Indonesia Leads Coconut Briquette Exports as Shipping Costs Rise

Even as geopolitical tensions disrupt global shipping lanes, Indonesia’s coconut shell charcoal briquette industry continues to see steady demand. Once treated as agricultural waste, coconut shells have become a valuable export commodity. Indonesia supplies more than 44% of world export volume, making it a leading supplier of eco-friendly biomass fuel.

A Growing Global Market With Indonesia at the Center

Market data points to steady growth. The global coconut charcoal briquette market is estimated at USD 5.68 billion in 2026, up from USD 5.26 billion in 2025, and is projected to reach USD 7.64 billion by 2030, a compound annual growth rate (CAGR) of roughly 7.7–8%. The drivers behind that growth have stayed stable year over year:

Rising demand for low-emission fuel
The boom in outdoor cooking
The expansion of barbecue culture and shisha lounges across multiple continents

On the supply side, Indonesia holds the largest share. According to DataIntelo, Indonesia exported approximately 320,000 metric tons of coconut charcoal briquettes in 2025, which is more than 44% of total global export volume and makes it the world’s largest exporter.

The latest figures from trade intelligence platform TradeInt show Indonesia’s provisional 2026 briquette export value at USD 56.51 million across 1,628 shipments. Coconut shell charcoal briquettes (Harmonized System, HS, code 440220) account for 84.61% of that total value.

Key Export Destinations (2026, provisional)

Saudi Arabia: USD 10.11 million (largest single destination)
Turkey: USD 7.38 million
Germany: USD 5.64 million

The pattern shows that the Middle East, together with Turkey and Levant markets such as Lebanon, Iraq, and Jordan, takes the largest share of Indonesia’s briquette exports, driven by strong demand for premium-grade charcoal used in shisha and hookah.

Why Indonesian Coconut Briquettes Suit Middle Eastern Taste and Regulation

Buyers value the technical qualities of the product. Compared with conventional wood charcoal or coal, premium coconut briquettes in general:

Produce ash content below 3%
Generate almost no smoke or odor
Burn for more than two hours at a stable temperature
Emit up to 35% less carbon than conventional coal

These characteristics fit tightening emissions regulations across the Middle East and Europe. They also match local cultural demand: long shisha sessions in cafés and majlis gatherings call for charcoal that won’t taint the tobacco’s flavor and is safe to use indoors.

Three Structural Challenges Facing Exporters in 2026

Demand may be holding steady, but three structural problems are weighing on Indonesian exporters this year.

A logistics cost crisis driven by geopolitical instability. Escalating conflict in the Middle East, including the threat of a Strait of Hormuz closure and disruption along the Red Sea–Suez Canal corridor, has forced cargo vessels onto longer routes around Africa. Freight rates have spiked, cargo insurance premiums have climbed, and several shipping lines temporarily paused bookings to the Gulf region. Indonesia’s Ministry of Trade has projected slower national export growth in 2026 as a result of rising logistics costs, even though demand from Middle Eastern buyers has reportedly remained stable.
A shift toward verified, science-backed environmental standards. International buyers now ask for proof of sustainability, not just an “eco-friendly” label on the packaging. This covers raw material sourcing, chemical-free processing, and shipping-safety certification.
Growing competition on premium quality. Vietnam and the Philippines are expanding production capacity at more competitive prices, which pushes Indonesian exporters to compete on quality and consistency rather than price alone.

Solutions: From Freight Efficiency to Safety Certification

1. Tackling the Logistics Cost Crisis

Full container load (FCL) co-loading: Pooling full-container shipments among fellow exporters to lower per-unit freight costs amid a shortage of vessel slots on Gulf routes.
Hub warehouse partnerships in the Middle East: Allowing stock to reach end buyers quickly without relying on a single long-haul shipping route for every order.
Long-term contracts with buyers and logistics providers: Committing shipping volume in advance gives exporters more room to negotiate stable rates instead of being exposed to volatile spot-market pricing. It also supports quality consistency through an ongoing, mutually beneficial trade relationship.

2. Meeting the Shift Toward Eco-Friendly Standards

Chemical-free product formulation: No synthetic binders, fragrance additives, or ash-whitening agents, only ground coconut shell charcoal and natural binders.
Full carbonization above 80%: Producing charcoal that burns longer and leaves a thin white ash layer under 3%, a quality benchmark aligned with Indonesia’s National Standard (Standar Nasional Indonesia, SNI) for coconut shell charcoal briquettes.
Zero-waste raw material sourcing: Making sure the coconut shells processed come from agricultural waste rather than newly exploited resources, which strengthens sustainability claims toward buyers and certification auditors.

3. Competing Through Safety Standards and Premium Packaging

Material Safety Data Sheet (MSDS): Making sure every export shipment comes with an MSDS, which is both a mandatory export document and a transparent proof point of quality for buyers.
International Maritime Dangerous Goods (IMDG) Class 4.2 Non-Self-Heating Certification: Backing products with independent laboratory test results confirming the briquettes are non-self-heating. Coconut shell charcoal is classified as a dangerous good under IMDG Class 4.2 (liable to spontaneous combustion), so this certification is a hard requirement for container loading eligibility.
Two-layer packaging: A thick, food-grade inner plastic liner keeps moisture stable throughout the voyage, paired with a sturdy outer layer that prevents heavy friction between briquettes that could crack their cube or hexagonal shape before reaching the end consumer. An intact shape remains a key quality marker in the premium Middle Eastern shisha market.

The Outlook Ahead

With its raw-material advantage, quality control, and calculated logistics risk mitigation, Indonesia has a solid base to maintain its position as a leading coconut charcoal briquette exporter through the projected 2026–2030 growth cycle.

Keeping that position will depend on how quickly domestic producers adopt verified safety and sustainability standards, rather than relying on raw material advantage alone.

References

Research and Markets: Coconut Charcoal Briquettes Market Report 2026
DataIntelo: Coconut Charcoal Briquettes Market Research Report 2034 (cited via Hi-Fella Insights, 2026)
TradeInt Indonesia: Indonesia Briquette Exports 2026: Destination Countries, Product Types, and Leading Exporters
Kompas.com (Agri): Coconut Charcoal Briquettes: Waste Turned Export Commodity, December 8, 2025
ResearchReportsWorld: Coconut Shell Charcoal Market Size and Growth Report, 2035
Suara.com: Iran-US-Israel Conflict Escalation Starts to “Squeeze” Indonesia’s Export Costs to the Middle East, March 13, 2026
Logistiknews.id: Beyond Soaring Freight Rates, Middle East War Weighs on Exports, April 13, 2026
Asatunews.co.id: Trade Ministry Projects Slower 2026 Indonesian Export Growth Due to Middle East Conflict, March 27, 2026
Bandung Institute of Technology (ITB), Chemistry Program: Charcoal: Understanding Commodity, Global Value, and Fire Risk Handling (IMDG Class 4.2 classification)
Jurnal MOMENTUM, Unwahas: Quality Testing of Coconut Shell Charcoal Briquette Products (SNI parameter reference)