Wood fuel market in Southern Asia

Earlier Report Observations

The wood fuel market volume in Southern Asia experienced a gradual contraction from 382 million m³ in 2018 to 374 million m³ in 2023. This decline aligned with a broader slowdown in Asian wood-fuel demand growth following the region's import peak in 2017, which curbed market expansion. The COVID-19 pandemic in 2020 further constrained supply chains, reducing imports and reinforcing the downward trend.

Market value peaked at $139 billion in 2019 before falling to $124 billion by 2023. Fluctuations in value reflected subdued import activity across Asia, where trade levels remained consistently low throughout the period, failing to rebound after the pre-2018 surge.

In March 2024, India's Ministry of New and Renewable Energy launched a pilot to install 2 million improved biomass stoves, directly targeting wood-fuel consumption patterns. Simultaneously, the EU's Renewable Energy Directive III tightened sustainability criteria for imports, while the UK's abolition of biomass subsidies reshaped export opportunities for Southern Asian producers.

Production wood fuel in Southern Asia

In kind, 2017-2020, M m³

Top producers of wood fuel, 2017-2020

World map of production of wood fuel, 2017-2020

Southern Asia's wood fuel production has declined for the third consecutive year. In 2020, the region produced 379.4 million cubic meters of wood fuel, which remained relatively stable compared to 2019.

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

In value, 2017-2020, B $ US

Following a two-year increase, Southern Asia's wood fuel production declined in value terms. In 2020, wood fuel output was valued at 131.7 billion US dollars, marking a moderate reduction of 5.1% from 2019. Between 2017 and 2020, production grew by 14.3%, equivalent to an annualized rate of 4.5%. The peak value was recorded in 2019 at 138.8 billion US dollars, with the largest annual increase occurring in 2018 at 16.5%.

Annual dynamics of production in Southern Asia in value, 2017-2020, B $ US

Exports wood fuel from Southern Asia

Exports in kind, K m³

Wood fuel exports from Southern Asia have increased for the second consecutive year. In 2020, the region exported 39.8 thousand cubic meters, representing a steep rise of 31.2% compared to 2019. Over the 2017-2020 period, exports grew by 17.9%, with a compound annual growth rate of 5.6%. The lowest volume was recorded in 2018 at 26.7 thousand cubic meters, which also saw the largest decline of 20.8% that year.

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

From 2017 to 2020, the country structure of wood fuel exports in kind remained highly diversified. China accounted for 21.1% of exports, Oman for 7.9%, and the Netherlands for 6.7%, together making up only 35.7% of total flows. The remaining 64.3% consisted of numerous smaller markets.

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

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

Exports in value, K $ US

Wood fuel exports from Southern Asia have risen for the second year in a row. In 2020, exports reached 13,809 thousand US dollars, up 24.9% year-over-year. Over the 2017-2020 period, exports increased by 36.3%, with a compound annual growth rate of 10.9%. The lowest value was recorded in 2018 at 9,394 thousand US dollars, which also experienced the largest decline of 7.3% that year.

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

Between 2017 and 2020, the country breakdown of wood fuel exports in value terms was scattered. China represented 27.9% of exports, the Netherlands 10.6%, and South Korea 7.7%, together accounting for just 46.2% of total flows, with no single partner emerging as clearly dominant.

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

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

Imports wood fuel to Southern Asia

Imports in kind, K m³

Wood fuel imports into Southern Asia have declined for the second consecutive year. In 2020, imports amounted to 89.8 thousand cubic meters, down 22.1% from 2019. Between 2017 and 2020, imports decreased by 4.1%, equating to an annualized rate of 1.4%. The highest volume was recorded in 2018 at 148.6 thousand cubic meters, with the largest decline occurring in 2019 at 22.4% and the largest increase in 2018 at 58.7%.

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

From 2017 to 2020, Indonesia, China, and the Philippines were the main sources for wood fuel imports in kind, accounting for 4.5%, 2.0%, and 1.2% of imports, respectively. Together, they represented 7.8% of total flows.

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

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

Imports in value, K $ US

Foreign wood fuel supplies to Southern Asia have decreased for the second year in a row. In 2020, imports totaled 37,677 thousand US dollars, down 15.7% from the previous year. Over the 2017-2020 period, imports fell by 6.9%, with a compound annual growth rate of -2.4%. The peak value was recorded in 2018 at 56,475 thousand US dollars, with the largest decline in 2019 at 20.9% and the largest increase in 2018 at 39.5%.

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

In the 2017-2020 period, the partner portfolio for wood fuel imports in value terms to Southern Asia was quite broad. China accounted for 10.5% of imports, Indonesia for 10.2%, and the Philippines for 3.2%, together representing only 23.9% of total flows.

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

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