Wood pellets market in South-eastern Asia

Earlier Report Observations

Production of wood pellets in South-eastern Asia fluctuated between 4.2 and 4.4 million tons from 2018 to 2020, with domestic market volume reaching 1 324 thousand tons in 2020. The market then remained stable in 2021, supported by rising primary fuel prices which made wood pellets more competitive and boosted consumption in Asian countries like Indonesia.

A significant expansion occurred from 2022 to 2023, with market volume growing by 62% to 2 253 thousand tons. This surge was driven by increasing demand for renewable energy and greater environmental awareness, alongside the emergence of new pellet products such as torrefied pellets and bio-blends that broadened market appeal.

By 2024, the region saw further developments with pilot plants in Malaysia using sawdust feedstock and Vietnam's pellet exports rising by 26% to 2.6 million tons. Higher energy costs and government incentives for household biomass heating continued to fuel domestic demand across South-eastern Asia.

Production wood pellets in South-eastern Asia

In kind, 2017-2020, K t

Top producers of wood pellets, 2017-2020

World map of production of wood pellets, 2017-2020

The data reveals irregular changes, indicating a volatile market environment. The lowest production volume was recorded in 2017, while the highest occurred in 2018, with a peak-to-trough ratio of 1.8 times. In 2020, South-eastern Asia produced 4 301 K t of wood pellets, representing a 1.6% increase compared to 2019. The maximum value was recorded in 2018 at 4 367 K t. The largest decline occurred in 2019, with a drop of 3.1%, while the largest increase was in 2018, with growth of 78.5%.

Annual dynamics of production in South-eastern Asia in kind, 2017-2020, K t

Exports wood pellets from South-eastern Asia

Exports in kind, K t

The market exhibited an unstable trend throughout the timeframe. Import levels fluctuated 1.7 times between the low of 2017 and the high of 2018. In 2020, South-eastern Asia's volume of wood pellets exports stood at 2 985 K t, up by 16.8% compared to the previous year. The maximum value was recorded in 2018 at 3 264 K t. The largest decline occurred in 2019, with a decrease of 21.7%, while the largest increase was in 2018, with growth of 70.3%.

Annual dynamics of product's exports from South-eastern Asia in kind, 2017-2020, K t

From 2017 to 2020, South Korea and Japan formed the core of wood pellet exports from South-eastern Asia, together accounting for 99.3% of total flows.

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

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

Exports in value, M $ US

The market showed signs of volatility over the observed period. Export values hit their lowest point in 2017 and reached their maximum in 2018, with a gap of 2.1 times. In 2020, South-eastern Asia's volume of wood pellets exports amounted to 458.8 M $ US, showing an improvement of 10.7% compared to 2019. The maximum value was recorded in 2018 at 535.6 M $ US. The largest decline occurred in 2019, with a drop of 22.7%, while the largest increase was in 2018, with growth of 109.7%.

Annual dynamics of product's exports from South-eastern Asia in value, 2017-2020, M $ US

Throughout 2017 to 2020, South Korea and Japan remained the main destinations for exports in value terms, together accounting for 99.0% of total flows.

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

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

Imports wood pellets to South-eastern Asia

Imports in kind, K t

Wood pellet imports into South-eastern Asia declined for the second consecutive year. In 2020, import volume amounted to 8 K t, marking a decline of 2.3% from the previous year. Between 2017 and 2020, imports decreased by 17.1%, equating to an annualized rate of 6.0%. The maximum value was recorded in 2018 at 11 K t. The largest decline occurred in 2019, with a drop of 24.8%, while the largest increase was in 2018, with growth of 12.9%.

Annual dynamics of product's imports to South-eastern Asia in kind, 2017-2020, K t

The country composition of imports in kind from 2017 to 2020 was dispersed, with China (24.7% of imports in kind), Germany (7.5% of imports in kind), and Canada (2.1% of imports in kind) together forming just 34.4% of total flows, while the remaining 65.6% was split among a wide range of other destinations.

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

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

Imports in value, M $ US

Wood pellet shipments into South-eastern Asia from abroad declined for the second consecutive year. In 2020, South-eastern Asia imported 2.5 M $ US of wood pellets, down by 24.3% from the previous year. Over the period 2017 to 2020, imports decreased by 13.2%, with a compound annual growth rate of -4.6%. The maximum value was recorded in 2018 at 3.8 M $ US. The largest increase occurred in 2018, with growth of 30.3%.

Annual dynamics of product's imports to South-eastern Asia in value, 2017-2020, M $ US

Throughout 2017 to 2020, China (48.0% of imports in value terms), Germany (21.5% of imports in value terms), and Italy (2.8% of imports in value terms) remained the key directions for imports in value terms, together taking 72.3% of total flows.

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

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