Modifying shift schedules to reduce employee contact and suspension on international trade are among the many strategies adopted by companies in the global wood pellets market amid COVID-19 pandemic. This has affected business in Japan, since Canada accounts for more than 50% of the country’s supply for wood pellets. As such, alternate revenue streams such as critical industries, including forest products, utilities, and energy are keeping economies running during the pandemic.
Canada is under great scrutiny during the pandemic, as it is responsible for exports to Europe and Asia to generate clean, renewable, and low-carbon electricity in power plants. Companies in the Canada wood pellets market are gaining recognition for maintaining robust supply chains for home heating applications in rural areas that lack accessibility for natural gas grid. They are working at breakneck speeds to keep Canada’s national rail network and ports busy in times of reduced economic activity.
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The wood pellets market is expected to advance at a robust CAGR of ~11% during the assessment period. The increasing number of pellet plants is heavily dependent on the use of sawmill residues as feedstock. However, lack of adequate residues for saw dust and shavings is posing as a challenge for manufacturers and suppliers. Hence, stakeholders are sourcing additional and alternative sorts of woody feedstock involving forest industrial round wood, bark, and wood chips from saw mills, among others, to boost the production of residential and industrial-grade pellets.
It has become imperative for stakeholders to diversify their feedstock sources, since an increasing number of pellet consumers in Europe and North America is procuring long-term supply agreements from suppliers.
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Innovations in wood pellet boilers are acting as key drivers for stakeholders in the wood pellets market. The market is projected to reach the valuation of US$ 31 Bn by the end of 2030. Manufacturers are increasing the availability of self-cleaning systems in wood pellet boilers that require minimal user input. However, in many cases, these boilers require frequent maintenance, and the heat exchanger must be often brushed in order to have the highest working proficiency. Hence, companies in the wood pellets market are increasing awareness about its environment-friendly advantages and cost effectiveness of wood pellets to boost boiler sales.
Since the upfront cost of boiler systems can be relatively high than traditional gas boilers, companies in the wood pellets market are increasing awareness about biomass boiler grants to help support the customers investment.
People in cold regions are gravitating toward wood pellet stoves, as the cost of natural gas is relatively higher than wood pellets. Wood pellets are growing increasingly popular as a cost efficient way for residential heating. Companies in the wood pellets market are capitalizing on this opportunity to source waste wood materials and sawdust to boost production volumes. These feedstock sources are being bound into pellets using high temperature pelletization processes sans the need for glue or additives.
In order to boost credibility credentials, manufacturers in the wood pellets market are refraining from cutting down trees and focusing on trees killed by the mountain pine beetle. They are increasing the availability of engineered pellets that have uniform size and moisture content that can be cleanly burned in specially designed automatic pellet furnaces.
Manufacturers in the wood pellets market are boosting their output capacities in pellets made from 100% sawdust for burner applications. NDMI Renewable Energy Private Limited - a gas logs supplier in Uttar Pradesh, India, is unlocking revenue opportunities in commercial heating and industrial heating applications by producing 100% sawdust fine wood pellets that are economical and easy to use.
In cold areas where room heating and water heating is a constant requirement, manufacturers in the India wood pellets market are taking advantage of such opportunities to increase their production capacities. Indian manufacturers and suppliers are taking efforts to deliver a year-round supply of wood pellets, irrespective of seasonal changes. Industrial stakeholders are preferring consistent quality in pellets to ensure consistent heating in burner applications. Wood pellets are increasingly replacing LPG (Liquid Petroleum Gas) for heating.
Apart from sawmill residues and shavings, manufacturers in the wood pellets market are diversifying their feedstock via fire-damaged trees. Stakeholders in Europe and Asia are gaining popularity for adopting these strategies to boost their production volumes. They are tapping incremental opportunities in the ever-increasing energy industry, which is fueling the demand for wood pellets. These wood pellets are increasingly replacing fossil fuels in energy industries.
In a study conducted at a power station in the U.K., it was found that even after accounting for fossil fuel emissions, along the supply chain during harvesting, wood pellets helped to significantly lower GHG (Greenhouse Gas) emissions as compared to coal. Companies in the wood pellets market are taking cues from such findings and utilizing sustainably sourced forests to increase their production capacities.
Harvard startup BiomassTrust is being highly publicized for its aim to increase the global use of sustainable bioenergy involving Brazilian eucalyptus wood pellets. Companies in the wood pellets market are taking insights from such innovations to capitalize on the demand for sustainable bioenergy. Since burning of pellets generated from tropical eucalyptus forests can lead to hazardous emissions, manufacturers and startups are increasing R&D to remove chlorine from this plant & commercialize the process.
Brazil is holding lucrative opportunities for commercialization of Brazilian eucalyptus wood pellets, owing to its advantage of abundant sustainable biomass. Manufactures are increasing research to develop patented processes that separate the chlorine from Brazilian eucalyptus leaves and trees. They are increasingly focusing on industrial-scale procedures that involve mincing and grinding the biomass to smaller size to make the wood pellets safe for international markets.
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Analysts’ Viewpoint
Companies in the wood pellets market are focusing on residential heating and utilities applications to ensure revenue flow amid reduced economic activity during the coronavirus outbreak. Wood pellet boilers are gaining popularity as a renewable energy source in cold regions. However, there is a need to stabilize feedstock in both price and volume to avoid interruptions in volatile supply situations. Hence, companies should source alternate woody feedstock such as fire-damaged trees and wood produced from short rotation forestry plantations to boost output capacities. As such, manufacturers are exploiting the basin of agricultural feedstock as alternate source for feedstock. Eucalyptus trees are catching the attention of startups in Brazil to increase the utilization of bioenergy.
Wood Pellets Market: Overview
Increase in Demand for Renewable Energy across Globe: Key Driver of Wood Pellets Market
Change in Policies Related to Coal Fired Plant
Wood Pellets Market: Competition Landscape
Wood Pellets Market: Key Developments
Wood Pellets Market – Segmentation
TMR’s research study assesses the wood pellets market based on application and region. The report presents extensive market dynamics and progressive trends associated with different segments and how they are influencing growth prospects of the wood pellets market.
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Wood Pellets Market is expected to reach US$ 31 Bn By 2030
Wood Pellets Market is estimated to rise at a CAGR of 11% during forecast period
Demand for wood pellets is considerably high from thermal industries to generate clean energy is expected to drive the Wood Pellets Market
Asia Pacific is more attractive for vendors in the Wood Pellets Market
Key players of Wood Pellets Market are Enviva LP, TANAC SA, Energex, Grannul Invest, AN VIET PHAT ENERGY CO., LTD, Pinnacle Renewable Energy Inc., German Pellets, F.E. Wood & Sons, and Drax Group plc
1. Executive Summary
1.1. Market Outlook
1.2. Key Facts and Figures
1.3. Key Trends
2. Market Overview
2.1. Market Segmentation
2.2. Market Indicators
3. Market Dynamics
3.1. Drivers and Restraints Snapshot Analysis
3.1.1.1. Drivers
3.1.1.2. Restraints
3.1.1.3. Opportunities
3.2. Porter’s Five Forces Analysis
3.2.1. Threat of Substitutes
3.2.2. Bargaining Power of Buyers
3.2.3. Bargaining Power of Suppliers
3.2.4. Threat of New Entrants
3.2.5. Degree of Competition
3.3. Regulatory Scenario
3.4. Value Chain Analysis
4. Price Trend Analysis
5. COVID-19 Impact Analysis
6. Global Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Analysis, by Application
6.1. Key Findings and Introduction
6.2. Global Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
6.2.1. Global Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Residential Heating, 2019-2030
6.2.2. Global Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Commercial Heating, 2019-2030
6.2.3. Global Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by CHP, 2019-2030
6.2.4. Global Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Power Generation, 2019-2030
6.3. Global Wood Pellets Market Attractive Analysis, by Application
7. Global Wood Pellets Market Analysis, by Region
7.1. Key Findings
7.2. Global Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Region
7.2.1. North America
7.2.2. Europe
7.2.3. Asia Pacific
7.2.4. Latin America
7.2.5. Middle East & Africa
7.3. Global Wood Pellets Market Attractiveness Analysis, by Region
8. North America Wood Pellets Overview
8.1. Key Findings
8.2. North America Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
8.3. North America Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Country
8.3.1. U.S. Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
8.3.2. Canada Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
8.4. North America Wood Pellets Attractiveness Analysis, by Application
8.5. North America Wood Pellets Attractiveness Analysis, by Country
9. Europe Wood Pellets Overview
9.1. Key Findings
9.2. Europe Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
9.3. Europe Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) and Forecast, by Country and Sub-region
9.3.1. Germany Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
9.3.2. U.K. Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
9.3.3. France Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
9.3.4. Italy Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
9.3.5. Denmark Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
9.3.6. Sweden Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
9.3.7. Rest of Europe Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
9.4. Europe Wood Pellets Attractiveness Analysis, by Application
9.5. Europe Wood Pellets Attractiveness Analysis, by Country and Sub-region
10. Asia Pacific Wood Pellets Overview
10.1. Key Findings
10.2. Asia Pacific Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
10.3. Asia Pacific Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Country and Sub-region
10.3.1. China Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
10.3.2. Japan Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
10.3.3. South Korea Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
10.3.4. Rest of Asia Pacific Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
10.4. Asia Pacific Wood Pellets Attractiveness Analysis, by Application
10.5. Asia Pacific Wood Pellets Attractiveness Analysis, by Country and Sub-region
11. Latin America Wood Pellets Overview
11.1. Key Findings
11.2. Latin America Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
11.3. Latin America Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Country and Sub-region
11.3.1. Brazil Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
11.3.2. Rest of Latin America Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
11.4. Latin America Wood Pellets Attractiveness Analysis, by Application
11.5. Latin America Wood Pellets Attractiveness Analysis, by Country and Sub-region
12. Middle East & Africa Wood Pellets Overview
12.1. Key Findings
12.2. Middle East & Africa Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
12.3. Middle East & Africa Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Country and Sub-region
12.3.1. South Africa Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
12.3.2. Rest of Middle East & Africa Wood Pellets Market Volume (Kilo Tons) and Value (US$ Mn) Forecast, by Application, 2019–2030
12.4. Middle East & Africa Wood Pellets Attractiveness Analysis, by Application
12.5. Middle East & Africa Wood Pellets Attractiveness Analysis, by Country and Sub-region
13. Competition Landscape
13.1. Competition Matrix
13.2. Wood Pellets Market Share Analysis, by Company (2020)
13.3. Market Footprint Analysis
13.4. Company Profiles
13.4.1. F.E. Wood & Sons
13.4.1.1. Company Details
13.4.1.2. Company Description
13.4.1.3. Business Overview
13.4.2. German Pellets
13.4.2.1. Company Details
13.4.2.2. Company Description
13.4.2.3. Business Overview
13.4.3. Pinnacle Renewable Energy Inc.
13.4.3.1. Company Details
13.4.3.2. Company Description
13.4.3.3. Business Overview
13.4.3.4. Financial Details
13.4.3.5. Strategic Overview
13.4.4. An Viet Phat Energy Co., LTD
13.4.4.1. Company Details
13.4.4.2. Company Description
13.4.4.3. Business Overview
13.4.4.4. Financial Details
13.4.4.5. Strategic Overview
13.4.5. Graanul Invest
13.4.5.1. Company Details
13.4.5.2. Company Description
13.4.5.3. Business Overview
13.4.6. Energex
13.4.6.1. Company Details
13.4.6.2. Company Description
13.4.6.3. Business Overview
13.4.7. TANAC SA
13.4.7.1. Company Details
13.4.7.2. Company Description
13.4.7.3. Business Overview
13.4.8. Drax Group Plc (1/2)
13.4.8.1. Company Details
13.4.8.2. Company Description
13.4.8.3. Business Overview
13.4.8.4. Financial Details
13.4.9. Enviva LP
13.4.9.1. Company Details
13.4.9.2. Company Description
13.4.9.3. Business Overview
14. Primary Research – Key Insights
15. Appendix
15.1. Research Methodology and Assumptions
List of Tables
Table 1: Global Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 2: Global Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 3: Global Wood Pellet Market Volume (Kilo Tons) Forecast, by Region, 2019–2030
Table 4: Global Wood Pellet Market Value (US$ Mn) Forecast, by Region, 2019–2030
Table 5: North America Wood Pellet Market Volume (Kilo Tons) Forecast, by Country, 2019–2030
Table 6: North America Wood Pellet Market Value (US$ Mn) Forecast, by Country, 2019–2030
Table 7: North America Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 8: North America Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 9: U.S. Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 10: U.S. Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 11: Canada Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 12: Canada Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 13: Europe Wood Pellet Market Volume (Kilo Tons) Forecast, by Country and Sub-region, 2019–2030
Table 14: Europe Wood Pellet Market Value (US$ Mn) Forecast, by Country and Sub-region, 2019–2030
Table 15: Europe Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 16: Europe Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 17: Germany Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 18: Germany Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 19: U.K. Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 20: U.K. Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 21: France Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 22: France Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 23: Italy Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 24: Italy Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 25: Denmark Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 26: Denmark Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 27: Sweden Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 28: Sweden Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 29: Rest of Europe Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 30: Rest of Europe Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 31: Asia Pacific Wood Pellet Market Volume (Kilo Tons) Forecast, by Country and Sub-region, 2019–2030
Table 32: Asia Pacific Wood Pellet Market Value (US$ Mn) Forecast, by Country and Sub-region, 2019–2030
Table 33: Asia Pacific Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 34: Asia Pacific Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 35: China Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 36: China Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 37: Japan Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 38: Japan Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 39: South Korea Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 40: South Korea Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 41: Rest of Asia Pacific Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 42: Rest of Asia Pacific Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 43: Latin America Wood Pellet Market Volume (Kilo Tons) Forecast, by Country and Sub-region, 2019–2030
Table 44: Latin America Wood Pellet Market Value (US$ Mn) Forecast, by Country and Sub-region, 2019–2030
Table 45: Latin America Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 46: Latin America Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 47: Brazil Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 48: Brazil Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 49: Rest of Latin America Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 50: Rest of Latin America Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 51: Middle East & Africa Wood Pellet Market Volume (Kilo Tons) Forecast, by Country and Sub-region, 2019–2030
Table 52: Middle East & Africa Wood Pellet Market Value (US$ Mn) Forecast, by Country and Sub-region, 2019–2030
Table 53: Middle East & Africa Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 54: Middle East & Africa Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 55: South Africa Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 56: South Africa Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
Table 57: Rest of Middle East & Africa Wood Pellet Market Volume (Kilo Tons) Forecast, by Application, 2019–2030
Table 58: Rest of Middle East & Africa Wood Pellet Market Value (US$ Mn) Forecast, by Application, 2019–2030
List of Figures
Figure 01: Global Wood Pellet Market Value Share Analysis, by Application, 2019, 2025, and 2030
Figure 02: Global Wood Pellet Market Attractiveness Analysis, by Application
Figure 03: Global Wood Pellet Market Value Analysis, by Region, 2019–2030
Figure 04: Global Wood Pellet Market Attractiveness Analysis, by Region
Figure 06: North America Wood Pellet Market Value Share Analysis, by Country, 2019, 2025, and 2030
Figure 07: North America Wood Pellet Market Attractiveness Analysis, by Country, 2020–2030
Figure 05: North America Wood Pellet Market Value (US$ Mn), 2019–2030
Figure 08: North America Wood Pellet Market Value Share Analysis, by Application, 2019, 2025, and 2030
Figure 09: North America Wood Pellet Market Attractiveness Analysis, by Application, 2020–2030
Figure 11: Europe Wood Pellet Market Value Share Analysis, by Country and Sub-region, 2019, 2025, and 2030
Figure 12: Europe Wood Pellet Market Attractiveness Analysis, by Country and Sub-region
Figure 13: Europe Wood Pellet Market Value Share Analysis, by Application, 2019, 2025, and 2030
Figure 14: Europe Wood Pellet Market Attractiveness Analysis, by Application, 2020–2030
Figure 16: Asia Pacific Wood Pellet Market Value Share Analysis, by Country and Sub-region, 2019, 2025, and 2030
Figure 17: Asia Pacific Wood Pellet Market Attractiveness Analysis, by Country and Sub-region
Figure 18: Asia Pacific Wood Pellet Market Value Share Analysis, by Application, 2019, 2025, and 2030
Figure 19: Asia Pacific Wood Pellet Market Attractiveness Analysis, by Application, 2020–2030
Figure 21: Latin America Wood Pellet Market Value Share Analysis, by Country and Sub-region, 2019, 2025, and 2030
Figure 22: Latin America Wood Pellet Market Attractiveness Analysis, by Country and Sub-region, 2020–2030
Figure 23: Latin America Wood Pellet Market Value Share Analysis, by Application, 2019, 2025, and 2030
Figure 24: Latin America Wood Pellet Market Attractiveness Analysis, by Application, 2020–2030
Figure 26: Middle East & Africa Wood Pellet Market Value Share Analysis, by Country and Sub-region, 2019, 2025, ad 2030
Figure 27: Middle East & Africa Wood Pellet Market Attractiveness Analysis, by Country and Sub-region
Figure 28: Middle East & Africa Wood Pellet Market Value Analysis, by Application, 2019, 2025, ad 2030
Figure 29: Middle East & Africa Wood Pellet Market Attractiveness Analysis, by Application