Latin America and the Caribbean: Densified Wood Market 2024

Densified Wood Market Size in Latin America and the Caribbean

The Latin American densified wood market contracted to $X in 2022, declining by -2.3% against the previous year. Over the period under review, consumption continues to indicate a noticeable reduction. The growth pace was the most rapid in 2019 with an increase of 4.4% against the previous year. Over the period under review, the market hit record highs at $X in 2013; however, from 2014 to 2022, consumption failed to regain momentum.

Densified Wood Production in Latin America and the Caribbean

In value terms, densified wood production declined slightly to $X in 2022 estimated in export price. Overall, production continues to indicate a pronounced downturn. The growth pace was the most rapid in 2021 when the production volume increased by 4.9% against the previous year. Over the period under review, production hit record highs at $X in 2013; however, from 2014 to 2022, production failed to regain momentum.

Densified Wood Exports

Exports in Latin America and the Caribbean

In 2022, densified wood exports in Latin America and the Caribbean reduced to X tons, shrinking by -12% against 2021 figures. In general, exports, however, continue to indicate a prominent expansion. The most prominent rate of growth was recorded in 2017 when exports increased by 117% against the previous year. Over the period under review, the exports reached the peak figure at X tons in 2018; however, from 2019 to 2022, the exports remained at a lower figure.

In value terms, densified wood exports declined to $X in 2022. Total exports indicated tangible growth from 2012 to 2022: its value increased at an average annual rate of +3.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +27.1% against 2020 indices. The most prominent rate of growth was recorded in 2018 with an increase of 58%. As a result, the exports reached the peak of $X. From 2019 to 2022, the growth of the exports remained at a lower figure.

Exports by Country

Brazil prevails in exports structure, reaching X tons, which was near 95% of total exports in 2022. Mexico (X tons) held a relatively small share of total exports.

Brazil was also the fastest-growing in terms of the densified wood exports, with a CAGR of +52.7% from 2012 to 2022. At the same time, Mexico (+37.0%) displayed positive paces of growth. Brazil (+90 p.p.) and Mexico (+1.8 p.p.) significantly strengthened its position in terms of the total exports, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) remains the largest densified wood supplier in Latin America and the Caribbean, comprising 91% of total exports. The second position in the ranking was taken by Mexico ($X), with a 3.8% share of total exports.

In Brazil, densified wood exports expanded at an average annual rate of +41.6% over the period from 2012-2022.

Export Prices by Country

In 2022, the export price in Latin America and the Caribbean amounted to $X per ton, picking up by 6.4% against the previous year. Overall, the export price, however, continues to indicate a abrupt descent. The growth pace was the most rapid in 2013 an increase of 34%. As a result, the export price attained the peak level of $X per ton. From 2014 to 2022, the export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Mexico ($X per ton), while Brazil amounted to $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Brazil (-7.3%).

Densified Wood Imports

Imports in Latin America and the Caribbean

In 2022, supplies from abroad of densified wood decreased by -10.6% to X tons, falling for the third consecutive year after two years of growth. In general, imports recorded a perceptible curtailment. The most prominent rate of growth was recorded in 2018 when imports increased by 43% against the previous year. The volume of import peaked at X tons in 2019; however, from 2020 to 2022, imports remained at a lower figure.

In value terms, densified wood imports declined modestly to $X in 2022. Over the period under review, imports continue to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2021 when imports increased by 31% against the previous year. As a result, imports attained the peak of $X, and then dropped slightly in the following year.

Imports by Country

In 2022, Mexico (X tons), distantly followed by Aruba (X tons), Brazil (X tons), Cuba (X tons), Chile (X tons) and the Dominican Republic (X tons) represented the main importers of densified wood, together achieving 84% of total imports. Colombia (X tons) followed a long way behind the leaders.

From 2012 to 2022, the biggest increases were recorded for Cuba (with a CAGR of +29.0%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, Mexico ($X) constitutes the largest market for imported densified wood in Latin America and the Caribbean, comprising 47% of total imports. The second position in the ranking was held by Brazil ($X), with an 18% share of total imports. It was followed by Chile, with an 11% share.

From 2012 to 2022, the average annual rate of growth in terms of value in Mexico amounted to +7.8%. In the other countries, the average annual rates were as follows: Brazil (-1.0% per year) and Chile (-4.0% per year).

Import Prices by Country

In 2022, the import price in Latin America and the Caribbean amounted to $X per ton, increasing by 7% against the previous year. Import price indicated pronounced growth from 2012 to 2022: its price increased at an average annual rate of +3.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, densified wood import price increased by +90.0% against 2019 indices. The growth pace was the most rapid in 2021 when the import price increased by 41% against the previous year. Over the period under review, import prices reached the maximum in 2022 and is likely to continue growth in the immediate term.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Mexico ($X per ton), while Cuba ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Chile (+14.1%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform

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