Wood pellets market in Mexico

Earlier Report Observations

The Mexican wood pellet market volume grew from 3 795 t in 2018 to 4 348 t in 2020, but fell to 4 000 t in 2021 and remained near that level through 2023. Domestic production stayed constant at 4 000 t each year, making net trade the main cause of market size fluctuations.

Industry faced headwinds such as cumbersome forest-use permits and absent government incentives, which limited investment in pellet production infrastructure. Despite these barriers, a few forestry companies began producing and marketing pellets, though the domestic market remained underdeveloped.

By the mid‑2020s, growing international demand for biofuels and the carbon‑neutral appeal of wood pellets spurred interest in Mexico’s forest‑residue potential. Export flows from states like Nuevo León, Chihuahua and Sonora pointed to an emerging export‑oriented segment, even while regulatory frameworks saw no major changes.

Production wood pellets in Mexico

In kind, 2018-2021, t

Top producers of wood pellets, 2018-2021

World map of production of wood pellets, 2018-2021

In 2021, Mexico produced 4,000 tonnes of wood pellets, with production remaining broadly stable compared to the previous year. The largest decline was recorded in 2019 at 0.0%, while the largest increase also occurred in 2019 at 0.0%.

Annual dynamics of production in Mexico in kind, 2018-2021, t

Exports wood pellets from Mexico

Exports in kind, t

The market exhibited significant volatility during this period. Export volumes reached their lowest point in 2019 at 2.3 tonnes, then surged to 15.4 tonnes in 2020, representing a year-over-year increase of 581.1%. From the peak in 2018 to the trough in 2019, volumes varied by a factor of 91. The largest decline was recorded in 2019 at 98.9%.

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

From 2018 to 2021, wood pellets from Mexico were shipped almost exclusively to the United States, which accounted for 100.0% of total 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, $ US

The export market demonstrated notable volatility over the observed period. The lowest value was recorded in 2019 at $410 US, followed by a sharp rise to $2,632 US in 2020, marking a 542.0% increase from the previous year. The highest exports occurred in 2018, with a 90-fold gap between the peak and the 2019 low. The largest decline was recorded in 2019 at 98.9%.

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

Between 2018 and 2021, exports of wood pellets from Mexico in value terms were almost entirely directed to the United States, which represented 100.0% of total flows.

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 pellets to Mexico

Imports in kind, t

In 2020, Mexico's imports of wood pellets from abroad reached 363.2 tonnes, up by 936.0% year-over-year.

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

From 2018 to 2021, the United States served as the nearly exclusive supplier of wood pellets to Mexico, accounting for 100.0% of total imports in volume terms.

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, $ US

In 2020, Mexico's imports of wood pellets totaled $66,009 US, representing a 922.6% increase relative to the prior year.

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

Between 2018 and 2021, wood pellets imported into Mexico were sourced primarily from the United States, which absorbed 100.0% of total imports in value terms.

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

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