Biomass Pellets Market Size Report and Global Analysis by 2030
[Research Report] 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.
Market Insights and Analyst View:
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 as well as heating applications in residential, commercial, and industrial sectors. It has many advantages over unprocessed biomass, such as standardized characteristics, high energy content, storage feasibility, and ease of transportation. Biomass pellets, namely wood pellets, are widely used in residential pellet stoves and boilers. The government's efforts to reduce greenhouse gas emissions and promote the utilization of biomass pellets is driving the biomass pellets market growth.
Growth Drivers and Challenges:
With the growing focus on sustainability, the demand for biomass pellets such as wood pellets has increased significantly. Wood pellets can be utilized for electricity production as an alternative to coal feedstock. Further, biomass pellets are uniformly shaped, possess high density, and are feasible for transportation and storage. The demand for wood pellets has substantially grown for power generation applications. In Europe and North America, as well as in Asian countries such as China, Japan, and South Korea—wood pellets are primarily used for co-firing at coal-fired power plants. There is a rise in the utilization of alternative materials for coal in large-scale power plants worldwide. In 2021, the Ministry of Power of India mandated at least 5% utilization of biomass pellets in fuel-mix with coal in all coal-fired power plants. Such mandates are driving the growth of the biomass pellets market in India. Further, the large-scale power utilities in several European countries such as the Netherlands and Belgium sourced biomass pellets from the US, Russia, and Canada, as per the United States Department of Agriculture. Thus, the rising demand for wood pellets from the power generation industry is driving the biomass pellets market. Biomass pellets are derived from organic materials such as wood, agricultural residue, and industrial wastes. Many countries consider biomass pellets as a sustainable fuel source; however, there are several environmental concerns related to biomass pellets. The combustion of biomass pellets releases pollutants in the air, including particulate matter, nitrogen oxides, and volatile organic compounds. Further, the production of biomass involves a significant amount of water consumption for processing. Hence, the environmental concerns pertaining to biomass pellets are hampering the biomass pellets market growth.
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Biomass Pellets Market: Strategic Insights
Biomass Pellets Market
-
CAGR (2022 - 2030)
4.9%
-
Market Size 2022
US$ 11 Billion
-
Market Size 2030
US$ 16.14 Billion
Market Dynamics
GROWTH DRIVERS
- Rising Demand for Wood Pellets from Power Generation Industry
- Adoption of Biomass Pellets for Animal Bedding
FUTURE TRENDS
- Significant Investment in Research and Expansion Strategies
OPPORTUNITIES
- Increasing Utilization of Agricultural Residues for Biomass Pellets Production
Key Players
- Drax Group Plc
- Enviva Inc
- AS Graanul Invest
- Lignetics Inc
- Valfei Products Inc
- Mallard Creek Inc
- Energex American Inc
- Wismar Pellets GmbH
- UAB Redal Ltd
Regional Overview
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
Source
- Agricultural Residue
- Industrial Waste
- Wood
Application
- Power Plants
- Industrial Heating
- Residential and Commercial Heating
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Biomass Pellets Market: Strategic Insights
-
CAGR (2022 - 2030)4.9% -
Market Size 2022
US$ 11 Billion -
Market Size 2030
US$ 16.14 Billion
Market Dynamics
- Rising Demand for Wood Pellets from Power Generation Industry
- Adoption of Biomass Pellets for Animal Bedding
- Significant Investment in Research and Expansion Strategies
- Increasing Utilization of Agricultural Residues for Biomass Pellets Production
Key Players
- Drax Group Plc
- Enviva Inc
- AS Graanul Invest
- Lignetics Inc
- Valfei Products Inc
- Mallard Creek Inc
- Energex American Inc
- Wismar Pellets GmbH
- UAB Redal Ltd
Regional Overview
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
- Agricultural Residue
- Industrial Waste
- Wood
- Power Plants
- Industrial Heating
- Residential and Commercial Heating
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Report Segmentation and Scope:
The global biomass pellets market is segmented on the basis of source, application, and geography. Based on source, the biomass pellets market is segmented into agricultural residue, industrial waste, wood, and others. Based on application, the biomass pellets market is segmented into power plants, industrial heating, residential and commercial heating, and others. By geography, the biomass pellets market is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)
Segmental Analysis:
Based on source, the biomass pellets market is segmented into agricultural residue, industrial waste, wood, and others. The wood segment held the largest share in the biomass pellets market and is expected to register significant growth over the forecast period. Biomass pellets are manufactured using wood wastes such as sawdust, wood chips, wood shavings, bark, and other residual materials generated from woodworking, sawmills, and timber processing. The wood waste is collected, processed, dried, and pelletized. Wood biomass pellets are widely used in residential heating applications, industrial furnaces, and power plants.
Regional Analysis:
Based on geography, the biomass pellets market is segmented into five key regions—North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global biomass pellets market was dominated by Europe, which accounted for ~US$ 6,478 million in 2022. Asia Pacific is the second-largest contributor, which recorded more than 30% of the global biomass pellets market share in the same year. North America is expected to register a CAGR of over 4.5% during the forecast period. In North America, the biomass pellets market is significantly driven by the regional cost competitiveness of biomass pellets as compared to residential heating oil and propane. The production of wood pellets in North America has gained traction over the past few years due to rising demand from overseas markets. According to the United States Department of Agriculture, the US and Canada supply wood pellets to power plants in the Netherlands and Belgium. The increase in domestic demand for biomass pellets in the region has prompted manufacturers to expand their production capacities. In 2023, Grand River Pellets (Canada) invested US$ 30 million to expand the biomass pellets production capacity from 140,000 to 220,000 metric ton per year. All these factors are driving the biomass pellets market growth in North America.
Industry Developments and Future Opportunities:
Various initiatives taken by the key players operating in the biomass pellets market are listed below:
- In September 2022, Enviva Inc inaugurated its newly constructed wood pellet manufacturing facility in George County, Mississippi (US). The plant started production activities at the beginning of 2022 to reach an annual permitted production capacity of 750,000 metric ton per year (MTPY).
- In April 2022, Drax Group PLC opened a new pellet plant at Demopolis in Alabama, the US. The plant produces sustainable biomass pellets annually from sawmill residues such as sawdust, chips, and shavings.
- 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.
- In April 2021, Drax Group PLC acquired Pinnacle Renewable Energy Inc. With the acquisition, Drax Group PLC delivered bioenergy with carbon capture and storage (BECCS), permanently removing carbon dioxide from the atmosphere yearly.
- In May 2023, LEAG Group acquired Wismar Pellets GmbH from Metropolitan Equity Partners, a private equity investor, in a bidding process to expand the production and supply portfolio of its refining operations. This acquisition will help LEAG Group to serve a larger number of customers.
Biomass Pellets Market Report Scope
Report Attribute
Details
Market size in 2022
US$ 11 Billion
Market Size by 2030
US$ 16.14 Billion
Global CAGR (2022 - 2030)
4.9%
Historical Data
2020-2021
Forecast period
2023-2030
Segments Covered
By Source - Agricultural Residue
- Industrial Waste
- Wood
By Application - Power Plants
- Industrial Heating
- Residential and Commercial Heating
Regions and Countries Covered
North America - US
- Canada
- Mexico
Europe - UK
- Germany
- France
- Russia
- Italy
- Rest of Europe
Asia-Pacific - China
- India
- Japan
- Australia
- Rest of Asia-Pacific
South and Central America - Brazil
- Argentina
- Rest of South and Central America
Middle East and Africa - South Africa
- Saudi Arabia
- UAE
- Rest of Middle East and Africa
Market leaders and key company profiles
- Drax Group Plc
- Enviva Inc
- AS Graanul Invest
- Lignetics Inc
- Valfei Products Inc
- Mallard Creek Inc
- Energex American Inc
- Wismar Pellets GmbH
- UAB Redal Ltd
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Report Attribute | Details |
---|---|
Market size in 2022 | US$ 11 Billion |
Market Size by 2030 | US$ 16.14 Billion |
Global CAGR (2022 - 2030) | 4.9% |
Historical Data | 2020-2021 |
Forecast period | 2023-2030 |
Segments Covered |
By Source
|
Regions and Countries Covered | North America
|
Market leaders and key company profiles |
|
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
COVID-19 Impact:
The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America, and the Middle East & Africa (MEA) hampered the growth of several industries, including the chemical & materials industry. The shutdown of manufacturing units of biomass pellets companies disturbed global supply chains, manufacturing activities, and delivery schedules. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2020. Most of the power plants and industrial plants were shut down during the pandemic, decreasing the consumption of biomass pellets. In addition, the pandemic has caused fluctuations in biomass pellets prices. However, various industries revived their operations after supply constraints were resolved. Moreover, the rising demand for biomass pellets from the industrial and residential sectors is substantially promoting the biomass pellets market growth.
Competitive Landscape and Key Companies:
A few players operating in the global biomass pellets market include Drax Group Plc, Enviva Inc, AS Graanul Invest, Lignetics Inc, Valfei Products Inc, Mallard Creek Inc, Energex American Inc., Wismar Pellets GmbH, UAB Redal Ltd, and Premium Pellet Ltd. Players operating in the global biomass pellets market focus on providing high-quality products to fulfill customer demand.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Source, and Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
A few players operating in the global biomass pellets market include Drax Group Plc, Enviva Inc, AS Graanul Invest, Lignetics Inc, Valfei Products Inc, Mallard Creek Inc, Energex American Inc., Wismar Pellets GmbH, UAB Redal Ltd, and Premium Pellet Ltd.
In 2022, Europe held the largest share of the global biomass pellets market. The major consumers of wood pellets in the EU are Italy, the Netherlands, Germany, Denmark, France, Sweden, Belgium, and Austria. The demand for wood pellets in the Netherlands, Denmark, and Belgium was driven by the rising use of pellets in power plants.
The wood segment held the largest share in the global biomass pellets market in 2022. Biomass pellets are manufactured using wood wastes such as sawdust, wood chips, wood shavings, bark, and other residual materials generated from woodworking, sawmills, and timber processing.
The projected growth of the market is attributed to the rising demand for wood pellets from the power generation industry and the adoption of biomass pellets for animal bedding.
Asia Pacific is estimated to register the fastest CAGR in the global biomass pellets market over the forecast period. The rising imports of wood pellets and increasing biomass plant capacities are projected to surge the demand for biomass pellets in the Asia Pacific.
The power plant segment held the largest share of the global biomass pellets market in 2022. Biomass pellets are widely used in power plants to generate electricity. Biomass pellets in power plants offer several environmental benefits, such as renewable energy sources, reduced greenhouse gas emissions, and waste management.
The List of Companies - Biomass Pellets Market
- Drax Group Plc
- Enviva Inc
- AS Graanul Invest
- Lignetics Inc
- Valfei Products Inc
- Mallard Creek Inc
- Energex American Inc.
- Wismar Pellets GmbH
- UAB Redal Ltd
- Premium Pellet Ltd