Wood charcoal market in South-eastern Asia

Earlier Report Observations

The wood charcoal market in Southeast Asia began at 2.7 million tons in 2018, supported by a 3.5% rise in global demand that year and increased international trade activity. Regulatory and environmental factors started to influence the sector. After stabilization in 2019, market volume contracted over the next two years, falling to 2.4 million tons by 2021.

A recovery commenced in 2022, lifting the market to 2.6 million tons, followed by further growth to 2.8 million tons in 2023. This expansion was driven by revised forest policies in key regional countries, which improved resource management and encouraged tree planting, thereby bolstering production. The period also saw the emergence of new sustainable product segments and innovative charcoal formats, responding to shifting consumer preferences.

In 2024, global charcoal consumption fell by 0.9%, ending a seven-year growth trend and affecting regional trade. Imports into Southeast Asia dropped notably, while exports continued to rise, exceeding 1 million tons, indicating sustained external demand. Sustainability policies and environmental regulations continued to shape the market, alongside growing consumer interest in eco-friendly and premium charcoal products.

Production wood charcoal in South-eastern Asia

In kind, 2017-2020, K t

Top producers of wood charcoal, 2017-2020

World map of production of wood charcoal, 2017-2020

In 2019, wood charcoal production in South-eastern Asia reached its peak at 3,515 thousand tonnes. However, in 2020, production declined to 3,353 thousand tonnes, representing a controlled decrease of 4.6% compared to the previous year. Over the broader period from 2017 to 2020, production fell by 3.9%, with an average annual decline of 1.3%. The largest year-on-year increase occurred in 2019, when production rose by 0.7%.

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

In value, 2017-2020, M $ US

Following a two-year decline, wood charcoal production in South-eastern Asia rebounded in value terms. In 2019, output was valued at its lowest point of 1,849 million US dollars. By 2020, this had increased to 1,899 million US dollars, marking a 2.7% rise compared to the previous year. The most significant drop was recorded in 2019, with a decline of 3.2%.

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

Exports wood charcoal from South-eastern Asia

Exports in kind, K t

Wood charcoal exports from South-eastern Asia declined for the second consecutive year in 2020, totaling 755.9 thousand tonnes, which represents a modest year-on-year decrease of 8.9%. The peak export volume was recorded in 2018 at 839.7 thousand tonnes, when exports surged by 29.2%. Over the period from 2017 to 2020, exports overall increased by 16.3%, with an average annual growth rate of 5.2%.

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

From 2017 to 2020, China, South Korea, and Japan were key markets for wood charcoal exports from South-eastern Asia, accounting for 16.4%, 14.1%, and 12.2% of exports in volume, respectively. However, their combined share reached only 42.7% of total exports, with the remaining 57.3% distributed among numerous other trading partners.

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

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

Exports in value, M $ US

For the second year in a row, the value of wood charcoal exports from South-eastern Asia declined in 2020, totaling 428.1 million US dollars, a slight decrease of 1.9% compared to 2019. The highest export value was recorded in 2018 at 459.8 million US dollars, when exports jumped by 28.6%. In contrast, 2019 saw the largest decline of 5.1%. Overall, from 2017 to 2020, export value increased by 19.7%, equating to an average annual growth rate of 6.2%.

Annual dynamics of product's exports from South-eastern Asia in value, 2017-2020, M $ US

Between 2017 and 2020, wood charcoal exports from South-eastern Asia in value terms were distributed across a wide range of markets. South Korea and Japan each accounted for 14.0% of exports, while Saudi Arabia represented 11.8%. Together, these three countries made up only 39.8% of total export flows, indicating a highly diversified market structure.

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

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

Imports wood charcoal to South-eastern Asia

Imports in kind, K t

Wood charcoal imports into South-eastern Asia showed significant fluctuations during the period. In 2018, import volumes peaked at 55.2 thousand tonnes, marking a substantial increase of 48.4% from the previous year. By 2020, imports had plummeted to 4.3 thousand tonnes, a dramatic year-on-year decline of 91.0%. This represents a 12.8-fold difference between the highest and lowest points over the period.

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

From 2017 to 2020, China, India, and Colombia were the main sources of wood charcoal imports into South-eastern Asia, accounting for 1.8%, 1.2%, and 1.0% of imports in volume, respectively. However, their combined share was just 4.0% of total imports, highlighting the fragmented nature of the import market.

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

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

Imports in value, M $ US

For the second consecutive year, the value of wood charcoal imports into South-eastern Asia declined in 2020, totaling 48.4 million US dollars, a robust drop of 21.6% compared to the previous year. The peak import value was recorded in 2018 at 48.4 million US dollars, when imports surged by 66.6%. Over the period from 2017 to 2020, import value increased by 5.4%, with an average annual growth rate of 1.8%.

Annual dynamics of product's imports to South-eastern Asia in value, 2017-2020, M $ US

During 2017 to 2020, wood charcoal imports into South-eastern Asia in value terms were spread across many countries. China accounted for 5.6% of imports, India for 2.0%, and Sri Lanka for 1.2%. Together, these three countries represented only 8.8% of total import flows, underscoring the diversity of sourcing.

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

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