Wood Pellets Market Size By Grade (Premium, Standard, Utility), By Application (Residential, Commercial, Industrial, Animal Bedding) Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Landscape & Forecast, 2023 - 2032

Wood Pellets Market Size By Grade (Premium, Standard, Utility), By Application (Residential, Commercial, Industrial, Animal Bedding) Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Landscape & Forecast, 2023 - 2032

Global wood pellets market is set to experience robust growth through 2032, primarily due to the superior features of wood pellets over fossil fuels. Unlike fossil fuels like commercial butane, LPG, commercial propane, and coal, wood pellets have lower ash and moisture content. Increasing global awareness about reducing carbon footprint will further augment the market growth by the end of the analysis timeframe.

Besides, there have been changes in coal-fired plant-related policies in Canada in recent times, which will positively impact the market. There is an increased production and consumption of wood pellets in Canada, which is augmented by the international demand and changes in the domestic policies of products.

In addition, some State-backed steps are also expected to prove beneficial for the market. For instance, in December 2018, in addition to introducing new rules for natural gas-fired electricity, Canada also vowed to discontinue coal-powered energy from 2030.

Based on grade, the wood pellets market is likely to be characterized by its premium grade, which is expected to grow at more than 17.5% CAGR through 2032. The demand for this grade of wood pellets is likely to increase since it has a low moisture content of less than 10% and an even lower ash content of 1%. These features make it perfect for residential heating applications.

In terms of application, the wood pellets market has been segmented into commercial, residential, animal bedding, and industrial. Among these, the commercial segment is expected to gain significant returns in the upcoming times, due to the increasing consumption of wood pellets in the heating applications, that are installed in schools, municipal buildings, institutions, and small businesses.

Considering the regional landscape, the market has been fragmented into North America, Asia Pacific, Europe, LATAM, and MEA. The North America wood pellet market is anticipated to grow at more than 16% CAGR between 2023 to 2032. The increasing usage of wood pellets in the residential heating sector is one of the key driving factors behind the increased consumption of wood pellets in this region.

Besides, government policies related to traditional coal-based electricity plants are undergoing changes. This will also provide significant impetus for the wood pellet producers, further augmenting the market growth.

Some of the crucial players in this industry include Pinnacle Renewable Energy Inc., Enviva Partners, Stora Enso Oyj, LP, Pacific BioEnergy, AS Graanul Invest, The Westervelt Company, Lignetics, Ecochipp, Svenska Cellulosa Aktiebolaget (SCA), Drax Group plc, InstantHeat Wood Pellets Inc., Land Energy, Mallard Creek Inc., Ecowood Pellets, and German Pellets GmbH.