Wood charcoal market in South America

Earlier Report Observations

Between 2018 and 2022, Brazilian wood charcoal production rose from 7.9 million tonnes to 9.2 million tonnes, with market volume expanding from 7.8 million tonnes to 9.1 million tonnes. This upward trend was primarily fueled by consistent demand from the domestic steel industry, which relies on charcoal as a low-carbon reducing agent. Although the COVID-19 pandemic disrupted industrial activity in 2020, internal consumption remained stable, supporting output. The steel sector's pull was evident in 2018 when it triggered a 50.5% surge in production value, making charcoal manufacturing more attractive. Subsequent investments in modernizing carbonization and a shift from extracted to plantation timber further sustained volume growth.

After peaking in 2022, production eased to 8.6 million tonnes in 2023, while market value continued to climb, indicating a move toward higher-quality charcoal for metallurgical use and diversification into other sectors like cement and domestic applications. The market stayed largely self-sufficient, with minimal imports and exports. In recent years, emphasis on sustainability has intensified, with rising adoption of biochar variants, digital tools for production monitoring, and public financing through mechanisms such as the Climate Fund to modernize operations.

Production wood charcoal in South 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 South America has increased for the third consecutive year. In 2020, South America produced 8,115 thousand tonnes of wood charcoal, marking a slight rise of 1.7% compared to 2019. Between 2017 and 2020, production grew by 14.7%, which translates to an annualized growth rate of 4.7%.

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

In value, 2017-2020, M $ US

After two years of growth, South America's wood charcoal production declined in value terms. In 2020, the output was valued at 3,406 million US dollars, down by 3.5% from 2019. Over the period from 2017 to 2020, production increased by 23.3%, with a compound annual growth rate of 7.2%. The highest value was recorded in 2019 at 3,528 million US dollars, while the largest increase occurred in 2018 with a 22.2% rise.

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

Exports wood charcoal from South America

Exports in kind, K t

South America exported 165.0 thousand tonnes of wood charcoal in 2020, up by 4.2% from the previous year. Between 2017 and 2020, exports increased by 7.2%, equating to an annualized growth rate of 2.3%. The largest decline was recorded in 2019 at 1.9%, while the largest increase occurred in 2018 with a 4.9% rise.

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

From 2017 to 2020, wood charcoal from South America was traded with numerous countries. Even the largest destinations—Germany, Italy, and the United States—together accounted for only 32.0% of total exports in volume terms.

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

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

Exports in value, K $ US

After two years of increase, the value of wood charcoal exports from South America declined. In 2020, exports reached 69,244 thousand US dollars, down by 1.1% compared to the prior year. Over the period from 2017 to 2020, exports grew by 15.2%, with a compound annual growth rate of 4.8%. The maximum value was recorded in 2019 at 70,021 thousand US dollars, while the largest increase occurred in 2018 with a 14.2% rise.

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

The structure of exports in value terms from 2017 to 2020 indicates a diversified set of trading partners. The United States (11.5% of exports in value terms), Germany (10.9%), and Italy (10.7%) jointly accounted for only 33.1% of total flows, with the remaining 66.9% distributed among numerous smaller markets.

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

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

Imports wood charcoal to South America

Imports in kind, K t

In 2020, the volume of wood charcoal imports into South America amounted to 11.7 thousand tonnes, representing a drop of 30.2% compared to 2019. Over the period from 2017 to 2020, imports decreased by 61.8%, with a compound annual decline rate of 27.4%. The largest decline was recorded in 2018 at 57.5%, while the largest increase occurred in 2019 with a 28.8% rise.

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

From 2017 to 2020, Indonesia was the dominant supplier of wood charcoal to South America, accounting for 13.3% of total imports in volume terms.

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

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

Imports in value, K $ US

After two years of gains, wood charcoal imports into South America declined in value terms. In 2020, imports amounted to 21,810 thousand US dollars, down by 16.3% versus the previous year. Between 2017 and 2020, imports increased by 4.9%, equating to an annualized growth rate of 1.6%. The maximum value was recorded in 2019 at 26,062 thousand US dollars, while the largest increase occurred in 2018 with a 21.4% rise.

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

From 2017 to 2020, Indonesia and China remained the key partner countries for wood charcoal imports into South America in value terms, jointly accounting for 32.0% of total flows.

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

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