Wood fuel market in Chile

Earlier Report Observations

Chile's wood fuel market volume expanded steadily from 6.9 million m³ in 2018 to 14.8 million m³ in 2023. A primary driver was the global energy crisis in 2020, which raised oil prices and curtailed natural gas imports from Argentina, making wood fuel a more affordable heating alternative and significantly boosting domestic consumption, especially in southern Chile.

This growth was supported by a series of regulatory measures aimed at formalizing the market. Starting with the Energy Route 2018‑2022 and the National Policy on Firewood Use, the process culminated in the Solid Biofuels Law (Law No. 21.499) enacted in 2022. The law established mandatory quality standards for moisture and calorific value, while the accompanying 'Leña Más Seca' program and the Quality Seal provided financial and technical support to producers, helping to differentiate certified dry wood and increase market transparency.

The regulatory framework continued to develop after 2022, with more traders obtaining the Quality Seal and public investment exceeding $300 million to modernize the production chain. These efforts consolidated a more formal and quality‑oriented market structure throughout the reviewed period.

Production wood fuel in Chile

In kind, 2018-2021, K m³

Between 2018 and 2021, Chile ranked 26th globally in wood fuel production.

Top producers of wood fuel, 2018-2021

World map of production of wood fuel, 2018-2021

In 2021, Chile produced 16 122 K m³ of wood fuel, showing no significant change from 2020. The largest decline occurred in 2019, at 0.0%, while the largest increase was also recorded in 2019, at 0.0%.

Annual dynamics of production in Chile in kind, 2018-2021, K m³

In value, 2018-2021, M $ US

Chile's wood fuel production volume declined for the second consecutive year. In 2021, output was valued at 720.4 M $ US, marking a 3.0% contraction from 2020. Over the 2018-2021 period, production increased by 4.1%, with a compound annual growth rate of 1.4%. The maximum value was recorded in 2019 at 776.1 M $ US. The largest decline occurred in 2020, at 4.4%, while the largest increase was in 2019, at 12.2%.

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

Exports wood fuel from Chile

Exports in kind, K m³

Chile's wood fuel export volume declined for the third consecutive year. In 2021, exports totalled 5 799 K m³, showing a sharp fall of 20.2% from 2020. Between 2018 and 2021, exports decreased by 37.3%, equating to an annualized rate of 14.4%.

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

From 2018 to 2021, Japan and China dominated exports in kind, accounting together for 98.1% of total flows, with other destinations making smaller individual contributions.

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

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

Exports in value, M $ US

Wood fuel exports in Chile declined for the third consecutive year. In 2021, export volume amounted to 259.1 M $ US, which is 22.5% lower compared to the previous year. Over the 2018-2021 period, exports decreased by 34.8%, with a compound annual growth rate of 13.3%.

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

From 2018 to 2021, two markets—Japan and China—played leading roles in exports in value terms, together taking 97.6% of total flows, while the rest was distributed among other destinations.

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

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

Imports wood fuel to Chile

Imports in kind, K m³

Volatility characterized the market behavior during these years. Volumes dropped to a minimum in 2019 and climbed to their maximum in 2021, representing a 2-fold shift. In 2021, imported wood fuel volumes in Chile totalled 130 K m³, indicating an increase of 73.4% versus the previous year. The minimum value was recorded in 2019 at 65 K m³. The largest decline occurred in 2019, at 4.0%.

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

From 2018 to 2021, the structure of imports in kind was marked by the predominance of Argentina, which absorbed 77.2% of total flows, and by a large number of minor partners.

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

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

Imports in value, M $ US

After a two-year fall, wood fuel deliveries to Chile increased. In 2021, import volume reached 24.0 M $ US, up by 56.8% compared with 2020. Over the 2018-2021 period, imports increased by 38.6%, with a compound annual growth rate of 11.5%. The minimum value was recorded in 2020 at 15.3 M $ US. The largest decline occurred in 2019, at 7.0%.

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

From 2018 to 2021, Argentina (59.0% of imports in value terms), Paraguay (20.5% of imports in value terms), and France (7.8% of imports in value terms) together accounted for 87.3% of total imports in value terms, remaining the main destinations for wood fuel to Chile.

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

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