Wood Pellet Market Analysis | 2023-2028

“The Wood Pellet Market was estimated at US$ 8.29 billion in 2022 and is expected to grow at a healthy CAGR of 5.58% during 2023-2028 to reach US$ 11.52 billion in 2028.”

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Market Dynamics

Introduction

Biomass fuel manufactured from compressed particles of wood is also referred to as wood pellets. They are roughly cylindrical and range from 6-8 mm in diameter and between 10-30 mm in length. A popular type of biofuel is known as wood pellets. It is derived through the conversion of wood residues, for instance, sawdust or chips into cylindrical pellets through pressing with high pressure.

This process takes the moisture out and holds the particles collectively thus creating a compact and homogeneous fuel mass. The application of wooden pellets is more in heating appliances such as pellet stoves and industrial boilers. It is easy to use since it provides a convenient and efficient means of heating as compared to normal firewood and they give off very minimal smoke.

Market Drivers

The factors propelling the wood pellet market growth include:

• Growing awareness of renewable energy's importance for space heating in homes and businesses is boosting demand for wood pellets.

• The rising use of recyclable and eco-friendly energy for power generation is also a key driver for wood pellet demand.

• The need for clean-burning and affordable fuel for household heating is a significant factor propelling the wood pellet market.

Segments Analysis

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By Grade Type

“The utility grade segment dominates the market during the forecast period.”

The market is segmented as premium, standard, and utility based on the grade type. The utility grade segment held the largest share of the market and is expected to register the fastest growth during the forecast period. The utility grade segment is mainly driven by its low bulk density compared to that of premium-grade wood pellets. Utility-grade wood pellets provide benefits for space utilization in the industrial sector and due to this factor, the usage of utility-grade wood pellets has been growing for industrial heating applications.

By Application Type

“The residential segment dominates the market during the forecast period.”

The wood pellet market is segmented as residential, commercial, industrial, and animal bedding. The residential segment held the largest share of the market. Increasing consumption of wood pellets in North America and major European countries, owing to the growing initiatives to increase dependency on renewable energy sources for reducing carbon emission is the major factor behind the growth of the segment.

Regional Analysis

“Europe is estimated to be the largest market during the forecast period.”

France, Germany, Russia, and the United Kingdom are the major countries with promising growth opportunities. The growth of the region’s market is mainly driven by the growing initiatives towards the replacement of coal-fired power plants with pellet-based power plants, along with the growing focus on renewable energy sources in the region to reduce carbon emissions.

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Key Players

The market is highly populated with the presence of several local, regional, and global players. Most of the major players compete in some of the governing factors including price, product offerings, regional presence, etc.  

The following are the key players in the wood pellet market (arranged alphabetically).

• AS Graanul Invest
• Drax Group plc
• Ecochipp
• Enviva Partners, LP
• InstantHeat Wood Pellets, Inc.
• Lignetics, Inc.
• Pacific Bioenergy Corporation
• Pinnacle Renewable Energy Inc.
• Stora Enso Oyj
• Svenska Cellulosa AB

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, validation, and triangulation with Stratview Research’s internal database and statistical tools.

 More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

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Company Profiling

• Detailed profiling of additional market players (up to three players).
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Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

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