Wood charcoal market in Southern Asia

Earlier Report Observations

The wood charcoal market in Southern Asia began the period with active expansion in 2018, supported by strong industrial demand from sectors like metallurgy and agriculture, alongside a notable surge in global trade activity. Regulatory developments, such as the National Green Tribunal's order in India to formally define and regulate charcoal production, introduced new environmental compliance measures for the industry. Market stabilization followed in 2019 as sustainability concerns and stricter environmental policies began influencing production methods, coinciding with a flattening of consumption growth after the previous year's highs.

The COVID-19 pandemic in 2020 increased interest in outdoor cooking and barbecuing, supporting market demand, while ongoing trends toward sustainable and premium charcoal products continued to drive investment in modernized pyrolysis technology and certified wood sourcing into 2021 and 2022. During these years, the market's value rose significantly, partly due to a sharp 75% increase in average import prices in India in 2022. However, regulatory actions started to impact consumption, notably with Delhi's restrictions on traditional charcoal ovens in 2023, which contributed to a decrease in the overall market volume that year.

By 2024, the market in Southern Asia, particularly in India, showed a decline in consumption, influenced by the continued shift away from charcoal for cooking due to local bans and a broader global decrease in wood charcoal trade. Major companies like Royal Oak emphasized sustainable packaging and eco-friendly production practices, reflecting the industry's adaptation to environmental regulations and changing consumer preferences, even as industrial demand for charcoal as a reducing agent and fuel remained resilient.

Production wood charcoal in Southern Asia

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 Southern Asia has grown for the third year in a row. In 2020, the region produced 3 564 K t of wood charcoal, maintaining a stable level compared to 2019.

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

In value, 2017-2020, M $ US

In 2020, the value of wood charcoal output in Southern Asia reached 2 249 M $ US, marking a moderate year-over-year increase of 9.0%. From 2017 to 2020, production value rose by 23.6%, with a compound annual growth rate of 7.3%. The largest annual increase occurred in 2018 at 13.7%, while 2019 saw a slight decline of 0.2%.

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

Exports wood charcoal from Southern Asia

Exports in kind, K t

Wood charcoal exports from Southern Asia have increased for the second consecutive year. In 2020, exports totaled 19.9 K t, up 11.9% from 2019. Between 2017 and 2020, export volumes grew by 10.4%, equivalent to an annualized rate of 3.4%. The lowest volume was recorded in 2018 at 15.1 K t, which also saw the largest decline of 16.2%. In contrast, 2019 experienced the highest increase at 17.8%.

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

From 2017 to 2020, wood charcoal exports from Southern Asia were distributed across a diverse range of partner countries. China accounted for 24.5% of export volumes, followed by the Netherlands at 7.8% and South Korea at 5.4%. Together, these three countries represented 37.7% of total export flows.

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

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

Exports in value, K $ US

The value of wood charcoal exports from Southern Asia has risen for the second year in a row. In 2020, exports amounted to 12 576 K $ US, a 21.7% increase from 2019. Over the period from 2017 to 2020, export value grew by 35.6%, with an annualized rate of 10.7%. The lowest value was recorded in 2018 at 8 815 K $ US, which also saw a decline of 5.0%.

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

Between 2017 and 2020, the value of wood charcoal exports from Southern Asia was spread across numerous destinations. China led with 30.2% of export value, followed by the Netherlands at 11.5% and South Korea at 7.7%. These three countries together accounted for 49.4% of total flows, while the remaining 50.6% was distributed among a wide range of other countries.

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

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

Imports wood charcoal to Southern Asia

Imports in kind, K t

Wood charcoal imports into Southern Asia have declined for the second consecutive year. In 2020, imports amounted to 54.8 K t, down 16.4% from 2019. From 2017 to 2020, import volumes decreased by 3.8%, with a compound annual decline rate of 1.3%. The highest volume was recorded in 2018 at 92.5 K t, which also saw the largest increase of 62.2%. In 2019, imports fell by 29.1%, the largest decline during this period.

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

From 2017 to 2020, the main sources of wood charcoal imports into Southern Asia were Indonesia, accounting for 7.5% of import volumes, China at 3.2%, and the Philippines at 2.1%. Together, these three countries represented 12.8% of total import flows.

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

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

Imports in value, K $ US

Wood charcoal imports into Southern Asia have decreased for the second year in a row. In 2020, imports were valued at 12 576 K $ US, reflecting a significant decline of 14.3% compared to 2019. Between 2017 and 2020, import value fell by 5.3%, with an annualized decline rate of 1.8%. The highest value was recorded in 2018 at 53 280 K $ US, which also saw the largest increase of 42.4%. In 2019, imports dropped by 22.4%, the largest decrease during this period.

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

Between 2017 and 2020, the value of wood charcoal imports into Southern Asia was dispersed across various countries. Indonesia and China each accounted for 10.9% of import value, while the Philippines contributed 3.5%. Together, these three countries made up 25.3% of total flows, with the remaining 74.7% spread among a wide range of other sources.

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

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