Wood Pellet Market Size by Grade (Premium, Standard, Utility), By Application (Residential, Commercial, Industrial, Animal Bedding), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2025

Published Date: Oct 2019  |  Report ID: GMI4387  |  Authors: Kiran Pulidindi, Akshay Prakash

Report Format: PDF   |   Pages: 200   |   Base Year: 2018

Summary Table of Contents Industry Coverage Methodology

Industry Outlook

Wood Pellet Market size was valued at over USD 8.5 billion in 2018 and is estimated to exhibit over 10% CAGR from 2019 to 2025. Based on grade, utility segment held the largest share in 2018, and is expected to maintain its dominance throughout the forecast period. 

Wood pellets are renewable energy sources, derived from sawdust, wood shaving, dry chips, etc. Growing economic awareness, changing lifestyle, and global warming are likely to positively affect the demand for these renewable materials in the future. These products have a bulk density of around 650 kg/m3, ash content below 10%, dry content of more than 90% and diameter in the range of 6 to 8 mm.


Wood Pellet Market

Get more details on this report - Request Free Sample PDF

These provide key advantages such as cost effectiveness along with low impact on the environment compared to the traditional fuel sources. Wood pellets will be a great alternative to fossil fuels including coal, liquid petroleum gas, natural gas, etc. in the upcoming years as it improves the system efficiency significantly.


Wood Pellet Market Report Coverage
Report Coverage Details
Base Year:2018
Market Size in 2018:8.8 Billion (USD)
Forecast Period:2019 to 2025
2025 Value Projection:19.5 Billion (USD)
Historical Data for:2014 to 2018
No. of Pages:200
Tables, Charts & Figures:320
Segments covered:Grade, Application and Region
Growth Drivers:
  • Rising demand for renewable energy in major European countries
  • Policy changes in Canada related to coal-fired plants
  • Superior product characteristics compared to fossil fuels
  • Increasing energy demand in South Korea
  • Ongoing trends related to outdoor kitchens in developed nations
Pitfalls & Challenges:
  • Implementing sustainable standards
  • Trade challenges in emerging economies
  • Lack of awareness related to product in developing nations

Get more details on this report - Request Free Sample PDF

Focus on renewable energy sources will have significant influence

Favorable government policies in the European Union towards renewable energy sources (RES) is likely to be a driving factor for the wood pellet market outlook in the next few years. Various government schemes including, tax credits, quotas, auction schemes, etc. and declining manufacturing & capital cost owing to expansion of production capacities have been key factors for the RES deployment in the region.

Major countries including Germany, UK, and France among others have taken initiatives to promote RES development recently. For instance, France has planned to convert its Cordemais plant (1,200 MW capacity) from coal-based to wood pellet fuel based by 2022. Similarly, SIMEC Atlantis Energy announced the conversion of Uskamouth plant from coal-fired to biomass fuel based in 2019. Such initiatives are likely to boost the wood pellet market share demand in the upcoming years.

Another key growth driving factor for the wood pellet market is ongoing trends related to outdoor kitchens in the developed economies. This trend has created emergence of wood pellet grills in developed countries. For instance, Traeger’s wood pellet grill is the best example of this, which replaces fuel sources like natural gas or charcoal with pellets, to enhance cooking experience. Increasing requirement for outdoor kitchen concepts is likely to drive the demand for pellet grills, which will further enhance the consumption of wood pellets over the study period.

Although wood pellets are gaining considerable attention in the developed economies, the lack of awareness in the emerging countries are likely to affect the wood pellet market growth in the coming years. The key reason behind this is limited availability of production facilities in Latin America and Middle East & Africa. These regions are still at the nascent stage and are likely grow at considerable rate throughout the study period. However, increasing government efforts to promote use of these products will create potential growth opportunities for the region’s growth over the study period.

Premium grade will gain significant importance in residential heating sector

Premium grade is likely to account for a significant share in the overall wood pellet market due to growing product demand in the residential heating sector. The product possesses key advantages such as low ash content (around 1%), low moisture content (around 8%) and generates very little fines compared to the other grades.

Wood Pellet Market by Grade

Get more details on this report - Request Free Sample PDF

Premium grades are extensively utilized by the residential pellet boiler and pellet stoves as fuel source. Countries such as Germany, Sweden, Denmark, Austria, etc. consume this type of grade for residential heating purpose owing to cold climates.

Utility grade is expected to grow at a significant rate in the upcoming years due to its growing usage for the industrial heating applications. These products have low bulk density compared to premium grade products, which provides benefit for space utilization to the industrial sector. Electric utility sector is also likely to be a key consumer of these products in the upcoming years.

Residential heating sector will be a key application area in the wood pellet market in the U.S

Global Wood Pellets Market by Application

Get more details on this report - Request Free Sample PDF

Residential heating sector will account for the largest wood pellet market share throughout the study period. Growing product consumption in North America and major European countries will drive the segment’s growth. Major countries in these regions have taken initiatives to increase dependency on renewable energy sources for reducing carbon emission. For instance, Canada’s five major clean fuel associations have set an objective to reduce 30 metric tons of GHG emission by 2030. These will include incorporating renewable energy sources in industrial, residential and transportation sector.

European industrial sector to boost regional consumption

Europe is likely to have a major chunk of overall wood pellet market throughout the forecast time period. Growing demand for the product from both residential and industrial sector is likely to drive the region’s growth in upcoming years. Replacing coal fired power plant with a pellet-based plant will stipulate product demand in the industrial sector. Further, growing focus on renewable energy sources in the region will have a positive impact on the industry growth in the forecast time period.

US & UK Wood Pellet Market by Application

Get more details on this report - Request Free Sample PDF

Middle East & Africa is likely to have the least share of the overall wood pellet market value, but it will grow at considerable rate in the forecast time period. South Africa is a key consumer of wood pellets due to growing product demand for residential cooking purpose. Further, government initiative to reduce dependency on coal-fired plants will further drive the market share. For instance, South African government announced to build a 25 MW biomass plant in order to support its Renewable Energy Independent Power Producer Program.

Key industry participants in the wood pellet market share includes Stora Enso, Enviva, Lignetics, Pacific BioEnergy and Svenska Cellulosa Aktiebolaget. These players have entered into variety of strategic agreements with electric power producing companies to ensure long term supply of their products. For instance, Enviva Partners have established take or pay contract with major power producing companies in Europe including Drax Power, Engie Energy Management, and MGT Teesside.

Wood pellet market report includes in-depth coverage of the industry with estimates & forecast in terms of volume in kilo tons and revenue in USD million from 2014 to 2025, for the following segments:

By Grade

  • Premium
    • Residential
    • Commercial
    • Industrial
    • Animal bedding
  • Standard
    • Residential
    • Commercial
    • Industrial
    • Animal bedding
  • Utility
    • Residential
    • Commercial
    • Industrial
    • Animal bedding

By Application

  • Residential
  • Commercial
  • Industrial
  • Animal bedding

The above information is provided on a regional and country basis for the following:

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Denmark
    • Sweden
    • Belgium
    • Austria
    • Russia
    • Poland
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Australia
    • New Zealand
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE

Frequently Asked Questions (FAQ) :

According to the report published by Global Market Insights Inc., the wood pellet business is expected to hit at $19 Billion (USD) by 2025.
Rising demand for renewable energy in major European countries, policy changes in Canada related to coal-fired plants, superior product characteristics compared to fossil fuels, increasing energy demand and ongoing trends related to outdoor kitchens in developed nations are the key factors expected to drive the growth of global industry.
Stora Enso, Enviva Partners, Pacific BioEnergy, Drax Group, AS Graanul Invest, Lignetics, Ecochipp, Svenska Cellulosa Aktiebolaget, InstantHeat Wood Pellets, Pinnacle Renewable Energy, AMP Clean Energy, Mallard Creek, Ecowood pellets, German Pellets GmbH, The Westervelt Company are the top contributors in the industry.

Premium Report Details

  • Published Date: Oct 2019
  • Pages: 200
  • Tables: 295
  • Charts / Figures: 25
  • Companies covered: 15
  • Countries covered: 22

Get a report that explains COVID-19 impact on this market

Buy NowImmediate delivery available

Need a Discount? Get in touch with us for special pricing

Request Discount

 Connect with our sales team

Chat with us
We use cookies to enhance user experience. (Privacy Policy) X