Biomass Pellets Market Size Report and Global Analysis by 2030

Biomass Pellets Market Forecast to 2030 - Global Analysis by Source (Agricultural Residue, Industrial Waste, Wood, and Others) and Application (Power Plants, Industrial Heating, Residential and Commercial Heating, and Others)

Publication Month : Aug 2023

  • Report Code : TIPRE00009220
  • Category : Chemicals and Materials
  • Status : Published
  • No. of Pages : 163
Inquire Before Buy

PRICING

$4550

$3640

[Research Report] The biomass pellets market size was valued at US$ 11,001.59 million in 2022 and is expected to reach US$ 16,137.89 million by 2030; it is estimated to register a CAGR of 4.9% from 2022 to 2030.

Market Insights and Analyst View:

Biomass pellets are high-density, processed biomass compressed in small cylindrical form. It is derived from organic materials, such as agricultural residue, wood waste, wood chips, sawdust, and forest residue. Biomass pellets are used in power generation as well as heating applications in residential, commercial, and industrial sectors. It has many advantages over unprocessed biomass, such as standardized characteristics, high energy content, storage feasibility, and ease of transportation. Biomass pellets, namely wood pellets, are widely used in residential pellet stoves and boilers. The government's efforts to reduce greenhouse gas emissions and promote the utilization of biomass pellets is driving the biomass pellets market growth.

Growth Drivers and Challenges:

With the growing focus on sustainability, the demand for biomass pellets such as wood pellets has increased significantly. Wood pellets can be utilized for electricity production as an alternative to coal feedstock. Further, biomass pellets are uniformly shaped, possess high density, and are feasible for transportation and storage. The demand for wood pellets has substantially grown for power generation applications. In Europe and North America, as well as in Asian countries such as China, Japan, and South Korea—wood pellets are primarily used for co-firing at coal-fired power plants. There is a rise in the utilization of alternative materials for coal in large-scale power plants worldwide. In 2021, the Ministry of Power of India mandated at least 5% utilization of biomass pellets in fuel-mix with coal in all coal-fired power plants. Such mandates are driving the growth of the biomass pellets market in India. Further, the large-scale power utilities in several European countries such as the Netherlands and Belgium sourced biomass pellets from the US, Russia, and Canada, as per the United States Department of Agriculture. Thus, the rising demand for wood pellets from the power generation industry is driving the biomass pellets market. Biomass pellets are derived from organic materials such as wood, agricultural residue, and industrial wastes. Many countries consider biomass pellets as a sustainable fuel source; however, there are several environmental concerns related to biomass pellets. The combustion of biomass pellets releases pollutants in the air, including particulate matter, nitrogen oxides, and volatile organic compounds. Further, the production of biomass involves a significant amount of water consumption for processing. Hence, the environmental concerns pertaining to biomass pellets are hampering the biomass pellets market growth.

Customize Research To Suit Your Requirement

We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.

Biomass Pellets Market: Strategic Insights

biomass-pellets-market
Market Size Value inUS$ 11,001.59 million in 2022
Market Size Value byUS$ 16,137.89 million by 2030
Growth rateCAGR of 4.9% from 2022 to 2030
Forecast Period2022-2030
Base Year2022
Analyst Image

Shejal

Have a question?

Shejal will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.

Analyst Image  Speak to Analyst

Report Segmentation and Scope:

The global biomass pellets market is segmented on the basis of source, application, and geography. Based on source, the biomass pellets market is segmented into agricultural residue, industrial waste, wood, and others. Based on application, the biomass pellets market is segmented into power plants, industrial heating, residential and commercial heating, and others. By geography, the biomass pellets market is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)

  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
  • Request discounts available for Start-Ups & Universities

Segmental Analysis:

Based on source, the biomass pellets market is segmented into agricultural residue, industrial waste, wood, and others. The wood segment held the largest share in the biomass pellets market and is expected to register significant growth over the forecast period. Biomass pellets are manufactured using wood wastes such as sawdust, wood chips, wood shavings, bark, and other residual materials generated from woodworking, sawmills, and timber processing. The wood waste is collected, processed, dried, and pelletized. Wood biomass pellets are widely used in residential heating applications, industrial furnaces, and power plants.

  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
  • Request discounts available for Start-Ups & Universities

Regional Analysis:

Based on geography, the biomass pellets market is segmented into five key regions—North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global biomass pellets market was dominated by Europe, which accounted for ~US$ 6,478 million in 2022. Asia Pacific is the second-largest contributor, which recorded more than 30% of the global biomass pellets market share in the same year. North America is expected to register a CAGR of over 4.5% during the forecast period. In North America, the biomass pellets market is significantly driven by the regional cost competitiveness of biomass pellets as compared to residential heating oil and propane. The production of wood pellets in North America has gained traction over the past few years due to rising demand from overseas markets. According to the United States Department of Agriculture, the US and Canada supply wood pellets to power plants in the Netherlands and Belgium. The increase in domestic demand for biomass pellets in the region has prompted manufacturers to expand their production capacities. In 2023, Grand River Pellets (Canada) invested US$ 30 million to expand the biomass pellets production capacity from 140,000 to 220,000 metric ton per year. All these factors are driving the biomass pellets market growth in North America.

Industry Developments and Future Opportunities:

Various initiatives taken by the key players operating in the biomass pellets market are listed below:

  • In September 2022, Enviva Inc inaugurated its newly constructed wood pellet manufacturing facility in George County, Mississippi (US). The plant started production activities at the beginning of 2022 to reach an annual permitted production capacity of 750,000 metric ton per year (MTPY).
  • In April 2022, Drax Group PLC opened a new pellet plant at Demopolis in Alabama, the US. The plant produces sustainable biomass pellets annually from sawmill residues such as sawdust, chips, and shavings.
  • In December 2020, Pure Biofuel Ltd. launched ENPOWER wood pellets. ENPOWER wood pellets bags incorporate A1 quality standards, which are set out by the UK Pellet Council and the European Council. This product is available in 10-kg or 15-kg packets.
  • In April 2021, Drax Group PLC acquired Pinnacle Renewable Energy Inc. With the acquisition, Drax Group PLC delivered bioenergy with carbon capture and storage (BECCS), permanently removing carbon dioxide from the atmosphere yearly.
  • In May 2023, LEAG Group acquired Wismar Pellets GmbH from Metropolitan Equity Partners, a private equity investor, in a bidding process to expand the production and supply portfolio of its refining operations. This acquisition will help LEAG Group to serve a larger number of customers.

COVID-19 Impact:

The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America, and the Middle East & Africa (MEA) hampered the growth of several industries, including the chemical & materials industry. The shutdown of manufacturing units of biomass pellets companies disturbed global supply chains, manufacturing activities, and delivery schedules. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2020. Most of the power plants and industrial plants were shut down during the pandemic, decreasing the consumption of biomass pellets. In addition, the pandemic has caused fluctuations in biomass pellets prices. However, various industries revived their operations after supply constraints were resolved. Moreover, the rising demand for biomass pellets from the industrial and residential sectors is substantially promoting the biomass pellets market growth.

Competitive Landscape and Key Companies:

A few players operating in the global biomass pellets market include Drax Group Plc, Enviva Inc, AS Graanul Invest, Lignetics Inc, Valfei Products Inc, Mallard Creek Inc, Energex American Inc., Wismar Pellets GmbH, UAB Redal Ltd, and Premium Pellet Ltd. Players operating in the global biomass pellets market focus on providing high-quality products to fulfill customer demand.

Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Source, and Application

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions


What are the key factors influencing market growth?

The projected growth of the market is attributed to the rising demand for wood pellets from the power generation industry and the adoption of biomass pellets for animal bedding.

Which region held the fastest CAGR in the global biomass pellets market?

Asia Pacific is estimated to register the fastest CAGR in the global biomass pellets market over the forecast period. The rising imports of wood pellets and increasing biomass plant capacities are projected to surge the demand for biomass pellets in the Asia Pacific.

Based on application, which segment is leading the global biomass pellets market during the forecast period?

The power plant segment held the largest share of the global biomass pellets market in 2022. Biomass pellets are widely used in power plants to generate electricity. Biomass pellets in power plants offer several environmental benefits, such as renewable energy sources, reduced greenhouse gas emissions, and waste management.

Based on source, which segment is leading the global biomass pellets market during the forecast period?

The wood segment held the largest share in the global biomass pellets market in 2022. Biomass pellets are manufactured using wood wastes such as sawdust, wood chips, wood shavings, bark, and other residual materials generated from woodworking, sawmills, and timber processing.

Which region held the largest share of the global biomass pellets market?

In 2022, Europe held the largest share of the global biomass pellets market. The major consumers of wood pellets in the EU are Italy, the Netherlands, Germany, Denmark, France, Sweden, Belgium, and Austria. The demand for wood pellets in the Netherlands, Denmark, and Belgium was driven by the rising use of pellets in power plants.

Can you list some of the major players operating in the global biomass pellets market?

A few players operating in the global biomass pellets market include Drax Group Plc, Enviva Inc, AS Graanul Invest, Lignetics Inc, Valfei Products Inc, Mallard Creek Inc, Energex American Inc., Wismar Pellets GmbH, UAB Redal Ltd, and Premium Pellet Ltd.

The List of Companies - Biomass Pellets Market

  1. Drax Group Plc
  2. Enviva Inc
  3. AS Graanul Invest
  4. Lignetics Inc
  5. Valfei Products Inc
  6. Mallard Creek Inc
  7. Energex American Inc.
  8. Wismar Pellets GmbH
  9. UAB Redal Ltd
  10. Premium Pellet Ltd

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

Your data will never be shared with third parties, however, we may send you information from time to time about our products that may be of interest to you. By submitting your details, you agree to be contacted by us. You may contact us at any time to opt-out.

Trends and growth analysis reports related to Biomass Pellets Market