Wood charcoal market in Paraguay

Earlier Report Observations

Paraguay's wood charcoal market volume showed initial stability from 2018 to 2020, supported by established domestic consumption patterns where a large share of users sourced wood directly from forests. This period also saw the foundational steps for carbon market legislation and the consolidation of major export firms like Bricapar in international markets.

Market volume then contracted notably to 253.3 K t in 2022 as export shipments surged to 176.8 K t, representing over 56% of the country's timber product exports and reducing domestic availability. A partial recovery to 290.5 K t followed in 2023, coinciding with the enactment of the Carbon Credits Law (No. 7190/23), which established a national carbon registry and a bilateral agreement with Singapore, strengthening the regulatory environment for forest-based industries.

In the following years, the sector remained oriented toward exports, with Paraguayan companies innovating to meet stringent demand from markets like Germany and Canada. The regulatory framework for carbon credits was further solidified through implementing decrees, while regional changes, such as the end of Argentina's RECAR program, influenced cross-border trade flows.

Production wood charcoal in Paraguay

In kind, 2018-2021, K t

From 2018 to 2021, Paraguay ranked 27th globally in wood charcoal production.

Top producers of wood charcoal, 2018-2021

World map of production of wood charcoal, 2018-2021

In 2021, Paraguay produced 430.0 K t of wood charcoal, showing minimal change compared to the previous year. The largest decline occurred in 2019 at 0.0%, while the largest increase was also recorded in 2019 at 0.0%.

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

In value, 2018-2021, M $ US

Wood charcoal production in Paraguay increased for the second consecutive year. In 2021, the output was valued at 154.4 M $ US, up by 1.8% from 2020. The minimum value was recorded in 2019 at 151.3 M $ US, with the largest decline that year at 3.6%.

Annual dynamics of production in Paraguay in value, 2018-2021, M $ US

Exports wood charcoal from Paraguay

Exports in kind, K t

After a two-year drop, Paraguay's wood charcoal export volume increased. In 2021, exports amounted to 133.4 K t, representing a sudden rise of 35.5% year-over-year. Between 2018 and 2021, exports grew by 25.3%, equating to an annualized rate of 7.8%. The minimum value was recorded in 2020 at 98.4 K t, with the largest decline in 2019 at 4.5%.

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

From 2018 to 2021, the buyer portfolio for wood charcoal from Paraguay was broad. The United Kingdom (13.3% of exports in kind), Germany (11.6%), and the United States (10.5%) together contributed only 35.4% of total exports, while many other countries held smaller but non-negligible shares.

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

World map of product's exports from Paraguay in kind, 2018-2021

Exports in value, K $ US

After a two-year decline, Paraguay's cross-border shipments of wood charcoal increased. In 2021, exports totaled 47 901 K $ US, which is 38.0% above the previous year. Over the period 2018-2021, exports rose by 23.4%, with a compound annual growth rate of 7.2%. The minimum value was recorded in 2020 at 34 709 K $ US, with the largest decline in 2019 at 7.9%.

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

From 2018 to 2021, the country breakdown of exports in value terms remained scattered. The United Kingdom (17.4% of exports in value terms), the United States (11.8%), and Germany (10.8%) together accounted for just 40.0% of total flows, with no partner standing out as clearly dominant.

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

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

Imports wood charcoal to Paraguay

Imports in kind, K t

The market showed signs of volatility over the observed period. The minimum value was recorded in 2020 at 0.2 K t, while the maximum was in 2019 at 1.7 K t, resulting in a 7.8-fold variation between these years. In 2021, Paraguay's wood charcoal imports amounted to 0.3 K t, equivalent to an abrupt rise of 26.5% year-over-year. The largest decline occurred in 2020 at 87.2%, and the largest increase was in 2019 at 41.6%.

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

From 2018 to 2021, Brazil and Indonesia dominated wood charcoal imports in kind, accounting together for 91.2% of total flows, with other destinations having smaller individual contributions.

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

World map of product's imports to Paraguay in kind, 2018-2021

Imports in value, K $ US

Volatility characterized the market behavior during these years. The minimum value was recorded in 2020 at 248 K $ US, while the maximum was in 2018, showing a difference of 4.6 times between these years. In 2021, Paraguay imported approximately 290 K $ US of wood charcoal, which is 16.6% greater than the previous year. The largest decline occurred in 2020 at 74.4%.

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

From 2018 to 2021, Indonesia and Brazil jointly absorbed 89.4% of total wood charcoal imports in value terms to Paraguay, with the rest of the volume scattered across smaller markets.

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

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