Wood pellets, also known as biomass pellets, are small particulate matter made by processing wood or plant fibers. They usually compress wood fibers or particles into granular materials of a certain shape and size through processes such as cutting, grinding, and crushing. These particles are mainly composed of lignocellulose such as cellulose, hemicellulose, and lignin, and have a uniform shape and size.

Overview of Market Development

The global wood pellet market is currently in a positive development stage, showing strong growth momentum not only in traditional markets such as North America and Europe but also enormous potential in emerging markets. This is mainly due to the increasing popularity of wood pellets as an environmentally friendly, efficient, and renewable energy substitute in more and more countries and regions.

According to our research data, the global consumption of wood pellets is expected to reach 79.30 million tons in 2024, with an estimated market size of $14.20 billion, an increase of 10.09% compared to 2023. In the future, driven by factors such as increasing public environmental awareness, continuous technological updates and progress, and policy support, the wood pellet market will continue to maintain strong growth momentum, making important contributions to the transformation and sustainable development of the global energy structure. It is expected that the global wood pellet market size will increase to $23.22 billion by 2029.

Segmented Market Analysis

From the perspective of product types, wood pellets can be divided into cork pellets and hardwood pellets according to the different sources of raw materials. Cork pellets mainly come from cork tree species such as pine, while hardwood pellets come from hardwood tree species such as oak and walnut. Wood pellets from different sources may have differences in combustion performance, calorific value, and ash content.

According to the different colors, wood pellets can be divided into two categories: black wood pellets and white wood pellets. Among them, white wood pellets dominate the market, and the market share is expected to reach 82.74% in 2024.

From downstream applications, wood pellets are widely used in fields such as biomass energy, wood products, and industrial applications. As biomass energy, they are widely used in heating systems such as particle heating furnaces and particle barbecue ovens to improve heating efficiency and reduce operating costs; In the field of wooden products, wood pellets can be used as raw materials to make boards, furniture, etc; In industrial applications, they can be used as biomass fuels for power generation, heating, and other purposes. Research has shown that the biomass energy sector is the largest downstream application market, with an estimated application share of 58.00% in 2024.

Source: www.globalmarketmonitor.com

From a regional perspective, the Americas, Europe, and the Asia Pacific region are the main consumers of wood pellets worldwide. Among them, the European market has benefited from policy support and technological innovation, becoming the largest consumer region. The data shows that the consumption of wood pellets in Europe is expected to reach 63.29 million tons in 2024, accounting for an estimated 79.81% of the global total consumption; The Asia Pacific region is expected to become the second largest consumer region with a proportion of 9.42%. In addition, the production of wood pellets in the American market has grown rapidly, especially in the southeastern regions of Canada and the United States. Due to the abundant forestry resources, the production and consumption of wood pellets have also steadily increased.

Global Wood Pellet Consumption and Proportion by Region Forecast in 2024

Regions/Countries	Consumption (K Tons)	Proportion
Americas	7212.4	9.10%
Europe	63289.9	79.81%
Asia Pacific	7469.8	9.42%
Middle East & Africa	1324.8	1.67%

Source: www.globalmarketmonitor.com