How Has the Wood Pellets Market Evolved Historically and What is its Current Size?
The wood pellets market has seen considerable growth due to a variety of factors.
• Over the past few years, the size of the wood pellets market has seen a significant increase. It is projected to rise from $11.96 billion in 2024 to $13.42 billion in 2025, with a compound annual growth rate (CAGR) of 12.2%.
The growth observed in the historical period can be linked to factors such as government incentives, the growth of biomass power plants, heightened environmental consciousness, volatility in the prices of fossil fuels, and overall economic growth.
What is the Forecasted Market Size and CAGR for the Wood PelletsMarket?
The wood pellets market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for wood pellets is predicted to expand swiftly in the upcoming years, reaching a valuation of $21.49 billion by 2029, exhibiting a compound annual growth rate (CAGR) of 12.5%.
Factors contributing to this growth during the projected period include carbon pricing and emissions reduction, international trade and exports opportunities, an increase in residential usage, heightened demand for renewable energy, and the expanding power generation sector. Key trends projected for this period encompass advancements in pellet production technology, sustainable sourcing methods, pellet certification and standards, research and development initiatives, and various partnerships and collaborations.
What Are The Key Drivers Fueling Growth In The Wood Pellets Market?
The surge in worldwide demand for renewable energy is predicted to drive the expansion of the wood pellets market. Renewable energy comprises energy generated from natural sources that are regenerated more quickly than they are used. Wood pellets, made from a diverse range of wood waste products, are an example of a renewable energy source. For instance, as reported by the US-based government agency, the Energy Information Administration, in June 2023, there was an increase in renewable energy consumption from 12.1 quads in 2021 to 13.2 quads in 2022 in the United States. Thus, the worldwide rising demand for renewable energy is propelling the growth of the wood pellets market.
What Are The Principal Market Segments In The Global Wood Pellets Industry?
The wood pellets market covered in this report is segmented –
1) By Feedstock: Forest And Wood Waste Resources, Agricultural Residue and Waste, Food Waste, Virgin Lumber, Energy Crops
2) By Production Process: Sawdust Preparation, Screening, Hammering, Pelletizing, Cooling And Packaging
3) By Application: Heating, Power Generation, Combined Heat And Power (CHP)
4) By End-User: Residential, Commercial, Industrial
Subsegments:
1) By Forest And Wood Waste Resources: Sawdust, Wood Chips, Bark
2) By Agricultural Residue And Waste: Straw, Corn Stover, Rice Husk
3) By Food Waste: Food Processing, Organic Waste
4) By Virgin Lumber: Logs, Wood Shavings
5) By Energy Crops: Miscanthus, Switchgrass, Short Rotation Woody Crops
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Which Emerging Market Trends Are Altering The Wood Pellets Sector?
Key players in the wood pellet market are concentrating on the creation of innovative solutions such as industrial pellet plants in an effort to augment production efficiency, cut down costs, and promote sustainability by sourcing raw materials more effectively. Industrial pellet plants generate pellets from biomass substances, which are acknowledged for their high energy density and environmentally friendly characteristics. Owing to their user-friendly nature, these pellets are favored in renewable energy applications and sustainable practices. For example, Golden State Natural Resources, a nonprofit public benefit corporation based in the US, initiated two industrial wood pellet projects in December 2022. The initiative at the Tuolumne site aims to produce 300,000 tons of wood pellets per year, and the goal at the Lassen site is 700,000 tons per year, using sustainably sourced biomass for environmentally friendly production. The wood pellets will be shipped by rail to harbor points for distribution to clients using plant-based fuel for energy. Following a public assessment, an Environmental Impact Report (EIR) will be formulated to examine the possible environmental effects of the venture.
Who Are the Key Players in the Wood Pellets Market?
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
What are the Regional Insights into the Wood Pellets Market?
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 market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
