Wood Pellets Market Size, Share & Trends Report

Wood Pellets Market Size, Share & Trends Analysis Report By Application (Heating, Power Generation, CHP), By End-use (Residential, Commercial, Industrial), By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-2-68038-745-2
  • Number of Pages: 118
  • Format: Electronic (PDF)

Research Methodology

A three-pronged approach was followed for deducing the wood pellets market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for wood pellets market to gather the most reliable and current information possible.

  • We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
  • We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
  • We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
  • We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
  • We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of wood pellets market data depending on the type of information we’re trying to uncover in our research.

  • Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

  • Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

  • Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

  • Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

  • Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

  • Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

  • This step also entails the finalization of the report scope and data representation pattern.

  • Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Smart Home Market Categorization:

The wood pellets market was categorized into three segments, namely application (Heating, Power Generation, CHP), end-use (Residential, Commercial, Industrial), and regions (North America, Europe, Asia Pacific, Central & South America, Middle East & Africa).

Segment Market Methodology:

The wood pellets market was segmented into application, end-use, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

  • Demand estimation of each product across countries/regions summed up to from the total market.

  • Variable analysis for demand forecast.

  • Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

  • Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

  • Used extensively for new product forecasting or analyzing penetration levels.

  • Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

  • Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

  • This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The wood pellets market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into twenty-five countries, namely, the U.S.; Canada; the UK; Germany; France; Italy; Spain; Benelux; Nordic Countries; Russia; China; India; Japan; South Korea; Australia; Indonesia; Thailand; Brazil; Mexico; Argentina; Saudi Arabia; UAE; Egypt; South Africa; and Nigeria.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Wood pellets market companies & financials:

The wood pellets market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

  • Drax Group Plc, incorporated in 1975 in North Yorkshire, UK, is focused majorly on the generation and distribution of electricity in the UK. Its operations are conducted through an integrated value chain across the three key areas – sustainable wood pellet production, electricity generation, and energy sales & services to customers. The group functions through three segments, namely Power Generation, B2B Energy, and Pellet Production. Drax Power Station owned by the group is engaged in the production of electricity from biomass and is located in Selby, North Yorkshire. The group also provides gas and electricity to business customers. Additionally, it manufactures and distributes compressed wood pellets used for the production of electricity. The group operates through Drax Biomass, Haven Power, and Opus Energy. Drax Biomass manufactures compressed wood pellets from sustainably managed forests and low-value industrial forestry residues. These pellets find application in electric utilities for reducing carbon emissions, cutting down the dependence on coal; and are sources of reliable, affordable, and safe power. These wood pellets are supplied as fuel to Drax Power Station in order to generate electricity from renewable sources of energy to supply power businesses and homes in the UK.


  • SINGPELLET Pte. Ltd. has its headquarters in Singapore. The company is focused on the manufacturing and distribution of wood pellets, which are used for industrial applications in the ASEAN market. Its manufacturing facility is located in the middle of the timber industry in Sumatra and is thereby supplied with a plentiful source of raw material. The company is a subsidiary of ENITO group. The advanced R&D department coupled with state-of-the-art equipment has helped the company acquire a significant share in the wood pellet market. In order to minimize the logistics and transportation costs, the location of the company’s pellet manufacturing plant is in the vicinity of wood processing industries on the edge of the plantation in Sijunjung, Indonesia. The company has invested majorly in high-yield and fast-growing plant species that are managed and planted for large-scale wood pellet production in Indonesia. Its industrial-grade biomass wood pellets find application as an alternative to fossil fuel in power plants. The company uses natural and untreated materials from sawmills, wood-cuts, wood from wood-thinning, and Short Rotation Coppices (SRC) as raw materials for manufacturing wood pellets.


  • Enviva LP was incorporated in 2004 and is headquartered in Maryland, U.S. The company operates through two divisions, namely Enviva Development Holdings LLC, and Enviva Partners LP. Enviva Partners LP is focused on the manufacturing and supply of wood pellets in the UK and Europe. The company mainly operates through long-term contracts in these regions. The company has over seven manufacturing facilities, having a collective production capacity of over 3 million metric tons of wood pellets every year. These facilities are located in South Carolina, North Carolina, Florida, Virginia, and Mississippi. The company also has marine terminals in Wilmington, North Carolina, and Chesapeake, Virginia, through which it exports wood pellets. It is one of the major producers of wood pellets that can act as a replacement for coal to generate power, while reducing the emission of greenhouse gases, for electrical utilities. It manufactures pellets using sustainable practices aiding the protection of the southern forests.


  • Georgia Biomass, LLC was incorporated in 2010 and is a wholly owned subsidiary of Innogy SE. The company is headquartered in Waycross, U.S. It is focused on the manufacturing and distribution of renewable and sustainable fuel products for the generation of power and heat worldwide. This is accomplished by supplying products and services to customers while maintaining safety standards. The parent company, Innogy SE, is engaged in the generation of energy from renewable sources. It also provides services in the sectors of storage technologies, energy efficiency, and electro-mobility. The company’s key markets in Europe include the UK, Belgium, Czech Republic, the Netherlands, Poland, Germany, and Hungary. Innogy SE operates through three business segments, namely Retail, Renewables, and Grid & Infrastructure, providing decarbonized, modern, digital, and decentralized energy. It is involved in the development of smart-grids in five European countries, with Germany as its base. In addition, it provides onshore wind power to a few areas in Europe.


  • The Westervelt Company, Inc. was incorporated in 1884 as Prairie States Paper Corporation. Business segments include renewable energy and pellets; Southern Yellow Pine lumber manufacturing and certified forestry; and ecological restoration services that include comprehensive wildlife management, conservation banking, real estate, sporting lodges, and mitigation. According to its business segments, the company functions as Westervelt Ecological Services, lumber, renewable energy, lodge, wildlife, natural resources, and communities. Westervelt Renewable Energy is engaged in manufacturing wood pellets from renewable biomass. These pellets are made in Alabama and then transported via the Port of Mobile to Europe, where they are used as a substitute for coal or along with coal for power generation.


  • Pinnacle Renewable Energy Inc. was incorporated in 1989 and is headquartered in Richmond, Canada. The company, along with its subsidiaries, focuses on the manufacturing, distribution, and sale of industrial wood pellets in Europe, North America, and Asia. It has seven manufacturing facilities located in western Canada, where the supply of wood fiber is abundant, aiding the manufacture of wood pellets. The company provides renewable fuel for the generation of electricity in the form of industrial wood pellets for use in large-scale thermal energy generators for baseload and renewable power. It also offers carbon-neutral products for residential use and sorbent products as well as animal bedding for pets. The company has long-term contracts with end-use customers and raw material suppliers. It manufactures pellets from logs, sawdust, bark, bush grind, chips, and shavings. The pellets are easy to handle and are produced using the waste by-products from the timber industry. These aid in maintaining a carbon-neutral cycle by turning biomass waste into heat and reducing toxic emissions.


  • Energex is a portfolio company of ELB Capital Management LLC, which was incorporated in 1993, when the parent company acquired Lac-Megantic, QC plant from the Shell Oil Company. The Lac-Megantic facility was constructed in 1981 by Shell Oil and is considered to be one of the oldest wood pellet manufacturing facilities in North America. Energex is headquartered in Lac-Megantic, Canada. The company operates through two manufacturing facilities in North America, which have a combined capacity of over 250 kilotons. The automatic packaging facility, environmental controls, and the company’s process control system enable the company to store bags containing wood pellets in the inventory. The company merged with a pellet manufacturing facility in West Virginia to become the Energex American facility.


  • Wood Pellet Energy (UK) Ltd. was established in 2006 and is headquartered in Durham, UK. The company is engaged in providing domestic and industrial heating using biomass in the UK. It manufactures wood pellets from recycled sources of wood in the region. The pellets are carbon-neutral and offer a substitute for traditional fossil fuels. The company has a manufacturing facility located in Chilton, Durham. The location has high accessibility to roadways, which aids in the easy transportation of the wood pellets. Additionally, the company’s process is automated by hopper loading technology, thereby requiring minimal manual intervention, which makes it more efficient. The high calorific value and low moisture content of the pellets enable the company to supply energy at high efficiency, making the process eco-friendly and cost-effective.


  • Groupe Savoie Inc. is a family-owned business headquartered in New Brunswick, Canada. The company is engaged in the production of hardwood products such as furniture and cabinet components; pallet and pallet components; tonewood components; wood chips; hardwood lumber; green fuels and by-products; and other hardwood components. The business is integrated vertically and ranges from harvesting wood to the production of all products offered by the company. In addition to manufacturing wood products, the company also uses hardwood from hard maple, yellow birch, red maple, aspen, ash, and white birch. The company has two sawmills, one component manufacturing facility, one pellet manufacturing facility, dry kilns, and one pellet manufacturing facility in St-Quentin, New Brunswick; one recycling and pellet production facility in Moncton, New Brunswick; one sawmill in Westville, Nova-Scotia; and dry kilns and one component manufacturing facility in Kedgwick, New Brunswick.


  • United Company was incorporated in 2005 and is headquartered in Cairo, Egypt. The company is engaged in the manufacturing and supply of pellets produced from biomass sources in the Middle East and Africa regions. It operates through two subsidiaries, namely The United Company for Land Reclamation & Agro Industries situated in Beni-Suef, Egypt, and The United Company for Recycling Wood located in Damietta, Egypt. The company manufactures wood pellets from untreated wood, including sawdust, wood scrap, and agricultural wastes. In addition to wood pellets, the company also provides wood briquettes. Its annual production capacity from both manufacturing facilities is 70 kilotons for wood pellets and 1000 tons for briquettes.

Value chain-based sizing & forecasting

Supply Side Estimates

  • Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

  • Segment revenue determination via variable analysis and penetration modeling.

  • Competitive benchmarking to identify market leaders and their collective revenue shares.

  • Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

  • Identifying parent markets and ancillary markets

  • Segment penetration analysis to obtain pertinent

  • revenue/volume

  • Heuristic forecasting with the help of subject matter experts

  • Forecasting via variable analysis

Wood Pellets Market Report Objectives:

  • Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

  • Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

  • Understanding market estimates and forecasts (with the base year as 2021, historic information from 2017 to 2021, and forecast from 2022 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Wood Pellets Market Report Assumptions:

  • The report provides market value for the base year 2021 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

  • The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

  • We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

  • All market estimates and forecasts have been validated through primary interviews with the key industry participants.

  • Inflation has not been accounted for to estimate and forecast the market.

  • Numbers may not add up due to rounding off.

  • Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

  • Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

  • Latin America includes Central American countries and the South American continent

  • Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

  • Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

  • Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.

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