrease of 14.2%.

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

Throughout 2017 to 2020, the United States clearly dominated exports in kind of wood charcoal from Nicaragua, accounting for 74.8% of total flows, while other countries each held significantly smaller shares.

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

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

Exports in value, K $ US

The market showed signs of volatility over the observed period. Exports reached their lowest point in 2019 and peaked in 2020, with a 2-fold gap. In 2020, Nicaragua's wood charcoal exports reached 573.7 thousand US dollars, representing a 99.4% uptick compared to the previous year. The minimum value was recorded in 2019 at 287.8 thousand US dollars. The largest decline occurred in 2018, with a decrease of 23.8%.

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

From 2017 to 2020, the United States was the key buyer of wood charcoal from Nicaragua, taking 81.6% of total exports in value terms, while a diversified group of other countries accounted for the remainder.

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

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

Imports wood charcoal to Nicaragua

Imports in kind, t

The market exhibited an unstable trend throughout the timeframe. The lowest imports were recorded in 2020, with the highest in 2019, reflecting a 17-fold gap. In 2020, wood charcoal deliveries to Nicaragua totalled 4 tonnes, which is 94.0% less than in 2019. The maximum value was recorded in 2019 at 63 tonnes. The largest increase occurred in 2019, at 104.3%.

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

From 2017 to 2020, Paraguay and Mexico remained the main markets for imports in kind, jointly accounting for 87.7% of total flows, while other partners formed the remaining share.

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

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

Imports in value, K $ US

The market exhibited an unstable trend throughout the timeframe. Volumes dropped to their minimum in 2020 after climbing to a maximum in 2017, representing a 6.1-fold shift. In 2020, cross-border shipments of wood charcoal to Nicaragua amounted to 8.7 thousand US dollars, corresponding to a drop of 83.6% year-over-year. The largest increase occurred in 2019, at 78.5%.

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

Throughout 2017 to 2020, Paraguay (47.2% of imports in value terms), the United States (27.0% of imports in value terms), and Mexico (23.5% of imports in value terms) formed the key group of partners for imports in value terms of wood charcoal to Nicaragua, jointly representing 97.7% of total flows.

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

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