Wood Pellets Global Market Report 2024

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 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 $10.73 billion in 2023 to $12.04 billion in 2024 at a compound annual growth rate (CAGR) of 12.2%. The expansion observed in the historical period in the wood pellet market can be attributed to factors such as government incentives, the expansion of biomass power plants, increased environmental awareness, fluctuations in fossil fuel prices, and overall economic growth. These factors collectively contributed to the growth of the wood pellet market during the historic period.

The wood pellets market size is expected to see rapid growth in the next few years. It will grow to $18.9 billion in 2028 at a compound annual growth rate (CAGR) of 11.9%. The anticipated growth in the forecast period in the wood pellet market can be attributed to factors such as carbon pricing and emissions reduction initiatives, international trade and export opportunities, a growing trend of residential consumption, increased demand for renewable energy, and the rising importance of the power generation sector. Major trends expected in the forecast period include the adoption of advanced pellet production technology, a focus on sustainable sourcing practices, adherence to pellet certification and standards, emphasis on research and development (R&D) and innovation, and an increase in partnerships and collaborations within the industry.

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 operating in the wood pellets market are actively innovating products to provide reliable services to customers. Innovative wood pellets, such as Kingsford's Hardwood Pellets launched in April 2021, represent advanced and sustainable biomass fuel sources. These pellets are crafted with all-natural ingredients, devoid of fillers, preservatives, or binders, and are available in various flavors like Classic Wood Pellets, Signature Wood Pellets, Hickory Wood Pellets, Cherry Wood Pellets, and Maple Wood Pellets.

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 2021, Drax Group PLC, a UK-based renewable energy company, successfully acquired Pinnacle Renewable Energy Inc. The acquisition positioned Drax Group as a leader in bioenergy with carbon capture and storage (BECCS), removing millions of tons of carbon dioxide annually. This strategic move increased Drax's operational capacity from 1.6 Mt to 4.9 Mt of sustainable biomass pellets by 2022, distributed across 17 plants in Western Canada and the US South. Pinnacle Renewable Energy Inc. is a Canada-based manufacturer and distributor of industrial 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, Lauzon Inc., Wood Pellet Energy UK Ltd., United Company, Highland Pellets LLC, Groupe Savoie Inc., I.C.S. (Lacroix) Lumber Inc., Drax Group PLC, The Westervelt Company, Rentech Inc., German Pellets GmbH, Forest Energy Corporation, New England Wood Pellet, Pacific BioEnergy Corporation, Maine Woods Pellet Company, Bear Mountain Forest Products, Marth Wood Shavings Supply Inc., 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 2023. 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.


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