Future Market Insights (FMI) delivers key insights on the wood pellet market in its latest report titled, ‘Global Wood Pellet Market: Global Industry Analysis and Opportunity Assessment, 2017–2027′. According to the report, the global wood pellet market is projected to expand at a healthy CAGR of 8.7% during the forecast period in terms of revenue.
Wood pellets are defined as are biofuel made from compressed organic matter or biomass. These technologies use a wide range of materials such as forest & wood waste, agricultural residue, and other substances.
Factors such as increasing consumption of wood pellets, increasing health consciousness among consumers, high consumption of wood pellets for residential heating, growing demand for wood pellets for electricity generation, growing exports of wood pellets rapidly growing demand for domestic wood pellets and energy, and climate change are the factors that drive the market. Enterprises and individuals, nowadays, need products that are environmentally-friendly. Collaborations between suppliers and producers ensure a strong bonding and progressive activities, and enhance the development process. This demand has given rise to the increased production of wood pellets.
Government certification is a valuable tool to assure customers that the wood pellets are made from sustainably managed forests. Increasing certification criteria is the key restraining factor of the North American wood pellet market while exporting to other countries, where various rules mandate renewable energy production. The procurement policy of wood pellets is also one of the key restraining factors in the market here. The Sustainable Forestry Initiative and Forest Stewardship Council are the certification organizations in North America.
- 19% of U.S. commercial forestland is certified by major U.S. standards.
- According to the Wood Pellet Association of Canada, approx. 9% of the world’s forests are certified. Out of them, more than 40% forests are in Canada, which makes these forests as an ideal source of wood pellets.
On the basis of region, Western Europe is estimated to be the largest market for wood pellets, accounting for 72.6% value share of the global wood pellets market in 2017. The region continues to dominate the market, and is expected to continue to do so throughout the forecast period.
Eastern Europe exports most of its produced wood pellets to other countries such as Germany and the United Kingdom, where it requires certification for exports. Various industries are focusing on getting certified with DINplus and green energy certifications, which will help in exporting the produced wood pellets. The rapid rate of the production of wood pellets in countries like Poland, Czech Republic, and Slovakia is a major driving factor of the wood pellet market in Eastern Europe, owing to the high amount of exports to the other developed countries of Western Europe.
On the basis of end use, the industrial pellets for co-firing segment is projected to exhibit a CAGR of 11.0% and and 9.1% in terms of market value and volume, respectively, during the forecast period. This is attributed to the increasing demand for wood pellets in a wide range of end-user applications.
The markets in APEJ, Western Europe, MEA, and Latin America are anticipated to contribute majorly to the global wood pellet market. The market in Western Europe is expected to account for 69.6% share in terms of value in the global wood pellet market, and be valued at US$ 14,694.6 Mn by 2027 end. The increasing demand for wood pellets for residential heating and energy and climate change in Western Europe is expected to fuel revenue growth of the market in the region. The market in Western Europe is estimated to be valued at US$ 6,686.2 Mn by 2017 end, and projected to expand at a CAGR of 8.2% during the forecast period.
Factors such as increasing consumption of wood pellets, increasing health health consciousness among consumers, high consumption of wood pellets for residential heating, growing demand for wood pellets for electricity generation, growing exports of wood pellets, growing demand for domestic wood pellets and energy, and climate change are expected to drive revenue growth of the global wood pellet market.
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Key market participants covered in the report include Drax Biomas Inc, Rentech, Inc, Enviva Partners, LP, German Pellets GmbH, Viridis Energy Inc, AS Graanul Invest, Pinnacle Renewable Energy Inc, Lignetics of Idaho, Inc, Zilkha Biomass Energy, LLC, and Energy Girvan Limited.