Biomass Pellets Market Size to Reach USD 16.0 Billion by 2033 - Allied Market Research

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WILMINGTON, DE, UNITED STATES, November 6, 2025 /EINPresswire.com/ -- The global biomass pellets market is driven by several key factors, including growing environmental concerns and the need for climate change mitigation, which boost the demand for renewable energy sources with lower carbon footprints. Government policies and incentives play a significant role in promoting biomass pellet adoption, along with technological advancements that enhance production efficiency and reduce costs. The rise in global energy demand and the need for energy security and diversification further drive the market growth.

However, the market faces restraints such as high initial investment costs, supply chain challenges, competition for raw materials, and logistical issues. Market fluctuations and environmental concerns regarding large-scale biomass production also pose challenges. Despite these restraints, significant opportunities exist, such as continued technological improvements, expansion into emerging markets, and integration with other renewable energy technologies. Developing sustainable supply chains, enhancing policy support, fostering public-private partnerships, and leveraging the growing interest in green investments present additional avenues for growth in the biomass pellets market.

The biomass pellets market was valued at $9.5 billion in 2023 and is estimated to reach $16.0 billion by 2033, exhibiting a CAGR of 5.4% from 2024 to 2033.

Segment Overview:

Forest & wood waste are readily available by-products of the forestry industry, including logging residues, sawdust, and other wood processing residues. This makes them a consistent and reliable source of raw material for biomass pellet production. Wood-based biomass has a high calorific value, which makes it an efficient fuel for energy production. The energy density of wood pellets is higher compared to many other biomass sources.

The forestry and wood processing industries have well-established supply chains that facilitate the collection, transportation, and processing of wood waste into biomass pellets. This infrastructure supports large-scale production and distribution. Using waste materials from forestry and wood processing operations can be more cost-effective than sourcing virgin lumber or dedicated energy crops. It also helps in waste management, reducing disposal costs for the wood processing industry.

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The biomass pellets market in the Asia-Pacific region is witnessing robust growth, fueled by several factors. With the region's developing economies and expanding populations, there's a corresponding increase in energy demand. Governments across Asia-Pacific are enacting stricter environmental regulations, prompting a shift towards cleaner and more sustainable energy sources. This regulatory landscape, coupled with supportive policies and incentives, is encouraging the adoption of biomass pellets for energy generation.

Countries like China, Japan, South Korea, and India are leading the regional market. China, in particular, stands out as a major player in the biomass pellets market, leveraging its vast agricultural and forestry resources. Japan and South Korea are actively importing biomass pellets to diversify their energy mix and reduce dependence on fossil fuels. India, with its sizable agricultural sector, is also making strides in biomass energy adoption.

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Biomass pellets are increasingly utilized in power generation due to their renewable nature and high energy density. In dedicated biomass power plants, pellets are burned to produce steam, which drives turbines to generate electricity. This method is efficient and optimized for biomass combustion, resulting in lower emissions. In addition, biomass pellets are co-fired with coal in existing coal power plants, reducing the carbon footprint and emissions of these plants without requiring significant modifications. This co-firing process displaces a portion of coal with renewable biomass, offering a cost-effective way to transition to cleaner energy. Combined Heat and Power (CHP) plants also use biomass pellets to simultaneously generate electricity and useful heat, enhancing overall efficiency. The adoption of biomass pellets in power generation supports waste management by utilizing agricultural and forest residues, reduces greenhouse gas emissions, and enhances energy security by providing a sustainable alternative to fossil fuels.

Key Players:

Key players in the biomass pellets market include Enviva, Inc. Drax Group plc, Forest Energy Corporation, Energex Corporation, Buhler AG, Sumitomo Corporation, JP Green Fuels, Ecostan Biofuel, Zilkha Biomass Fuels, and Fram Fuels.

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The report provides a detailed analysis of these key players in the global biomass pellets market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

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