Market Overview

Biomass Pellets Market is estimated to achieve a value of USD 10.47 billion by 2023 and this amount is estimated to rise at a value of USD 18.59 billion by 2033, to grow at a CAGR of 5.9% during the forecast period 2024-2033.

Biomass pellets offer several advantages as a renewable energy source. They have a high energy density, making them efficient for storage and transport. They are also clean-burning, emitting significantly lower levels of greenhouse gases and pollutants compared to fossil fuels like coal. Biomass pellets can be used in specially designed pellet stoves, boilers, and power plants to generate heat or electricity.

The use of biomass pellets has gained popularity due to their potential to reduce dependence on fossil fuels, mitigate climate change, and support sustainable land management practices. They provide a viable alternative to traditional heating methods and contribute to the transition towards a more sustainable energy system. However, it's important to ensure that the biomass used for pellet production comes from sustainable sources to avoid negative environmental impacts such as deforestation or competition with food production.

The biomass pellets market is experiencing significant growth due to the increasing demand for renewable energy sources and the shift towards cleaner and sustainable fuel alternatives. Biomass pellets are compressed forms of biomass materials, such as agricultural residues, forest waste, energy crops, and wood residues, that are used as a fuel source for heat and power generation.

Advances in pellet production technology have improved the efficiency and quality of biomass pellets. Innovations such as pellet densification, improved pellet durability, and enhanced combustion characteristics have made biomass pellets more suitable for a wide range of applications.

Biomass pellets are increasingly traded internationally, with a growing export market. Countries with abundant biomass resources, such as the United States, Canada, Brazil, and European nations, are major exporters of biomass pellets, catering to the demand from countries seeking renewable energy solutions.

The biomass pellets market is witnessing substantial growth driven by the increasing demand for renewable energy sources and the favorable regulatory environment. Biomass pellets offer a sustainable alternative to fossil fuels, with applications in power generation, co-firing, and heating. Government support, technological advancements, and the expansion of biomass power plants are contributing to market growth. As the focus on clean energy intensifies, the biomass pellets industry is expected to continue its upward trajectory, providing a reliable and environmentally friendly energy solution.

Market Scope

Market Dynamics

The growing demand for renewable energy is driven by a combination of factors that include environmental concerns, energy security, economic considerations, and technological advancements.

Climate Change Mitigation: The urgent need to mitigate climate change is a significant driver for the growing demand for renewable energy. The burning of fossil fuels, such as coal, oil, and natural gas, releases greenhouse gases (GHGs) into the atmosphere, leading to global warming. Renewable energy sources, such as solar, wind, hydro, biomass, and geothermal, have lower or zero emissions of GHGs, making them a crucial part of the solution to reduce carbon dioxide and other harmful emissions, thereby creating a lucrative scope for biomass pellets market.

Government Policies and Targets: Many governments around the world have established renewable energy targets and implemented supportive policies to accelerate the transition to clean energy sources. These policies include feed-in tariffs, tax incentives, renewable portfolio standards, and carbon pricing mechanisms. By setting targets and providing incentives, governments aim to increase the share of renewable energy in their energy mix, thus driving the demand for renewable energy technologies.

Technological Innovation and Energy Transition: Rapid advancements in renewable energy technologies have expanded their capabilities and made them more reliable and cost-effective. For example, improvements in solar photovoltaic (PV) efficiency, wind turbine designs, and energy storage systems have enhanced the viability and attractiveness of renewable energy solutions. The ongoing transition towards a decentralized energy system with increased integration of renewable energy sources is driving the demand for biomass pellets market.

Governments around the world are implementing supportive policies and incentives to promote the use of biomass pellets as a renewable energy source. This includes feed-in tariffs, renewable energy targets, tax incentives, and grants, which are driving the market growth and encouraging investment in biomass pellet production

Renewable Energy Directive (RED) and RED II: The Renewable Energy Directive is a key policy framework in the European Union (EU) that sets binding targets for the share of renewable energy in the overall energy consumption. Biomass pellets are eligible for support under this directive, and RED II has further reinforced the sustainability criteria for biomass used in energy production.

Feed-in Tariffs and Premiums: Many European countries have implemented feed-in tariffs and premiums to incentivize the production of renewable energy, including biomass pellets. These mechanisms guarantee a fixed payment or additional premium for electricity generated from biomass pellets, making it financially attractive for producers.

Market Analysis By Raw Material

Based on raw material, the biomass pellets market is segmented into Husk, Shells, Bagasse, Palm Residues, Cakes (Olive Residue), Straws, Wood, Terrified Pellets, Others. Wood based pellets dominate the market with an active share of 59.95% in 2022 and this trends is estimated to reach a value of 10.81 billion by 2033 with a CAGR of 5.6%.

The wood-based biomass pellets market is experiencing significant growth, driven by several key trends. One prominent trend is the increasing demand for renewable energy sources and the transition towards sustainable practices. Wood pellets, considered a biomass fuel, are gaining popularity as a cleaner alternative to traditional fossil fuels. Governments and industries worldwide are embracing these pellets as part of their efforts to reduce carbon emissions and combat climate change. Another major trend is the expanding use of wood pellets in power generation, heating systems, and industrial applications. The versatility of wood pellets makes them a viable solution for both residential and commercial energy needs.

In addition, advancements in pellet production technology and the development of efficient pelletizing processes are enhancing the quality and consistency of wood-based pellets. This contributes to better combustion performance and reduced environmental impact. The global focus on circular economies is also influencing the wood pellet industry, with an emphasis on sustainable forestry practices, responsible sourcing of raw materials, and the utilization of wood residues and by-products.

Market Analysis By Application

Based on application, biomass pellets market is segmented into Industrial Heating, Commercial Heating, Residential Heating, Power Generation, Animal Bedding, Others. Industrial heating based application dominated the market with a consumption of 23,128 million metric tons in 2022 and is estimated to grow at a CAGR of 7.0%.

Analyzing the biomass pellets market for industrial heating involves assessing the use of biomass pellets as a renewable fuel source in various industrial applications. Here is an analysis of the biomass pellets industry specifically in the context of industrial heating:

Demand for Renewable Energy in Industries: There is a growing demand for renewable energy sources in industries to reduce carbon emissions and meet sustainability targets. Biomass pellets provide a viable alternative to fossil fuels for industrial heating applications, offering a renewable and carbon-neutral energy solution. Industries such as manufacturing, food processing, textiles, chemical processing, and paper production often require significant heat energy, making them suitable candidates for biomass pellet-based heating systems.

Cost-Effectiveness and Energy Efficiency: Biomass pellets offer cost-effectiveness and energy efficiency compared to traditional fossil fuels. With advancements in pellet production technology and optimized combustion systems, biomass pellet heating can provide efficient heat generation while minimizing operational costs. Industries that rely on continuous and high-volume heating processes can benefit from the stable and efficient performance of biomass pellet-based heating systems.

Environmental Regulations and Carbon Pricing: Stringent environmental regulations and carbon pricing mechanisms in many countries encourage industries to transition to cleaner and greener energy sources. Biomass pellets, being a renewable energy option, align with these regulatory requirements and help industries reduce their carbon footprint. The availability of incentives, subsidies, or emissions trading schemes can further drive the adoption of biomass pellets market for industrial heating.

Market Analysis By Region

Based on the geographic scope, the biomass pellets market is segmented into North America, Europe, APAC, South America and MEA.

Europe dominated the biomass pellets market with a consumption of 27,409 million metric tons and is anticipated to reach a volume of around 54,441 million metric tons. Europe's biomass pellets sector is witnessing dynamic growth, driven by a confluence of factors. A prominent trend is the region's commitment to renewable energy and sustainability. With an increasing focus on reducing carbon emissions and mitigating climate change, biomass pellets, derived from organic materials such as wood, have gained traction as a clean and renewable source of energy. European countries, in line with ambitious renewable energy targets, are actively incorporating biomass pellets into their energy portfolios.

The demand for biomass pellets in Europe is further bolstered by the continent's efforts to transition away from traditional fossil fuels. Biomass pellets are being extensively used in residential heating, power generation, and industrial processes. This surge in demand is fostering innovations in pellet production technologies, leading to improved efficiency and environmental performance. The industry is witnessing advancements in pellet quality, durability, and combustion characteristics, ensuring that biomass pellets meet stringent environmental standards.

Moreover, the European biomass pellets market is experiencing a shift toward more sustainable sourcing and production practices. Emphasis is placed on responsible forestry management, ensuring that the raw materials for pellet production come from well-managed and certified sources. This aligns with the broader European commitment to promoting a circular bioeconomy and minimizing the environmental footprint of biomass pellet production.

APAC biomass pellets market recorded a consumption of 12,442 million metric tons in 2022 and is estimated to reach a volume of 27,356 million metric tons by 2033 with a CAGR of 7.5%. The Asia Pacific biomass pellets industry is experiencing robust growth, driven by a combination of factors contributing to the region's energy transition. A significant trend is the increasing recognition of biomass pellets as a sustainable and renewable energy source. Governments across the Asia Pacific are actively promoting the use of biomass pellets to meet their growing energy demands while mitigating environmental concerns. This trend aligns with the region's commitment to reducing reliance on fossil fuels and addressing climate change.

Rapid urbanization and industrialization in several Asia Pacific countries are fueling the demand for cleaner energy alternatives. Biomass pellets, derived from diverse sources such as agricultural residues and wood waste, are gaining prominence for their versatility in power generation, heating, and industrial applications. The scalability of biomass pellet production makes it well-suited to cater to both large-scale industrial needs and decentralized, smaller-scale applications.

Another notable trend within the biomass pellet market is the diversification of biomass feedstocks. The Asia Pacific region, with its rich agricultural and forestry resources, is exploring various biomass sources for pellet production, including crop residues, energy crops, and municipal solid waste. This diversification enhances the sustainability and resilience of the biomass supply chain.

The Asia Pacific biomass pellets market is also witnessing increased investment in infrastructure and technology. Advances in palletization processes and storage technologies are improving the efficiency of biomass pellet production and distribution. This includes the development of pellet mills with enhanced capacities and the implementation of advanced combustion technologies for cleaner energy utilization.

Competitive Analysis

Some of the major companies operating within the biomass pellets market are AS Graanul Invest, Pinnacale Renewable Energy Inc., Lignetics, Zilikha Biomass Energy, Enviva Biomass, New England Wood Pellet and others.

Enviva Biomass dominated the market with an active share  of 8.27% in 2022,followed by New England Wood Pellet with 6.11%.

Research Report Following Segments:

By Raw Material

·         Husk

·         Shells

·         Bagasse

·         Palm Residues

·         Cakes (Olive Residue)

·         Straws

·         Wood

·         Torrefied Pellets

·         Others

By Husk

·         Rice Husk

·         Coconut Husk

·         Wheat Husk

·         Peanut Husk

·         Sunflower Husk

·         Soybean Husk

By Straws

·         Wheat Straw Pellets

·         Rice Straw Pellets

·         Barley Straw Pellets

·         Oat Straw Pellets

By Wood

·         Softwood

·         Hardwood

·         Poplar

·         Eucalyptus

·         Beech

By Torrefied Pellets

·         Hardwood

·         Softwood

·         Agricultural Residues

·         Energy Crops

By Application

·         Industrial Heating

·         Commercial Heating

·         Residential Heating

·         Power Generation

·         Animal Bedding

·         Others

1.      Global Biomass Pellets Market Introduction and Market Overview

1.1.   Objectives of the Study

1.2.   Global Biomass Pellets Market Scope and Market Estimation

1.2.1.      Global Biomass Pellets Overall Market Size, Revenue (US$ Mn & Million Metric Tons), Market CAGR (%), Market forecast (2023 - 2033)

1.2.2.      Global Biomass Pellets Market Revenue Share (%) and Growth Rate (Y-o-Y) from 2019 - 2033

1.3.   Market Segmentation

1.3.1.      Raw Material of Global Biomass Pellets Market

1.3.2.      Application of Global Biomass Pellets Market

1.3.3.      Region of Global Biomass Pellets Market

2.      Executive Summary

2.1.   Global Biomass Pellets Market Industry Trends under COVID-19 Outbreak

2.1.1.      Global COVID-19 Status Overview

2.1.2.      Influence of COVID-19 Outbreak on Global Biomass Pellets Market Industry Development

2.2.   Market Dynamics

2.2.1.      Drivers

2.2.2.      Limitations

2.2.3.      Opportunities

2.2.4.      Impact Analysis of Drivers and Restraints

2.3.   Pricing Trends Analysis & Average Selling Prices (ASPs)

2.4.   Key Mergers & Acquisitions, Expansions, JVs, Funding / VCs, etc.

2.5.   Porter’s Five Forces Analysis

2.5.1.      Bargaining Power of Suppliers

2.5.2.      Bargaining Power of Buyers

2.5.3.      Threat of Substitutes

2.5.4.      Threat of New Entrants

2.5.5.      Competitive Rivalry

2.6.   Value Chain / Ecosystem Analysis

2.7.   Russia-Ukraine War Impacts Analysis

2.8.   Economic Downturn Analysis

2.9.     Pricing and Production, 2013-2022

3.      Global Biomass Pellets Market Estimates & Historical Trend Analysis (2019 - 2022)

4.      Global Biomass Pellets Market Estimates & Forecast Trend Analysis, by Raw Material

4.1.   Global Biomass Pellets Market Revenue (US$ Mn & Million Metric Tons) Estimates and Forecasts, by Raw Material, 2019 to 2033

4.1.1.      Husk

4.1.1.1.            Rice Husk

4.1.1.2.            Coconut Husk

4.1.1.3.            Wheat Husk

4.1.1.4.            Peanut Husk

4.1.1.5.            Sunflower Husk

4.1.1.6.            Soybean Husk

4.1.2.      Shells

4.1.3.      Bagasse

4.1.4.      Palm Residues

4.1.5.      Cakes (Olive Residue)

4.1.6.      Straws

4.1.6.1.            Wheat Straw Pellets

4.1.6.2.            Rice Straw Pellets

4.1.6.3.            Barley Straw Pellets

4.1.6.4.            Oat Straw Pellets

4.1.7.      Wood

4.1.7.1.            Softwood

4.1.7.2.            Hardwood

4.1.7.3.            Poplar

4.1.7.4.            Eucalyptus

4.1.7.5.            Beech

4.1.8.      Torrefied Pellets

4.1.8.1.            Hardwood

4.1.8.2.            Softwood

4.1.8.3.            Agricultural Residues

4.1.8.4.            Energy Crops

4.1.9.      Others

5.      Global Biomass Pellets Market Estimates & Forecast Trend Analysis, by Application

5.1.   Global Biomass Pellets Market Revenue (US$ Mn & Million Metric Tons) Estimates and Forecasts, by Application, 2019 to 2033

5.1.1.      Industrial Heating

5.1.2.      Commercial Heating

5.1.3.      Residential Heating

5.1.4.      Power Generation

5.1.5.      Animal Bedding

5.1.6.      Others

6.      North America Biomass Pellets Market: Estimates & Forecast Trend Analysis

6.1.   North America Biomass Pellets Market Assessments & Key Findings

6.1.1.      North America Biomass Pellets Market Introduction

6.1.2.      North America Biomass Pellets Market Size Estimates and Forecast (US$ Million & Million Metric Tons) (2019 – 2033)

6.1.2.1.  By Raw Material

6.1.2.2.  By Application

6.1.2.3.  By Country

6.1.2.3.1.   The U.S.

6.1.2.3.2.   Canada

6.1.2.3.3.   Mexico

7.      Europe Biomass Pellets Market: Estimates & Forecast Trend Analysis

7.1.   Europe Biomass Pellets Market Assessments & Key Findings

7.1.1.      Europe Biomass Pellets Market Introduction

7.1.2.      Europe Biomass Pellets Market Size Estimates and Forecast (US$ Million & Million Metric Tons) (2019 – 2033)

7.1.2.1.  By Raw Material

7.1.2.2.  By Application

7.1.2.3.      By Country

7.1.2.3.1.   Germany

7.1.2.3.2.   U.K.

7.1.2.3.3.   France

7.1.2.3.4.   Italy

7.1.2.3.5.   Spain

7.1.2.3.6.   Russia

7.1.2.3.7.   Rest of Europe

8.      Asia Pacific Biomass Pellets Market: Estimates & Forecast Trend Analysis

8.1.   Asia Pacific Market Assessments & Key Findings

8.1.1.      Asia Pacific Biomass Pellets Market Introduction

8.1.2.      Asia Pacific Biomass Pellets Market Size Estimates and Forecast (US$ Million & Million Metric Tons) (2019 – 2033)

8.1.2.1.  By Raw Material

8.1.2.2.  By Application

8.1.2.3.      By Country

8.1.2.3.1.   China

8.1.2.3.2.   Japan

8.1.2.3.3.   India

8.1.2.3.4.   Australia

8.1.2.3.5.   South Korea

8.1.2.3.6.   ASEAN

8.1.2.3.7.   Rest of Asia Pacific

9.      Middle East & Africa Biomass Pellets Market: Estimates & Forecast Trend Analysis

9.1.   Middle East & Africa Market Assessments & Key Findings

9.1.1.      Middle East & Africa Biomass Pellets Market Introduction

9.1.2.      Middle East & Africa Biomass Pellets Market Size Estimates and Forecast (US$ Million & Million Metric Tons) (2019 – 2033)

9.1.2.1.  By Raw Material

9.1.2.2.  By Application

9.1.2.3.      By Country

9.1.2.3.1.   U.A.E.

9.1.2.3.2.   Saudi Arabia

9.1.2.3.3.   Egypt

9.1.2.3.4.   South Africa

9.1.2.3.5.   Rest of Middle East & Africa

10.  South America Biomass Pellets Market: Estimates & Forecast Trend Analysis

10.1. South America Market Assessments & Key Findings

10.1.1.  South America Biomass Pellets Market Introduction

10.1.2.  South America Biomass Pellets Market Size Estimates and Forecast (US$ Million & Million Metric Tons) (2019 – 2033)

10.1.2.1.  By Raw Material

10.1.2.2.  By Application

10.1.2.3.  By Country

10.1.2.3.1.              Brazil

10.1.2.3.2.              Argentina

10.1.2.3.3.              Colombia

10.1.2.3.4.              Rest of South America

11.  Competition Landscape

11.1. Global Biomass Pellets Market Competition Matrix & Benchmarking, by Leading Players / Innovators / Emerging Players / New Entrants

11.2. Global Biomass Pellets Market Competition White Space Analysis, By End-user

11.3. Global Biomass Pellets Market Competition Heat Map Analysis, By End-user

11.4. Global Biomass Pellets Market Concentration & Company Market Shares (%) Analysis, 2022

12.  Company Profiles

12.1.  AS Graanul Invest

12.1.1.  Company Overview & Key Stats

12.1.2.  Financial Performance & KPIs

12.1.3.  Product Portfolio

12.1.4.  Business Strategy & Recent Developments

* Similar details would be provided for all the players mentioned below 

12.2.     Pinnacale Renewable Energy Inc.

12.3.     Lignetics

12.4.     Zilikha Biomass Energy

12.5.     Enviva Biomass

12.6.     New England Wood Pellet

12.7.     Others

13.  Research Methodology

13.1. External Transportations / Databases

13.2. Internal Proprietary Database

13.3. Primary Research

13.4. Secondary Research

13.5. Assumptions

13.6. Limitations

13.7. Report FAQs

14.  Research Findings & Conclusion