Biomass Pellets Market Summary
As per Market Research Future Analysis, the Global Biomass Pellets Market was valued at USD 6.9 Billion in 2023 and is projected to grow to USD 10.5 Billion by 2032, with a CAGR of 5.50% from 2024 to 2032. The demand for wood pellets is driven by their high burning efficiency and low moisture content, making them a preferred choice in various sectors. Government initiatives worldwide, such as the Biomass Thermal Utilization Act in North America and the Biomass Power and Cogeneration initiative in India, are further propelling market growth by promoting renewable energy sources. Europe dominated the market in 2022, accounting for 45.80% of the share, with Germany leading in consumption. Major players like Enviva and Drax Group are investing in R&D to enhance product offerings and expand market reach.
Key Market Trends & Highlights
Key trends driving the Biomass Pellets market include government support and increasing demand for renewable energy.
- Biomass Pellets Market Size in 2023: USD 6.9 Billion.
- Projected Market Size by 2032: USD 10.5 Billion.
- CAGR from 2024 to 2032: 5.50%.
- Europe held 45.80% of the market share in 2022.
Market Size & Forecast
2023 Market Size: USD 6.9 Billion
2024 Market Size: USD 7.28 Billion
2032 Market Size: USD 10.5 Billion
CAGR (2024-2032): 5.50%
Largest Regional Market Share in 2022: Europe.
Major Players
Drax Group Plc, Enviva, German Pellets GmbH, AS Graanul Invest, Pinnacle Renewable Energy Inc, Lignetics, Zilkha Biomass Energy, Fram Fuels, Abellon CleanEnergy Limited, Ecostan, JP Green Fuels, The Westervelt Company, Inc, Forest Energy Corporation, New England Wood Pellet.
Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review
Biomass Pellets Market Trends
- Government initiatives encouraging biomass growth is driving the market growth
Given the advantages provided by biomass, biomass pellets are a significant source of energy. In addition to being renewable and carbon neutral, biomass pellets are also easily accessible. These factors have led to numerous programs and subsidies being granted by most governments. These programs and financial aid encourage the use of energy made from biomass, such as biomass pellets. In North America, for instance, the Biomass Thermal Utilization Act (BTU Act) of 2019 aims to acknowledge and promote the economic and environmental advantages of fuels and energy sources derived from biomass.
This law offers home and business applications using clean wood heating systems a 15% to 30% rebate.
In India, the Biomass Power and Cogeneration initiative was put into place by the Ministry of New and Renewable Energy. This project's main goal is to encourage the usage of biomass pellets. It also encourages the production of energy using conventional fuels like coal. In India, among other places, this effort is used for cogeneration in sugar refineries and thermal power plants. The establishment of biomass power and bagasse cogeneration projects is facilitated by loans and advantageous subsidies from the Indian Renewable Energy Development Agency (IREDA). It is anticipated that these policies will promote the use of biomass pellets.
Demand for renewable energy sources has increased significantly, which is one of the main drivers fueling market expansion. Because of this, many businesses in the electricity sector are moving toward using these pellets. Regulatory agencies and international organizations from all over the world are concentrating on the adoption of rigorous environmental restrictions in response to growing worries about warming. As a result, biomass pellets are emerging as one of the crucial effective options that might aid in lessening the dependence on fossil fuels. In addition, these pellets are considered a viable option for reducing emissions of greenhouse gases.
Thus, driving the Biomass Pellets market revenue.
Enviva and J-Power agreed on a long-term deal in November 2021 whereby Enviva would extensively supply sustainable wood biomasses sourced from its production facilities located in the Southeast US to J-Power-owned coal-fired power reactors in Japan. Enviva and Jay Power reached the agreement that allowed Enviva to extensively source fuel for Jay Power’s coal-fired electricity generating plants in Japan from its operations based in the eastern part of the United States.
Biomass Pellets Market Segment Insights
Biomass Pellets Source Insights
The Biomass Pellets market segmentation, based on Source, includes industrial waste & co-product, agriculture residue, food waste, energy crops, virgin lumber, and others. During the anticipated period, the agricultural residue segment is anticipated to continue to rule the market as it did in 2022. Agriculture has a large GDP contribution in nations like Brazil, India, and others. In these nations, crop residue is abundant and widely available. The manufacturing of biomass pellets uses this surplus. Pellets made from agricultural waste, or biomass, are becoming more popular.
Biomass Pellets Type Insights
The Biomass Pellets market segmentation, based on Type, includes wood pellets, agri pellets, torrefied pellets, and others. In 2022, the wood pellets category led the world market for biomass pellets. One of the main causes impacting the unavoidable increase in the growth rate is the growing demand for wood pellets in the residential and commercial heating sectors, which is compelling producers to create them in large quantities. The wood pellets market is experiencing robust growth driven by increasing demand for renewable energy sources and supportive government policies promoting sustainable fuel alternatives
Biomass Pellets Application Insights
The Biomass Pellets market segmentation, based on application, includes power generation, industrial heating, residential heating, and others. The biomass pellets market was dominated by the power generation sector in 2022. As demand increases as a result of factors like urbanization, industrialisation, and population development, governments around the world are striving to switch to biomass power generation. As rural electrification makes it possible for decentralized energy generation, which is predicted to drive the market during the forecasted period, demand for biomass gasifiers is rising.
Figure 1: Biomass Pellets Market, by Application, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review
Biomass Pellets Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe Biomass Pellets market dominated this market in 2022 (45.80%). For the purpose of generating electricity, Europe is the top consuming region for wood pellets. Due to government incentives for using renewable energy sources, it is predicted that demand for biomass pellets would rise throughout the projection period. Further, the German Biomass Pellets market held the largest market share, and the U.K Biomass Pellets market was the fastest growing market in the European region
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: BIOMASS PELLETS MARKET SHARE BY REGION 2023 (USD Billion)
Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review
The North America Biomass Pellets Market is expected to register significant growth from 2023 to 2032. Due to the increasing number of power plants in the area, it is anticipated that the need for biomass pellets used to fuel power plants for the production of electricity will increase significantly. Further, the U.S. Biomass Pellets market held the largest market share, and the Canada Biomass Pellets market was the fastest growing market in the North America region.
The Asia Pacific Biomass Pellets market, accounted for the healthy market share in 2022. In the east and in the province of Guangdong, China has outlawed the use of coal-fired boilers. Additionally, market expansion is predicted to be fueled by the low cost of pellets in the aforementioned regions. Moreover, China’s Biomass Pellets market held the largest market share, and the Indian Biomass Pellets market was the fastest growing market in the Asia-Pacific region. The biomass pellets market in India is driven by increasing demand for renewable energy and government initiatives promoting sustainable fuel alternatives.
Biomass Pellets Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Biomass Pellets market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Biomass Pellets industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Biomass Pellets industry to benefit clients and increase the market sector. In recent years, the Biomass Pellets industry has offered some of the most significant advantages to medicine.
Major players in the Biomass Pellets market, including Drax Group Plc, Enviva, German Pellets GmbH, AS Graanul Invest, Pinnacle Renewable Energy Inc, Lignetics, Zilkha Biomass Energy, Fram Fuels, Abellon CleanEnergy Limited, Ecostan, JP Green Fuels, The Westervelt Company, Inc, Forest Energy Corporation, and New England Wood Pellet, are attempting to increase market demand by investing in research and development operations.
Previously known as Enviva Partners LP, Enviva Inc (Enviva) is a provider of utility-grade wood pellets. The business collects wood fiber from natural resources and transforms it into a transportable form. Wood pellets and wood chips, which are processed forms of woody biomass fuels, make up its products. The corporation runs large-scale manufacturing facilities in the US Mid-Atlantic and Gulf Coast regions. In order to ship and sell wood pellets to power plants in the UK and Europe, Enviva also has access to rivers and railroads.
Additionally, it offers terminaling services to owners of other bulk commodities as well as to producers of wood pellets outside of its own operation. The US city of Bethesda, Maryland, is home to Enviva's headquarters. Enviva, Inc. and J-Power, a Tokyo-based utility, agreed into a long-term partnership in November 2021 for the large-scale supply of sustainable wood biomass from Enviva's production facilities in the Southeast of the United States to J-Power's coal-fired power plants in Japan.
The company A.P. Moller - Maersk AS (APMM) offers logistics and transportation services. Through its subsidiaries and affiliates, it runs ports and shipping containers. The business provides intermodal transportation and transports dry goods, refrigerated freight, special cargo, as well as sells secondhand containers. Maersk Line, Damco, APM Terminals, Svitzer, Twill, Sealand, Hamburg Sud, Alianca, Maersk Container Industry, and Maersk Training are some of APMM's principal brands. Additionally, the business produces dry and chilled containers. APMM provides services to the manufacturing, shipbuilding, retail, and logistics sectors.
In addition to Asia-Pacific, the corporation is present in North America, the Middle East, Europe, and Africa. Copenhagen, Denmark serves as the home office for APMM. The largest geothermal heating plant in the EU will be developed and run by A.P. Moller Holding's Innargi geothermal heating company near Aarhus, Denmark. The arrangement is for 30 years.
Key Companies in the Biomass Pellets market include
- Pinnacle Renewable Energy Inc
- Abellon CleanEnergy Limited
- The Westervelt Company, Inc
- Forest Energy Corporation
Biomass Pellets Industry Developments
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Q2 2024: Enviva names Glenn Nunziata as CEO Enviva Inc., a major producer of wood biomass pellets, appointed Glenn Nunziata as its new Chief Executive Officer, effective May 2024, as part of its leadership transition strategy.
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Q2 2024: Drax completes acquisition of Pinnacle Renewable Energy Inc. Drax Group announced the completion of its acquisition of Pinnacle Renewable Energy Inc., expanding its position as a leading global supplier of sustainable biomass pellets.
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Q2 2024: Enviva secures $300 million in new financing to support operations Enviva, the world’s largest producer of industrial wood pellets, raised $300 million in new financing to support its ongoing operations and growth initiatives.
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Q3 2024: Drax opens new biomass pellet plant in Alabama Drax Group officially opened a new biomass pellet production facility in Alabama, USA, increasing its annual pellet production capacity and supporting its supply to global markets.
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Q3 2024: Japanese utility J-Power signs long-term biomass pellet supply agreement with Enviva J-Power, a major Japanese utility, entered into a long-term supply agreement with Enviva for the delivery of wood biomass pellets to support Japan’s renewable energy targets.
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Q3 2024: Sumitomo Corporation and Pinnacle Renewable Energy announce strategic partnership for biomass supply Sumitomo Corporation and Pinnacle Renewable Energy formed a strategic partnership to secure a stable supply of biomass pellets for the Japanese power generation market.
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Q4 2024: Drax signs multi-year contract with Mitsui & Co. for biomass pellet supply Drax Group signed a multi-year contract with Mitsui & Co. to supply biomass pellets to Japan, supporting the country’s decarbonization efforts.
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Q4 2024: Enviva announces new long-term offtake contract with European utility Enviva signed a new long-term offtake contract with a major European utility to supply wood biomass pellets for renewable power generation.
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Q1 2025: German utility RWE expands biomass pellet imports with new contract from U.S. supplier RWE, a leading German utility, expanded its biomass pellet imports by signing a new supply contract with a U.S.-based pellet producer to support its transition to renewable energy.
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Q1 2025: Enviva launches new pellet production facility in Mississippi Enviva launched a new wood pellet production facility in Mississippi, USA, increasing its production capacity to meet growing global demand for biomass energy.
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Q2 2025: Drax announces investment in new port facility for biomass exports Drax Group announced a significant investment in a new port facility to enhance its biomass pellet export capabilities from the U.S. to international markets.
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Q2 2025: UK government grants regulatory approval for new biomass pellet plant in Yorkshire The UK government granted regulatory approval for the construction of a new biomass pellet plant in Yorkshire, supporting the country’s renewable energy infrastructure.
Biomass Pellets Market Segmentation
Biomass Pellets: Source Outlook
- Industrial Waste & Co-product
Biomass Pellets Type Outlook
Biomass Pellets Application Outlook
Biomass Pellets Regional Outlook
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 6.9 Billion |
| Market Size 2024 |
USD 7.28 Billion |
| Market Size 2032 |
USD 10.5 Billion |
| Compound Annual Growth Rate (CAGR) |
5.50% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Source, Type, Application, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Drax Group Plc, Enviva, German Pellets GmbH, AS Graanul Invest, Pinnacle Renewable Energy Inc, Lignetics, Zilkha Biomass Energy, Fram Fuels, Abellon CleanEnergy Limited, Ecostan, JP Green Fuels, The Westervelt Company, Inc, Forest Energy Corporation, and New England Wood Pellet |
| Key Market Opportunities |
Strict environmental poilicies over CO2 emission |
| Key Market Dynamics |
The rising demand for renewable energy, increasing production of wood pellets, and demand among various end-use industries due to its high burning efficiency, low moisture content, and lower density |
Biomass Pellets Market Highlights:
Frequently Asked Questions (FAQ):
The Biomass Pellets market size was valued at USD 6.9 Billion in 2023.
The Biomass Pellets Market is projected to grow at a CAGR of 5.50% during the forecast period, 2024-2032.
Europe had the largest share in the Biomass Pellets Market.
The key players in the market are Drax Group Plc, Enviva, German Pellets GmbH, AS Graanul Invest, Pinnacle Renewable Energy Inc, Lignetics, Zilkha Biomass Energy, Fram Fuels, Abellon CleanEnergy Limited, Ecostan, JP Green Fuels, The Westervelt Company, Inc, Forest Energy Corporation, and New England Wood Pellet.
The Agriculture Residue Source dominated the market in 2023.
The Wood Pellets Type had the largest share in the market.
