Wood Pellets Market

The article discusses the projected growth of the global wood pellets market, with a focus on consumption, production, imports, and exports. Key points include the expected market volume and value by 2030, top importing and exporting countries, production trends, import and export prices, and the overall market performance over the past decade.

Market Forecast

Driven by increasing demand for wood pellets worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +4.6% for the period from 2022 to 2030, which is projected to bring the market volume to 66M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +7.0% for the period from 2022 to 2030, which is projected to bring the market value to $16.9B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Wood Pellets

In 2022, global consumption of wood pellets expanded rapidly to 46M tons, increasing by 6.4% against 2021 figures. Overall, consumption showed a resilient expansion. Over the period under review, global consumption attained the maximum volume in 2022 and is expected to retain growth in years to come.

The global wood pellets market value skyrocketed to $9.8B in 2022, with an increase of 17% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption posted resilient growth. Over the period under review, the global market hit record highs in 2022 and is expected to retain growth in the immediate term.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were the UK (7.8M tons), South Korea (4.6M tons) and Japan (4.6M tons), together comprising 37% of global consumption.

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the leading consuming countries, was attained by South Korea (with a CAGR of +49.6%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, the largest wood pellets markets worldwide were the UK ($1.7B), Italy ($1.2B) and Japan ($939M), together accounting for 39% of the global market. South Korea, Germany, France, Denmark, the Netherlands, China, Sweden, Austria, Belgium and Poland lagged somewhat behind, together accounting for a further 46%.

South Korea, with a CAGR of +49.7%, recorded the highest rates of growth with regard to market size in terms of the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

In 2022, the highest levels of wood pellets per capita consumption was registered in Denmark (441 kg per person), followed by Sweden (165 kg per person), the Netherlands (147 kg per person) and Austria (144 kg per person), while the world average per capita consumption of wood pellets was estimated at 5.9 kg per person.

In Denmark, wood pellets per capita consumption expanded at an average annual rate of +1.8% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Sweden (-1.2% per year) and the Netherlands (+11.7% per year).

Production

World Production of Wood Pellets

In 2022, the amount of wood pellets produced worldwide amounted to 47M tons, increasing by 6.3% against 2021 figures. Overall, production continues to indicate a buoyant increase. The pace of growth was the most pronounced in 2014 when the production volume increased by 17%. Over the period under review, global production attained the peak volume in 2022 and is likely to see steady growth in the near future.

In value terms, wood pellets production declined slightly to $7.6B in 2022 estimated in export price. Over the period under review, production enjoyed prominent growth. The most prominent rate of growth was recorded in 2018 when the production volume increased by 22%. Over the period under review, global production hit record highs at $8B in 2021, and then shrank in the following year.

Production By Country

The country with the largest volume of wood pellets production was the United States (9.5M tons), comprising approx. 20% of total volume. Moreover, wood pellets production in the United States exceeded the figures recorded by the second-largest producer, Vietnam (4.7M tons), twofold. The third position in this ranking was taken by Canada (3.8M tons), with an 8.1% share.

From 2012 to 2022, the average annual rate of growth in terms of volume in the United States stood at +10.6%. In the other countries, the average annual rates were as follows: Vietnam (+57.3% per year) and Canada (+9.8% per year).

Imports

World Imports of Wood Pellets

Global wood pellets imports expanded significantly to 30M tons in 2022, picking up by 5.3% compared with 2021. In general, imports recorded a buoyant expansion. The most prominent rate of growth was recorded in 2013 with an increase of 41% against the previous year. Global imports peaked in 2022 and are expected to retain growth in the near future.

In value terms, wood pellets imports skyrocketed to $7.1B in 2022. Overall, imports saw strong growth. The pace of growth appeared the most rapid in 2013 when imports increased by 45% against the previous year. Over the period under review, global imports reached the maximum in 2022 and are expected to retain growth in years to come.

Imports By Country

In 2022, the UK (7.5M tons), distantly followed by Japan (4.4M tons), South Korea (3.9M tons), Italy (3.6M tons), the Netherlands (2.9M tons) and Denmark (2.7M tons) represented the key importers of wood pellets, together making up 83% of total imports. Belgium (1.2M tons) followed a long way behind the leaders.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main importing countries, was attained by Japan (with a CAGR of +50.9%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, the UK ($1.6B), Italy ($1.1B) and Japan ($909M) constituted the countries with the highest levels of imports in 2022, with a combined 52% share of global imports. South Korea, Denmark, the Netherlands and Belgium lagged somewhat behind, together comprising a further 31%.

South Korea, with a CAGR of +50.4%, recorded the highest growth rate of the value of imports, among the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

The average wood pellets import price stood at $234 per ton in 2022, rising by 29% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +2.0%. As a result, import price attained the peak level and is likely to continue growth in the immediate term.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Italy ($313 per ton), while South Korea ($183 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Belgium (+3.6%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Wood Pellets

For the eleventh consecutive year, the global market recorded growth in shipments abroad of wood pellets, which increased by 5.1% to 32M tons in 2022. In general, exports saw buoyant growth. The growth pace was the most rapid in 2013 when exports increased by 30% against the previous year. Over the period under review, the global exports attained the peak figure in 2022 and are expected to retain growth in the near future.

In value terms, wood pellets exports soared to $6.7B in 2022. Over the period under review, exports continue to indicate strong growth. As a result, the exports reached the peak and are likely to continue growth in the immediate term.

Exports By Country

In 2022, the United States (9M tons), distantly followed by Vietnam (4.6M tons), Canada (3.5M tons), Latvia (1.7M tons) and Russia (1.6M tons) were the key exporters of wood pellets, together committing 65% of total exports. Estonia (1,378K tons), Malaysia (789K tons), Austria (745K tons), Germany (705K tons), Belgium (643K tons), Lithuania (527K tons), Indonesia (509K tons) and Portugal (503K tons) followed a long way behind the leaders.

From 2012 to 2022, the biggest increases were recorded for Vietnam (with a CAGR of +63.4%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, the largest wood pellets supplying countries worldwide were the United States ($1.6B), Vietnam ($886M) and Canada ($532M), together comprising 44% of global exports.

In terms of the main exporting countries, Vietnam, with a CAGR of +67.8%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

The average wood pellets export price stood at $213 per ton in 2022, jumping by 33% against the previous year. Over the last decade, it increased at an average annual rate of +2.1%. As a result, the export price attained the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Austria ($382 per ton), while Indonesia ($124 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Lithuania (+5.1%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform