Wood Pellet Market

Wood Pellet Market size reached USD 9.4 billion in 2022 and is estimated to reach USD 18.1 billion in 2030 and the market is estimated to grow at a CAGR of 8.5% from 2023-2030.

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Major Wood Pellet Market Drivers

The global wood pellet industry is experiencing tremendous growth due to the strategic initiatives released by the governmental and other associations, which has helped the wood pellet industry in creating its own space in the market. For example, the Government of British Columbia, in the year 2021, announced a USD 25 million contribution for the expansion of the Port of Prince Rupert. It is a move welcomed by the pellet sector for efficient transportation and logistics to market, and it’s good news for the customers in Asia who rely on responsible, renewable, and clean energy from pellets to achieve their greenhouse gas (GHG) targets. Thus, this strategic move will increase the demand of the wood pellet. Furthermore, the demand for wood pellets in fuelling the power plants for electricity production is projected to witness growth owing to the rising number of power plants in the country. China has banned the use of coal-fired boilers in the East and Guangdong provinces. The low cost of the product in the regions is driving the market growth in the forthcoming years.

Restraint in the Wood pellet Market

However, the wood pellet procurement policy is a key restraining factors of the wood pellet market. For example, norms laid down by the “Sustainable Forestry Initiative and Forest Stewardship Council” restrict the growth of the wood pellet market in North America.

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Application – Segment Analysis

Based on the application, heating application is expected to dominate the global wood pellet market over the forecast period. This is due to the rise in product consumption in European and North American countries. Canada’s five major clean fuel associations have set an objective to reduce 30 metric tons of GHG emissions by 2030, which is boosting the market growth. On the other hand, the power generation is projected to grow at a higher CAGR during the forecast period. This is mainly due to the rising application of wood pellets for electricity generation. In 2019, power generation installed capacity from solid biomass such as wood pellets, which is projected to account for 67.72 megawatts. In addition to this, the rising participation of countries in decarbonization is boosting the growth of the market.

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Regional – Segment Analysis:

On the basis of regional coverage, Europe is expected to dominate the global wood pellet market over the forecast period. According to the Europe pellet council in 2017, the production of wood pellet was 44% of the total world production. In the UK, wood pellets amounts to 6-8% of the country’s electricity and Canada is one of the UK’s main suppliers. In 2016, the global wood pellet consumption reached 27,8 million tonnes and observed the growth of 6%, responsible for almost 80% of the world’s wood pellet consumption with 22,3 million tonnes. Increasing consumption of the product in power generation and the incentives provided by the European Union (EU) are the major factors that are driving the growth of the wood pellet market in Europe.

Top Market Players

Some of the leading players operating in the market include German Pellets GmbH, Pinnacle Renewable Energy Inc., Energex., Enviva LP, Drax Group plc, International WoodFuels, LLC, Lignetics, Canfor, Stora Enso, and Piveteau Bois. 

Key Developments:

• • In 2021, Drax Group plc officially announced the acquisition of Pinnacle Renewable Energy, which is a major supplier of sustainable biomass fuel based in Canada.

Segments covered in the Report:

The global wood pellet market has been segmented based on production, application, feedstock, grade, and regions. Based on production, the market is segmented into conventional pellets and stream-treated pellets. Based on application, the market is segmented into heating and power generation. Based on feedstock, the market is segmented into forest wood & waste, agriculture, residue, and others. 

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Market Segmentation

Global Wood pellet Market by Production

• • Conventional Pellets
  • Stream-Treated Pellets

Global Wood pellet Market by Application

• • Heating
  • Power Generation

Global Wood pellet Market by Feedstock

• • Forest Wood & Waste
  • Agriculture
  • Residue
  • Others

Global Wood pellet Market by Grade

• • Premium
  • Standard
  • Utility

Global Wood pellet Market by Region

• • North America Wood pellet Market (Option 1: As a part of the free 25% customization)

    • By Production
    • By Application
    • By Feedstock
    • By Grade
    • US Market All-Up
    • Canada Market All-Up

  • Europe Wood pellet Market (Option 2: As a part of the free 25% customization)

    • By Production
    • By Application
    • By Feedstock
    • By Grade
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Wood pellet Market (Option 3: As a part of the free 25% customization)

    • By Production
    • By Application
    • By Feedstock
    • By Grade
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Wood pellet Market (Option 4: As a part of the free 25% customization)

    • By Production
    • By Application
    • By Feedstock
    • By Grade
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Wood pellet Market All-Up

Major Players Operating in the Wood pellet (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • German Pellets GmbH
  • Pinnacle Renewable Energy Inc.
  • Energex
  • Enviva LP
  • Drax Group plc
  • International WoodFuels, LLC
  • Lignetics
  • Canfor
  • Stora Enso
  • Piveteau Bois