Wood Pellets Market size is set to surpass USD 20 billion by 2027, according to a new research report by Global Market Insights Inc. Policy amendments related to coal-fired plants in countries such as Canada will propel the global market growth.
In December 2018, the Government of Canada announced to discontinue coal-fired electricity by 2030, which is aimed at supporting the country’s cleaner energy target. In the domestic heating sector, the government’s plan for replacing woodstove in provinces including Ontario, Quebec, British Columbia, New Brunswick, and Nova Scotia will provide an opportunity for the product in the coming years.
The increasing demand for outdoor kitchen in European countries will drive wood pellets industry statistics over the projected timeframe. Changing consumer needs for outdoor living space, including recreational and entertainment, will propel industry development. The homeowners have accepted outdoor grilling option in the past, which is now being converted into fully functioned built-in kitchen including faucet & sink, ice machine, dishwasher, refrigeration, pizza oven, cabinets, beverage units, etc. These trends will further drive the consumption of pellet stoves in outdoor kitchen, driving product development in the European region.
The wood pellets market is at the nascent stage in the emerging countries of the Middle East & Africa owing to the lack of production facilities and availability of substitutes at comparable cost. Major African countries are still dependent upon coal for meeting their energy needs in the residential segment. Furthermore, the lack of integration of emerging countries for sustainability criteria may impose a trade barrier for major manufacturers over the coming years owing to the presence of a variety of sustainability standards across the world, hindering the wood pellets industry demand.
Browse key industry insights spread across 200 pages with 285 market data tables & 32 figures & charts from the report, “Wood Pellets Market Forecasts by Grade (Premium, Standard, Utility), Application (Residential, Commercial, Industrial, Animal Bedding), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trend, Competitive Market Share & Forecast, 2021 – 2027”, in detail along with the table of contents:
Wood pellets market from utility grade wood pellets is set to register around 15.5% CAGR through 2027 due to its growing demand in the industrial & utility sector. The product usually contains a substantial amount of ash & moisture content, limiting its applications in high-end residential & commercial heating industries. In industrial heating & power facilities, the utility products are supplied in the bulk packaging form.
The commercial segment will account for a share of around 18% of the global wood pellets market over the projected timeframe owing to the growing consumption of the product in heating applications of municipal buildings, small businesses, schools, institutions, etc., across developed countries. The rising focus on renewable energy generation across the U.S. and Europe will enhance industry expansion.
North America wood pellets market revenue is poised to surpass USD 2 billion by 2027 owing to the increasing pellet demand in residential heating applications. Additionally, changing government policies related to coal-fired plants will provide significant opportunities to pellet manufacturers over the coming years.