Wood in the rough market in Costa Rica

Earlier Report Observations

Between 2018 and 2020, the market volume of wood in Costa Rica declined from 2.8 million tons to 2.8 million tons, influenced by limited consumption of local timber. Competition from substitute materials like plastic and aluminum, coupled with perceived quality issues and a lack of information among architects and civil engineers, restrained demand. In 2019, despite the lower physical volume, prices for wood rose across all diameter categories, reflecting growing demand for higher value-added uses. By 2020, persistent tension in the supply of good quality raw material and efforts to introduce species such as melina and teak into the domestic and export markets affected production, which fell to 2.9 million tons.

The period from 2021 to 2023 saw production fluctuate, reaching 2.9 million tons in 2021 as forest plantations, supplying 75.7% of domestic timber, consolidated as the primary raw material source. However, credibility issues in forestry due to unsustainable reforecation practices continued to impact the sector. A further increase in wood prices occurred in 2022, alongside heightened international competition, especially from lower-priced imported teak, which reduced the competitiveness of national wood and contributed to a production drop to 2.8 million tons. In 2023, prices for key species including teak, laurel, guanacaste, and cypress rose by 6% to 10.8%, yet demand for wood in higher value-added applications decreased, stabilizing the market volume at 2.7 million tons.

In 2024, the forestry sector contributed $285 million to the economy, but exports of rough and sawn wood fell by 10.7% due to ongoing international competition. Throughout the full period, technological adaptation in processing and new commercialization schemes, such as auction systems introduced by Fundecor, brought changes to the industry, although traditional practices remained prevalent. Overall, the market's physical volume contracted from 2.8 million tons in 2018 to 2.7 million tons in 2023, while its value grew from $510.9 million to $641.5 million, driven by rising prices and a shift toward more valuable wood species.

Production wood in the rough in Costa Rica

In kind, 2017-2020, K t

Top producers of wood in the rough, 2017-2020

World map of production of wood in the rough, 2017-2020

Costa Rica's production of wood in the rough declined for the third consecutive year. In 2020, the country produced 2,863 thousand tons, marking a slight decrease of 1.6% compared to 2019. Over the period from 2017 to 2020, production fell by 4.5%, which translates to an average annual decline of 1.5%.

Annual dynamics of production in Costa Rica in kind, 2017-2020, K t

In value, 2017-2020, M $ US

After a two-year decline, Costa Rica's wood in the rough production increased in value. In 2020, the output was valued at 497.7 million US dollars, representing a 2.7% rise from the previous year. However, from 2017 to 2020, production value decreased by 26.2%, with a compound annual growth rate (CAGR) of -9.6%. The lowest value was recorded in 2019 at 484.8 million US dollars, while the largest decline occurred in 2018 with a 20.3% drop.

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

Exports wood in the rough from Costa Rica

Exports in kind, K t

Following a two-year increase, Costa Rica's exports of wood in the rough declined in volume. In 2020, the country exported 98.6 thousand tons, reflecting a sharp contraction of 41.1% from 2019. Over the 2017-2020 period, exports decreased by 26.3%, with a CAGR of -9.7%. The highest volume was recorded in 2019 at 167.4 thousand tons, and the largest increase occurred in 2018 with a 17.2% rise.

Annual dynamics of product's exports from Costa Rica in kind, 2017-2020, K t

From 2017 to 2020, India was the dominant buyer of wood in the rough from Costa Rica, accounting for 77.8% of total exports in volume. Other countries shared the remaining portion.

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

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

Exports in value, K $ US

Costa Rica's wood in the rough exports declined in value for the third consecutive year. In 2020, exports amounted to 17,149 thousand US dollars, showing a drop of 38.5% compared to 2019. Between 2017 and 2020, exports decreased by 43.1%, equating to an annualized rate of 17.1%.

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

Throughout 2017-2020, India and China remained the key partner countries for Costa Rica's wood in the rough exports in value terms, together accounting for 88.0% of total flows. Other partners made up the remainder.

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

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

Imports wood in the rough to Costa Rica

Imports in kind, K t

Costa Rica's imports of wood in the rough declined in volume for the third consecutive year. In 2020, the country imported 2.3 thousand tons, indicating a sharp decrease of 59.9% from 2019. From 2017 to 2020, imports fell by 74.2%, with an annualized rate of 36.3%.

Annual dynamics of product's imports to Costa Rica in kind, 2017-2020, K t

From 2017 to 2020, Nicaragua, Honduras, and Chile formed the core of Costa Rica's wood in the rough imports in volume. Nicaragua accounted for 56.3%, Honduras for 17.2%, and Chile for 10.7% of imports, together representing 84.2% of total flows.

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

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

Imports in value, K $ US

In 2020, Costa Rica imported wood in the rough valued at 1,321 thousand US dollars, indicating a decrease of 35.0% from the previous year. Between 2017 and 2020, imports decreased by 44.4%, with an annualized rate of 17.8%. The largest increase was recorded in 2019 at 17.2%.

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

During 2017-2020, Honduras, the United States, and Chile were the leading suppliers of wood in the rough to Costa Rica in value terms. Honduras accounted for 33.8%, the United States for 20.3%, and Chile for 20.1% of imports, jointly representing 74.2% of total imports.

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

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