PUBLISHER: The Business Research Company | PRODUCT CODE: 1657114
PUBLISHER: The Business Research Company | PRODUCT CODE: 1657114
Wood pellets are finely powdered biofuels produced through a pellet dye process at high temperatures and pressure. These pellets are primarily used for generating heat, process steam, and electricity. They are typically made from compressed sawdust, a by-product of various industries.
The main types of feedstocks used in the production of wood pellets include forest and wood waste resources, agricultural residue and waste, food waste, virgin lumber, and energy crops. Forest and wood waste resources consist of a mixture of trees, including leaves, bark, trunk pieces, and branches. These residues and waste are converted into wood pellets, serving as a significant biomass source for energy production. The wood pellet production process involves various stages such as sawdust preparation, screening, hammering, pelletizing, cooling, and packaging. Wood pellets find applications in heating, power generation, and combined heat and power (CHP), serving residential, commercial, and industrial purposes.
The wood pellets market research report is one of a series of new reports from The Business Research Company that provides wood pellets market statistics, including wood pellets industry global market size, regional shares, competitors with a wood pellets market share, detailed wood pellets market segments, market trends and opportunities, and any further data you may need to thrive in the wood pellets industry. This wood pellets market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry
The wood pellets market size has grown rapidly in recent years. It will grow from $11.96 billion in 2024 to $13.42 billion in 2025 at a compound annual growth rate (CAGR) of 12.2%. The growth in the historic period can be attributed to government incentives, expansion of biomass power plants, environmental awareness, fluctuations in fossil fuel prices, economic growth
The wood pellets market size is expected to see rapid growth in the next few years. It will grow to $21.49 billion in 2029 at a compound annual growth rate (CAGR) of 12.5%. The growth in the forecast period can be attributed to carbon pricing and emissions reduction, international trade and export opportunities, growing residential consumption, rise in demand for renewable energy, rising power generation sector. Major trends in the forecast period include advanced pellet production technology, sustainable sourcing, pellet certification and standards, r&d and innovation, partnership and collaboration.
The anticipated growth in the wood pellets market is driven by the increasing global demand for renewable energy. Renewable energy, sourced from natural replenishable resources, is gaining prominence, and wood pellets, derived from various wood waste products, serve as a sustainable energy source. As per the Energy Information Administration's report in June 2023, renewable energy consumption in the United States witnessed an increase from 12.1 quads in 2021 to 13.2 quads in 2022. This surge in renewable energy demand contributes to the growth of the wood pellets market.
The growing demand for cooking is expected to further propel the expansion of the wood pellets market. Wood pellets, utilized as a biomass fuel, find application in pellet grills and smokers to generate heat and smoke for cooking purposes. According to Instacart's data in November 2022, a significant percentage of individuals, with 60% of women and 33% of men on average, engage in food preparation activities. This increasing demand for cooking fuels the growth of the wood pellets market.
Major companies in the wood pellet market are concentrating on developing advanced solutions, such as industrial pellet plants, to improve production efficiency, lower costs, and enhance sustainability through better sourcing of raw materials. Industrial pellet plants create pellets from biomass materials, which are known for their high energy density and eco-friendly characteristics. These pellets are preferred in renewable energy applications and sustainable practices due to their ease of handling. For example, in December 2022, Golden State Natural Resources, a US-based nonprofit public benefit corporation, launched two industrial wood pellet projects. The Tuolumne site is projected to produce 300,000 tons of wood pellets annually, while the Lassen site aims for 700,000 tons per year, with a focus on sustainably sourced biomass for eco-friendly production. The wood pellets will be transported by rail to ports for export to customers, using biobased fuel for energy. Following the public review, an Environmental Impact Report (EIR) will be prepared to evaluate the potential environmental impacts of the project.
The focus on technological advancements is evident in major companies operating in the wood pellets market, aiming to enhance wood pellet mill efficiency. Technological advancements in this sector involve refining manufacturing processes and implementing quality control measures to produce biomass fuel that is more efficient and environmentally friendly. In April 2022, CPM introduced Twin Track, a technology automation system designed to improve wood pellet mill efficiency by utilizing two rollers, each with its own track, resulting in a more energy-efficient push per die revolution.
In April 2023, LEAG, a German energy company, acquired Wismar Pellets GmbH for an undisclosed amount. This acquisition gives LEAG control over the largest pellet plant in northern and eastern Germany. It enhances its presence in the domestic market and expands its distribution reach, extending throughout Germany and into key international markets, including Denmark, Belgium, and the UK. Wismar Pellets GmbH is a Germany-based producer of wood pellets.
Major companies operating in the wood pellets market include Enviva Inc., Energex American Inc., Graanul Invest AS, Pinnacle Renewable Energy, Fram Renewable Fuels LLC., Segezha-Group, Lignetics Inc., Asia Biomass Public Company Limited, Sinclar Group Forest Products, Wood Pellet Energy UK Ltd., Highland Pellets LLC, Groupe Savoie Inc, Drax Group plc, The Westervelt Company, Forest Energy Corporation, New England Wood Pellet, Pacific BioEnergy Corporation, Maine Woods Pellet Company, Bear Mountain Forest Products, Michigan Wood Pellet Fuel LLC., Somerset Pellet Fuel, Trae Fuels Ltd., Vermont Wood Pellet Company, Appalachian Wood Pellets
Europe was the largest region in the wood pellets market in 2024. Asia-Pacific is expected to be the fastest growing region in the wood pellets market report during the forecast period. The regions covered in the wood pellets analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the wood pellets market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The wood pellets market consists of sales of premium wood pellets, standard wood pellets, food-grade wood pellets, traeger signature wood pellets, applewood pellets, cherry wood pellets, pecan wood pellets, mesquite wood pellets, and hickory wood pellets. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Wood Pellets Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on wood pellets market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for wood pellets ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The wood pellets market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.