Wood Pellets Global Market Report 2026

Wood pellets are finely powdered biofuels produced through a pellet dye process at high temperatures and pressure. These pellets are primarily used for generating heat, process steam, and electricity. They are typically made from compressed sawdust, a by-product of various industries.

The main types of feedstocks used in the production of wood pellets include forest and wood waste resources, agricultural residue and waste, food waste, virgin lumber, and energy crops. Forest and wood waste resources consist of a mixture of trees, including leaves, bark, trunk pieces, and branches. These residues and waste are converted into wood pellets, serving as a significant biomass source for energy production. The wood pellet production process involves various stages such as sawdust preparation, screening, hammering, pelletizing, cooling, and packaging. Wood pellets find applications in heating, power generation, and combined heat and power (CHP), serving residential, commercial, and industrial purposes.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the wood pellets market by increasing costs of imported pellet mills, processing machinery, drying systems, and export logistics equipment. Industrial and utility-scale users in Europe and Asia-Pacific are most affected due to reliance on cross-border pellet supply chains. These tariffs are increasing production and transportation costs and impacting export competitiveness. At the same time, they are encouraging domestic pellet manufacturing, localized feedstock sourcing, and investments in regional biomass energy supply chains.

The wood pellets market research report is one of a series of new reports from The Business Research Company that provides wood pellets market statistics, including wood pellets industry global market size, regional shares, competitors with a wood pellets market share, detailed wood pellets market segments, market trends and opportunities, and any further data you may need to thrive in the wood pellets industry. This wood pellets market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The wood pellets market size has grown rapidly in recent years. It will grow from $13.32 billion in 2025 to $14.97 billion in 2026 at a compound annual growth rate (CAGR) of 12.4%. The growth in the historic period can be attributed to increasing use of biomass for residential heating, availability of sawdust and wood waste, expansion of pellet-fired boilers, supportive renewable energy policies, rising fossil fuel price volatility.

The wood pellets market size is expected to see rapid growth in the next few years. It will grow to $23.56 billion in 2030 at a compound annual growth rate (CAGR) of 12.0%. The growth in the forecast period can be attributed to expansion of carbon-neutral energy targets, increasing adoption of biomass power generation, rising investments in pellet export infrastructure, growing demand for industrial-scale heating solutions, advancements in pelletizing efficiency. Major trends in the forecast period include increasing adoption of biomass-based heating solutions, rising demand for high-density wood pellets, growing utilization of industrial waste feedstock, expansion of automated pellet production lines, enhanced focus on low-emission combustion performance.

The rising global demand for renewable energy is expected to drive the growth of the wood pellets market in the coming years. Renewable energy refers to energy derived from natural sources that are replenished faster than they are consumed. Wood pellets serve as a renewable energy source produced from various wood waste materials. For example, in December 2024, according to Eurostat, a Luxembourg-based statistical office of the European Union, renewable energy accounted for 24.5% of total energy consumption in the EU in 2023, marking a 1.5 percentage point increase from 23.0% in 2022. Likewise, the share of renewable energy used in the transport sector rose to 10.8% in 2023, up from 9.6% in 2022. Therefore, the growing global demand for renewable energy is fueling the expansion of the wood pellets market.

Major companies operating in the wood pellets market are emphasizing the development of advanced solutions, such as sustainable wood sourcing, to promote environmental responsibility and differentiate their products. Sustainable wood sourcing involves utilizing leftover or by-product wood from other manufacturing processes, reducing waste and supporting eco-friendly practices. For example, in March 2024, Traeger Inc., a US-based company, introduced limited-edition Louisville Slugger Pellets made from maple wood sourced from New York and Pennsylvania forests, traditionally used for bat production. These pellets repurpose leftover wood from bat manufacturing into high-quality fuel for grilling. The launch was supported by a comprehensive advertising campaign across TV, digital, radio, print, and social media, with Ken Griffey Jr. endorsing the product, connecting it to baseball culture and boosting consumer engagement. The pellets offer consistent burn performance, rich maple flavor, and an eco-conscious choice for consumers seeking premium grilling experiences. Traeger's approach highlights innovation by combining product quality with sustainability and strategic brand partnerships.

In April 2023, LEAG, a German energy company, acquired Wismar Pellets GmbH for an undisclosed amount. This acquisition gives LEAG control over the largest pellet plant in northern and eastern Germany. It enhances its presence in the domestic market and expands its distribution reach, extending throughout Germany and into key international markets, including Denmark, Belgium, and the UK. Wismar Pellets GmbH is a Germany-based producer of wood pellets.

Major companies operating in the wood pellets market are Enviva Inc., Energex American Inc., Graanul Invest AS, Pinnacle Renewable Energy, Fram Renewable Fuels LLC., Segezha-Group, Lignetics Inc., Asia Biomass Public Company Limited, Sinclar Group Forest Products, Wood Pellet Energy UK Ltd., Highland Pellets LLC, Groupe Savoie Inc, Drax Group plc, The Westervelt Company, Forest Energy Corporation, New England Wood Pellet, Pacific BioEnergy Corporation, Maine Woods Pellet Company, Bear Mountain Forest Products, Michigan Wood Pellet Fuel LLC., Somerset Pellet Fuel, Trae Fuels Ltd., Vermont Wood Pellet Company, Appalachian Wood Pellets

Europe was the largest region in the wood pellets market in 2025. Asia-Pacific is expected to be the fastest growing region in the wood pellets market report during the forecast period. The regions covered in the wood pellets market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the wood pellets market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The wood pellets market consists of sales of premium wood pellets, standard wood pellets, food-grade wood pellets, traeger signature wood pellets, applewood pellets, cherry wood pellets, pecan wood pellets, mesquite wood pellets, and hickory wood pellets. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Wood Pellets Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses wood pellets market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

Reasons to Purchase

• Gain a truly global perspective with the most comprehensive report available on this market covering 16 geographies.
• Assess the impact of key macro factors such as geopolitical conflicts, trade policies and tariffs, inflation and interest rate fluctuations, and evolving regulatory landscapes.
• Create regional and country strategies on the basis of local data and analysis.
• Identify growth segments for investment.
• Outperform competitors using forecast data and the drivers and trends shaping the market.
• Understand customers based on end user analysis.
• Benchmark performance against key competitors based on market share, innovation, and brand strength.
• Evaluate the total addressable market (TAM) and market attractiveness scoring to measure market potential.
• Suitable for supporting your internal and external presentations with reliable high-quality data and analysis
• Report will be updated with the latest data and delivered to you within 2-3 working days of order along with an Excel data sheet for easy data extraction and analysis.
• All data from the report will also be delivered in an excel dashboard format.

Where is the largest and fastest growing market for wood pellets ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The wood pellets market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Feedstock: Forest And Wood Waste Resources; Virgin Wood Material; Dedicated Woody Energy Crops
• 2) By Production Process: Sawdust Preparation; Screening; Hammering; Pelletizing; Cooling And Packaging
• 3) By Application: Heating; Power Generation; Combined Heat And Power (CHP)
• 4) By End-User: Residential; Commercial; Industrial
• Subsegments:
• 1) By Forest And Wood Waste Resources: Sawdust; Wood Chips; Bark; Logging Residues; Sawmill Residues
• 2) By Virgin Wood Material: Roundwood Logs; Planer Shavings; Wood Off-Cuts
• 3) By Dedicated Woody Energy Crops: Short Rotation Coppice Willow; Short Rotation Coppice Poplar
• Companies Mentioned: Enviva Inc.; Energex American Inc.; Graanul Invest AS; Pinnacle Renewable Energy; Fram Renewable Fuels LLC.; Segezha-Group; Lignetics Inc.; Asia Biomass Public Company Limited; Sinclar Group Forest Products; Wood Pellet Energy UK Ltd.; Highland Pellets LLC; Groupe Savoie Inc; Drax Group plc; The Westervelt Company; Forest Energy Corporation; New England Wood Pellet; Pacific BioEnergy Corporation; Maine Woods Pellet Company; Bear Mountain Forest Products; Michigan Wood Pellet Fuel LLC.; Somerset Pellet Fuel; Trae Fuels Ltd.; Vermont Wood Pellet Company; Appalachian Wood Pellets
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: Word, PDF or Interactive Report
• + Excel Dashboard
• Added Benefits
• Bi-Annual Data Update
• Customisation
• Expert Consultant Support

Added Benefits available all on all list-price licence purchases, to be claimed at time of purchase. Customisations within report scope and limited to 20% of content and consultant support time limited to 8 hours.