Wood fuel market in Mexico

Earlier Report Observations

The wood fuel market in Mexico gradually contracted from 38.5 million m³ in 2018 to 38.1 million m³ in 2023. This decline occurred alongside the underdevelopment of the processed fuel segment, including pellets and wood chips, due to a persistent lack of production infrastructure and specialized equipment. Furthermore, the market's heavy reliance on imported timber—which accounted for about 67% of consumed roundwood—and increased inspections at ports and borders to verify legality affected supply dynamics.

Domestic production remained well below its potential throughout the period, constrained by barriers such as insufficient market studies and strong competition among logging contractors. The trade deficit for forest products widened significantly, reaching -2,013.66 million dollars in 2022, underscoring a growing import dependency. While per capita consumption of wood as fuel decreased, overall demand was partially sustained by population growth, yet total market volume continued to shrink.

Regulatory efforts, including enhanced verification of imported timber legality, were implemented but did not reverse the market's downward trend. Mexico maintained its preference for coniferous wood like pine, remaining a regional leader in its production and consumption, but this structural preference did not offset the overall decline in wood fuel market size. Innovation activities in the wood industry, noted particularly among large enterprises, were insufficient to drive market expansion.

Production wood fuel in Mexico

In kind, 2018-2021, K m³

From 2018 to 2021, Mexico ranked 11th globally in wood fuel production.

Top producers of wood fuel, 2018-2021

World map of production of wood fuel, 2018-2021

Mexico's wood fuel production declined for the third year in a row. In 2021, the country produced 38 353 K m³ of wood fuel, showing little change from the 2020 level.

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

Exports wood fuel from Mexico

Exports in kind, K m³

The market exhibited volatility during this period. Exports reached their lowest point in 2019 at 13.0 K m³, then surged to a peak of 132.6 K m³ in 2021—a 10.2-fold increase. This 2021 volume represented a dramatic 384.8% jump from 2020. The sharpest decline occurred in 2019, with a drop of 87.2%.

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

Between 2018 and 2021, the United States was the exclusive buyer of wood fuel from Mexico, accounting for 100.0% of exports in volume terms.

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

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

Exports in value, K $ US

The market displayed volatility over the observed years. Export values hit their lowest in 2019 at 1 356 K US$, then peaked in 2018, creating a 29-fold difference between these extremes. In 2021, exports from Mexico totaled 36 375 K US$, marking a steep 952.5% increase from 2020. The most significant decline was in 2019, with a 96.6% drop.

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

From 2018 to 2021, the United States was the nearly sole buyer of wood fuel from Mexico, representing 100.0% of export value.

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

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

Imports wood fuel to Mexico

Imports in kind, K m³

Mexico's wood fuel imports fell for the second consecutive year. In 2021, imports totaled 5.7 K m³, a sharp 41.7% decrease from the previous year. Over the 2018–2021 period, imports declined by 58.1%, averaging a 25.2% annual drop. The highest volume was recorded in 2019 at 14.0 K m³, which also saw the largest increase of 3.6%.

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

During 2018–2021, the United States dominated as the supplier of wood fuel to Mexico, making up 97.2% of total imports by volume.

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

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

Imports in value, K $ US

In 2021, Mexico's wood fuel import value stood at 2 082 K US$, a sharp 57.6% increase year-over-year. From 2018 to 2021, imports decreased by 7.4%, with an average annual decline of 2.5%. The lowest value was in 2020 at 1 321 K US$, while the peak was in 2019 at 2 651 K US$. The most substantial drop occurred in 2020, with a 50.2% decrease.

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

From 2018 to 2021, the United States remained the overwhelmingly dominant supplier of wood fuel to Mexico, accounting for 95.7% of total import value.

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

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