Global Wood Pellet Market to Climb from USD 13.57 Billion in 2023 to USD 36.09 Billion by 2030, Achieving ~15% CAGR in Renewable Energy Sector Growth

According to a new report by Maximize Market Research, the global wood pellet market was valued at USD 13.57 billion in 2023 and is projected to reach USD 36.09 billion by 2030, growing at a CAGR of approximately 15% during 2024-2030. The report covers segments such as grade and application across regions including Europe, North America, Asia-Pacific, Middle East & Africa, and South America, finding that rising fuel prices and government renewable energy mandates are among the primary growth drivers.

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♦ Key Highlights:

Market Size & CAGR: Valued at USD 13.57 Billion in 2023, forecasted to reach USD 36.09 Billion by 2030, with a CAGR of ~15% from 2024 to 2030.

Leading Application/Segment: The industrial application segment is expected to dominate, accounting for over 35% market share by 2030, especially driven by combined heat and power (CHP) plants converting from coal to biomass.

Fastest-growing / Largest Regional Market: Asia Pacific is poised for the fastest growth (approx. 14.4% CAGR), while Europe is projected to remain the largest regional market in volume terms.

Key Drivers, Restraints, Trends: Drivers include rising industrial demand due to high fossil fuel prices, supportive government policies and incentives for renewable energy, and cost-advantages from abundant feedstock and lower production costs. Trends such as R&D to improve pellet mill efficiency and increasing adoption of premium grade pellets are noted. Constraints include regulatory challenges, supply chain issues, and competition from other renewable sources.

Top Companies: Key players in the market include Enviva Partners LP; Pacific BioEnergy; Premium Pellet Ltd.; Graanul Invest; Drax Group plc; German Pellets; and Nugreen Energy among others.

♦ Market Outlook

The global wood pellet market outlook through 2030 shows substantial growth as industrial, residential, and commercial sectors increasingly turn to biomass solutions. The report identifies that coal-to-biomass conversions in power plants, especially in developed regions, will drive a significant portion of demand. Premium grade pellets are gaining traction due to higher energy efficiency and lower impurities, leading to stronger demand in colder regions and in residential heating applications. Meanwhile, standard and utility grades will continue to serve broader industrial and commercial heating needs. Policy frameworks such as subsidies, tax incentives, and renewable energy mandates are expected to underpin much of this growth. Technological improvements in pellet production, logistics, and pellet certifications (e.g. ENplus, DINPlus) are also shaping quality and supply consistency.

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♦ Regional Insights

urope: Remains the largest market in terms of volume, bolstered by strong demand in utilities and power generation, strict emissions regulation, and widespread adoption of certified pellet standards.

Asia-Pacific: Emerges as fastest-growing region with projected CAGR ~14.4%, driven by rising energy demand in China, Japan, India, and South Korea, and growing emphasis on renewable energy in governmental agendas.

North America: Growth supported by shifting from propane, domestic heating oil, and coal to more sustainable biomass fuels, favorable regulatory frameworks, and climatic demand for heating.

Middle East & Africa and South America: These regions offer increasing opportunities due to abundant raw material supply and the forestry sector's investments, though development is more gradual due to infrastructure and policy challenges.

♦ Key Players & Competitive Landscape

Major firms in the wood pellet market are focusing on expanding production capacity, improving product quality (grades), enhancing feedstock sourcing, and navigating environmental regulations. Some leading companies are Enviva Partners LP (US), Pacific BioEnergy (US), Premium Pellet Ltd. (US), Graanul Invest (Estonia), Drax Group plc (UK), German Pellets, and Nugreen Energy (India). These companies are also investing in certifications and advancing pellet mill technologies to capture market share as demand scales globally.

♦ Quote

"Wood pellets are no longer a niche renewable solution," said a senior energy analyst at Maximize Market Research. "With governments tightening climate targets and industries seeking alternative fuels, the wood pellet market forecast shows a compelling opportunity for both established and emerging players, especially in regions where policy support aligns with abundant feedstock availability."

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About Maximize Market Research:

Maximize Market Research is a multifaceted market research and consulting company with professionals from several industries. Some of the industries we cover include medical devices, pharmaceutical manufacturers, science and engineering, electronic components, industrial equipment, technology and communication, cars and automobiles, chemical products and substances, general merchandise, beverages, personal care, and automated systems. To mention a few, we provide market-verified industry estimations, technical trend analysis, crucial market research, strategic advice, competition analysis, production and demand analysis, and client impact studies.

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