Biomass Briquettes Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type, By Application, By Region & Competition, 2021-2031F

The Global Biomass Briquettes Market is projected to expand from USD 1.11 Billion in 2025 to USD 1.76 Billion by 2031, achieving a CAGR of 7.99%. These briquettes serve as densified biofuel alternatives, produced by compressing organic matter like sawdust, industrial waste, and agricultural residues into solid blocks for heat generation. Growth is chiefly propelled by the global shift toward renewable energy and the implementation of strict government rules aimed at lowering carbon emissions. Additionally, the market benefits from the economic feasibility of turning agricultural waste into fuel, providing a cost-efficient substitute for fossil fuels such as coal. Highlighting the prominence of solid fuels, data from the World Bioenergy Association indicates that in 2024, solid biomass accounted for 83% of the total global biomass supply.

Nevertheless, market growth faces significant hurdles due to the logistical difficulties involved in sourcing feedstock and maintaining supply chain consistency. The seasonal nature of agricultural residues causes fluctuations in availability and price, creating instability for manufacturers' production schedules. Moreover, the substantial expense of transporting low-density raw biomass to processing sites often squeezes profit margins. These costs can discourage investment in large-scale briquetting facilities and restrict the widespread use of the product in industrial sectors that are sensitive to operational costs.

Market Driver

Increasing requirements for biomass co-firing in thermal power stations are a major engine for market growth, spurred by rigorous environmental laws designed to decarbonize the energy industry. Governments around the world are enacting policies that require utility providers to mix a set proportion of densified biomass with coal, establishing a secure, high-volume demand for pellets and briquettes. This regulatory pressure not only lowers carbon emissions but also solidifies the supply chain by offering manufacturers guaranteed long-term sales. For example, Argus Media reported in December 2025 that India's total biomass consumption hit 1.62 million tonnes in the fiscal year ending March 2025, a rise directly linked to government compliance goals for co-firing in coal-powered generation plants.

Concurrently, the rising industrial use of biomass briquettes as a replacement for coal in boilers is transforming the market dynamics. Factories, especially in energy-heavy industries like textiles and FMCG, are actively modifying boilers to accept biomass fuels to protect against fossil fuel price swings and achieve net-zero targets. This shift enables industries to detach from volatile coal markets while making use of local agricultural residues. Illustrating this trend, Hindustan Unilever Limited stated in its 'Business Responsibility and Sustainability Report 2024-25' in May 2025 that it cut manufacturing carbon emissions by 99% against a 2008 baseline, largely by swapping coal for biomass and green fuels. Furthermore, Bioenergy Europe noted in June 2025 that global wood pellet production remained strong at 48.3 million tonnes in 2024, emphasizing the growing availability of densified biofuels.

Market Challenge

The logistical difficulties linked to procuring feedstock and maintaining a consistent supply chain present a major obstacle to the Global Biomass Briquettes Market. Producers often contend with the seasonality of agricultural residues, which results in unpredictable raw material availability and significant price instability. This lack of reliability interferes with continuous production schedules, making it challenging to guarantee a steady fuel supply to industrial clients. As a result, prospective users are often reluctant to switch from fossil fuels to biomass briquettes, concerned about potential operational stoppages due to unforeseen supply deficits.

Additionally, the high expense associated with transporting low-density raw biomass to processing plants severely impacts financial sustainability. The cost of moving bulky agricultural waste frequently cuts into profit margins, thereby discouraging capital investment in large-scale briquetting infrastructure. This bottleneck on the supply side contrasts sharply with the sector's growing needs. According to the World Bioenergy Association, global biopower capacity stood at 151 GW in 2024, a statistic that underscores the massive demand dependent on these often precarious supply chains. The gap between this rising capacity and the inefficient movement of feedstock directly limits the market's ability to sustain expansion and achieve broad industrial uptake.

Market Trends

The rapid uptake of torrefaction technology is significantly enhancing the market by allowing for the creation of bio-coal, a high-density fuel that addresses the storage and caloric shortcomings of conventional biomass briquettes. Unlike standard densification methods, torrefaction treats biomass in a low-oxygen setting to produce a water-resistant, energy-rich product that can be co-fired with coal in high proportions without needing expensive boiler modifications. This technological advancement is quickly approaching commercial viability, establishing a new category of drop-in renewable fuels for industrial use. Confirming this growth, Bioenergy Insight reported in March 2025 that plans were unveiled for a major torrefaction plant in New Zealand with a capacity of 180,000 tonnes per year, intended to supply utility-scale power plants and replace fossil coal.

At the same time, the monetization of carbon credits within the briquette value chain is becoming a key financial driver, enabling manufacturers to generate revenue beyond simple fuel sales. By calculating the emissions prevented through the management of agricultural residues and the displacement of fossil fuels, stakeholders are creating high-quality carbon credits that draw substantial institutional funding. This approach reshapes the sector's economic framework, supplying the capital needed to stabilize fragmented feedstock supply lines. Demonstrating this trend, ESG Dive reported in November 2025 that climate-tech firm Varaha raised $30 million to expand its operations, which involve generating verified carbon credits from biochar and agricultural waste projects, thus incentivizing the collection networks essential to the industry.

Key Market Players

• Westervelt Company
• Pacific Bioenergy Corporation
• German Pellets GmbH
• RWE Innogy UK Ltd
• Pfeifer Holding GmbH
• DRAX BIOMASS HOLDINGS LIMITED
• General Biofuels
• Biomass Secure Power Inc
• Biomass Secure Power
• IntelliFlux Controls, Inc
• Energex Power Private Limited
• Enviva Inc.

Report Scope

In this report, the Global Biomass Briquettes Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Biomass Briquettes Market, By Type

• Sawdust Briquettes
• Agro waste Briquettes
• Wood Briquettes

Biomass Briquettes Market, By Application

• Power Generation
• Thermal Energy
• Others

Biomass Briquettes Market, By Region

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • France
  • United Kingdom
  • Italy
  • Germany
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• South America
  • Brazil
  • Argentina
  • Colombia
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Biomass Briquettes Market.

Available Customizations:

Global Biomass Briquettes Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

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