Wood fuel market in Central Asia

Earlier Report Observations

The wood fuel market in Central Asia saw initial growth, with volume rising from 3 986 thousand m³ in 2018 to 4 074 thousand m³ in 2020. This expansion was supported by the introduction of universal heat boilers using renewable fuel, including wood fuel, in Kazakhstan in 2018, which bolstered demand for heating. Subsequent years benefited from the development of the fuel pellet market in Russia and increased domestic demand for barbecue biofuel, which raised consumption of wood for charcoal production.

From 2021, the market faced heightened competition from diesel fuel, whose rising production reduced the attractiveness of wood fuel for some consumers. In 2022, a marked decline in fuelwood sales in Russia—driven by urbanization, gasification, and competition with coal—further contracted the regional market volume to 3 916 thousand m³. During this period, Russian authorities allocated 15 billion rubles to convert municipal boilers to wood fuel pellets, creating potential for future biofuel segment growth.

A partial recovery followed in 2023, with market volume reaching 3 954 thousand m³. This upturn was aided by the development of industrial applications for biochar, including in metallurgy, which opened a new demand segment for wood fuel. Simultaneously, the timber industry adapted to new export markets, shifting focus from Europe to Asia, Africa, and Latin America, influencing the market's structure.

Production wood fuel in Central Asia

In kind, 2017-2020, K m³

Top producers of wood fuel, 2017-2020

World map of production of wood fuel, 2017-2020

Central Asia's wood fuel production has increased for the second year in a row. In 2020, the region produced 4,041 thousand cubic meters of wood fuel, which represents a 1.9% rise compared to 2019. The lowest production level was recorded in 2018 at 3,956 thousand cubic meters, with the largest decline of 0.5% occurring that same year.

Annual dynamics of production in Central Asia in kind, 2017-2020, K m³

Exports wood fuel from Central Asia

Exports in kind, m³

The data shows irregular changes, pointing to a volatile market environment. Import levels fluctuated significantly, with a threefold difference between the low in 2017 and the high in 2019. In 2020, wood fuel exports from Central Asia reached 314 cubic meters, marking a dramatic 46.3% drop from the previous year. The peak value was recorded in 2019 at 585 cubic meters, while the largest increase of 138.4% occurred in 2018.

Annual dynamics of product's exports from Central Asia in kind, 2017-2020, m³

From 2017 to 2020, wood fuel from Central Asia was exported to a diverse range of markets. Germany accounted for 13.3% of exports in kind, Qatar for 4.6%, and Turkey for 3.7%, together making up just 21.6% of total exports. The remaining 78.4% was distributed among many smaller destinations.

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

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

Exports in value, K $ US

The market displayed an unstable trend throughout the period. Export volumes peaked in 2019 and fell to their lowest point in 2017, with a top-to-bottom ratio of 3.1 times. In 2020, Central Asia's wood fuel exports totaled 89 thousand US dollars, down 6.3% from 2019. The maximum value was 95 thousand US dollars in 2019, and the largest increase of 93.9% was recorded in 2018.

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

Between 2017 and 2020, the export partner landscape in value terms was broad. Germany contributed 16.0% of exports in value, Russia 14.7%, and Turkey 9.2%, together forming only 39.8% of total flows. A substantial 60.2% was directed to or from numerous other countries.

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

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

Imports wood fuel to Central Asia

Imports in kind, m³

In 2020, Central Asia's wood fuel import volume was 33,504 cubic meters, a 20.8% decrease compared to 2019. Over the 2017-2020 period, imports grew by 3%, with a compound annual growth rate of 1.0%. The minimum value was 31,025 cubic meters in 2018, while the maximum was 42,283 cubic meters in 2019. The largest increase of 36.3% also occurred in 2019.

Annual dynamics of product's imports to Central Asia in kind, 2017-2020, m³

From 2017 to 2020, Russia was the main source for imports in kind, representing 85.2% of total flows. Other markets comprised a long tail of smaller partners.

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

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

Imports in value, K $ US

Central Asia imported a total of 3,072 thousand US dollars worth of wood fuel in 2020, down 58.7% from 2019. Between 2017 and 2020, imports decreased by 58.4%, equating to an annualized rate of 25.4%. The highest value was recorded in 2019 at 7,428 thousand US dollars, with the largest increase of 12.4% also in that year.

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

During 2017-2020, the import structure in value terms was characterized by Russia's dominance, which accounted for 76.7% of total flows, alongside a large number of minor partners.

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

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