According to the latest market intelligence, the global wood pellet market size, valued at USD 13.99 billion in 2024, is projected to grow from USD 15.04 billion in 2025 to USD 26.72 billion by 2033, expanding at a CAGR of 7.45% during the forecast period (2025–2033). This growth is fueled by the increasing adoption of wood pellets as an eco-friendly, renewable alternative to fossil fuels for heating and power generation.
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What are Wood Pellets?
Wood pellet adalah biofuel berbentuk silinder kecil yang dihasilkan dari biomassa seperti serbuk gergaji, limbah kayu, atau batang pohon utuh yang dikeringkan, digiling, dan dipadatkan dengan tekanan tinggi. Produk ini digunakan dalam berbagai peralatan seperti wood pellet machine, wood pellet grill, pellet stove, wood stove, wood pellet stove, dan wood pellet heater. Selain itu, inovasi seperti wood pellet pizza oven dan wood pellet patio heater semakin memperluas penggunaannya di sektor rumah tangga dan komersial.
Selain untuk energi, wood pellet litter dan wood pellet cat litter semakin populer di kalangan pemilik hewan peliharaan sebagai solusi ramah lingkungan. Di pasar peralatan outdoor, merek seperti Traeger wood pellet grill dan wood pellet smoker memimpin tren memasak berbasis pellet.
Market Segmentation
By Application:
- Heating (Residential & Commercial) – The dominant segment, supported by pellet stove and wood stove adoption.
- CHP (Combined Heat & Power) – Gaining traction in industrial energy efficiency.
- Power Generation – Growth driven by coal-to-biomass conversions.
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Regional Insights
Europe Leads the Market
Europe will continue to hold the largest wood pellet market share through 2033, driven by:
- Government incentives by EU member states
- Price competitiveness against propane and heating oil
- Rising demand from wood pellet stoves and heating applications
European demand is expected to grow 30–40% in the coming years. However, supply constraints for raw materials could spur innovation in wood pellet manufacturing.
Key Players
- Andritz AG
- Asia Biomass Public Company Limited
- Drax Group PLC
- Energex
- Enviva LP
- Fram Renewable Fuels LLC
- Land Energy Limited
- Lignetics Inc.
- Mallard Creek Inc.
- Pacific BioEnergy Corporation
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Frequently Asked Questions
- How big is the wood pellet market?
Ans : The global wood pellet market is projected to grow from USD 15.04 billion in 2025 to USD 26.72 billion by 2033, at a CAGR of 7.45%.
- Is wood pellet business profitable?
Ans : Yes. With rising clean energy demand, government incentives, and diversification into products like wood pellet cat litter, grills, and stoves, profitability is increasing—especially for regions with strong biomass resources.
- Who is the largest consumer of wood pellets?
Ans : Europe remains the largest consumer, particularly the UK, Germany, and Nordic countries, due to extensive biomass power generation and heating demand.
- What is the wood pellet market in 2025?
Ans : By 2025, the global market is expected to be valued at USD 15.04 billion, driven by strong adoption in both heating and power generation applications.