Wood Pellets Market Size, Share, Growth Analysis, By Application(Heating, Power Generation, CHP), By End Use(Residential, Commercial, Industrial), By Region - Industry Forecast 2024-2031

Global Wood Pellets Market size was valued at USD 8.71 billion in 2022 and is poised to grow from USD 9.20 billion in 2023 to USD 14.22 billion by 2031, growing at a CAGR of 5.6% during the forecast period (2024-2031).

The market for wood pellets is growing due to the need to limit the use of fossil fuels, which contributes to global warming, and because they are a clean, environmentally friendly, sustainable, and renewable biomass. This is expected to help the industry expand over the course of the projection period. A constant supply of feedstock was ensured by the quick restoration of timber production, which also had a smaller effect on wood pellet manufacturers.

The growing production of wood pellets in the United States is mostly a result of rising demand from the global market. Some countries import wood pellets from the United States because they are unable to meet their own demand for the fuel by producing their own energy from biomass from their own forests and industrial infrastructure. Pellet companies have two options for getting their wood biomass directly from private landowners through loggers or indirectly through wood traders. Manufacturers can also obtain wood fibre from mill residuals, which are byproducts of the paper and sawmill sectors in the forestry sector. In this supply model, transportation costs are often the biggest cost factor for mill residuals because they are more affordable than pulpwood and roundwood.

There are many distinct shipping companies, brokers, and traders, and the market for each of them is incredibly intricate and dispersed. The number of ports and routes that are both inexpensive and capable of handling large volumes of wood pellets is also limited due to the special characteristics of the transportation of wood pellets.

US Wood Pellets Market is poised to grow at a sustainable CAGR for the next forecast year.