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Wood Pellets Market Overview
Wood Pellets Market size is forecast to reach $15.67 billion by 2030, after growing at a CAGR of 9% during 2024-2030. Wood pellets are available at small cylindrical pieces and log in diameter. With the rise in residential constructions in winter regions, the wood pellets industry is expected to grow. In addition, the energy efficiency of the wood pellet production system must be improved to reduce their greenhouse gas (GHG) emission for expanding the use of wood pellets as a major energy source. Additionally, wood pellets crushing is done by wood hammer mill and wood crusher, adoption and increasing deployment of alternative renewable energy sources such as solar photovoltaic, wind energy, and geothermal in various parts of the world is likely to hinder the market growth during the forecast period. The rapid spread of coronavirus has had a major impact on global markets as, major economies of the world were in completely lockdown. The market is being driven by the increasing awareness of environmental concerns and the growing demand for clean energy sources. Wood pellets are widely used for heating purposes in residential and industrial settings, as well as for power generation in biomass power plants.
Report Coverage
The report: “Wood Pellets Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the wood pellets market.
By Raw material – Softwood pellets, Hardwood pellets
By Application - Residential Heating, Power Plants, Combined Heat and Power (CHP), Commercial Heating and Others.
By Geography – North America (U.S., Canada, and Mexico), Europe (U.K., Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, ANZ, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America) and RoW (Middle East and Africa).
Key Takeaways
• Europe has a significant growth in the wood pellets market owing to increasing demand from applications such as residential heating, power plants and others.
• Increasing adoption of recyclable and eco-friendly energy sources for generating power are some of the major factors which is driving the market for wood pellets.
• As compared with other fossil fuels, cost effective and the easy availability of wood pellets will increase the market demand for wood pellets in the near future.
• Alternative options of energy or heat-producing such as solar energy, wind energy and others will create hurdles for the wood pellets market.
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Figure: Wood pellets Market Overview Revenue, 2024-2030 (US$ Billion)
Softwood pellets are suitable for most pellet stoves and boilers, as they provide high heat output and low ash content. However, some stoves and boilers may require specific types of pellets, so it is advisable to check the manufacturer’s recommendations before using softwood pellets. Hardwood pellets are more suitable for pellet grills and smokers, as they provide more flavour and aroma to the food. However, they may also be used in pellet stoves and boilers, as long as they meet the required specifications. Softwood and hardwood pellets have different advantages and disadvantages, depending on the purpose and preference of the user. The best choice may depend on factors such as heat output, ash content, moisture content, price, and application.
Wood Pellets Market Segment Analysis – By Application
Residential heating has been the primary market for wood pellets in the year 2022 and is expected to grow at a CAGR of 9.2% during the forecast period. Generally during the winter season, in residential houses, people prefer to use wood pellets-burning appliance. According to US census bureau, in the month of December 2022, the monthly new residential construction (housing completed) was recorded about 6.71 million. Whereas in India, according to the IBEF (Indian Brand Equity Foundation), by 2040 real estate market will grow to Rs. 65,000 crore (US$ 9.30 billion) from Rs. 12,000 crore (US$ 3.62 billion) in 2019. So, with the increase in new residential houses the demand for wood pellets is expected to grow during the forecast period.
Wood Pellets Market Segment Analysis – By Geography
Europe has a significant growth in the wood pellets market in the year 2023 and is expected to grow at a CAGR of 9.1% during the forecast period. The demand for wood pellets in Europe majorly comes for the residential heating facilities, commercial heating facilities, and CHP plants. With a decrease in atmospheric temperature, woods pellets consumption, especially in residential and commercial spaces increases. The global wood pallets market size was estimated at around US$ 2.5 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 4.5% to 5.4% from 2024 to 2030. So, with the increasing residential construction works in Europe region, the demand for the wood pellets will drive.
Wood Pellets Market during COVID-19
The COVID-19 pandemic has had a negative impact on the wood pellets market, as it disrupted the supply chain, reduced the demand, and affected the prices of the product. According to a survey by ENplus®, a certification scheme for wood pellets, 75% of certified producers have been negatively affected by the pandemic1The slowdown of the sawmilling activity and the forest management activities due to the shortage of workforce and the health risks reduced the availability and quality of the raw materials for wood pellets.The decline in the demand for electricity and heat from the industrial and commercial sectors due to the reduced economic activity and the closure of non-essential businesses lowered the consumption of wood pellets. The volatility in the exchange rates and the fluctuations in the oil and gas prices affected the competitiveness and profitability of the wood pellets market.
Wood Pellets Market Drivers
Cost-Effectiveness
Wood pellets will always have an economic advantage over fossil oil or natural gas, as it can save almost half of the expenses of fuel. One of the most important factors for the cost-effectiveness of wood pellet heating is that it is highly efficient heating device that were developed for the solid fuel. Wood pellet central heating boilers, as well as wood pellet stoves, transform more than 90 % of the energy contained in the fuel into usable heat. Hence the cost-effective of wood pellets is driving the market demand.
Recyclable nature of wood pellets
Wood Pellets can be recycled and reused to the largest extent. Depending on their material type, wood pallets can be broken down and recycled alongside wood, plastic, paper or metal. The most common type, wooden pellets, are usually considered clean wood and can be dismantled for scrap wood, chipped, composted, turned into yard mulch, or used as boiler fuel.
Wood Pellets Market Challenges
Wood dust during manufacturing process
During the manufacturing process of wood pellets, the direct exposure to wood dust can cause severe health issues including allergic reactions, dermatitis, mucosal and nonallergic respiratory effects, cancer, skin irritations and other health problems. This works as a key factor to hamper growth for wood pellets market. In addition, the respiratory health effects of wood dust exposure include asthma, hypersensitivity pneumonitis, and chronic bronchitis. So, with the increase in health issues regarding wood dust, the wood pellets is expected to decline.
Wood Pellets Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Wood Pellets market. Major players in the Wood Pellets Market are
1. Enviva Partners LP
2. AS Graanul Invest
3. Drax Group Plc
4. Fram Renewable Fuels LLC
5. Segezha Group JSC
6. Lignetics Inc.
7. Biopower Sustainable Energy Corp.
8. Asia Biomass Public Company Limited
9. The Brookridge Group
10. PIVETEAUBOIS and others
Acquisitions/Technology Launches
• In January 2023, Enviva LP acquired WoodFuels LLC, a U.S.-based wood pellet producer, for USD 120 million. The acquisition added 480,000 metric tons per year of production capacity to Enviva and expanded its presence in the Southeast U.S. market.
• In March 2023, Pinnacle Renewable Energy Inc. acquired Westervelt Renewable Energy, LLC, a U.S.-based wood pellet producer, for USD 140 million. The acquisition increased Pinnacle’s annual production capacity to 2.8 million metric tons and enhanced its access to the European and Asian markets.
• In June 2023, FutureMetrics, LLC acquired Wood Pellet Services, LLC, a U.S.-based consulting and engineering firm that specializes in wood pellet projects. The acquisition strengthened FutureMetrics’ capabilities in providing technical and financial solutions to the wood pellet industry.
1. Wood Pellets Market- Market Overview
1.1 Definitions and Scope
2. Wood Pellets Market - Executive Summary
2.1 Key Trends by Application
2.2 Key Trends by Geography
3. Wood Pellets Market – Comparative analysis
3.1 Market Share Analysis- Major Companies
3.2 Product Benchmarking- Major Companies
3.3 Top 5 Financials Analysis
3.4 Patent Analysis- Major Companies
3.5 Pricing Analysis (ASPs will be provided)
4. Wood Pellets Market - Startup companies Scenario Premium Premium
4.1 Major startup company analysis:
4.1.1 Investment
4.1.2 Revenue
4.1.3 Product portfolio
4.1.4 Venture Capital and Funding Scenario
5. Wood Pellets Market – Industry Market Entry Scenario Premium Premium
5.1 Regulatory Framework Overview
5.2 New Business and Ease of Doing Business Index
5.3 Successful Venture Profiles
5.4 Customer Analysis – Major companies
6. Wood Pellets Market - Market Forces
6.1 Market Drivers
6.2 Market Constraints
6.3 Porters Five Force Model
6.3.1 Bargaining Power of Suppliers
6.3.2 Bargaining Powers of Buyers
6.3.3 Threat of New Entrants
6.3.4 Competitive Rivalry
6.3.5 Threat of Substitutes
7. Wood Pellets Market – Strategic Analysis
7.1 Value Chain Analysis
7.2 Opportunity Analysis
7.3 Product/Market Life Cycle
7.4 Distributor Analysis – Major Companies
8. Wood Pellets Market – By Application (Market Size -$Million/Billion)
8.1 Residential Heating
8.2 Power Plants
8.3 Combined Heat and Power (CHP)
8.4 Commercial Heating
8.5 Others
9. Wood Pellets Market - By Geography (Market Size -$Million/Billion)
9.1 North America
9.1.1 U.S
9.1.2 Canada
9.1.3 Mexico
9.2 Europe
9.2.1 UK
9.2.2 Germany
9.2.3 France
9.2.4 Italy
9.2.5 Netherland
9.2.6 Spain
9.2.7 Russia
9.2.8 Belgium
9.2.9 Rest of Europe
9.3 Asia-Pacific
9.3.1 China
9.3.2 Japan
9.3.3 India
9.3.4 South Korea
9.3.5 Australia and New Zealand
9.3.6 Indonesia
9.3.7 Taiwan
9.3.8 Malaysia
9.3.9 Rest of APAC
9.4 South America
9.4.1 Brazil
9.4.2 Argentina
9.4.3 Colombia
9.4.4 Chile
9.4.5 Rest of South America
9.5 Rest of the World
9.5.1 Middle East
9.5.1.1 Saudi Arabia
9.5.1.2 U.A.E
9.5.1.3 Israel
9.5.1.4 Rest of the Middle East
9.5.2 Africa
9.5.2.1 South Africa
9.5.2.2 Nigeria
9.5.2.3 Rest of Africa
10. Wood Pellets Market – Entropy
10.1 New Product Launches
10.2 M&As, Collaborations, JVs and Partnerships
11. Wood Pellets Market – Market Share Analysis Premium
11.1 Market Share at Global Level - Major companies
11.2 Market Share by Key Region - Major companies
11.3 Market Share by Key Country - Major companies
11.4 Market Share by Key Application - Major companies
11.5 Market Share by Key Product Type/Product category - Major companies
12. Wood Pellets Market – Key Company List by Country Premium Premium
13. Wood Pellets Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
13.1. Enviva Partners LP
13.2. AS Graanul Invest
13.3. Drax Group Plc
13.4. Fram Renewable Fuels LLC
13.5. Segezha Group JSC
13.6. Lignetics Inc.
13.7. Biopower Sustainable Energy Corp.
13.8. Asia Biomass Public Company Limited
13.9. The Brookridge Group
13.10 .PIVETEAUBOIS and others
"*Financials would be provided on a best efforts basis for private companies"
LIST OF TABLES
LIST OF FIGURES
1.US Wood Pellets Market Revenue, 2019-2024 ($M)2.Canada Wood Pellets Market Revenue, 2019-2024 ($M)
3.Mexico Wood Pellets Market Revenue, 2019-2024 ($M)
4.Brazil Wood Pellets Market Revenue, 2019-2024 ($M)
5.Argentina Wood Pellets Market Revenue, 2019-2024 ($M)
6.Peru Wood Pellets Market Revenue, 2019-2024 ($M)
7.Colombia Wood Pellets Market Revenue, 2019-2024 ($M)
8.Chile Wood Pellets Market Revenue, 2019-2024 ($M)
9.Rest of South America Wood Pellets Market Revenue, 2019-2024 ($M)
10.UK Wood Pellets Market Revenue, 2019-2024 ($M)
11.Germany Wood Pellets Market Revenue, 2019-2024 ($M)
12.France Wood Pellets Market Revenue, 2019-2024 ($M)
13.Italy Wood Pellets Market Revenue, 2019-2024 ($M)
14.Spain Wood Pellets Market Revenue, 2019-2024 ($M)
15.Rest of Europe Wood Pellets Market Revenue, 2019-2024 ($M)
16.China Wood Pellets Market Revenue, 2019-2024 ($M)
17.India Wood Pellets Market Revenue, 2019-2024 ($M)
18.Japan Wood Pellets Market Revenue, 2019-2024 ($M)
19.South Korea Wood Pellets Market Revenue, 2019-2024 ($M)
20.South Africa Wood Pellets Market Revenue, 2019-2024 ($M)
21.North America Wood Pellets By Application
22.South America Wood Pellets By Application
23.Europe Wood Pellets By Application
24.APAC Wood Pellets By Application
25.MENA Wood Pellets By Application
26.Drax Group Plc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.INGPELLET Pte. Ltd., Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Enviva LP, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Biomass, LLC, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.THE WESTERVELT COMPANY, INC., Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Pinnacle Renewable Energy Inc., Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Energex, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Wood Pellet Energy Ltd., Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.United Company, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Groupe Savoie Inc., Sales /Revenue, 2015-2018 ($Mn/$Bn)
36.Vermont Wood Pellet Co., Sales /Revenue, 2015-2018 ($Mn/$Bn)
37.Pacific BioEnergy, Sales /Revenue, 2015-2018 ($Mn/$Bn)
38.Premium Pellet Ltd., Sales /Revenue, 2015-2018 ($Mn/$Bn)
39.I.C.S. Lumber Inc., Sales /Revenue, 2015-2018 ($Mn/$Bn)
40.LAUZON RECYCLED WOOD ENERGY, Sales /Revenue, 2015-2018 ($Mn/$Bn)