Europe black & wood pellets market is currently valued at around USD 10,867.5 million and is forecast to grow at a CAGR of 9.0% between 2022 and 2032, to reach USD 25,812.9 million by 2032. In 2022, the Europe black & wood pellets industry is projected to register year-on-year growth of 7.9%.
Black and wood pellets are a type of biomass that is environmentally benign, renewable, sustainable, and clean. Due to the increased demand for renewable energy worldwide, the market for black and wood pellets is growing at a robust pace and the trend is likely to continue during the forecast period.
Black and wood pellets have become ideal alternatives to reduce the usage of fossil fuels that contribute to global warming. This is expected to help the industry grow throughout the projection period.
Rising environmental concerns coupled with an increase in carbon emission levels is prompting countries to shift towards cleaner fuel alternatives. As a result, demand for fuels like wood pellets, black pellets, and wood charcoal is on the rise.
While wood pellets mostly find application in pellet stoves and boilers, black pellets have become ideal for power and heating generation applications. Thus, growing applications in residential and commercial sectors will continue to bolster black & wood pellet sales during the forecast period.
Similarly, the implementation of stringent rules and regulations across countries like the United Kingdom and Germany to minimize carbon emissions is expected to boost Europe black & wood pellets market over the next ten years.
| Attribute | Key Insights |
|---|---|
| Europe Black & Wood Pellets Market Base Value (2021A) | USD 10,075.2 million |
| Estimated Market Value (2022E) | USD 10,867.5 million |
| Projected Market Value (2032F) | USD 25,812.9 million |
| Value-based CAGR (2022 to 2032) | 9.0% |
| Collective Value Share: Top 3 Countries (2022E) | 58.4% |
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
The demand for black & wood pellets grew at 3.4% CAGR between 2017 and 2021. However, with the widening application area of these biomass fuels, the overall market for black & wood pellets across Europe is expected to expand at a robust CAGR of 9.0% during the forecast period (2022 to 2032).
Black pellets are produced to be utilized in already-existing coal-fired power plants. They are composed of biomass and are processed to resemble hard coal. While the popular type of wood pellet fuel is generated from wood waste, which is often compacted sawdust and other industrial waste from building, furniture manufacturing, and timber milling.
The enormous demand in the commercial and residential heating segments is driving manufacturers to produce wood pellets in large quantities. Consumers in developed regions, such as Europe, have higher environmental consciousness, which accounts for their increased reliance on renewable energy sources.
In developing countries such as the United Kingdom, Germany, and Italy, bio-based energy sources like black pellets are gaining traction for power generation. Governments are taking various initiatives to replace coal-based power plants which are generating high demand for black pellets and the trend is expected to continue during the forecast period.
Rising Demand for Carbon Neutral and Sustainable Fuel to Bolster Demand for Black & Wood Pellets
In recent years, growing environmental concerns and depletion in fossil fuels have compelled both people and governments to look for alternative clean fuels. This has created a favorable environment for the development of the black & wood pellets industry, especially across industrialized European countries.
Governments across the globe are encouraging the use of renewable energy in the transportation, industrial, and residential sectors. As a result, there has been a dramatic increase in the number of pellet-based power plants.
In developing countries, there is an increasing interest in using bio-based energy sources to generate power due to rising energy usage and supportive government measures. The industrial sector is using more wood pellets, which has resulted in a considerable decrease in greenhouse gas emissions.
The remarkable expansion must be due to ongoing advancements in combustion technology in the wood pellets market. For instance, in March 2022, the leading global industrial wood pellet manufacturer, Enviva, announced bold plans to double its production capacity over the next five years.
Additionally, increasing environmental consciousness among consumers in industrialized regions like Europe is generating high demand for renewable energy sources like biomass pellets.
Principal Consultant
Low Awareness and Availability of Alternatives to Wood Pellets Negatively Impacting the Market
The development of Europe black & wood industry is being influenced by a variety of reasons, but certain aspects that are preventing it from progressing, such as a lack of understanding of wood pellets, the availability of substitutes, and the implementation of regulations.
During the projection period, the market expansion is anticipated to be hampered by the growing acceptance and deployment of alternative renewable energy sources including solar photovoltaic, wind energy, and geothermal in various areas of the globe.
Additionally, it is anticipated that throughout the forecast period, the operational and statutory compliance issues related to wood pellets would pose more and more of a hurdle to the growth rate.
As there is a growing demand for domestic wood pellets in the countries like Czech Republic, Slovakia, Poland, and Hungry wherein the cost of residential boilers is high and there are no government subsidies on the boilers which is the main barrier to growing this market in the Europe region.
High Operating Costs and Complicated Production Processes of Black Pellets May Hinder the Development
Higher expenditures are needed to produce torrified and steam-exploded pellets. A larger proportion of pellet feedstock must be added to the process' front end due to the increased energy densities. Energy is used in both processes to create "black" pellets. The technological developers' ongoing failure over a number of years to align the mass and energy balances of the production processes with a viable business model has harmed the market
Profitable process development has fallen behind schedule several times. Buyers of energy are reasonably skeptical. Energy consumers are also used to white pellets. They are aware that they can be generated regularly and dependably and that they operate in their boilers.
Furthermore, there is a complicated production process and high investment for black pellets over white pellets. This may hamper market expansion during the projection period.
Implementation of Stringent Carbon-emissions Standards and Rapid Shift Toward Greener Fuels to Boost Sales
Germany’s black & wood pellets market is expected to reach around USD 2,626.7 million by the end of the forecast period (2032). Demand for black & wood pellets in Germany is driven by growing environmental concerns, the rapid shift towards clean energy fuels, and favorable government support.
Black & wood pellets find different functions in different end-use industries across European countries like Germany and the United Kingdom When burned, wood pellets (wood pellets) are a densified biomass fuel that can provide power or heat. European Union (EU) climate change rules and incentives have been key drivers of vigorous wood pellet expansion. The usage of wood pellets has expanded dramatically in recent years, with European countries like Germany being the primary consumers.
In the future, Germany and possibly Poland may be able to use considerable amounts of pellets when coal power facilities are phased out. Germany has risen to be the EU's largest pellet producer, owing primarily to a robust domestic heating market.
Germany is the EU's largest coal consumer and has a large fleet of operational hard coal/lignite power plants that may be quickly converted to biomass. Second, the German energy transformation has practically ground to a halt in recent years. To meet the zero carbon emission & climate change policies, the inclination towards renewable energy sources is being witnessed which will propel the growth of the market in Germany.
The European Union's strict carbon emission standards will play a key role in driving black & wood pellet sales across Germany during the projection period. Along with this, European governments are taking steps to raise awareness about the use of wood pellets. This will positively influence Europe black & wood pellets demand.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
Black Pellets to Remain Highly Sought-After across Europe
According to Future Market Insights, the black pellets segment is expected to expand at a CAGR of 9.6% during the forecast period. This is attributed to the rising adoption of black pellets across various industries as an ideal alternative to conventional fossil fuels.
Black pellets are an effective renewable green fuel and can replace coal at industrial facilities. These pellets have various advantages over white/wood pellets which make them suitable for use at the industrial level.
Black pellets have high energy density & burn with more efficiency. Also, they offer the least moisture content, which makes them hydrophobic. This makes them easier to transport, handle & store outside.
Growing Usage of Pellet Boilers Across Residential and Commercial Sectors Fueling Wood Pellets Demand
With the rising adoption of pellet boilers across residential and commercial sectors, the pellet boilers segment is expected to grow at a CAGR of 9.1% during the forecast period. This in turn will create huge demand for wood pellets.
A wood pellet heating system is known as a pellet boiler. For heat requirements (heating loads) of 3.9 kW to 1 MW or more, pellet boilers are employed in central heating systems. Single-family houses, as well as larger residential, commercial, or institutional applications, employ pellet central heating systems for heating purposes.
To increase boiler sales, manufacturers on the worldwide market are raising knowledge of the environmentally friendly benefits of biomass boilers and the affordability of wood pellets. In addition to this, the enterprises are concentrating on drawing customers' attention and educating them about biomass boiler grants to support the customers' investment.
The black pellets market has grown significantly in the previous five years. This is mostly due to companies' efforts to meet increased demand for sustainable fuels, power, and heat generation, and to increase their global footprints. Companies are working on expanding their manufacturing facilities in domestic regions as well as in different geographies to serve different markets. In addition, several big players are collaborating and partnering with other players to boost their market position.
The key to the success of black and wood pellets manufacturers is strategic placement in regional markets as well as global markets and business lines. By developing a strong foothold in regional markets and businesses, notable market players may be able to lessen the pricing pressure caused by regional players, allowing them to gain profitability and expand their growth opportunities. For instance:
| Attribute | Details |
|---|---|
| Estimated Market Size (2022) | USD 10,867.5 million |
| Projected Market Size (2032) | USD 25,812.9 million |
| Anticipated Growth Rate (2022 to 2032) | 9.0% |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | USD Million for Value and Kilo Tons for Volume |
| Key Countries Covered | Germany, Italy, France, The United Kingdom, Spain, BENELUX, Russia & Rest of Europe |
| Key Segments Covered | Type, Application, End Use, Country |
| Key Companies Profiled | Idemitsu Kosan Co., Ltd.; Blackwood Technology; Zilkha Biomass Energy; Arbaflame AS; TTCL Public Company Limited; Verdo Holding A/S; Airex Energie Inc.; Graanul Invest; Iwatani Corporation; Land Energy Girvan Limited; Schwaiger Holzindustrie GmbH & Co. KG; Holzwerke Weinzierl GmbH; Balcas Energy; Enviva, LP; Drax Group; Ambienta Biomasse; Naparpellet |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The valuation of the dairy whiteners market reaches a notable sum of USD 10,867.5 million in 2023.
The dairy whiteners market is estimated to achieve a valuation of USD 25,812.9 million by 2033.
The dairy whiteners market is poised to witness a 9% CAGR upswing in demand through 2033.
The demand for plant-based dairy whiteners is now the biggest trend in the market for dairy whiteners.
The key segment in the dairy whiteners market by product type is liquid dairy whiteners.
1. Executive Summary | Europe Black & Wood Pellets Market 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Market Demand Analysis 2017 to 2021 and Forecast, 2022 to 2032 6. Market - Pricing Analysis 7. Market Demand (in Value or Size in USD million) Analysis 2017 to 2021 and Forecast, 2022 to 2032 8. Market Background 9. Market Analysis 2017 to 2021 and Forecast 2022 to 2032, by Type 9.1. Black Pellet (Process Type) 9.1.1. Torrefaction 9.1.2. Steam Explosion 9.1.3. Hydrothermal Carbonization 9.2. Wood Pellet (Feedstock Type) 9.2.1. Forest Wood & Waste 9.2.2. Agriculture Residue 9.2.3. Others (Energy Crops, Food Waste And Virgin Lumber) 10. Market Analysis 2017 to 2021 and Forecast 2022 to 2032, by Application 10.1. Black Pellet 10.1.1. Power Generation 10.1.2. Heat Generation 10.2. Wood Pellet 10.2.1. Free Standing Pellet Stove 10.2.2. Pellet Stove Inserts 10.2.3. Pellet Boilers 11. Market Analysis 2017 to 2021 and Forecast 2022 to 2032, by End Use 11.1. Black Pellet 11.1.1. Residential 11.1.2. Commercial 11.1.3. Industrial 11.1.4. Utilities 11.2. Wood Pellet 11.2.1. Industrial Pellet for CHP/ District Heating 11.2.2. Industrial Pellet for Co Firing 11.2.3. Pellet for Heating Residential/ Commercial 11.2.4. Other (Horse Bedding, Absorbent) 12. Market Analysis 2017 to 2021 and Forecast 2022 to 2032 12.1. By Country 12.1.1. Germany 12.1.2. Italy 12.1.3. France 12.1.4. The United Kingdom 12.1.5. Spain 12.1.6. BENELUX 12.1.7. Russia 12.1.8. Rest of Europe 12.2. By Type 12.3. By Application 12.4. By End Use 12.5. Market Attractiveness Analysis 12.5.1. By Country 12.5.2. By Type 12.5.3. By Application 12.5.4. By End Use 12.6. Market Trends 13. Country-Wise Market Analysis 14. Market Structure Analysis (Black Pellets) 15. Market Structure Analysis (Wood Pellets) 16. Competition Analysis (Black Pellets) 17. Competition Analysis (Wood Pellets) 17.1. Graanul Invest 17.2. Iwatani Corporation 17.3. Land Energy Girvan Limited 17.4. Schwaiger Holzindustrie GmbH & Co. KG 17.5. Holzwerke Weinzierl GmbH 17.6. Balcas Energy 17.7. Enviva, LP 17.8. Drax Group 17.9. Ambienta Biomasse 17.10. Naparpellet 18. Primary Survey Analysis 19. Assumptions and Acronyms Used 20. Research Methodology
Explore Chemicals & Materials Insights
View Reports
Europe Black & Wood Pellets Market
