Global coal consumption reached record levels in 2025 according to the latest Statistical Review of World Energy, growing to 166.0 exajoules and representing a 0.7% increase from the previous year. However, this headline figure masks significant underlying shifts in how coal is being used and where it is consumed globally. Concurrent with record consumption levels, coal-fired electricity generation actually declined, falling 0.3% to 10,511 terawatt-hours, indicating a divergence between consumption patterns and power production.
The apparent contradiction between rising total consumption and declining electricity generation stems from coal’s multiple applications beyond power plants. Coal remains essential for steelmaking, cement production, and various industrial processes that account for substantial portions of global coal use. Additionally, total global energy supply expanded more rapidly than coal consumption, with overall energy increasing 1.4% compared to coal’s 0.7% growth. Consequently, coal’s share of the global energy mix slightly contracted from 27.9% to 27.7%, even as absolute consumption volumes reached new peaks. Renewable energy sources expanded nearly 10% during the same period, demonstrating that growing global energy demand has accommodated both continued coal consumption and rapid renewable expansion.
Geographically, coal consumption remains heavily concentrated in Asia, with the Asia Pacific region accounting for 83.2% of global consumption. China alone consumed 55.6% of worldwide coal, while India represented 13.9%, meaning these two countries together accounted for approximately 70% of global use. Non-OECD countries consumed 85.2% of global coal, with their coal use growing at 1.9% annually over the past decade in contrast to a 4.8% annual decline in OECD consumption. Europe’s share has continued shrinking, representing only 2.8% of global consumption through the European Union.
Notably, the United States reversed broader developed-world trends in 2025, with coal consumption rising 10.4% and coal-fired electricity generation jumping 13.1%. However, despite this rebound, U.S. coal consumption remains approximately 62% below its 2005 peak. Global coal production remained near record levels at 180.8 exajoules but remained essentially flat year-over-year, with China increasing production by 1.7% while reducing imports by 10.1%, suggesting domestic production displaced imported coal. International coal trade declined 3.1% overall, with major exporters including Indonesia, the United States, and Colombia all experiencing reduced export volumes.
The 2025 data illustrate that the global coal market has increasingly bifurcated into two distinct stories. Developed economies in Europe and North America continue systematically reducing coal dependence, while Asian economies maintain substantial reliance on coal for electricity generation, industrial processes, and economic development. This geographic divergence is expected to continue shaping coal market dynamics in coming years as countries follow divergent energy transition pathways.
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