Wood fuel market in Brazil

Earlier Report Observations

Between 2018 and 2020, Brazil's wood fuel market volume remained stable at around 119–121 million cubic meters. The expansion of the planted forest sector for industrial purposes increased timber production, while by 2020 the use of wood waste for energy generation, particularly in isolated systems in the Amazon biome, began to support steady consumption.

Market volume grew from 119.1 million cubic meters in 2020 to 129.6 million cubic meters in 2022. This rise was driven by the continued utilization of wood residues for energy, a significant increase in sawnwood production reaching 8.2 million cubic meters in 2021, and new industrial projects in southern Brazil from 2022 onward that boosted demand for pine wood and associated fuel.

In 2023, the market volume stabilized at 129.3 million cubic meters, while its value jumped to $11.0 billion. A surge in exports of wood pellets and charcoal, which grew by 289%, alongside high diesel prices in Brazil that may have encouraged substitution toward wood-based energy, contributed to the higher market value.

Production wood fuel in Brazil

In kind, 2018-2021, M m³

From 2018 to 2021, Brazil ranked third globally in wood fuel production volume.

Top producers of wood fuel, 2018-2021

World map of production of wood fuel, 2018-2021

Brazil's wood fuel production grew for the second consecutive year. In 2021, the country produced 129.0 million cubic meters of wood fuel, marking a 5.6% increase from 2020. Over the 2018-2021 period, production rose by 4%, with a compound annual growth rate of 1.3%. The lowest production level was recorded in 2019 at 121.6 million cubic meters, which saw the largest decline of 2.0%.

Annual dynamics of production in Brazil in kind, 2018-2021, M m³

In value, 2018-2021, M $ US

In 2021, Brazil's wood fuel output was valued at 8,277 million US dollars, showing a moderate increase of 3.4% from the previous year. From 2018 to 2021, production value grew by 3.5%, with a compound annual growth rate of 1.2%. The highest value was recorded in 2019 at 8,874 million US dollars, which also saw the largest increase of 11.0%. The largest decline occurred in 2020, dropping by 9.8%.

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

Exports wood fuel from Brazil

Exports in kind, K m³

Brazil's wood fuel exports increased for the second consecutive year. In 2021, exports totaled 3,230 thousand cubic meters, up 4.0% from 2020. Between 2018 and 2021, exports grew by 13.2%, equivalent to an annualized rate of 4.2%. The lowest export volume was in 2019 at 2,658 thousand cubic meters, which experienced the largest decline of 6.8%. The largest increase occurred in 2020, rising by 16.9%.

Annual dynamics of product's exports from Brazil in kind, 2018-2021, K m³

From 2018 to 2021, China, Japan, and Portugal were consistently the main destinations for Brazil's wood fuel exports by volume. China accounted for 37.0% of exports, Japan for 30.0%, and Portugal for 9.5%, together representing 76.5% of total export flows.

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

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

Exports in value, M $ US

Brazil's wood fuel export value increased for the third consecutive year. In 2021, exports amounted to 207.2 million US dollars, up 1.7% from 2020. Between 2018 and 2021, export value grew by 12.7%, with an annualized rate of 4.1%.

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

From 2018 to 2021, Japan, China, and Italy were the primary destinations for Brazil's wood fuel exports by value. Japan and China each accounted for 29.5% of exports, while Italy represented 11.8%, collectively making up 70.9% of total export flows.

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

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

Imports wood fuel to Brazil

Imports in kind, K m³

The market showed volatility during this period. Imports reached their lowest point in 2020 and peaked in 2021, with a 1.9-fold difference between these years. In 2021, Brazil imported 35 thousand cubic meters of wood fuel, an 86.8% increase from 2020. The minimum import volume was recorded in 2020 at 35 thousand cubic meters, which also saw the largest decline of 28.2%.

Annual dynamics of product's imports to Brazil in kind, 2018-2021, K m³

From 2018 to 2021, Argentina, Indonesia, and Paraguay were the main sources for Brazil's wood fuel imports by volume. Argentina accounted for 34.7% of imports, Indonesia for 31.1%, and Paraguay for 28.6%, together representing 94.5% of total import flows.

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

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

Imports in value, M $ US

The market exhibited an unstable trend throughout the period. Imports hit their lowest point in 2020 and peaked in 2021, with a 2.2-fold gap. In 2021, Brazil's wood fuel imports were valued at 21.4 million US dollars, up 124.8% from the previous year. The minimum value was recorded in 2020 at 9.5 million US dollars, which also experienced the largest decline of 23.6%.

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

From 2018 to 2021, Indonesia, Paraguay, and the United States were the key sources for Brazil's wood fuel imports by value. Indonesia accounted for 68.6% of imports, Paraguay for 9.8%, and the United States for 8.6%, collectively making up 87.1% of total import flows.

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

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