Wood fuel market in Latin America and the Caribbean

Earlier Report Observations

The wood fuel market in Latin America and the Caribbean began the period at 253.3 million m³ in 2018. By 2019, increased use of wood pellets as fuel helped maintain market volume near 252.5 million m³, while in 2020, tightening emission regulations that promoted wood pellet consumption contributed to a rise to 254.5 million m³.

From 2021 to 2023, market size expanded steadily, reaching 269.8 million m³. This growth was primarily driven by the rising utilization of black pellets for power generation due to their high energy density and the growth in pellet stove installations in residential sectors. Regulatory shifts in several countries to encourage biomass as a renewable energy source further bolstered demand, even as the market navigated pandemic-related supply chain disruptions.

In 2024, the sector saw key leadership appointments in biomass fuel firms and upgrades to pellet production facilities to meet rising demand. Public-private partnerships for district heating projects using biomass also advanced, supporting broader decarbonization goals.

Production wood fuel in Latin America and the Caribbean

In kind, 2017-2020, M m³

Top producers of wood fuel, 2017-2020

World map of production of wood fuel, 2017-2020

In Latin America and the Caribbean, wood fuel production remained stable in 2020, reaching 265.4 million cubic meters, showing virtually no change from the previous year. The highest production level was recorded in 2018 at 267.8 million cubic meters. The largest annual decline occurred in 2019 at 0.9%, while the biggest increase was seen in 2018 at 1.1%.

Annual dynamics of production in Latin America and the Caribbean in kind, 2017-2020, M m³

In value, 2017-2020, M $ US

Following two years of growth, wood fuel production in Latin America and the Caribbean experienced a decline. In 2020, the output was valued at 15 810 million US dollars, representing a controlled decrease of 5.1% compared to 2019. Over the 2017-2020 period, production increased by 10.4%, with a compound annual growth rate of 3.4%. The peak value was recorded in 2019 at 16 661 million US dollars, and the largest annual increase occurred in 2018 at 10.3%.

Annual dynamics of production in Latin America and the Caribbean in value, 2017-2020, M $ US

Exports wood fuel from Latin America and the Caribbean

Exports in kind, K m³

Wood fuel exports from Latin America and the Caribbean declined for the second consecutive year. In 2020, exports totaled 11 204 thousand cubic meters, reflecting a 13.7% reduction compared to the previous year. Between 2017 and 2020, exports decreased by 16.2%, equating to an annualized decline rate of 5.7%. The highest export volume was recorded in 2018 at 14 812 thousand cubic meters, with the largest annual increase also occurring in 2018 at 10.8%.

Annual dynamics of product's exports from Latin America and the Caribbean in kind, 2017-2020, K m³

From 2017 to 2020, three principal markets—Japan, China, and Portugal—together accounted for 88.3% of total wood fuel exports in kind from Latin America and the Caribbean.

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

World map of product's exports from Latin America and the Caribbean in kind, 2017-2020

Exports in value, M $ US

Cross-border shipments of wood fuel from Latin America and the Caribbean declined for the second consecutive year. In 2020, the region exported 667.5 million US dollars worth of wood fuel, representing an 18.1% drop compared to 2019. Between 2017 and 2020, exports decreased by 7.6%, equating to an annualized decline rate of 2.6%. The peak value was recorded in 2018 at 873.8 million US dollars, with the largest annual increase also occurring in 2018 at 21.0%.

Annual dynamics of product's exports from Latin America and the Caribbean in value, 2017-2020, M $ US

From 2017 to 2020, Japan (39.3% of exports in value terms), China (24.7%), and Portugal (11.9%) were the largest buyers of wood fuel from Latin America and the Caribbean, together forming 75.9% of total exports in value terms.

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

World map of product's exports from Latin America and the Caribbean in value, 2017-2020

Imports wood fuel to Latin America and the Caribbean

Imports in kind, K m³

The market exhibited an unstable trend throughout the timeframe. Volumes dropped to their lowest point in 2019 and then climbed to their maximum in 2020, showing a 3.5-fold shift between these years. In 2020, wood fuel imports to Latin America and the Caribbean were recorded at 357 thousand cubic meters, reflecting a dramatic gain of 253.9% compared to the previous year. The minimum value was recorded in 2019 at 101 thousand cubic meters, with the largest annual decline occurring in 2019 at 65.4%.

Annual dynamics of product's imports to Latin America and the Caribbean in kind, 2017-2020, K m³

Over the 2017–2020 period, the United States (15.1% of imports in kind), Indonesia (4.2%), and Portugal (1.6%) headed the ranking of wood fuel suppliers to Latin America and the Caribbean, with their combined share reaching 20.9% of total imports in kind.

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

World map of product's imports to Latin America and the Caribbean in kind, 2017-2020

Imports in value, M $ US

After a two-year improvement, wood fuel imports to Latin America and the Caribbean declined. In 2020, the region imported approximately 44.6 million US dollars worth of wood fuel, which is 3.7% less than a year earlier. Over the 2017-2020 period, imports increased by 4.7%, with a compound annual growth rate of 1.5%. The maximum value was recorded in 2019 at 46.4 million US dollars, and the largest annual increase occurred in 2018 at 8.4%.

Annual dynamics of product's imports to Latin America and the Caribbean in value, 2017-2020, M $ US

The structure of imports in value terms from 2017 to 2020 can be described as diversified, with the United States (21.5% of imports in value terms), Indonesia (16.3%), and France (4.5%) together accounting for just 42.3% of total flows, and no country holding a clearly dominant position.

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

World map of product's imports to Latin America and the Caribbean in value, 2017-2020