Wood fuel market in Eastern Asia

Earlier Report Observations

The wood fuel market in Eastern Asia gradually declined from 224.8 million m³ in 2018 to 218.9 million m³ in 2020. This contraction coincided with climate change-induced forest fires that disrupted raw timber supplies, increasing costs and limiting availability across the region. During this phase, China's policy push to replace coal with cleaner fuels, including wood fuel, provided some underlying demand support but could not fully counter the supply-side constraints.

Market volume rebounded strongly, reaching 230.9 million m³ by 2022. This growth was primarily driven by post-pandemic economic recovery and a surge in China's construction activity, which sharply boosted demand for wood fuel. Concurrently, China's low-carbon energy transition and policies promoting fuel substitution in construction further stimulated consumption, outweighing the broader global slowdown in the building sector.

In 2023, the market volume saw a modest correction to 224.9 million m³. During this time, Chinese demand remained robust, and major industry players like Fram Renewable Fuels actively expanded their production bases and sales networks. By 2024, import volumes into the region increased to 63.6 million m³, highlighting a growing reliance on foreign supply as global factors, including recurrent forest fires affecting raw material availability, continued to influence the market.

Production wood fuel in Eastern Asia

In kind, 2017-2020, M m³

Top producers of wood fuel, 2017-2020

World map of production of wood fuel, 2017-2020

Wood fuel production in Eastern Asia has declined for three consecutive years. In 2020, production remained virtually unchanged from 2019 at 173.3 million cubic meters. Over the 2017-2020 period, production decreased by 3.3%, with an average annual decline of 1.1%.

Annual dynamics of production in Eastern Asia in kind, 2017-2020, M m³

Exports wood fuel from Eastern Asia

Exports in kind, K m³

The export market showed an unstable trend throughout the period. Exports peaked in 2018 at 209 thousand cubic meters, then fell to their lowest point in 2020 at 105 thousand cubic meters, representing a two-fold difference. In 2020, Eastern Asia's wood fuel exports dropped sharply by 41.5% compared to the previous year. The largest annual increase occurred in 2018 at 85.4%.

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

From 2017 to 2020, wood fuel exports were distributed across a wide range of partner countries. Saudi Arabia accounted for 6.4% of exports, followed by Asia (not elsewhere specified) at 4.2%, and Iran at 3.4%. Together, these three countries represented just 14.1% of total export flows.

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

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

Exports in value, M $ US

Wood fuel exports from Eastern Asia have increased for three consecutive years. In 2020, exports totaled 196 million US dollars, showing a moderate 8.2% increase compared to 2019. Over the 2017-2020 period, exports grew by 67.6%, with an average annual growth rate of 18.8%.

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

The structure of wood fuel exports in value terms from 2017 to 2020 was diversified. Saudi Arabia accounted for 14.7% of export value, the United Arab Emirates for 8.3%, and Iran for 5.0%. Together, these three countries represented just 28.0% of total flows, with no single country holding a clearly dominant position.

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

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

Imports wood fuel to Eastern Asia

Imports in kind, K m³

Wood fuel imports to Eastern Asia declined for the second consecutive year. In 2020, imports amounted to 45 646 thousand cubic meters, representing a 5.2% reduction compared to 2019. Over the 2017-2020 period, imports increased by 5.6%, with an average annual growth rate of 1.8%. The highest import volume was recorded in 2018 at 48 552 thousand cubic meters, with the largest annual increase that year at 12.3%.

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

From 2017 to 2020, Vietnam was the largest source of wood fuel imports to Eastern Asia, accounting for 43.7% of import volume. Australia followed with 19.6%, and Chile with 9.6%. Together, these three countries represented 72.9% of total import flows.

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

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

Imports in value, M $ US

After two years of growth, wood fuel imports to Eastern Asia declined. In 2020, imports totaled 5 088 million US dollars, showing a significant 13.8% decrease compared to 2019. Between 2017 and 2020, imports increased by 6.6%, equivalent to an average annual growth rate of 2.2%. The highest import value was recorded in 2019 at 5 900 million US dollars, with the largest annual increase occurring in 2018 at 19.9%.

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

From 2017 to 2020, Vietnam accounted for 36.4% of wood fuel import value to Eastern Asia, followed by Australia at 22.3%, and Chile at 11.2%. Together, these three countries represented 69.9% of total import flows in value terms.

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

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