Wood Pellet Market Growth Analysis | 2023-2028

Market Insights

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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What is Wood Pellet?

Wood pellets are a type of biomass fuel produced from compressed wood particles. They are cylindrical in shape, typically measuring around 6-8 millimeters in diameter and 10-30 millimeters in length. Wood pellets are made by grinding wood residues, such as sawdust or wood chips, and compressing them under high pressure. This process removes moisture and binds the particles together, resulting in a dense and uniform fuel source. Wood pellets are widely used for heating purposes, particularly in pellet stoves and boilers. They offer a convenient and efficient alternative to traditional firewood, burning cleanly and producing minimal emissions.

Market Dynamics

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 wood pellet 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

Based on the application type, 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

In terms of regions, Europe is estimated to be the largest market during the forecast period, with France, Germany, Russia, and the United Kingdom being 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

Some of the major wood pellet manufacturers are-

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

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.

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.

What Deliverables Will You Get in this Report?

Customization Option

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Company Profiling

• Detailed profiling of additional market players (up to three players).
• SWOT analysis of key players (up to three players).

Competitive Benchmarking

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

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