biomass pellets Market

The biomass pellets market size was valued at US$ 11,001.59 million in 2022 and is expected to reach US$ 16,137.89 million by 2030; it is estimated to register a CAGR of 4.9% from 2022 to 2030.

Biomass pellets are high-density, processed biomass compressed in small cylindrical form. It is derived from organic materials, such as agricultural residue, wood waste, wood chips, sawdust, and forest residue. Biomass pellets are used in power generation and heating applications in residential, commercial, and industrial sectors. Pellets produced from wood waste, wood chips, sawdust, and other wood materials are widely utilized compared to other sources. Pellets derived from wood generate less emissions compared to fossil fuels. The increased availability of wood pellet-compatible appliances and equipment further boosts the biomass pellets market growth.

Based on application, the global biomass pellets market is segmented into power plants, industrial heating, residential and commercial heating, and others. The biomass pellets market share for the power plants segment was recorded to be the largest in 2022. The biomass pellets market share for the residential and commercial heating segment was recorded to be the second largest in 2022. Biomass pellets are broadly utilized in pellet stoves and pellet boilers, particularly for heat generation. Pellet stoves are clean and efficient burning devices used in residential spaces. Several countries with cold climatic conditions, such as Austria, Germany, Denmark, and Sweden, utilize residential pellet boilers for heat supply.

Asia Pacific is estimated to register the fastest CAGR in the global biomass pellets market over the forecast period. The rise in wood pellet utilization in the Asia Pacific can be attributed to climate change policies, which incentivize recent import growth, mostly from Vietnam and Malaysia. According to the Food and Agriculture Organization, Vietnam produced 3.2 million tons of wood pellets in 2020. Japan and South Korea were among the top 6 wood pellets importing countries worldwide. Biomass pellet manufacturers in the Asia Pacific witnessed a growing demand for Forest Stewardship Council-certified pellets. According to the Environmental Paper Network, the biomass pellets demand in Japan and South Korea is projected to continue to grow. Asia Pacific also marks a rise in the capacity of biomass plants. Thus, the rising imports of wood pellets and increasing biomass plant capacities are projected to surge the demand for biomass pellets in the Asia Pacific.

A few players operating in the global biomass pellets market include Drax Group Plc, Enviva Inc, AS Graanul Invest, Lignetics Inc, German Pellets, Valfei Products Inc, Mallard Creek Inc, and Energex American Inc. Players operating in the global biomass pellets market focus on providing high-quality products to fulfill customer demand. Also, they are focusing on launching new and high-quality products for their customers. For instance, in December 2020, Pure Biofuel Ltd. launched ENPOWER wood pellets. ENPOWER wood pellets bags incorporate A1 quality standards, which are set out by the UK Pellet Council and the European Council. This product is available in 10-kg or 15-kg packets.

The overall global biomass pellets market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers-along with external consultants such as valuation experts, research analysts, and key opinion leaders-specializing in the biomass pellets market.