Coconut charcoal briquette prices in Indonesia have risen fast. Just months ago, $1,400 USD per ton was considered high. Today, $1,950 USD for premium low-ash charcoal is the standard.
The reason is simple: farmers are choosing to sell coconuts whole for quick profit instead of processing them into charcoal. This shift is reshaping the market.
At PT Pandu Green Energy, we work directly with farmers in Sumatra, Sulawesi, and Jawa, and we produce our own coconut shell charcoal to keep supply strong for our clients.
What is really driving the price hike?
Farmers face a choice every harvest.
If they produce coconut shell charcoal or kopra, they need to wait 5–6 days before they get paid.
If they sell the coconut whole, they get profits immediately.
Since the profit margin is about the same, most farmers prefer the faster way.
This shift reduces the amount of raw coconut shells available for charcoal. And with global demand still climbing, the price has surged from $1,400 USD to $1,950 USD per ton for premium briquettes with under 2.5% ash.
See how supply shortages impact charcoal markets.
What do the numbers say about demand?
The coconut shell charcoal market was worth about USD 302.5 million in 2024. It is forecast to reach USD 403.1 million by 2030.
The briquettes market is even larger. It is projected to grow from USD 8.5 billion in 2023 to USD 14.7 billion in 2032.
This growth is fuelled by demand for shisha, barbeque, metallurgy, and eco-friendly fuels. The problem is that supply is not growing at the same speed.
How is Pandu Green Energy handling this?
At Pandu Green Energy, we specialise in premium shisha briquettes with under 2.5% ash and up to 7,500 kcal heat output.
We talk directly with farmers across Sumatra, Sulawesi, and Jawa. By producing our own coconut shell charcoal as raw material, we reduce the risk of shortages and keep supply reliable for our clients.
This helps us deliver consistent quality even when the wider market is unstable.
Will prices stay this high?
There are two possible futures.
If farmers return to producing shells and kopra, supply will improve and prices may stabilise.
But with demand growing for activated carbon, eco-fuels, and shisha charcoal, pressure on supply is unlikely to disappear soon.
That is why we continue to strengthen our sourcing, invest in production, and build long-term partnerships with buyers.
See more on the charcoal briquette market forecast.
Conclusion
The rise in coconut charcoal briquette prices is driven by farmers seeking quick profits, global demand growth, and limited raw material supply.
At Pandu Green Energy, we are committed to keeping our supply lines strong by producing our own coconut shell charcoal and working directly with farmers.
Contact us to order premium coconut charcoal briquettes for Shisha and BBQ.