Limited Raw Material, Rising Prices: The True Cost of the Coconut Shortage
The global coconut charcoal industry is feeling the ripple effects of a significant and growing issue: a coconut shortage in Indonesia. As one of the largest producers and exporters of coconut-based products, Indonesia’s coconut supply plays a crucial role in fueling industries from food and cosmetics to the increasingly high-demand charcoal market.
In recent months, this shortage has intensified, driving up prices and making supply chains more fragile than ever before. If you’re a charcoal importer or distributor, this is not a trend you can afford to ignore.
What’s Causing the Shortage?
There are several key factors contributing to the coconut shortage in Indonesia:
1. Massive Export Demand to China and Thailand
A surge in coconut demand from China and Thailand—especially for raw coconuts and coconut derivative products—has led to intense competition for supply. Farmers and suppliers are often tempted by higher prices offered by these markets, reducing availability for domestic charcoal production.
2. Aging Coconut Trees
Many of Indonesia’s coconut plantations are dealing with aging trees that produce fewer and lower-quality coconuts. Without sufficient investment in replanting and modern farming techniques, supply will continue to lag behind growing global demand.
3. Weather and Climate Factors
Erratic weather patterns, extended droughts, and changing rainfall cycles have affected coconut yields across the archipelago. Even the most productive coconut regions are experiencing drops in output.
4. Lack of Infrastructure and Processing Efficiency
In some regions, the infrastructure needed to harvest, transport, and process coconuts efficiently is still underdeveloped. This adds friction and delays in getting raw material to manufacturers on time.
How It Affects the Charcoal Market
The shortage of raw coconuts directly impacts the availability of coconut shells—the primary material used to produce high-quality shisha and BBQ charcoal briquettes.
Price Increases
With limited raw material, producers are paying more for coconut shells, which translates into higher prices for the final charcoal products. This is especially true for premium-grade, 100% coconut shell briquettes.
Inconsistent Supply
Some factories are struggling to meet shipment timelines, facing unpredictable supply gaps. As a result, buyers who delay their orders may experience production delays, unfulfilled contracts, or reduced quality control.
Decline in Quality From Other Producers
Some producers might resort to mixing other materials—like wood or fillers—just to meet demand. While this might lower costs, it can drastically reduce performance and consistency, especially for high-heat, long-burn charcoal needs like shisha or BBQ.
What Smart Importers Are Doing Now
To stay ahead of the shortage and avoid inflated costs or poor-quality products, experienced importers are taking early, strategic action:
1. Locking In Supply Early
Importers are pre-booking shipments for the rest of 2024 and even early 2025 to secure pricing and volume before things tighten further.
2. Choosing Trusted, Transparent Suppliers
Buyers are increasingly partnering only with manufacturers who can prove quality, raw material sourcing, and consistency—even in difficult market conditions.
3. Demanding 100% Coconut Shell Composition
As competition grows, buyers are insisting on lab reports, ash content results, and combustion tests to ensure that what they’re importing is pure, efficient, and safe.
Our Commitment During the Coconut Shortage
At Glowing Charcoal Indonesia, we understand how critical supply stability and transparency are for our partners. That’s why we:
Maintain long-term relationships with reliable coconut shell suppliers
Monitor raw material availability across regions weekly
Invest in testing and strict QC for every single shipment
Maintain clear and honest communication with buyers about timelines and availability
Even in the middle of a raw material crisis, our commitment to delivering premium, 100% coconut shell charcoal remains unchanged.
The coconut shortage in Indonesia is real, and its effects will continue to ripple through the charcoal industry for the foreseeable future. For importers and distributors, the smartest move right now is to act early, partner wisely, and prioritize consistent quality over short-term cost savings.
Looking to secure your 2025 supply at today’s prices? Get in touch with our team—we’re here to help you navigate the uncertainty with confidence.