Press release
Wood Pellet Market Insights 2026-2034: Feedstock Evolution, Application Expansion, and Regional Opportunities
STUDY ASSUMPTION YEARS
Base Year: 2025
Historical Year/Period: 2020-2024
Forecast Year/Period: 2026-2034
WOOD PELLET MARKET KEY TAKEAWAYS
Current Market Size: USD 14.8 Billion in 2025
CAGR: 5.20%
Forecast Period: 2026-2034
Europe dominated the wood pellet market in 2024 with a market share of over 47.9%.
Forest wood and waste constituted approximately 33.6% of the market in 2024, being the largest feedstock segment.
Residential heating was the leading application segment, accounting for around 58.4% of the market in 2024.
The U.S. wood pellet exports reached 9.5 million metric tons in 2023, valued at USD 1.75 billion.
Growth is supported by government policies promoting renewable energy adoption and stricter carbon emission regulations.
Sample Request Link:
https://www.imarcgroup.com/wood-pellet-market/requestsample
MARKET GROWTH FACTORS
Rising Demand for Renewable Energy & Sustainable Fuels
The global shift toward renewable energy and sustainable fuels is driving robust expansion in the wood pellet space. As governments and corporates commit to net-zero targets, wood pellets have emerged as a reliable, low-carbon alternative to fossil fuels in power generation and industrial heat applications. Increased emphasis on decarbonization policies in Europe, North America, and parts of Asia has created strong demand across public and private sectors for bioenergy feedstocks. In turn, this has elevated investments in wood pellet production capacity, technology upgrades, and supply chain infrastructure. With renewable energy mandates tightening, wood pellets are positioned as a scalable solution for both energy security and environmental stewardship through 2034.
Feedstock Diversification Supporting Industry Growth
A key growth factor in the wood pellet landscape is the diversification of feedstock types. Traditionally dominated by softwood residues, producers are now leveraging hardwoods, agricultural residues, and purpose-grown energy crops to expand capacity and improve raw material resilience. These varied feedstocks optimize pellet quality for specific applications, from residential heating to utility-scale power plants. Diversification also reduces dependency on any single raw material, mitigating supply risks tied to forestry cycles and regional constraints. Additionally, technological strides in biomass processing have increased yield efficiencies and expanded the spectrum of usable materials. As manufacturers adopt sustainable sourcing practices and certified feedstocks, this diversification fuels both market robustness and long-term environmental compliance.
Expansion of Industrial & Residential Applications
Wood pellets are gaining traction across both industrial and residential segments, contributing significantly to growth projections. In industrial settings, utilities and manufacturing facilities are increasingly co-firing wood pellets with coal or transitioning completely to biomass to meet emissions goals without sacrificing energy output. Meanwhile, residential adoption continues to climb in regions with cold climates, driven by the availability of modern pellet stoves and automated heating systems that offer cleaner indoor combustion and lower heating bills. This dual expansion - industrial and residential - broadens the total addressable market, encourages innovation in pellet quality and performance, and accelerates development of distribution networks that make pellets more accessible to end users globally.
MARKET SEGMENTATION
Feedstock Type:
Forest Wood and Waste
Agriculture Residue
Others
Forest wood and waste dominate the feedstock segment with around 33.6% market share in 2024, owing to availability, cost-effectiveness, and sustainability as they comprise residues like sawdust, wood chips, and tree trimmings from forestry and wood processing industries.
Application:
Power Plants
Residential Heating
Commercial Heating
Combined Heat and Power (CHP)
Others
Residential heating leads with approximately 58.4% market share in 2024, driven by preferences for clean, sustainable fuel alternatives to fossil fuels, supported by technological advances, subsidies, and cold climates in Europe, enhancing demand.
Region:
Asia Pacific
Europe
North America
Latin America
Middle East and Africa
The market covers these regions extensively, reflecting varied adoption rates and growth opportunities aligned with renewable energy policies, infrastructure, and biomass resource availability.
REGIONAL INSIGHTS
Europe is the dominant region in the wood pellet market, holding over 47.9% market share in 2024. The continent's robust renewable energy initiatives, stringent environmental regulations, and substantial biomass infrastructure fuel demand in residential heating and power generation sectors. Europe's commitment to carbon neutrality and sustainable forestry further strengthens its leadership in the global wood pellet industry.
RECENT DEVELOPMENTS & NEWS
October 2024: BKtech announced a major expansion of its wood pellet production capacity to meet rising global demand for sustainable energy in industrial applications and power generation.
October 2024: East German company Leag signed an acquisition agreement with Swedish wood pellet producer Scandbio AB and its subsidiaries, marking Leag's entry into the Scandinavian biomass market.
May 2023: Andritz AG introduced new technologies, including the world's first autonomous logyard crane, the ANDRITZ PM30-6 pellet mill for biomass, and an adjustable plug screw feeder.
January 2023: Andritz AG collaborated with Stora Enso Oyj on an integrated solution for converting the Oulu pulp and paper mill in Finland, including new wood processing and biomass power boiler technologies.
November 2021: Lignetics Inc. was acquired by EagleTree Capital, enhancing private equity investment in wood pellet production.
KEY PLAYERS
Asia Biomass Public Company Limited
Drax Group
Enviva LLC
Fram Fuels
Groupe Savoie
I.C.S. (Lacroix) Lumber Inc.
Lauzon
Lignetics Group
Sinclar Group Forest Products
Stora Enso
Svenska Cellulosa Aktiebolaget SCA (publ)
Vermont Wood Pellet Company
Ask For Customization:
https://www.imarcgroup.com/request?type=report&id=5088&flag=E
If you require any specific information that is not covered currently within the scope of the report, we will provide it as part of the customization.
CONTACT US
IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No: (D) +91 120 433 0800
United States: +1-201971-6302
IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
This release was published on openPR.
Permanent link to this press release:
Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Wood Pellet Market Insights 2026-2034: Feedstock Evolution, Application Expansion, and Regional Opportunities here
News-ID: 4361832 • Views: …
More Releases from IMARC Group
South Korea Retail Market Size Growth, Share Trends & Industry Demand 2026-2034
IMARC Group has recently released a new research study titled "South Korea Retail Market Report by Product Type (Food, Beverage, and Tobacco Products, Personal Care and Household, Apparel, Footwear, and Accessories, Furniture, Toys, and Hobby, Industrial and Automotive, Electronic and Household Appliances, Pharmaceuticals, Luxury Goods, and Others), Distribution Channel (Hypermarkets and Supermarkets, Convenience Stores, Department Stores, Specialty Stores, Online, and Others), and Region 2026-2034", offers a detailed analysis of the…
Agricultural Chelates Market Size, Share & Growth by Type, Crop, Application and …
The global agricultural chelates market reached a value of USD 750.8 million in 2024 and is projected to grow to USD 1,222.6 million by 2033. It is forecasted to expand at a CAGR of 5.57% during the period 2025-2033. Growth is driven by the demand for high-efficiency fertilizers, increasing awareness of sustainable farming practices, and technological advancements.
Study Assumption Years
Base Year: 2024
Historical Year/Period: 2019-2024
Forecast Year/Period: 2025-2033
Agricultural Chelates Market Key Takeaways
The…
South Korea Insurance Market Size Growth, Share Trends & Industry Demand 2026-20 …
IMARC Group has recently released a new research study titled "South Korea Insurance Market Size, Share, Trends and Forecast by Type and Region, 2026-2034", offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.
South Korea Insurance Market Overview
The South Korea insurance market size reached USD 158.7 Billion in 2025. Looking forward, IMARC Group expects the market to…
United States Plant Based Protein Market : Trends, Drivers, and Growth Opportuni …
IMARC Group has recently released a new research study titled "United States Plant Based Protein Market Report by Source (Soy, Wheat, Pea, and Others), Type (Concentrates, Isolates, Textured), Nature (Conventional, Organic), Application (Food, Feed), and Region 2025-2033" which offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends, and competitive landscape to understand the current and future market scenarios.
Market Overview
The United States plant based protein market size reached…
More Releases for Wood
Key Influencer in the Wood Preservatives Market 2025: Rising Global Wood Demand …
"What market dynamics are playing a key role in accelerating the growth of the wood preservatives market?
The market growth of wood preservatives is expected to be fueled by the rising demand for wood in multiple applications over the forecast period. With the global population and industrialization on the rise, the need for wood products is progressively growing. Wood, being a substantial source of energy, housing, firewood, timber, and fodder, has…
Thermally Modified Wood Market Analysis By Top Key Players - Kebony, Stora Enso, …
The "Thermally Modified Wood Market" is expected to reach USD xx.x billion by 2031, indicating a compound annual growth rate (CAGR) of xx.x percent from 2024 to 2031. The market was valued at USD xx.x billion In 2023.
Growing Demand and Growth Potential in the Global Thermally Modified Wood Market, 2024-2031
Verified Market Research's most recent report, "Thermally Modified Wood Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2030,"…
Palmetto Wood Shop: Personalized Wood Gifts for Every Occasion
Palmetto Wood Shop, a family-owned business renowned for its passion for woodworking, specializes in crafting high-quality, engraved gifts for every occasion. Since 2014, Palmetto Wood Shop's mission has been to provide customers across the U.S. and the world with personalized products that reflect the artistry and care that goes into each piece.
Palmetto Wood Shop's collection includes a wide array of products ranging from engraved pocketknives and hammers to personalized cutting…
Thermally Modified Wood Market 2023 Key Players - Stora Enso, Kebony, Thermory, …
Global Thermally Modified Wood Market 2023 introduced by a leading market research firm Fior Markets comes out as a highly reliable source of information and data on the global market. The report is a versatile and future-ready analytical survey that contains trend assessment, an in-depth assessment of market valuation, and revenue-generating trends. The report covers sharp insights into the present and forthcoming trends & developments in the global Thermally Modified…
Pressure-treated Wood Market | Navigating New Horizons: Analyzing Innovative Bus …
In the past few years, the Pressure-treated Wood market experienced a huge change under the influence of COVID-19 and Russia-Ukraine War, the global market size of Pressure-treated Wood reached the predicted milestone in 2022 with the rising CAGR from 2017-2022. Facing the complicated international situation, the future of the Pressure-treated Wood market is full of uncertain. Report predicts that the global Pressure-treated Wood market size will expected to achieve a…
Global Wood Processing Market | Global Wood Processing Industry: Ken Research
The wood processing market involves of sales of processed wood by several entities (organizations, sole traders and partnerships) that saw measurement lumber, boards, beams, timbers, poles, ties, shingles, shakes, siding, and wood chips from the logs or bolts. This industry also embraces establishments that treat planed, sawed and shaped wood with creosote or other preservers such as alkaline copper quat, copper azole, and sodium borates, to safeguard decay and to…
