Wood pellets market in Chile

Earlier Report Observations

The Chilean wood pellets market volume expanded from 120.3 thousand tonnes in 2018 to 176.1 thousand tonnes in 2020. This growth was primarily driven by residential demand boosted by Environmental Decontamination Programs (PDA) and the search for cheaper alternatives to fossil fuels. Concurrently, the implementation of technical standards NCh-ISO17225/1 and NCh-ISO17225/2 established quality specifications for wood pellets, fostering market standardization and consumer confidence.

Between 2021 and 2022, the market faced a supply crisis due to a severe shortage of dry sawdust and wood chips, linked to reduced activity in the timber industry. In response, the Solid Biofuels Law (Law 21,499) was enacted in 2022, introducing comprehensive quality, labeling, and producer registration requirements under the supervision of the Electricity and Fuels Superintendency (SEC). The entry of new players, such as the ANChile plant in La Unión which started production in August 2022, helped increase installed capacity in the south of the country.

By 2023, the number of pellet producers had risen to 45, up from 24 in 2020, reflecting significant market expansion. The ANChile plant increased its drying and production capacity to 10 800 tonnes per year, with projections to reach 57 800 tonnes per year in 2023-2024. Ongoing regulatory enforcement under Law 21,499 and the diversification of raw material sources, including wet biomass and native forest residues, aimed to mitigate future supply constraints.

Production wood pellets in Chile

In kind, 2018-2021, K t

Top producers of wood pellets, 2018-2021

World map of production of wood pellets, 2018-2021

Chile's wood pellets production increased for the second consecutive year. In 2021, the country produced 214.0 K t of wood pellets, marking a 21.6% rise compared to the previous year. Between 2018 and 2021, production grew by 76.9%, which translates to an annualized rate of 20.9%. The largest decline occurred in 2019, with no change recorded. In contrast, the largest increase was observed in 2020, at 45.5%.

Annual dynamics of production in Chile in kind, 2018-2021, K t

Exports wood pellets from Chile

Exports in kind, t

The data shows irregular changes, pointing to a volatile market environment. Volumes reached their lowest point in 2020 and peaked in 2021, representing a 147-fold shift. In 2021, wood pellets exports from Chile amounted to 12 507 t, a dramatic increase of 14 587.2% compared to the previous year. The minimum value was recorded in 2020 at 85 t, with the largest decline of 98.4% also occurring that year.

Annual dynamics of product's exports from Chile in kind, 2018-2021, t

From 2018 to 2021, the two leading markets—Belgium and Italy—together accounted for 85.7% of total exports in kind, while the remaining volume was distributed across a wide range of other countries.

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

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

Exports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. The period saw a peak in 2021 and a trough in 2020, with a 47-fold amplitude between these years. In 2021, foreign wood pellets supplies from Chile totaled 1 259 K $ US, representing a dramatic increase of 4 595.1% relative to the prior year. The minimum value was recorded in 2020 at 27 K $ US, with the largest decline of 97.0% also occurring that year.

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

From 2018 to 2021, Belgium (49.8% of exports in value terms), Italy (28.8% of exports in value terms), and South Korea (20.7% of exports in value terms) were the largest buyers of wood pellets from Chile, together forming 99.3% of total exports in value terms.

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

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

Imports wood pellets to Chile

Imports in kind, t

The market showed signs of volatility over the observed period. Imports hit their lowest point in 2019 and peaked in 2018, with a 214-fold gap between these years. In 2021, Chile's wood pellets imports reached 505 t, reflecting a gain of 185.9% compared with 2020. The minimum value was recorded in 2019 at 7 t, with the largest decline of 99.5% occurring that year. The largest increase was recorded in 2020, at 2 589.7%.

Annual dynamics of product's imports to Chile in kind, 2018-2021, t

Throughout 2018–2021, the United States and Argentina remained the key partner countries for imports in kind, with a combined share of 85.5% of total flows; other partners accounted for the rest.

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

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

Imports in value, K $ US

The market showed signs of volatility over the observed period. The period registered a trough in 2019 and a peak in 2018, showing an 18-fold fluctuation. In 2021, Chile imported 180 K $ US of wood pellets, equivalent to a steep increase of 206.7% over the past year. The minimum value was recorded in 2019 at 33 K $ US, with the largest decline of 94.4% also occurring that year.

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

Throughout 2018–2021, the United States (39.3% of imports in value terms), France (32.5% of imports in value terms), and Argentina (17.5% of imports in value terms) formed the key group of partners for imports in value terms of wood pellets to Chile, jointly representing 89.2% of total flows.

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

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