The worldwide wood pellet industry is expected to grow at a CAGR of 14.47% from 2019 to 2025.

The global wood pellets market is valued at US$10.491 billion in 2019 and is expected to grow at a CAGR of 14.47% during the forecast period to reach a total market size of 23,604 billion US dollars by 2025. Wood pellets are a carrier of renewable energy. They are manufactured from sawdust or other woody materials. According to international standards, product requirements for energy density, moisture content, abrasion resistance, grain size and shape for wood pellets are determined, turning wood pellets into a commodity. chemical.

As a result, standardized wood pellets offer promising properties for large-scale production. With the increase in wood pellet production, there has been a significant increase in the global wood pellet trade flows. There are different applications of wood pellets that are driving their demand worldwide. For example, wood pellets are widely used as a convenient solid biofuel in stoves and automatic boilers in the domestic heating sector. Wood pellets reduce greenhouse gas (GHG) emissions during power generation when co-firing in coal-fired power plants. Industrial wood pellets are used as an alternative to coal in power plants while high-grade pellets are used in boilers and pellet stoves for heating.

Wood pellets have emerged as a viable and promising renewable energy source to replace coal, especially in Europe and North America. The pellets market has witnessed tremendous growth worldwide over the past few years with growing demand for both industrial applications in large-scale power plants and small-scale applications in large-scale power plants. residential heating system.

The wood pellets market is gaining significant traction as they have a low carbon footprint. Hence, the growing concern about environmental sustainability globally is the key factor behind the growing demand for wood pellets which is driving the global market growth. Governments of different countries together with global organizations are continuously taking the necessary steps and measures to achieve the set targets related to the reduction of carbon footprint or greenhouse gas emissions. (GHG). The limited availability of non-renewable resources and their negative impact on the environment has prompted the world economy to switch to alternative sources of electricity that do not harm the environment. Governments around the globe have set their sights on various renewable energy sources.

The use of wood pellets as fuel has been widely adopted for home heating and electric boilers, especially in the European region. The easy availability of raw materials such as wood and compressed sawdust along with low production cost are some of the factors that also contribute to the increase in demand for wood pellets, thereby driving the market growth.

The players in the global wood pellet market are actively engaged in R&D activities to increase the efficiency of the wood pellet production process and gain a competitive edge over their competitors. Therefore, new and advanced designs for pellet mills are being developed to achieve high productivity with optimal fuel input. Furthermore, extensive research is being carried out to produce wood pellets with high calorific value from readily available raw materials. All these factors are predicted to drive the growth of the global wood pellets market over the next 5 years.

Europe is the largest consumer and producer of wood pellets

By geographical location, the global wood pellets market has been segmented into five major regional markets – North America, South America, Europe, Middle East and Africa (MEA) and Asia Pacific (APAC) ). Europe accounted for a major share of the global wood pellets market in 2019. According to the USDA Foreign Agricultural Information Network (US Department of Agriculture), the EU (European Union) has estimated consumption of 27.35 million tons of wood pellets. in 2018, an increase of 24.15 million tons compared to the previous year. In addition, wood pellet consumption in this region is estimated to increase to 30 million tons in 2019, with imports increasing to 12.2 million tons from 10.355 million tons in 2018.

According to the report, the EU had 656 tablet production plants in 2017, with a combined capacity of 2.75 million tons. Capacity is also expected to reach 72% in 2019, up from 70% in 2018 and 67% in 2017. By country, the UK becomes the leading consumer of wood pellets in the EU region. in 2018, with 8 million tons, followed by Italy (3.75 million tons), Denmark (3.5 million tons), Germany (2.19 million tons) and Sweden (1,785 million tons). Strict regulations regarding environmental sustainability and unremitting efforts to achieve emission targets within the stipulated time period contribute significantly to the dominance of the European region in the tablet market. global wood. Government support initiatives and incentives offered by EU member states also drive the growth of the wood pellet market in this region.

North America is also increasing its consumption of wood pellets due to regional price competition with propane and residential heating oil. The rapid replacement of traditional burners to improve feed intake is also driving demand for wood pellets in this region.

The Asia Pacific Wood Pellet (APAC) market is forecast to witness a remarkable compound annual growth rate (CAGR) during the forecast period. Favorable government policies to increase the use of wood pellets for electricity generation along with an increasing number of power plants are driving demand for wood pellets in APAC countries, especially in Japan. , Korea and China. The growing focus on renewable energy sector in APAC countries is continuing to drive regional market growth. Samsung C&T has continuously expanded its role in importing wood pellets to South Korea, a country lacking natural energy resources. In addition, the country is so strongly supportive of the biomass sector that it is actually hindering the adoption of other renewable energy sources such as wind and solar.

Japan is currently the main global customer for palm kernel shells (PKS), buying more than 60% of total PKS exports in 2018. PKS is the main fuel used by many independent power producers in Japan. The Japanese, who want to benefit from feed in tax (FIT), are part of a national policy on low carbon production. The FIT program provides a 20-year grant to companies producing renewable energy. Increased investment in biomass plants in this region will also drive wood pellet market growth over the next five years. For example, in February 2019, Renova Inc made the final investment decision (FID) and achieved financial results for the 74.8 MW Tokushima Tsuda biomass power generation project in Tokushima Prefecture.

Competition details

Prominent key market players in the global Wood Pellets market include German Pellets GmbH, Pinnacle Renewable Energy Inc, Energex, Enviva LP, Wood & Sons, Drax Group plc, AS Graanul Invest, AVPGroup, Lignetics, Canfor, Stora Enso, Svenska Cellulosa Aktiebolaget SCA (publ), Brookridge Group and PIVETEAUBOIS. These companies hold a notable share in the market thanks to their good brand image and products. The major players in the global Wood Pellet market have been covered along with their relative competitive positions and strategies.

Price of GREEN MECH pellet machine

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