Wood fuel market in Nicaragua

Earlier Report Observations

The physical volume of Nicaragua's wood fuel market remained exceptionally stable from 2018 to 2023, hovering between 6 166 and 6 181 thousand m³. This reflects the deeply rooted reliance on wood as a primary energy source, particularly for cooking in rural and urban households. In 2018, wood fuel represented 44% of the country's total energy consumption, and by 2020, it accounted for 84.7% of the energy used for residential food preparation, underpinning consistent demand.

In value terms, the market experienced significant fluctuations, rising from $1 049 million in 2018 to a peak of $1 342 million in 2020, then falling to $1 058 million in 2021 before recovering to $1 295 million by 2023. This volatility coincided with global energy market turbulence and domestic policy responses. The government maintained a policy of stabilizing hydrocarbon prices, including liquefied petroleum gas, from 2021 onward to protect households from international price swings. This effort intensified following the Russia-Ukraine conflict in 2022, which disrupted global fuel supplies and exerted upward pressure on energy costs worldwide, even as Nicaragua froze retail fuel prices to mitigate the impact.

The slight upward trend in physical volume from 2021 aligned with these sustained policy measures aimed at containing energy costs for consumers. Production and local distribution patterns for wood fuel remained consistent across the country, as observed in 2019, demonstrating the market's resilience to external price shocks in the broader energy sector.

Production wood fuel in Nicaragua

In kind, 2017-2020, K m³

Top producers of wood fuel, 2017-2020

World map of production of wood fuel, 2017-2020

Nicaragua's wood fuel production remained relatively stable in 2020, with 6 169 thousand cubic meters produced. This was nearly identical to the 2019 output of 6 168 thousand cubic meters, which marked the lowest level in recent years. Production levels showed minimal variation throughout the period, with no significant increases or declines recorded.

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

In value, 2017-2020, M $ US

Nicaragua's wood fuel production value increased for the second consecutive year in 2020, reaching 1 343 million US dollars. This represented a substantial 20.1% gain compared to 2019. Over the four-year period from 2017 to 2020, production value grew by 13.5%, averaging 4.3% annually. The lowest value was recorded in 2018 at 1 049 million US dollars, which also saw the largest decline of 11.4%.

Annual dynamics of production in Nicaragua in value, 2017-2020, M $ US

Exports wood fuel from Nicaragua

Exports in kind, m³

After two years of decline, Nicaragua's wood fuel exports rebounded in 2020, reaching 2 665 cubic meters. This represented a significant 67.5% increase compared to the previous year. Between 2017 and 2020, exports grew by 26.8%, with an average annual growth rate of 8.2%. The lowest export volume was recorded in 2019 at 1 590 cubic meters, while 2018 saw the largest decline of 15.4%.

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

From 2017 to 2020, the United States remained Nicaragua's primary destination for wood fuel exports in volume terms, accounting for 73.8% of total exports. Other markets played considerably smaller roles during this period.

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

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

Exports in value, K $ US

Nicaragua's wood fuel export values showed considerable volatility between 2017 and 2020. Exports reached their lowest point in 2019 at 288.3 thousand US dollars, then more than doubled to 580.0 thousand US dollars in 2020, representing a 101.2% increase. The period saw a two-fold fluctuation between the peak and trough values. The largest decline occurred in 2018 with a 25.0% decrease.

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

Throughout the 2017-2020 period, the United States dominated Nicaragua's wood fuel exports in value terms, accounting for 80.9% of total export value. Other countries each held substantially smaller shares of the export market.

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

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

Imports wood fuel to Nicaragua

Imports in kind, m³

Nicaragua's wood fuel imports showed significant fluctuations between 2017 and 2020. Imports reached their lowest point in 2020 at just 27 cubic meters, representing a sharp 72.5% decline from the previous year. The peak occurred in 2018 with 119 cubic meters imported, creating a 4.4-fold difference between the highest and lowest years. The largest increase of 22.9% was also recorded in 2018.

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

From 2017 to 2020, Paraguay, the United States, and Mexico formed the core sources of Nicaragua's wood fuel imports in volume terms. Paraguay accounted for 44.7% of imports, followed by the United States at 29.9% and Mexico at 18.7%. Together, these three countries represented 93.3% of total import volume.

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

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

Imports in value, K $ US

Nicaragua's wood fuel import values experienced dramatic fluctuations between 2017 and 2020. Imports plummeted to just 9.9 thousand US dollars in 2020, marking an 81.7% decline from the previous year and representing the lowest point in the period. The peak occurred in 2018 with 381.4 thousand US dollars imported, creating a 39-fold difference between the highest and lowest years. The largest decline of 85.9% was recorded in 2019, while 2018 saw the most substantial increase of 571.7%.

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

Between 2017 and 2020, the United States was the dominant source of Nicaragua's wood fuel imports in value terms, accounting for 78.5% of total import value. The remaining share was distributed among several smaller markets.

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

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