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Fuelwood Market Size To Reach $45.79 Billion By 2030

Fuelwood Market Size To Reach $45.79 Billion By 2030

June 2025 | Report Format: Electronic (PDF)

Fuelwood Market Growth & Trends

The global fuelwood market size is anticipated to reach USD 45.79 billion by 2030 and is projected to grow at a CAGR of 3.6% from 2025 to 2030, according to a new report by Grand View Research, Inc. The fuelwood industry continues to be a vital segment of the global energy landscape, particularly in developing regions where it remains a primary source of energy for cooking and heating. Despite the gradual introduction of modern energy alternatives such as LPG and electricity, millions of households in rural and peri-urban areas still depend on fuelwood due to its affordability, accessibility, and cultural acceptance. This sustained demand is driven by rising populations, urbanization, and limited infrastructure for cleaner fuels in countries across Asia, Africa, and Latin America.

Innovation and modernization are gradually reshaping the fuelwood industry. The emergence of improved biomass technologies, such as kiln-dried and compressed firewood products, has increased fuel efficiency and reduced harmful emissions, catering to both residential and industrial users. In addition, advancements in pellet production and biomass conversion methods are enabling fuelwood to be used in more efficient and sustainable ways, supporting the transition to renewable energy sources. Companies are also expanding their production capacities and adopting sustainable forest management practices to meet growing demand while addressing environmental concerns.

Market dynamics are further influenced by government policies promoting clean energy and sustainable forestry, as well as global efforts to reduce carbon footprints. However, challenges remain, such as fluctuating LPG prices and the persistence of informal fuelwood industry in many regions. Despite these hurdles, the fuelwood industry is projected to grow steadily, driven by continuous energy needs, especially in developing economies, and ongoing innovations that improve fuelwood’s sustainability and usability across various sectors.

In addition, the fuelwood industry is seeing increasing attention from both investors and policymakers due to its role in energy security and rural livelihoods. Mergers and acquisitions among key players are consolidating supply chains and enabling greater investment in sustainable harvesting and processing technologies. At the same time, stricter regulations on deforestation and carbon emissions are pushing the market toward plantation-grown fuelwood and certified sustainable sources. This shift not only helps preserve natural forests but also supports economic development by creating jobs in fuelwood plantations and processing facilities, making the market more resilient and environmentally responsible in the long term.

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Fuelwood Market Report Highlights

The natural forests segment led the market with the largest revenue share of 51.5% in 2024, as they are abundant, easily accessible, and often used informally by local communities without the need for intensive cultivation or infrastructure.
The residential heating & cooking segment led the market with the largest revenue share of 54.7% in 2024, due to high demand for affordable and traditional energy sources, particularly in rural households across developing countries where alternatives like LPG and electricity are either costly or unavailable.
Europe dominated the market with the largest revenue share of 59.68% in 2024, due to strong demand for biomass-based heating solutions, government incentives for renewable energy, and established infrastructure for sustainable fuelwood and pellet use in residential and district heating systems.