Global Biomass Pellets Market

Biomass Pellets Market Size, Share, Growth Analysis, By Source(Agricultural Residue, Wood Sawdust, and Others), By End Use(Power Generation, Industrial Heating, Commercial and Domestic Heating, and Others), By Region - Industry Forecast 2024-2031


Report ID: SQMIG10G2035 | Region: Global | Published Date: February, 2024
Pages: 157 |Tables: 64 |Figures: 70

Biomass Pellets Market Insights

Global Biomass Pellets Market size was valued at USD 6.5 billion in 2022 and is poised to grow from USD 6.86 billion in 2023 to USD 10.52 billion by 2031, growing at a CAGR of 5.5% in the forecast period (2024-2031).

Pellets produced from organic materials through the palletization process are known as biomass pellets. They are used for a wide variety of applications including heating, power generation, etc. Increasing focus on sustainability and growing demand for renewable energy sources are forecasted to boost demand for biomass pellets in the future. Rising consumer preference for biodegradable products is also estimated to uplift sales of biomass pellets over the coming years. Biomass pellets are usually made from agricultural waste or waste wood, which helps them minimize the waste issue and makes them biodegradable as well. Incentives and supportive initiatives by governments across the world to boost the usage of biomass pellets and mitigate the risks of climate change are also favoring market growth.

Market snapshot - 2024-2031

Global Market Size

USD 6.5 billion

Largest Segment

Wood Sawdust

Fastest Growth

Agricultural Residue

Growth Rate

5.5% CAGR

Global Biomass Pellets Market ($ Bn)
Country Share for Europe Region (%)
Global Biomass Pellets Market By Source ($ Bn)
Global Biomass Pellets Market By Source (%)

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Biomass Pellets Market Segmental Analysis

The global biomass pellets market is segmented based on source, end use, and region. Based on source, the market is bifurcated into agriculture residue, wood sawdust, and others. In terms of end use, the market is segmented into power generation, industrial heating, commercial and domestic heating, and others. Based on region, the market is segmented into Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa.

Analysis by Source

Biomass pellets made from wood sawdust account for a sizeable share of the global marketplace. The easy availability of wood sawdust around the world has allowed this segment to account for a significant share of the market. Wood sawdust is put under high pressure and temperature, which causes the lignin in it to melt and form a pellet resulting in an energy source that is not only eco-friendly but has better energy density per unit as compared to lose sawdust.

However, demand for biomass pellets made from agricultural residue is increasing rapidly. Increasing focus on waste reduction around the world is pushing biomass pellet manufacturers to utilize agricultural waste for pellet production. The presence of a robust agricultural sector in multiple countries is also contributing to this segment's growth.

Analysis by End Use

Most biomass pellets are used for power generation, and this allows the segment to account for a prominent market share. A high focus on sustainability has led to the widespread adoption of renewable energy sources and this trend is forecasted to influentially boost demand for biomass pellets for power generation. The growing world population has led to increased energy demands and governments across the world are trying to reduce the carbon footprint of the energy industry by opting for eco-friendly energy generation practices.

The use of biomass pellets for industrial heating applications is projected to rise at a rapid pace over the coming years. An increasing number of industries trying to minimize their carbon footprint and emissions by opting for sustainable practices allows this segment to expand at a rapid pace. Biomass pellets are replacing coal in industrial boilers and other heating apparatus owing to their sustainability and high energy density.

Global Biomass Pellets Market By Source, 2022 (%)

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Biomass Pellets Market Regional Insights

Europe accounts for a prominent share of global biomass pellets sales. This can directly be attributed to the high focus on sustainability and quick adoption of eco-friendly power generation practices in this region. The launch of stringent mandates to curb emissions and efforts of European countries to reach their net zero carbon goals are also estimated to benefit demand for biomass pellets in the future. Germany and the United Kingdom are slated to be the top markets for biomass pellet suppliers in this region.

The Asia Pacific regional market for biomass pellets is forecasted to emerge as the fastest-growing regional market in the world. Increasing focus on sustainability among consumers and governments in this region is fueling the demand for biomass pellets. The high availability of agricultural waste in countries such as India and China allow biomass pellet manufacturers to set up their manufacturing facilities in this region. Rapid urbanization and industrialization coupled with attractive incentives for the adoption of biomass products by governments are also slated to bolster market growth in the Asia Pacific region going forward.

Global Biomass Pellets Market By Region, 2024-2031
  • Largest
  • Fastest

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Biomass Pellets Market Dynamics

Drivers

High Focus on Sustainability

  • Biomass pellets have emerged as a popular way of reducing emissions and substituting conventional pollution-causing energy sources with eco-friendly ones. Growing consumer awareness regarding sustainability and imposition of stringent mandates by the government to push sustainability are also slated to boost demand for biomass pellets going forward,

Restraints

High Production Costs

  • Setting up a biomass pellet production plant is an expensive task, and this results in higher production costs, which are restraining biomass pellets market growth to a certain extent. Moreover, a lack of awareness regarding the benefits of biomass pellets could also slow down market development in the future.

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Biomass Pellets Market Competitive Landscape

Biomass pellet suppliers are continually focusing on expanding their sales potential by taking advantage of supportive government initiatives and evolving consumer preferences. Rising demand for renewable and eco-friendly energy sources will also benefit biomass pellets companies in the future. Market players are focusing on setting up their manufacturing facilities in countries such as India, Indonesia, and China to take advantage of the massive availability of agricultural residue and low labor costs. Biomass pellets vendors are also investing heavily in the R&D of novel types of biomass pellets with better energy density and eco-friendliness to maximize their business potential over the coming years. Market players are also focusing on expanding their production capacity to keep up with surging global demand.

Top Player’s Company Profiles

  • Fram Renewable Fuels
  • German Pellets GmbH
  • Drax
  • Kushal Timber Private Limited
  • AS Graanul Invest
  • Rentech Inc.
  • Enviva Inc.
  • Ecostan India Private Limited
  • Premium Pellets Ltd.
  • Nishant Bioenergy Private Energy
  • JP Green Fuels
  • Abellon CleanEnergy Limited
  • MVM Bio Green Energy
  • Lignetics of Idaho Inc.
  • Zilkha Biomass Energy LLC

Recent Developments

  • Enviva, the leading producer of wood pellets, announced that it had started the construction of a new wood pellet plant in Sumter County, Florida, United States in June 2023. Enviva is continually focusing on expanding its production capacity to meet the surging demand for wood pellets across different industries around the world.

Biomass Pellets Key Market Trends

  • Enhancement of Biomass Conversion: Biomass pellet manufacturers can focus on optimizing the biomass conversion process to create more sustainable and high-energy density pellets that are more capable of replacing traditional energy sources. Pellet densification and torrefaction are some key trends that companies should keep an eye out for in the future.

Biomass Pellets Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

As per our analysis, a high focus on sustainability and the adoption of renewable energy sources are forecasted to be key prospects that will boost demand for biomass pellets on a global level across the forecast period. Rising consumer awareness regarding the benefits of biomass pellets and supportive government initiatives to boost the use of biomass products are also estimated to favor market growth in the long run. Europe is estimated to hold a dominant stance in the global biomass pellets marketplace owing to the rapid adoption of renewable energy sources and the launch of new initiatives and efforts to reduce emissions from energy generation. However, the high production costs associated with biomass pellets are slated to impede biomass pellets market growth in the future. Biomass pellet providers are predicted to focus on improving the energy density of their products by utilizing advanced technologies for biomass conversion.

Report Metric Details
Market size value in 2022 USD 6.5 billion
Market size value in 2031 USD 10.52 billion
Growth Rate 5.5%
Base year 2023
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Source
    • Agricultural Residue, Wood Sawdust, and Others
  • End Use
    • Power Generation, Industrial Heating, Commercial and Domestic Heating, and Others
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Fram Renewable Fuels
  • German Pellets GmbH
  • Drax
  • Kushal Timber Private Limited
  • AS Graanul Invest
  • Rentech Inc.
  • Enviva Inc.
  • Ecostan India Private Limited
  • Premium Pellets Ltd.
  • Nishant Bioenergy Private Energy
  • JP Green Fuels
  • Abellon CleanEnergy Limited
  • MVM Bio Green Energy
  • Lignetics of Idaho Inc.
  • Zilkha Biomass Energy LLC
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Biomass Pellets Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Biomass Pellets Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Biomass Pellets Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Biomass Pellets Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Biomass Pellets Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Biomass Pellets Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

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FAQs

Biomass Pellets Market size was valued at USD 6.5 billion in 2022 and is poised to grow from USD 6.86 billion in 2023 to USD 10.52 billion by 2031, growing at a CAGR of 5.5% in the forecast period (2024-2031).

Biomass pellet suppliers are continually focusing on expanding their sales potential by taking advantage of supportive government initiatives and evolving consumer preferences. Rising demand for renewable and eco-friendly energy sources will also benefit biomass pellets companies in the future. Market players are focusing on setting up their manufacturing facilities in countries such as India, Indonesia, and China to take advantage of the massive availability of agricultural residue and low labor costs. Biomass pellets vendors are also investing heavily in the R&D of novel types of biomass pellets with better energy density and eco-friendliness to maximize their business potential over the coming years. Market players are also focusing on expanding their production capacity to keep up with surging demand. 'Fram Renewable Fuels', 'German Pellets GmbH', 'Drax', 'Kushal Timber Private Limited', 'AS Graanul Invest', 'Rentech Inc.', 'Enviva Inc.', 'Ecostan India Private Limited', 'Premium Pellets Ltd.', 'Nishant Bioenergy Private Energy', 'JP Green Fuels', 'Abellon CleanEnergy Limited', 'MVM Bio Green Energy', 'Lignetics of Idaho Inc.', 'Zilkha Biomass Energy LLC'

Biomass pellets have emerged as a popular way of reducing emissions and substituting conventional pollution-causing energy sources with eco-friendly ones. Growing consumer awareness regarding sustainability and imposition of stringent mandates by the government to push sustainability are also slated to boost demand for biomass pellets going forward,

Enhancement of Biomass Conversion: Biomass pellet manufacturers can focus on optimizing the biomass conversion process to create more sustainable and high-energy density pellets that are more capable of replacing traditional energy sources. Pellet densification and torrefaction are some key trends that companies should keep an eye out for in the future.

Europe accounts for a prominent share of biomass pellets sales. This can directly be attributed to the high focus on sustainability and quick adoption of eco-friendly power generation practices in this region. The launch of stringent mandates to curb emissions and efforts of European countries to reach their net zero carbon goals are also estimated to benefit demand for biomass pellets in the future. Germany and the United Kingdom are slated to be the top markets for biomass pellet suppliers in this region.

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Global Biomass Pellets Market

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