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.
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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

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

Segment Covered
This text is related
to segments covered.

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

Country Scope
This text is related
to country scope.
TABLE OF CONTENTS
1. Introduction
1.1 Study Scope
1.2 The Insight Partners Research Report Guidance
1.3 Market Segmentation
2. Key Takeaways
3. Research Methodology
3.1 Scope of the Study
3.2 Research Methodology
3.2.1 Data Collection:
3.2.2 Primary Interviews:
3.2.3 Hypothesis formulation:
3.2.4 Macro-economic factor analysis:
3.2.5 Developing base number:
3.2.6 Data Triangulation:
3.2.7 Country level data:
4. Europe Wood Pellet Market Landscape
4.1 Market Overview
4.2 Porter’s Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of Substitutes
4.2.4 Threat of New Entrants
4.2.5 Intensity of Competitive Rivalry
4.3 Expert Opinion
4.1 Ecosystem Analysis
5. Europe Wood Pellet Market – Key Market Dynamics
5.1 Market Drivers
5.1.1 Rising Awareness About Use of Renewable Energy Sources
5.1.2 Expanding Demand for Wood Pellets from Europe
5.2 Market Restraints
5.2.1 Mandatory Compliances and Operational Challenges Associated with Wood Pellet
5.3 Market Opportunities
5.3.1 Growing Demand for Wood Pellets from Power Generation Industry
5.4 Future Trends
5.4.1 Significant Investment in Research and Expansion
5.5 Impact Analysis of Drivers and Restraints
6. Wood Pellet – Europe Market Analysis
6.1 Europe Wood Pellet Market Overview
6.2 Europe Wood Pellet Market –Revenue and Forecast to 2028 (USD Million)
7. Europe Wood Pellet Market Analysis – By Application
7.1 Overview
7.2 Europe Wood Pellet Market, By Application (2020 and 2028)
7.3 Residential Heating
7.3.1 Overview
7.3.2 Residential Heating: Europe Wood Pellet Market – Revenue and Forecast to 2028 (US$ Million)
7.4 Commercial Heating
7.4.1 Overview
7.4.2 Commercial Heating: Europe Wood Pellet Market – Revenue and Forecast to 2028 (US$ Million)
7.5 CHP (Combined Heat and Power)
7.5.1 Overview
7.5.2 CHP (Combined Heat and Power): Europe Wood Pellet Market – Revenue and Forecast to 2028 (US$ Million)
7.6 Power Generation
7.6.1 Overview
7.6.2 Power Generation: Europe Wood Pellet Market – Revenue and Forecast to 2028 (US$ Million)
8. Europe Wood Pellet Market – Country Analysis
8.1 Europe Wood pellet Market Revenue And Forecasts to 2028
8.1.1 Europe Wood pellet Market Breakdown, by Country
8.1.1.1 Germany Wood pellet Market Revenue and Forecast to 2028 (US$ MN)
8.1.1.1.1 Germany Wood pellet Market Breakdown, by Application
8.1.1.2 France Wood pellet Market Revenue and Forecast to 2028 (US$ MN)
8.1.1.2.1 France Wood pellet Market Breakdown, by Application
8.1.1.3 United Kingdom Wood pellet Market Revenue and Forecast to 2028 (US$ MN)
8.1.1.3.1 United Kingdom Wood pellet Market Breakdown, by Application
8.1.1.4 Italy Wood pellet Market Revenue and Forecast to 2028 (US$ MN)
8.1.1.4.1 Italy Wood pellet Market Breakdown, by Application
8.1.1.5 Russia Wood pellet Market Revenue and Forecast to 2028 (US$ MN)
8.1.1.5.1 Russia Wood pellet Market Breakdown, by Application
8.1.1.6 Rest of Europe Wood pellet Market Revenue and Forecast to 2028 (US$ MN)
8.1.1.6.1 Rest of Europe Wood pellet Market Breakdown, by Application
9. Europe Wood Pellet Market Overview – Impact of COVID-19
9.1 Europe: Impact Assessment of COVID-19 Pandemic
10. Company Profiles
10.1 ANDRITZ
10.1.1 Key Facts
10.1.2 Business Description
10.1.3 Products and Services
10.1.4 Financial Overview
10.1.5 SWOT Analysis
10.1.6 Key Developments
10.2 Enviva Lp
10.2.1 Key Facts
10.2.2 Business Description
10.2.3 Products and Services
10.2.4 Financial Overview
10.2.5 SWOT Analysis
10.2.6 Key Developments
10.3 Pinnacle Renewable Energy Inc
10.3.1 Key Facts
10.3.2 Business Description
10.3.3 Products and Services
10.3.4 Financial Overview
10.3.5 SWOT Analysis
10.3.6 Key Developments
10.4 Graanul Invest
10.4.1 Key Facts
10.4.2 Business Description
10.4.3 Products and Services
10.4.4 Financial Overview
10.4.5 SWOT Analysis
10.4.6 Key Developments
10.5 Wood & Sons
10.5.1 Key Facts
10.5.2 Business Description
10.5.3 Products and Services
10.5.4 Financial Overview
10.5.5 SWOT Analysis
10.5.6 Key Developments
10.6 TANAC
10.6.1 Key Facts
10.6.2 Business Description
10.6.3 Products and Services
10.6.4 Financial Overview
10.6.5 SWOT Analysis
10.6.6 Key Developments
11. Appendix
11.1 About The Insight Partners
11.2 Glossary of Terms
LIST OF TABLES
Table 1. Europe Wood Pellet Market –Revenue and Forecast to 2028 (USD Million)
Table 2. Germany Wood pellet Market Revenue And Forecasts To 2028 – By Application (US$ Mn)
Table 3. France Wood pellet Market Revenue And Forecasts to 2028 – By Application (US$ Mn)
Table 4. United Kingdom Wood pellet Market Revenue And Forecasts to 2028 – By Application (US$ Mn)
Table 5. Italy Wood pellet Market Revenue And Forecasts to 2028 – By Application (US$ Mn)
Table 6. Russia Wood pellet Market Revenue And Forecasts to 2028 – By Application (US$ Mn)
Table 7. Rest of Europe Wood pellet Market Revenue And Forecasts to 2028 – By Application (US$ Mn)
Table 8. Glossary of Terms, Wood Pellet Market
LIST OF FIGURES
Figure 1. Europe Wood Pellet Market Segmentation
Figure 2. Europe Wood Pellet Market Segmentation – By Country
Figure 3. Europe Wood Pellet Market Overview
Figure 4. Residential Heating Segment Held Largest Share of Europe Wood Pellet Market
Figure 5. UK Held Largest Share of Europe Wood Pellet Market
Figure 6. Europe Wood Pellet Market, Key Market Players
Figure 7. Porter ‘s Five Forces Analysis for Europe Wood Pellets Market
Figure 8. Expert Opinion
Figure 9. Europe Wood Pellets Market – Ecosystem Analysis
Figure 10. Europe Wood Pellet Market Impact Analysis of Drivers and Restraints
Figure 11. Europe Wood Pellet Market – Revenue and Forecast to 2028 (USD Million)
Figure 12. Europe Wood Pellet Market Revenue Share, By Application (2020 and 2028)
Figure 13. Residential Heating: Europe Wood Pellet Market – Revenue and Forecast to 2028 (US$ Million)
Figure 14. Commercial Heating: Europe Wood Pellet Market – Revenue and Forecast to 2028 (US$ Million)
Figure 15. CHP (Combined Heat and Power): Europe Wood Pellet Market – Revenue and Forecast to 2028 (US$ Million)
Figure 16. Power Generation: Europe Wood Pellet Market – Revenue and Forecast to 2028 (US$ Million)
Figure 17. Europe Wood pellet Market Revenue by Country to 2028 (US$ Mn)
Figure 18. Europe Wood pellet Market Breakdown, by Country, 2020 & 2028 (%)
Figure 19. Germany Wood pellet Market Forecasts to 2028 (US$ Mn)
Figure 20. France Wood pellet Market Forecasts to 2028 (US$ Mn)
Figure 21. United Kingdom Wood pellet Market Forecasts to 2028 (US$ Mn)
Figure 22. Italy Wood pellet Market Forecasts to 2028 (US$ Mn)
Figure 23. Russia Wood pellet Market Forecasts to 2028 (US$ Mn)
Figure 24. Rest Of Europe Wood pellet Market Forecasts to 2028 (US$ Mn)
Figure 25. Impact of COVID-19 Pandemic in Europe
- ANDRITZ
- Enviva Lp
- Graanul Invest
- Pinnacle Renewable Energy Inc
- TANAC
- Wood & Sons
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- 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.
- 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:
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.
- 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.
- 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.
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