How big is the Biomass Pellet Market | Growth Trends 2025

Q: How big is the Biomass Pellet market?

The biomass pellet market was demonstrated around USD 12.6 billion in 2024 and is expected to reach USD 22.4 billion by 2031.

Q: What are the current trends in the biomass pellet market?

Trends include torrefied and black pellets, pellet co-firing in coal plants, smart pellet boilers, and increased exports to Asia.

Q: Which regions are leading in biomass pellet adoption?

Europe leads in consumption and policy support and North America dominates the market with production and export.

Q: What challenges does the market face?

Price volatility of feedstock, dust handling and explosion risks, dependence on subsidies, and competition from other renewables are main challenges.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

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Code: MTA4808

Publication Date: Jul 2025

What is the size of the Biomass Pellet Market?

According to 6Wresearch internal database and industry insights, the Biomass Pellet Market was valued at USD 12.6 billion in 2024 and is projected to reach USD 22.4 billion by 2031, growing at a CAGR of 9.0% during the forecast period 2025–2031.

The market is being driven by rising global demand for sustainable heating solutions, regulatory pressure to reduce carbon emissions, and increasing adoption of biomass pellets in industrial and residential applications.

Key Growth Factors of the Biomass Pellet Market

Strong policy support for renewable heating and carbon neutrality targets
Rising demand for clean-burning fuel alternatives in power and heat generation
Increasing use of pellets in co-firing applications with coal
Abundant availability of raw materials like wood waste, sawdust, and Agro-residues
Rapid growth in domestic pellet heating systems across Europe and North America

Biomass Pellet Market Trends

The market is accelerating with numbers of trends include the rising adoption of premium-grade pellets for residential heating and industrial-grade pellets for large-scale energy plants. Now, companies are increasingly blending biomass pellets with coal to reduce GHG emissions. Companies are emphasizing focus on torrefied pellets for higher energy density and durability. Exports are growing rapidly from North America and Eastern Europe to Asia and Western Europe, with Japan and South Korea emerging as major importers. Lastly, the advanced pellet mills with IoT-based monitoring and emissions control are being deployed.

Emerging Developments in the Biomass Pellet Market

Biomass pellet market is navigating emerging developments including black pellets and steam-exploded pellets that are more water-resistant and have higher energy content. Governments are offering carbon credits and subsidies for switching to pellet heating. The investment is rising through the companies & startups in mobile pellet plants and containerized production units for rural biomass processing. Logistics optimization, like bulk handling systems and pellet bunkers, is enhancing distribution efficiency. Europe is emerging economies with increasing integration of pellet boilers in district heating systems.