Wood charcoal market in Thailand

Earlier Report Observations

Thailand's wood charcoal production expanded steadily from 1.5 million tons in 2018 to 1.59 million tons in 2023. This growth was primarily driven by the entry of new players investing in modern production facilities for high-quality charcoal and briquettes, coupled with a shift in consumer preference towards cleaner, more efficient, and environmentally friendly products like bamboo charcoal and activated charcoal. The development of new product segments, such as hexagonal briquettes, further supported market expansion by meeting diverse demand.

Regulatory changes significantly shaped the market landscape. Stricter enforcement of the Forest Act of 1941, tighter controls on the movement of charcoal—including a permit requirement for possession exceeding 130 kg—and more rigorous certification for exports tightened supply chains. These measures, along with the impact of COVID-19 on trade flows, contributed to a sharp decline in imports from 123 thousand tons in 2018 to 24 thousand tons in 2019. Subsequently, imports partially recovered but remained volatile, influencing overall market volume which grew from 1.53 million tons in 2019 to 1.66 million tons in 2023.

Concurrently, government policy promoting the cultivation of economic trees for charcoal raw materials aimed to ensure sustainable sourcing and reduce pressure on natural forests. This focus on planted wood supply, combined with ongoing consumer demand for premium charcoal, helped sustain domestic production growth even as import levels fluctuated, solidifying the market's reliance on internal capacity.

Production wood charcoal in Thailand

In kind, 2017-2020, K t

From 2017 to 2020, Thailand maintained the 10th position globally in terms of wood charcoal production volume.

Top producers of wood charcoal, 2017-2020

World map of production of wood charcoal, 2017-2020

Thailand's wood charcoal production grew for the third consecutive year. In 2020, the country produced 1 535 K t of wood charcoal, marking a 1.2% year-on-year increase. Over the 2017-2020 period, production rose by 3.5%, with a compound annual growth rate (CAGR) of 1.2%.

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

In value, 2017-2020, M $ US

In 2020, Thailand's wood charcoal output was valued at 698.5 M $ US, reflecting a solid 11.7% increase compared to 2019. From 2017 to 2020, production grew by 14%, with a CAGR of 4.5%. The largest decline occurred in 2019, at 4.8%.

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

Exports wood charcoal from Thailand

Exports in kind, K t

In 2020, Thailand's wood charcoal exports totaled 16.9 K t, remaining broadly stable compared to the previous year. Between 2017 and 2020, exports fell by 29.4%, equivalent to an annualized rate of 11.0%. The maximum value was recorded in 2018 at 25.8 K t, while the minimum was in 2019 at 16.9 K t. The largest increase occurred in 2018 at 7.7%, and the largest decline was in 2019 at 34.5%.

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

From 2017 to 2020, China (17.6% of exports in kind), Japan (14.9%), and Bahrain (12.3%) formed the largest group of buyers for Thailand's wood charcoal. However, their combined share was limited to 44.8% of total exports in kind, indicating a diversified country structure.

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

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

Exports in value, K $ US

In 2020, Thailand's wood charcoal exports amounted to 7 692 K $ US, representing a substantial 10.5% rise from 2019. Over the 2017-2020 period, exports decreased by 22.3%, with a CAGR of 8.1%. The maximum value was recorded in 2018 at 11 295 K $ US, and the minimum was in 2019 at 6 961 K $ US. The largest increase occurred in 2018 at 14.1%, while the largest decline was in 2019 at 38.4%.

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

Between 2017 and 2020, no single market dominated Thailand's wood charcoal exports in value terms. Japan (19.1% of exports), China (16.9%), and Bahrain (11.2%) together accounted for only 47.2% of total exports, with many smaller partners holding modest individual shares.

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

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

Imports wood charcoal to Thailand

Imports in kind, K t

The market exhibited volatility during the observed period. In 2018, wood charcoal imports to Thailand peaked at 122.8 K t, then dropped to a low of 23.9 K t in 2019, resulting in a 5.1-fold difference between these years. In 2020, imports rebounded to 64.1 K t, a sharp 167.8% increase compared to 2019. The largest decline was recorded in 2019 at 80.5%.

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

From 2017 to 2020, Myanmar played a leading role in Thailand's wood charcoal imports in kind, accounting for 74.3% of total flows, with the remainder distributed among other partners.

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

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

Imports in value, K $ US

Thailand's wood charcoal imports declined for the second consecutive year. In 2020, imports reached 8 232 K $ US, a 41.9% decrease compared to the previous year. Over the 2017-2020 period, imports fell by 32.2%, with a CAGR of 12.2%. The maximum value was recorded in 2018 at 17 722 K $ US, and the largest increase occurred that year at 45.9%.

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

Between 2017 and 2020, Myanmar (44.0% of imports in value terms), Cambodia (17.9%), and Laos (6.2%) made the biggest contributions to Thailand's wood charcoal imports, jointly accounting for 68.1% of total flows.

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

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