China Solid Biofuel Market Size & Growth Rate
According to 6Wresearch internal database and industry insights, the China Solid Biofuel Market was valued at USD 1.48 billion in 2025 and is projected to reach USD 2.32 billion by 2032, growing at a CAGR of approximately 6.6% during 2026–2032.
China Solid Biofuel Market Highlights
| Report Metric | Details |
| Report Name | China Solid Biofuel Market |
| Market Size 2025 | USD 1.48 billion |
| Market Size 2032 | USD 2.32 billion |
| Absolute Growth 2025–2032 | USD 0.84 billion |
| CAGR 2026–2032 | 6.6% |
| Peak Annual Growth | 8.8% in 2026 |
| Forecast Period | 2026–2032 |
| Historical Data | 2022–2025 |
| Base Year | 2025 |
| Leading Biofuel Type, 2025 | Wood Pellets (41% share) |
| Leading Source Material, 2025 | Forestry Residues (42% share) |
| Leading Form Factor, 2025 | Granular (37% share) |
| Leading End User, 2025 | Biomass Power Plants (47% share) |
| Fastest-Growing Biofuel Type | Briquettes (8.3% CAGR) |
| Fastest-Growing Source Material | Agricultural Waste (8.8% CAGR) |
| Fastest-Growing Form Factor | Block (7.9% CAGR) |
| Fastest-Growing End User | Industrial Boilers (7.8% CAGR) |
| Growing Sector | Industrial Boilers |
| Key End Users | Biomass Power Plants, Industrial Boilers, Residential Cooking, Agro-Energy Firms |
China Solid Biofuel Market Year-wise Growth Rate and Key Drivers (2022–2032)
This graph illustrates the annual growth rates of the market from 2022 to 2032, highlighting a steady upward trajectory and projected market expansion over the forecast period.
Annual growth estimates for each year appear below with the principal reason behind them, explaining the shifts that set the pace of the market.
| Year | Estimated Annual Growth (%) | Market Rationale |
| 2022 | 3.9 | The market showed steady performance with increased interest in renewable energy solutions. |
| 2023 | 5.0 | Demand rose due to the 'National Biomass Energy Development Strategy' promoting biomass production. |
| 2024 | 7.9 | The surge in demand was driven by the expansion of biomass power generation capacity. |
| 2025 | 6.0 | Growth slowed as the market adjusted to new supply and demand conditions. |
| 2026 | 8.8 | A peak in growth is anticipated, driven by the 'Renewable Energy Development Plan' aiming for a 50% increase in biomass utilization by 2025. |
| 2027 | 4.9 | The market will experience a slowdown as competition intensifies among suppliers. |
| 2028 | 5.6 | Demand is projected to rebound as industrial applications for solid biofuels gain traction. |
| 2029 | 8.5 | Growth is expected to resume as biomass power plants expand their operational capacities. |
| 2030 | 4.3 | The market growth rate will slow again as regulatory adjustments take effect. |
| 2031 | 8.0 | Demand is projected to increase due to rising energy needs in rural areas and urban centres. |
| 2032 | 6.4 | A further slowdown is expected as market maturity begins to set in. |
Note: Market size estimations and growth projections presented in this report are based on 6Wresearch's proprietary forecasting methodology, utilizing the latest available industry data, government publications, and primary research inputs.
China Solid Biofuel Market Synopsis
Solid Biofuel in China encompasses renewable energy sources derived from organic materials, including wood and agricultural residues. It is produced through compression and drying processes, resulting in pellets, briquettes, and charcoal. The China Solid Biofuel Market is expanding due to rising demand from biomass power plants and government initiatives promoting renewable energy. In 2022, the country produced 30 million tons of solid biofuel, with substantial consumption in residential cooking and industrial heating. The government's 'Renewable Energy Development Plan' aims for a 50% increase in biomass energy utilization by 2025, further driving market growth.
Market Dynamics Impact Analysis (2026–2032)
| Factor | Type | Impact | Primary Segment Affected |
| Government initiatives promoting renewable energy usage are increasing demand for solid biofuels. | Driver | High | Biomass Power Plants |
| The rising capacity of biomass power generation facilities is creating more demand for solid biofuels. | Driver | High | Industrial Boilers |
| The growing residential sector's need for cooking fuels presents significant opportunities for suppliers. | Opportunity | High | Residential Cooking |
| The expansion of biomass power plants in rural areas opens avenues for investment in solid biofuels. | Opportunity | Medium | Biomass Power Plants |
| Competition from alternative energy sources may limit the growth of solid biofuels. | Restraint | High | Wood Pellets |
| Regulatory compliance costs associated with quality standards can hinder market entry for new producers. | Restraint | Medium | Briquettes |
| The Solid Biofuel market in China faces a few practical problems, including supply chain inefficiencies. | Challenge | High | Charcoal |
| Fluctuating raw material prices create uncertainty for producers and buyers alike. | Challenge | Medium | Agricultural Waste |
Evaluation of Drivers in China Solid Biofuel Market (2026–2032)
The main growth drivers and the segments they affect most are set out below.
| Drivers | Primary Segment Affected | Why It Matters (Evidence) |
| Government support for renewable energy initiatives boosts biomass energy utilization. | Biomass Power Plants | In 2023, the government allocated 1 billion CNY for renewable energy projects, encouraging biomass power generation. |
| The increasing capacity of biomass power generation facilities drives demand for solid biofuels. | Industrial Boilers | By the end of 2022, biomass power generation capacity reached 35 GW, boosting fuel requirements. |
| The residential sector's demand for cooking fuels supports the solid biofuel market. | Residential Cooking | In 2022, the residential sector accounted for 25% of total solid biofuel consumption, indicating strong demand. |
| The promotion of agricultural waste utilization supports sustainable practices in the biofuel sector. | Agricultural Waste | In 2022, 40% of solid biofuel was sourced from agricultural waste, promoting sustainability. |
| Growing awareness of environmental benefits drives the adoption of solid biofuels. | Wood Pellets | The 'Green Energy Initiative' aims to reduce carbon emissions, promoting solid biofuels for cleaner energy. |
The Solid Biofuel market in China is growing on the back of increasing end-use demand from biomass power plants and residential cooking. In 2022, 30 million tons of solid biofuel were produced, with contributions from wood pellets and agricultural waste. The expansion of biomass power generation capacity has created a strong demand for solid biofuels. The 'Renewable Energy Development Plan' aims for a 50% increase in biomass energy utilization by 2025, further driving market growth. The residential sector accounted for 25% of total solid biofuel consumption, highlighting diverse applications in cooking and heating.
Evaluation of Restraints in China Solid Biofuel Market
The table below lists the restraints and the evidence behind each.
| Market Restraint | Primary Segment Affected | Why It Matters (Evidence) |
| Regulatory compliance delays production due to strict quality standards. | Wood Pellets | The National Standard GB/T 20287-2006 imposes strict quality requirements, complicating production timelines. |
| Intense competition among producers drives down prices and squeezes margins. | Biomass Power Plants | Producers rely on similar agricultural inputs, leading to price wars and reduced profitability. |
| Technological limitations hinder efficiency in production processes. | Industrial Boilers | Many plants still use outdated processing methods, which can reduce output by up to 20%. |
| Fluctuating raw material costs create financial uncertainty for buyers and producers. | Residential Cooking | Wood pellets average 1,200 CNY per ton, impacting budgeting for both buyers and suppliers. |
| Limited market awareness of solid biofuels affects consumer adoption. | Agricultural Waste | Despite environmental benefits, many consumers remain unaware of solid biofuels' advantages. |
China Solid Biofuel Market Challenges
The China Solid Biofuel Market faces a few practical problems, with regulatory compliance being a primary concern. The National Standard GB/T 20287-2006 imposes strict quality requirements on wood pellets, causing production delays for suppliers and increasing costs by up to 15%. Intense competition among producers complicates the situation, as many rely on similar agricultural inputs, which drives down prices and squeezes margins, affecting profitability for small-scale producers. Technological limitations hinder efficiency; for instance, many plants still use outdated processing methods, which can reduce output by up to 20%. Fluctuating raw material costs, particularly for wood pellets averaging 1,200 CNY per ton, create financial uncertainty for buyers and producers alike.
Trends in the China Solid Biofuel Market
Several trends are reshaping the China Solid Biofuel Market; the most important are set out below.
- Shift Towards Agricultural Waste Utilization: China is increasingly utilising agricultural waste for solid biofuel production, reducing reliance on wood. In 2022, 40% of solid biofuel was sourced from agricultural waste, promoting sustainability.
- Expansion of Biomass Power Plants: The number of biomass power plants is rising, enhancing energy generation capacity. By the end of 2022, biomass power generation capacity reached 35 GW, boosting fuel demand.
- Growth in Industrial Boiler Adoption: Industrial boilers are increasingly adopting solid biofuels for heating. In 2023, the installed base of industrial boilers using solid biofuels reached 12,000 units, indicating strong market growth.
- Rising Popularity of Briquettes: Briquettes are becoming more popular for heating and cooking applications. The segment is expected to grow at a CAGR of 8.3% from 2026 to 2032, indicating shifting consumer preferences.
Investment Opportunities in the China Solid Biofuel Market
Several openings in the China Solid Biofuel Market merit attention from investors.
- Partnerships with Local Producers: Establishing joint ventures with local producers can facilitate market entry. The biomass power sector, with a capacity of 35 GW, presents significant opportunities for collaboration.
- Investment in Energy Crop Cultivation: Investing in energy crop cultivation can meet rising raw material demands. With 5 million hectares dedicated to energy crops like Miscanthus, suppliers can tap into this growing market.
- Supply of Granular Solid Biofuels: There is a strong demand for granular solid biofuels in biomass power plants. Suppliers can focus on this segment, which holds a 37% market share, to capture significant opportunities.
- Expansion in Rural Cooking Solutions: Targeting rural households for cooking solutions can drive growth. The residential sector accounts for 25% of solid biofuel consumption, indicating a need for tailored products.
Government Initiatives in the China Solid Biofuel Market
In 2023, the 'Renewable Energy Development Plan' was launched by the National Energy Administration to increase biomass energy utilization by 50% by 2025. This new measure complements the 'National Biomass Energy Development Strategy' initiated in 2021, which promotes sustainable biomass production and consumption. Together, these initiatives aim to enhance the solid biofuel market by ensuring a steady supply of renewable energy.
The National Energy Administration oversees the implementation of biomass energy policies in China. It funds various programs aimed at increasing biomass energy utilization and approves projects that align with national energy goals. In 2023, the agency allocated 1 billion CNY for renewable energy projects, further supporting the growth of the solid biofuel sector. Additionally, the Ministry of Agriculture introduced a subsidy program for farmers growing energy crops, increasing raw material availability.
Future Insight of the China Solid Biofuel Market
Several forward-looking factors should support the China Solid Biofuel Market by 2032. The government’s Renewable Energy Development Plan aims for a 50% increase in biomass energy utilization by 2025, which will significantly boost demand. The expansion of energy crop cultivation, with 5 million hectares dedicated to crops like Miscanthus, will improve raw material availability. The installed base of industrial boilers using solid biofuels reached 12,000 units in 2023 and is projected to grow, further driving consumption in the industrial sector. These developments will create new opportunities for suppliers and buyers in the market.
Market Segmentation Analysis
Each segment group is reviewed below, with the leader by share and the fastest grower by CAGR.
By Biofuel Type – Wood Pellets Dominated, Briquettes Expected to Grow Fastest
According to Summon Dutta, Assistant Manager at 6Wresearch, the largest biofuel type category in 2025 was Wood Pellets, with a 41% share of total revenue. Wood pellets dominate the market due to their high energy density, making them ideal for biomass power generation. Their widespread use is evident as they accounted for a large portion of the 30 million tons of solid biofuel produced in China in 2022. The quickest growth will come from Briquettes, forecast to expand at a CAGR of 8.3% between 2026 and 2032. Briquettes are rapidly gaining traction, particularly for heating and cooking in both residential and industrial settings. This surge is fuelled by the increasing demand for efficient heating solutions, especially in rural areas where access to energy is essential. Suppliers must focus on increasing the availability of briquettes to satisfy the rising demand in the heating sector.
By Source Material – Forestry Residues Dominated, Agricultural Waste Expected to Grow Fastest
Forestry Residues accounted for a 42% market share by source material in 2025. Forestry residues serve as a crucial raw material for solid biofuels, particularly in rural regions where they are plentiful. Their significant contribution is reflected in the 30 million tons of solid biofuel produced in China in 2022. Over 2026–2032, Agricultural Waste is expected to post the fastest growth, at a CAGR of 8.8%. Agricultural waste is becoming a key resource for biofuel production, driven by initiatives aimed at minimising waste and enhancing sustainability. In 2022, 40% of solid biofuel was derived from agricultural waste, underscoring this growth. Buyers should prioritise sourcing solid biofuels from agricultural waste to meet sustainability goals.
By Form Factor – Granular Dominated, Block Expected to Grow Fastest
Granular held a 37% share of the China Solid Biofuel Market by form factor in 2025. Granular solid biofuels are prevalent due to their ease of handling and transportation, making them a common choice for pelletised fuels. This form factor is well-suited for the logistics of biomass power generation. Block is projected to grow fastest, at a CAGR of 7.9% during 2026–2032. Block solid biofuels are experiencing rapid growth, particularly for residential heating applications in rural areas. As more households seek efficient heating solutions, the demand for block forms is expected to rise. Suppliers must ensure a steady supply of block solid biofuels to cater to the increasing residential heating market.
By End User – Biomass Power Plants Dominated, Industrial Boilers Expected to Grow Fastest
Biomass Power Plants took a 47% share of end user in 2025, more than any other category. Biomass power plants are the primary consumers of solid biofuels, using them extensively for energy generation. With a biomass power generation capacity of 35 GW in China, this segment commands a substantial market share. Industrial Boilers are set to record the highest CAGR in this split, 7.8% over 2026–2032. Industrial boilers are the fastest-growing segment, driven by the need for efficient heating processes across various industries. The installed base of industrial boilers using solid biofuels reached 12,000 units in 2023, illustrating this growth. Suppliers should target industrial boiler operators to capitalise on the increasing demand for solid biofuels in heating applications.
Key Attractiveness of the Report
- 10 Years of Market Numbers
- Historical Data Starting from 2022 to 2025
- Base Year 2025
- Forecast Data until 2032
- Key Performance Indicators Impacting the Market
- Major Upcoming Developments and Projects
Key Highlights of the Report:
- China Solid Biofuel Market Outlook
- Market Size of China Solid Biofuel Market, 2025
- Forecast of China Solid Biofuel Market, 2032
- Historical Data and Forecast of China Solid Biofuel Revenues & Volume for the Period 2022 - 2032F
- China Solid Biofuel Market Trend Evolution
- China Solid Biofuel Market Drivers and Challenges
- China Solid Biofuel Price Trends
- China Solid Biofuel Porter's Five Forces
- China Solid Biofuel Industry Life Cycle
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Biofuel Type for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Wood Pellets for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Briquettes for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Charcoal for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Energy Crops for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Source Material for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Forestry Residues for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Agricultural Waste for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Coconut Shells for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Miscanthus/Switchgrass for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Form Factor for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Granular for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Block for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Powder/Chunks for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Compacted for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By End User for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Biomass Power Plants for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Industrial Boilers for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Residential Cooking for the Period 2022 - 2032F
- Historical Data and Forecast of China Solid Biofuel Market Revenues & Volume By Agro-Energy Firms for the Period 2022 - 2032F
- China Solid Biofuel Import Export Trade Statistics
- Market Opportunity Assessment By Biofuel Type
- Market Opportunity Assessment By Source Material
- Market Opportunity Assessment By Form Factor
- Market Opportunity Assessment By End User
- China Solid Biofuel Top Companies Market Share
- China Solid Biofuel Competitive Benchmarking By Technical and Operational Parameters
- China Solid Biofuel Company Profiles
- China Solid Biofuel Key Strategic Recommendations
Market Covered
This report examines the market across the segments below.
By Biofuel Type
- Wood Pellets
- Briquettes
- Charcoal
- Energy Crops
By Source Material
- Forestry Residues
- Agricultural Waste
- Coconut Shells
- Miscanthus/Switchgrass
By Form Factor
- Granular
- Block
- Powder/Chunks
- Compacted
By End User
- Biomass Power Plants
- Industrial Boilers
- Residential Cooking
- Agro-Energy Firms
