Wood Pellets Market Size worth USD 27.52 Billion by 2029 | Fortune Business Insights
Fortune Business Insights
Updated 6 min read
Fortune Business Insights
According to Fortune Business Insights, the global wood pellets market size is projected to reach USD 27.52 billion by 2029 from its value USD 15.08 billion in 2021, at CAGR of 7.5% during forecast period.
Pune, India, April 21, 2023 (GLOBE NEWSWIRE) -- The wood pellets market size to hit USD 27.52 billion by 2029. The global market size was valued USD 15.08 billion in 2021 and USD 16.63 billion in 2022. With the growth in population, there has been an increase in demand for electricity, which is expected to propel the market course. Increasing demand for prices of fuel is projected to aid market development. Fortune Business Insights™ published this information in its report titled “Wood Pellets Market, 2022-2029.”
Key Industry Developments:
August 2022- The Drax Group signed an agreement with Princeton Standard Pellet Corporation (PSPC) for the acquisition of their pellet plant in Princeton, British Columbia, and Canada. The Princeton Standard Pellet Corporation has been in operation since 1995 and can produce 90,000 tonnes of wooden pellets annually. Once the acquisition is complete, the plant is expected to contribute to the group's strategy to increase pellet production to 8 million tons per year by 2030.
Increasing Primary Fuel Prices to Drive the Market
Supportive Government Policies and Initiatives to Propel the Growth of the Market
Market Drivers & Restraints:
Increasing Prices of Fuel to Propel the Demand for Product Increasing fuel prices are anticipated to drive the wood pellets market growth. Wood pellets are made from sawdust and agricultural waste and they are increasingly popular globally. There is high demand for the product as biomass fuel is increasing rapidly. Easy availability of such pellets as a fuel raw material and the low production costs have led to higher consumption in the industrial sector. Europe is the largest consumer of wood pellets and many market players are converting their coal to biomass power plants.
COVID-19 Impact:
Impact on Energy Industry During Pandemic Led to Decline in the Market Progress
The outbreak of COVID-19 affected the growth of various markets. The outbreak of COVID-19 across the U.S. market in 2020 was severe as it is a significant supplier of wood pellets. The outbreak impacted the sustainable energy industry significantly across the globe. The recovery of the market is expected to unveil new possibilities for integrating reliable virtual power plant solutions.
Europeto Lead Market Share Due to Increasing Demand from Various Countries
Europe is expected to have a high part in the wood pellets market share as it the largest consumer of industrial pellets. Great Britain is the largest user of pellet-based energy. The U.K., Belgium, and the Netherlands domestic use of pellets is negligible and large power plants dominate the product demand. The region has high usage of pellets in large power plants. The governments of these countries have chosen to fulfil renewable energy commitments by using sustainable biomass to generate electricity.
Asia Pacific to have the fastest growth as China, South Korea, and Japan are the largest consumers of the pellets.
Increasing Production Capacity of Enviva LP to Drive Market Growth
The market is highly fragmented with various number of players. Drax Group plc, Enviva, LP, and Rentech Inc. are the leading players with a strong presence across different countries. Wood Pellet Energy U.K. (LTD), German Pellets Trading GmbH, Snow Timber Pellets, LLC, Lignetics, and the Westervelt Company are the other key players operating in the market. In 2021, Enviva LP held the largest market share. The company has plants with a combined production capacity of about 6.2 million metric tons of wooden pellets per year in Florida, North Carolina, Virginia, South Carolina, Mississippi, and Georgia. The company is one of the major suppliers of industrial wood pellets to European countries.
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