The global wood pellet fuel market revenue was around US$ 13.2 billion in 2023 and is estimated to reach US$ 25.5 billion by 2032, growing at a compound annual growth rate (CAGR) of 7.6% during the forecast period from 2024 to 2032.

Wood pellet gas is a kind of biomass gas produced from compact wood or biomass residues, like wood chips, sawdust, and agricultural waste. It is formed by way of packing these substances below high pressure barring the usage of chemicals or adhesives. The resulting pellets are small cylindrical figures with a size of 10-30 mm and a diameter of around 6-8 mm.

Factors Influencing Market Growth

- The wood pellet fuel market is anticipated to notice a high growth potential in the future due to its vast usage in agriculture waste, forest waste, and others.

- The rise in demand for wood pellets for renewable energy sources propels the growth of the wood pellet fuel market during the forecast period.

- The seasonal demand for wood pellets is anticipated to hamper the development of the wood pellet fuel market.

- The advancements in technology concerning wood pellets are anticipated to present ample growth opportunities for the wood pellet fuel market.

Impact of COVID-19

The impulsive outbreak of the COVID-19 pandemic had a negative influence on the growth of the global wood pallet fuel market. The supply chain disturbances impacted the drop in procurement and investment of wood pallet fuel. Also, the strict lockdown charged by different government bodies affected the extraction of wood pallet fuel therefore influencing the growth of the wood pallet fuel market.

Regional Analysis

In 2023, Europe dominated the global wood pellet fuel market in terms of revenue and is anticipated to dominate the market in terms of revenue. The segment is propelled by factors like the utilization of wood pellets act as the backbone for European supply chains, allowing the smooth flow of goods and services from manufacturers to retailers and consumers.

Also, Asia-Pacific is anticipated to notice the fastest growth rate in the wood pellet fuel market during the forecast period. The growth is attributed to the rapid development of the retail sector and e-commerce in the Asia-Pacific region has boosted the demand for wood pellets. Infrastructure development projects in several Asia-Pacific countries have also increased the demand for wood pellets.

Leading Companies

The leading prominent companies profiled in the global wood pellet fuel market are:

- Drax Group PLC
- Energex American Inc.
- Enviva, LP
- F.E. Wood & Sons
- Fram Renewable Fuels LLC
- Granules LG Inc.
- Lignetics Group
- Rentech Inc
- Snow Timber Pellets, LLC
- Wood Pellet Energy Ltd.
- Bison
- IFCO Systems
- Vermont Wood Pellet Company
- AVPGroup
- Farm Fuels
- Pinnacle
- Drax Biomass
- Graanul Invest
- Germen Pellets
- AN Viet Phat Energy Co., Ltd
- Trae Fuels
- Curran Renewable Energy
- Easy Heat Wood Pellets
- Maine Woods Pellet Company
- Energy Wood Pellets
- Somerset Pellet Fuel
- Other prominent key players

Segmentation Outline

The global wood pellet fuel market segmentation focuses on Feedstock, Application, End-Use, and Region.

Segmentation based on Feedstock

- Forest Waste
- Agriculture Waste
- Others

Segmentation based on Application

- Heating
- Power Generation
- Combined Heat and Power (CHP)
- Others

Segmentation based on End-Use

- Residential
- Commercial
- Industrial

Segmentation based on Region

- North America
- The U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa