Latin America and the Caribbean: Wood Fuel Market 2025

Wood Fuel Market Size in Latin America and the Caribbean

The Latin American wood fuel market fell to $X in 2022, almost unchanged from the previous year. The market value increased at an average annual rate of +2.8% from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, the market attained the maximum level at $X in 2018; however, from 2019 to 2022, consumption remained at a lower figure.

Wood Fuel Production in Latin America and the Caribbean

In value terms, wood fuel production reduced slightly to $X in 2022 estimated in export price. Over the period under review, production, however, posted a buoyant expansion. The pace of growth appeared the most rapid in 2017 with an increase of 70%. The level of production peaked at $X in 2018; however, from 2019 to 2022, production failed to regain momentum.

Wood Fuel Exports

Exports in Latin America and the Caribbean

After two years of growth, shipments abroad of wood fuel decreased by -12.4% to X cubic meters in 2022. Over the period under review, exports, however, recorded a resilient increase. The growth pace was the most rapid in 2020 when exports increased by 410%. Over the period under review, the exports attained the maximum at X cubic meters in 2018; however, from 2019 to 2022, the exports stood at a somewhat lower figure.

In value terms, wood fuel exports contracted modestly to $X in 2022. Overall, exports, however, recorded a strong expansion. The most prominent rate of growth was recorded in 2020 with an increase of 817%. Over the period under review, the exports reached the peak figure at $X in 2016; however, from 2017 to 2022, the exports stood at a somewhat lower figure.

Exports by Country

Mexico was the major exporter of wood fuel in Latin America and the Caribbean, with the volume of exports finishing at X cubic meters, which was approx. 66% of total exports in 2022. Honduras (X cubic meters) took a 17% share (based on physical terms) of total exports, which put it in second place, followed by Brazil (11%). The following exporters - Ecuador (X cubic meters) and Uruguay (X cubic meters) - each accounted for a 3.6% share of total exports.

From 2012 to 2022, average annual rates of growth with regard to wood fuel exports from Mexico stood at +7.0%. At the same time, Brazil (+39.2%), Uruguay (+29.4%), Ecuador (+5.2%) and Honduras (+3.7%) displayed positive paces of growth. Moreover, Brazil emerged as the fastest-growing exporter exported in Latin America and the Caribbean, with a CAGR of +39.2% from 2012-2022. Brazil (+9.9 p.p.) significantly strengthened its position in terms of the total exports, while Honduras saw its share reduced by -5.7% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest wood fuel supplying countries in Latin America and the Caribbean were Honduras ($X), Mexico ($X) and Brazil ($X), with a combined 95% share of total exports.

Brazil, with a CAGR of +52.4%, recorded the highest growth rate of the value of exports, in terms of the main exporting countries over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2022, the export price in Latin America and the Caribbean amounted to $X per cubic meter, increasing by 9.2% against the previous year. Over the period under review, the export price posted a strong expansion. The pace of growth was the most pronounced in 2019 when the export price increased by 280% against the previous year. The level of export peaked at $X per cubic meter in 2020; however, from 2021 to 2022, the export prices failed to regain momentum.

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 Honduras ($X per cubic meter), while Uruguay ($X per cubic meter) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Honduras (+19.4%), while the other leaders experienced more modest paces of growth.

Wood Fuel Imports

Imports in Latin America and the Caribbean

In 2022, overseas purchases of wood fuel increased by 2.2% to X cubic meters, rising for the second consecutive year after three years of decline. Over the period under review, imports saw a significant expansion. The pace of growth was the most pronounced in 2021 with an increase of 367%. Over the period under review, imports hit record highs at X cubic meters in 2017; however, from 2018 to 2022, imports stood at a somewhat lower figure.

In value terms, wood fuel imports soared to $X in 2022. In general, imports recorded a significant expansion. The most prominent rate of growth was recorded in 2016 when imports increased by 107%. Over the period under review, imports reached the peak figure in 2022 and are expected to retain growth in years to come.

Imports by Country

Bahamas dominates imports structure, accounting for X cubic meters, which was approx. 83% of total imports in 2022. It was distantly followed by Mexico (X cubic meters), generating a 9.7% share of total imports. Chile (X cubic meters) followed a long way behind the leaders.

Imports into Bahamas increased at an average annual rate of +44.7% from 2012 to 2022. At the same time, Chile (+108.0%) and Mexico (+27.8%) displayed positive paces of growth. Moreover, Chile emerged as the fastest-growing importer imported in Latin America and the Caribbean, with a CAGR of +108.0% from 2012-2022. From 2012 to 2022, the share of Bahamas, Chile and Mexico increased by +67, +4.1 and +3.4 percentage points, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Mexico ($X) constitutes the largest market for imported wood fuel in Latin America and the Caribbean, comprising 56% of total imports. The second position in the ranking was held by Bahamas ($X), with a 27% share of total imports.

From 2012 to 2022, the average annual growth rate of value in Mexico totaled +33.0%. The remaining importing countries recorded the following average annual rates of imports growth: Bahamas (+22.0% per year) and Chile (+107.5% per year).

Import Prices by Country

The import price in Latin America and the Caribbean stood at $X per cubic meter in 2022, surging by 45% against the previous year. Overall, the import price, however, showed a relatively flat trend pattern. The pace of growth appeared the most rapid in 2020 an increase of 217% against the previous year. As a result, import price attained the peak level of $X per cubic meter. From 2021 to 2022, the import prices remained at a lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Mexico ($X per cubic meter), while Bahamas ($X per cubic meter) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Mexico (+4.1%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform

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