Europe Wood Pellet Market Trends and Analysis by 2028

The wood pellet market in Europe is expected to grow from US$ 8,285.21 million in 2021 to US$ 18,206.29 million by 2028; it is estimated to grow at a CAGR of 11.9% from 2021 to 2028.

The UK, Germany, and Italy are major economies in Europe. Rising awareness about use of renewable energy sources is the major factor driving the growth of the Europe wood pellet market. Renewable energy plays a vital role to play in meeting the future energy needs in both rural and urban areas. The scarcity of resources, along with an increase in awareness about adverse environmental impacts of fossil-based products and processes, has surged the dependency on renewable energy sources such as wood pellets. The growing need for sustainable energy development is yet another factor contributing to the increased demand for wood pellets. Renewable energy resources and technologies are considered as environment-friendly alternatives as they generally cause limited or no impact on the environment than other forms of energy sources. Further, such resources are easily available and cannot be depleted. Wood pellets are categorized under renewable energy sources as they are derived from trees and are a form of biomass. Wood pellets are composed of dried and compressed wood fibers prepared from sawmill residuals, logging debris such as forest debris piles, and whole logs. According to the US Energy Information Administration, biomass is categorized as an organic material that can be effectively used as a source of energy. Several forms of biomass such as wood pellets are carbon neutral and leave a net-zero carbon footprint upon burning biomass. Moreover, the deployment of wood energy pellets instead of oil can effectively help in minimal emission of greenhouse gases into the environment. Hence, the demand for wood pellets is expected to rise with the growing investment in renewable energy forms.

In Europe, France, the UK, and Russia have experienced more serious adversities due to the COVID-19 pandemic. The region is estimated to suffer an economic hit due to the lack of revenue from various industries subjected to disruption in supply chain. As of August 2021, Russia recorded 6,379,904 COVID-19 cases, with 162,509 deaths. The pandemic has led to the temporary disruptions in the operational efficiencies of industries in Europe. Fluctuations in raw material sourcing and pricing have also hampered the wood pellet market in Europe. However, growing focus on the adoption of renewable energy sources is expected to substantially promote the demand for wood pellets in the region in the coming years.

Europe Wood Pellet Market Segmentation 

Europe Wood Pellet Market – By Application

• Residential Heating
• Commercial Heating
• CHP (Combined Heat and Power)
• Power Generation

Europe Wood Pellet Market– By Country

• Germany
• France
• Italy
• UK
• Russia
• Rest of Europe

Europe Wood Pellet Market-Companies Mentioned

• ANDRITZ
• Enviva Lp
• Graanul Invest
• Pinnacle Renewable Energy Inc
• TANAC
• Wood & Sons

Europe Wood Pellet Report Scope