Global Wood Pellets Market

Global Wood Pellets Market Size, Share, Growth Analysis, By Application(Heating, Power Generation), By End Use(Residential, Commercial) - Industry Forecast 2023-2030


Report ID: SQMIG10B2081 | Region: Global | Published Date: February, 2024 | Pages: 157 | Tables: 63 | Figures: 77

Global Wood Pellets Market Insights

Wood Pellets Market size was valued at USD 8.25 billion in 2021 and is poised to grow from USD 8.71 billion in 2022 to USD 12.76 billion by 2030, at a CAGR of 5.6% during the forecast period (2023-2030).

The market for wood pellets is growing due to the need to limit the use of fossil fuels, which contributes to global warming, and because they are a clean, environmentally friendly, sustainable, and renewable biomass. This is expected to help the industry expand over the course of the projection period. A constant supply of feedstock was ensured by the quick restoration of timber production, which also had a smaller effect on wood pellet manufacturers.

The growing production of wood pellets in the United States is mostly a result of rising demand from the global market. Some countries import wood pellets from the United States because they are unable to meet their own demand for the fuel by producing their own energy from biomass from their own forests and industrial infrastructure. Pellet companies have two options for getting their wood biomass directly from private landowners through loggers or indirectly through wood traders. Manufacturers can also obtain wood fibre from mill residuals, which are byproducts of the paper and sawmill sectors in the forestry sector. In this supply model, transportation costs are often the biggest cost factor for mill residuals because they are more affordable than pulpwood and roundwood.

There are many distinct shipping companies, brokers, and traders, and the market for each of them is incredibly intricate and dispersed. The number of ports and routes that are both inexpensive and capable of handling large volumes of wood pellets is also limited due to the special characteristics of the transportation of wood pellets.

US Wood Pellets Market is poised to grow at a sustainable CAGR for the next forecast year.

Market snapshot - 2023-2030

Global Market Size

USD 8.25 billion

Largest Segment

Heating

Fastest Growth

Heating

Growth Rate

5.6% CAGR

Global Wood Pellets Market ($ Bn)
Country Share for North America Region (%)
Global Wood Pellets Market Size By Application ($ Bn)
Global Wood Pellets Market Size By Application (%)

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Global Wood Pellets Market Segmental Analysis

Global Wood Pellets Market is segmented on the basis of application, end use and region. By application, the market is segmented into heating, power generation, chp. By end use, market is segmented into residential, commercial, industrial. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Analysis by Application

The use of heating is predicted to rise at a CAGR of 5.9% throughout the projection period. There are laws and activities in many countries that pertain to the use of wood pellets for heating. One of the primary elements contributing to the growth rate's unavoidable increase is the growing demand for wood pellets in the commercial and residential heating industries, which is compelling producers to create them in enormous quantities.

In 2022, the market share for the power generating application was 28.6%. As a result of factors including urbanization, industrialization, and population expansion, governments are making efforts to switch to biomass power generation as demand rises. Decentralized energy generation made possible by rural electrification is likely to drive the market throughout the forecast period, driving up demand for biomass gasifiers.

Analysis by End-Use

Having generated USD 3.71 billion in revenue in 2022, the residential market is anticipated to expand significantly over the next five years. Due to qualities like being green, purifying, sustainable, etc., wood pellets are becoming more and more well-liked by household users. Cat litter and horse bedding can also be made from wood pellets, which are frequently used in homes for heating and cooking.

Over the course of the projection period, the commercial segment is anticipated to develop somewhat. In place of gas, oil, and electricity, wood pellets are a sustainable option. Fossil fuels are currently the most popular fuels used in commercial greenhouses, although doing so has a substantial impact on the environment and raises heating expenses.

Global Wood Pellets Market Size By Application (%), 2021 (%)

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Global Wood Pellets Market Regional Insights

Due to the rising demand for housing in the United States, North America generated USD 0.19 billion in revenue in 2022. The regional price competitiveness with propane and domestic heating oil, together with the growing replacement of traditional burners for improved automatic feed-in & comfort, are the primary variables affecting the North American market for wood pellets.

In 2022, Europe held an 82.7% share of the market. When it comes to using wood pellets to generate electricity, Europe is at the forefront of the world. The government's subsidies for the use of renewable energy sources are expected to cause an increase in the demand for wood pellets during the forecast period. The demand for the wood pellets needed to fuel the nation's expanding number of power plants is predicted to rise dramatically.

Global Wood Pellets Market Size By Geography, 2023-2030
  • Largest
  • Fastest

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Global Wood Pellets Market Dynamics

Drivers

Carbon Neutrality and Biomass Sustainability

  • Wood pellets are considered a carbon-neutral fuel source because the carbon dioxide emitted during combustion is offset by the carbon dioxide absorbed by trees during their growth. This attribute aligns with the goal of achieving carbon neutrality and reducing carbon footprints in various industries. The sustainability of wood pellets, when produced from responsibly managed forests, is a key driver for their adoption as a renewable energy source.

Increasing Demand for Residential Heating

  • Wood pellets are widely used for residential heating in pellet stoves and boilers. The rising demand for renewable heating solutions, driven by concerns about energy costs, energy security, and environmental impact, has spurred the adoption of wood pellets. Incentives and subsidies provided by governments to encourage the use of biomass for heating purposes have further propelled market growth.

Restraints

Regulatory and Policy Uncertainty

  • The wood pellet market is influenced by a complex regulatory environment, including sustainability criteria, emission standards, and renewable energy policies. Changes in regulations and policies, such as adjustments to subsidy schemes or modifications in sustainability requirements, can create uncertainties for market participants. Inconsistent or unclear policies may deter investments, affect market stability, and hinder the development of the wood pellet market.

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Global Wood Pellets Market Competitive Landscape

In order to maintain competition, maximize profitability, and gain a firm footing in the market, the top players in the global wood pellet business have been regularly merging and acquiring smaller companies. the major participants in the world wood pellets industry. Through the creation of a bigger brand portfolio and high-quality packaging for brand identification, the wood pellets industry participants have amassed a sizable consumer base.

Top Player’s Company Profiles

  • Pinnacle Renewable Energy (Canada)
  • German Pellets (Germany)
  • Viridis Energy (Canada)
  • Rentech (United States)
  • Fram Renewable Fuels (United States)
  • Biomass Secure Power (Canada)
  • Energex (United States)
  • Lignetics (United States)
  • Energia Puros (Mexico)
  • Woodville Pellets (United States)
  • Appalachian Wood Pellets (United States)
  • The Westervelt Company (United States)
  • Verdo Renewables (Denmark)
  • Highland Pellets (United States)
  • EnviroWood (United States)
  • Curran Renewable Energy (United States)
  • Georgia Biomass (United States)
  • New Biomass Energy (United States)
  • 3Wood (United States)

Recent Developments

  • In April 2023, Enviva Inc., a leading producer of wood pellets, announced that it has signed a new long-term supply agreement with Drax Group, a leading renewable energy company. The agreement will see Enviva supply Drax with 1.5 million metric tons of wood pellets per year for a period of 10 years.
  • In March 2023, Pinnacle Renewable Energy, another leading producer of wood pellets, announced that it has signed a new long-term supply agreement with Ørsted, a leading renewable energy company. The agreement will see Pinnacle supply Ørsted with 1.2 million metric tons of wood pellets per year for a period of 10 years.
  • In February 2023, Drax Group announced that it had started construction on a new wood pellet processing plant in the Port of Wilmington, North Carolina. The plant is expected to be operational by the end of 2023 and will have a capacity of 1.2 million metric tons per year.

Global Wood Pellets Key Market Trends

  • Growing Biomass Co-firing and CHP Plants : Biomass co-firing, where wood pellets are used alongside coal in power plants, and combined heat and power (CHP) plants are gaining popularity worldwide. Co-firing wood pellets with coal reduces carbon emissions and improves the overall environmental performance of power generation. CHP plants utilize wood pellets for combined heat and electricity generation, increasing energy efficiency and reducing reliance on conventional energy sources.

Global Wood Pellets Market SkyQuest Analysis

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

According to our analyses, the global wood pellet market has experienced significant growth in recent years, driven by increasing demand for renewable energy sources, environmental concerns, and government initiatives promoting sustainable energy. Despite the positive growth trajectory, the global wood pellet market faces several challenges. These include feedstock availability and sustainability, seasonality and price volatility, regulatory uncertainties, logistics and transportation constraints, and competition from other renewable energy sources. Addressing these challenges requires sustainable feedstock management, infrastructure development, policy stability, technological advancements, and cost competitiveness. The global wood pellet market is experiencing substantial growth driven by the transition towards renewable energy, increasing demand for cleaner fuel alternatives, and supportive government policies. The market is expected to continue expanding as countries strive to reduce carbon emissions and achieve sustainability targets.

Report Metric Details
Market size value in 2021 USD 8.25 billion
Market size value in 2030 USD 12.76 billion
Growth Rate 5.6%
Base year 2021
Forecast period 2023-2030
Forecast Unit (Value) USD Billion
Segments covered
  • Application
    • Heating, Power Generation, CHP
  • End Use
    • Residential, Commercial, Industrial
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
  • Pinnacle Renewable Energy (Canada)
  • German Pellets (Germany)
  • Viridis Energy (Canada)
  • Rentech (United States)
  • Fram Renewable Fuels (United States)
  • Biomass Secure Power (Canada)
  • Energex (United States)
  • Lignetics (United States)
  • Energia Puros (Mexico)
  • Woodville Pellets (United States)
  • Appalachian Wood Pellets (United States)
  • The Westervelt Company (United States)
  • Verdo Renewables (Denmark)
  • Highland Pellets (United States)
  • EnviroWood (United States)
  • Curran Renewable Energy (United States)
  • Georgia Biomass (United States)
  • New Biomass Energy (United States)
  • 3Wood (United States)
Customization scope

Free report customization with purchase. Customization includes:-

  • Segments by type, application, etc
  • Company profile
  • Market dynamics & outlook
  • Region

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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 Global Wood 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 Global Wood 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 Global Wood 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 Global Wood 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 Global Wood Pellets Market:

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

Regional Analysis: Further analysis of the Global Wood 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.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQ's

Wood Pellets Market size was valued at USD 8.25 billion in 2021 and is poised to grow from USD 8.71 billion in 2022 to USD 12.76 billion by 2030, at a CAGR of 5.6% during the forecast period (2023-2030).

In order to maintain competition, maximize profitability, and gain a firm footing in the market, the top players in the global wood pellet business have been regularly merging and acquiring smaller companies. the major participants in the world wood pellets industry. Through the creation of a bigger brand portfolio and high-quality packaging for brand identification, the wood pellets industry participants have amassed a sizable consumer base. 'Enviva (United States)', 'Drax Group (United Kingdom)', 'Pinnacle Renewable Energy (Canada)', 'German Pellets (Germany)', 'Graanul Invest (Estonia)', 'Viridis Energy (Canada)', 'Rentech (United States)', 'Fram Renewable Fuels (United States)', 'Biomass Secure Power (Canada)', 'Energex (United States)', 'Lignetics (United States)', 'Energia Puros (Mexico)', 'Woodville Pellets (United States)', 'Appalachian Wood Pellets (United States)', 'The Westervelt Company (United States)', 'Verdo Renewables (Denmark)', 'Highland Pellets (United States)', 'EnviroWood (United States)', 'Curran Renewable Energy (United States)', 'Georgia Biomass (United States)', 'New Biomass Energy (United States)', '3Wood (United States)'

Wood pellets are considered a carbon-neutral fuel source because the carbon dioxide emitted during combustion is offset by the carbon dioxide absorbed by trees during their growth. This attribute aligns with the goal of achieving carbon neutrality and reducing carbon footprints in various industries. The sustainability of wood pellets, when produced from responsibly managed forests, is a key driver for their adoption as a renewable energy source.

Growing Biomass Co-firing and CHP Plants : Biomass co-firing, where wood pellets are used alongside coal in power plants, and combined heat and power (CHP) plants are gaining popularity worldwide. Co-firing wood pellets with coal reduces carbon emissions and improves the overall environmental performance of power generation. CHP plants utilize wood pellets for combined heat and electricity generation, increasing energy efficiency and reducing reliance on conventional energy sources.

Due to the rising demand for housing in the United States, North America generated USD 0.19 billion in revenue in 2022. The regional price competitiveness with propane and domestic heating oil, together with the growing replacement of traditional burners for improved automatic feed-in & comfort, are the primary variables affecting the North American market for wood pellets.

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Global Wood Pellets Market

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