Latin America and the Caribbean: Wood Pellets Market 2023

Wood Pellets Market Size in Latin America and the Caribbean

The Latin American wood pellets market was finally on the rise to reach $X in 2021, after two years of decline. In general, consumption posted a buoyant increase. Over the period under review, the market hit record highs at $X in 2018; however, from 2019 to 2021, consumption failed to regain momentum.

Wood Pellets Production in Latin America and the Caribbean

In value terms, wood pellets production expanded slightly to $X in 2021 estimated in export price. Overall, production posted strong growth. The most prominent rate of growth was recorded in 2017 with an increase of 106% against the previous year. The level of production peaked at $X in 2018; however, from 2019 to 2021, production stood at a somewhat lower figure.

Wood Pellets Exports

Exports in Latin America and the Caribbean

In 2021, after six years of growth, there was decline in shipments abroad of wood pellets, when their volume decreased by -1.1% to X tons. Overall, exports, however, posted significant growth. The pace of growth appeared the most rapid in 2017 when exports increased by 73% against the previous year. Over the period under review, the exports hit record highs at X tons in 2020, and then shrank slightly in the following year.

In value terms, wood pellets exports reduced slightly to $X in 2021. In general, exports, however, enjoyed a buoyant expansion. The most prominent rate of growth was recorded in 2017 when exports increased by 62% against the previous year. Over the period under review, the exports reached the peak figure at $X in 2020, and then contracted in the following year.

Exports by Country

Brazil represented the major exporting country with an export of about X tons, which amounted to 82% of total exports. It was distantly followed by Panama (X tons), making up a 14% share of total exports. Chile (X tons) followed a long way behind the leaders.

Brazil was also the fastest-growing in terms of the wood pellets exports, with a CAGR of +156.3% from 2012 to 2021. At the same time, Chile (+23.0%) displayed positive paces of growth. Panama experienced a relatively flat trend pattern. Brazil (+82 p.p.) significantly strengthened its position in terms of the total exports, while Panama saw its share reduced by -68.4% from 2012 to 2021, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) remains the largest wood pellets supplier in Latin America and the Caribbean, comprising 80% of total exports. The second position in the ranking was held by Panama ($X), with a 17% share of total exports.

In Brazil, wood pellets exports expanded at an average annual rate of +159.9% over the period from 2012-2021. In the other countries, the average annual rates were as follows: Panama (-1.3% per year) and Chile (+19.9% per year).

Export Prices by Country

The export price in Latin America and the Caribbean stood at $X per ton in 2021, which is down by -1.8% against the previous year. In general, the export price showed a noticeable downturn. The most prominent rate of growth was recorded in 2014 an increase of 2.4% against the previous year. As a result, the export price reached the peak level of $X per ton. From 2015 to 2021, the export prices failed to regain momentum.

Average prices varied somewhat amongst the major exporting countries. In 2021, the country with the highest price was Panama ($X per ton), while Chile ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Brazil (+1.5%), while the other leaders experienced a decline in the export price figures.

Wood Pellets Imports

Imports in Latin America and the Caribbean

In 2021, imports of wood pellets in Latin America and the Caribbean skyrocketed to X tons, with an increase of 35% against 2020 figures. Over the period under review, imports saw a significant increase. The growth pace was the most rapid in 2018 with an increase of 73%. The volume of import peaked in 2021 and is expected to retain growth in the immediate term.

In value terms, wood pellets imports totaled $X in 2021. Overall, imports enjoyed resilient growth. The most prominent rate of growth was recorded in 2018 when imports increased by 95%. Over the period under review, imports hit record highs in 2021 and are expected to retain growth in years to come.

Imports by Country

In 2021, Uruguay (X tons) represented the largest importer of wood pellets, making up 54% of total imports. Brazil (X tons) ranks second in terms of the total imports with a 17% share, followed by Paraguay (9.7%) and Mexico (9.5%). The following importers - Chile (X tons) and the Dominican Republic (X tons) - together made up 6% of total imports.

Uruguay was also the fastest-growing in terms of the wood pellets imports, with a CAGR of +115.9% from 2012 to 2021. At the same time, Paraguay (+49.9%), Chile (+25.3%), Brazil (+23.3%) and Mexico (+13.6%) displayed positive paces of growth. By contrast, the Dominican Republic (-7.7%) illustrated a downward trend over the same period. From 2012 to 2021, the share of Uruguay and Paraguay increased by +53 and +9.7 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest wood pellets importing markets in Latin America and the Caribbean were Uruguay ($X), Mexico ($X) and Paraguay ($X), together comprising 71% of total imports.

Among the main importing countries, Uruguay, with a CAGR of +84.0%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the import price in Latin America and the Caribbean amounted to $X per ton, reducing by -16.3% against the previous year. Overall, the import price saw a deep slump. The most prominent rate of growth was recorded in 2018 when the import price increased by 12% against the previous year. The level of import peaked at $X per ton in 2012; however, from 2013 to 2021, import prices failed to regain momentum.

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

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the Dominican Republic (+8.1%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Market Intelligence Platform

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