Indonesia: Wood Pellets Market 2023

Wood Pellets Market Size in Indonesia

In 2021, the Indonesian wood pellets market decreased by -15.1% to $X, falling for the third year in a row after two years of growth. In general, consumption saw a precipitous decline. As a result, consumption reached the peak level of $X. From 2019 to 2021, the growth of the market failed to regain momentum.

Wood Pellets Production in Indonesia

In value terms, wood pellets production contracted to $X in 2021 estimated in export price. Overall, production recorded a significant expansion. The growth pace was the most rapid in 2018 with an increase of 229% against the previous year. As a result, production attained the peak level of $X. From 2019 to 2021, production growth remained at a somewhat lower figure.

Wood Pellets Exports

Exports from Indonesia

Wood pellets exports from Indonesia expanded sharply to X tons in 2021, with an increase of 12% on 2020 figures. Overall, exports recorded a significant increase. The most prominent rate of growth was recorded in 2013 with an increase of 205%. The exports peaked in 2021 and are likely to see steady growth in the immediate term.

In value terms, wood pellets exports expanded rapidly to $X in 2021. In general, exports saw a significant expansion. The pace of growth was the most pronounced in 2018 with an increase of 224% against the previous year. As a result, the exports attained the peak of $X. From 2019 to 2021, the growth of the exports remained at a lower figure.

Exports by Country

South Korea (X tons) was the main destination for wood pellets exports from Indonesia, accounting for a 87% share of total exports. Moreover, wood pellets exports to South Korea exceeded the volume sent to the second major destination, Japan (X tons), eightfold.

From 2012 to 2021, the average annual growth rate of volume to South Korea stood at +44.4%. Exports to the other major destinations recorded the following average annual rates of exports growth: Japan (+121.5% per year) and Taiwan (Chinese) (+61.8% per year).

In value terms, South Korea ($X) remains the key foreign market for wood pellets exports from Indonesia, comprising 80% of total exports. The second position in the ranking was taken by Japan ($X), with a 13% share of total exports.

From 2012 to 2021, the average annual growth rate of value to South Korea amounted to +41.4%. Exports to the other major destinations recorded the following average annual rates of exports growth: Japan (+120.0% per year) and Taiwan (Chinese) (+60.8% per year).

Export Prices by Country

The average wood pellets export price stood at $X per ton in 2021, remaining constant against the previous year. Over the period under review, the export price, however, saw a mild downturn. The pace of growth was the most pronounced in 2018 when the average export price increased by 59%. As a result, the export price attained the peak level of $X per ton. From 2019 to 2021, the average export prices remained at a lower figure.

Average prices varied somewhat for the major overseas markets. In 2021, the country with the highest price was Japan ($X per ton), while the average price for exports to South Korea ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Taiwan (Chinese) (-0.6%), while the prices for the other major destinations experienced a decline.

Wood Pellets Imports

Imports into Indonesia

In 2021, the amount of wood pellets imported into Indonesia soared to X tons, growing by 59% on the previous year. Over the period under review, imports, however, recorded a pronounced shrinkage. The most prominent rate of growth was recorded in 2019 with an increase of 740%. As a result, imports attained the peak of X tons. From 2020 to 2021, the growth of imports remained at a somewhat lower figure.

In value terms, wood pellets imports fell to $X in 2021. Overall, imports, however, continue to indicate a abrupt downturn. The pace of growth appeared the most rapid in 2019 when imports increased by 914% against the previous year. As a result, imports attained the peak of $X. From 2020 to 2021, the growth of imports remained at a somewhat lower figure.

Imports by Country

In 2021, Germany (X tons) was the main supplier of wood pellets to Indonesia, accounting for a 97% share of total imports. It was followed by the United States (X kg), with a 2.4% share of total imports.

From 2012 to 2021, the average annual rate of growth in terms of volume from Germany amounted to +98.4%. The remaining supplying countries recorded the following average annual rates of imports growth: the United States (-10.4% per year) and Japan (-22.8% per year).

In value terms, Germany ($X) constituted the largest supplier of wood pellets to Indonesia, comprising 93% of total imports. The second position in the ranking was held by the United States ($X), with a 3.7% share of total imports.

From 2012 to 2021, the average annual rate of growth in terms of value from Germany totaled +78.6%. The remaining supplying countries recorded the following average annual rates of imports growth: the United States (-27.1% per year) and Japan (-32.5% per year).

Import Prices by Country

The average wood pellets import price stood at $X per ton in 2021, waning by -43.3% against the previous year. Overall, the import price recorded a abrupt slump. The pace of growth appeared the most rapid in 2015 when the average import price increased by 137%. Over the period under review, average import prices reached the peak figure at $X per ton in 2012; however, from 2013 to 2021, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major supplying countries. In 2021, the country with the highest price was the United States ($X per ton), while the price for Germany ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by South Korea (+59.8%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Market Intelligence Platform

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