Europe black & wood pellets market is currently valued at around US$ 10,867.5 million and is forecast to grow at a CAGR of 9.0% between 2022 and 2032, to reach US$ 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) | US$ 10,075.2 million |
| Estimated Market Value (2022E) | US$ 10,867.5 million |
| Projected Market Value (2032F) | US$ 25,812.9 million |
| Value-based CAGR (2022 to 2032) | 9.0% |
| Collective Value Share: Top 3 Countries (2022E) | 58.4% |
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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 US$ 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.
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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) | US$ 10,867.5 million |
| Projected Market Size (2032) | US$ 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 | US$ 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 US$ 10,867.5 million in 2023.
The dairy whiteners market is estimated to achieve a valuation of US$ 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
1.1. Market Outlook
1.2. Demand Side Trends
1.3. Supply Side Trends
1.4. Technology Roadmap
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Key Market Trends
3.1. Key Trends Impacting the Market
3.2. Product Innovation / Development Trends
4. Key Success Factors
4.1. Product Adoption / Usage Analysis
4.2. Product USPs / Features
4.3. Strategic Promotional Strategies
5. Market Demand Analysis 2017 to 2021 and Forecast, 2022 to 2032
5.1. Historical Market Volume (KT) Analysis, 2017 to 2021
5.2. Current and Future Market Volume (KT) Projections, 2022 to 2032
5.3. Y-o-Y Growth Trend Analysis
6. Market - Pricing Analysis
6.1. Regional Pricing Analysis by Type and Pricing Forecast
6.2. Europe Average Pricing Analysis Benchmark
6.3. Key Factors Impacting Price
7. Market Demand (in Value or Size in US$ million) Analysis 2017 to 2021 and Forecast, 2022 to 2032
7.1. Historical Market Value (US$ million) Analysis, 2017 to 2021
7.2. Current and Future Market Value (US$ million) Projections, 2022 to 2032
7.2.1. Y-o-Y Growth Trend Analysis
7.2.2. Absolute $ Opportunity Analysis
8. Market Background
8.1. Macro-Economic Factors
8.2. Forecast Factors - Relevance & Impact
8.2.1. Top Companies Historical Growth
8.2.2. End-Use Industry Growth Outlook
8.2.3. GDP Growth forecast
8.2.4. Manufacturing Industry forecast
8.2.5. Europe Urbanization Growth Outlook
8.2.6. Government Policies and Spending
8.2.7. COVID-19 Impact Assessment
8.3. Value Chain
8.3.1. List of Product Manufacturers
8.3.2. List of End Users
8.3.3. Average Profitability Margins
8.4. COVID-19 Crisis - Impact Assessment
8.4.1. Current Statistics
8.4.2. Short-Mid-Long Term Outlook
8.4.3. Likely Rebound
8.5. Market Dynamics
8.5.1. Drivers
8.5.2. Restraints
8.5.3. Opportunity Analysis
8.6. Supply Vs. Demand Analysis
9. Market Analysis 2017 to 2021 and Forecast 2022 to 2032, by Type
9.1. Introduction / Key Findings
9.2. Historical Market Size (US$ million) and Volume Analysis By Type, 2017 to 2021
9.3. Current and Future Market Size (US$ million) and Volume Analysis and Forecast By Type, 2022 to 2032
9.3.1. Black Pellet (Process Type)
9.3.1.1. Torrefaction
9.3.1.2. Steam Explosion
9.3.1.3. Hydrothermal Carbonization
9.3.2. Wood Pellet (Feedstock Type)
9.3.2.1. Forest Wood & Waste
9.3.2.2. Agriculture Residue
9.3.2.3. Others (Energy Crops, Food Waste And Virgin Lumber)
9.4. Market Attractiveness Analysis By Type
10. Market Analysis 2017 to 2021 and Forecast 2022 to 2032, by Application
10.1. Introduction / Key Findings
10.2. Historical Market Size (US$ million) and Volume Analysis By Application, 2017 to 2021
10.3. Current and Future Market Size (US$ million) and Volume Analysis and Forecast By Application, 2022 to 2032
10.3.1. Black Pellet
10.3.1.1. Power Generation
10.3.1.2. Heat Generation
10.3.2. Wood Pellet
10.3.2.1. Free Standing Pellet Stove
10.3.2.2. Pellet Stove Inserts
10.3.2.3. Pellet Boilers
10.4. Market Attractiveness Analysis By Application
11. Market Analysis 2017 to 2021 and Forecast 2022 to 2032, by End Use
11.1. Introduction / Key Findings
11.2. Historical Market Size (US$ million) and Volume Analysis By End Use, 2017 to 2021
11.3. Current and Future Market Size (US$ million) and Volume Analysis and Forecast By End Use, 2022 to 2032
11.3.1. Black Pellet
11.3.1.1. Residential
11.3.1.2. Commercial
11.3.1.3. Industrial
11.3.1.4. Utilities
11.3.2. Wood Pellet
11.3.2.1. Industrial Pellet for CHP/ District Heating
11.3.2.2. Industrial Pellet for Co Firing
11.3.2.3. Pellet for Heating Residential/ Commercial
11.3.2.4. Other (Horse Bedding, Absorbent)
11.4. Market Attractiveness Analysis By End Use
12. Market Analysis 2017 to 2021 and Forecast 2022 to 2032
12.1. Introduction
12.2. Pricing Analysis
12.3. Historical Market Size (US$ million) and Volume Trend Analysis By Market Taxonomy, 2017 to 2021
12.4. Market Size (US$ million) and Volume Forecast By Market Taxonomy, 2022 to 2032
12.4.1. By Country
12.4.1.1. Germany
12.4.1.2. Italy
12.4.1.3. France
12.4.1.4. The United Kingdom
12.4.1.5. Spain
12.4.1.6. BENELUX
12.4.1.7. Russia
12.4.1.8. Rest of Europe
12.4.2. By Type
12.4.3. By Application
12.4.4. 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
13.1. Germany Market Analysis
13.1.1. By Type
13.1.2. By Application
13.1.3. By End Use
13.2. Italy Market Analysis
13.2.1. By Type
13.2.2. By Application
13.2.3. By End Use
13.3. France Market Analysis
13.3.1. By Type
13.3.2. By Application
13.3.3. By End Use
13.4. The United Kingdom Market Analysis
13.4.1. By Type
13.4.2. By Application
13.4.3. By End Use
13.5. Spain Market Analysis
13.5.1. By Type
13.5.2. By Application
13.5.3. By End Use
13.6. BENELUX Market Analysis
13.6.1. By Type
13.6.2. By Application
13.6.3. By End Use
13.7. Russia Market Analysis
13.7.1. By Type
13.7.2. By Application
13.7.3. By End Use
14. Market Structure Analysis (Black Pellets)
14.1. Market Analysis by Tier of Companies
14.2. Market Share Analysis of Top Players
14.3. Key Players Capacity Expansion Plans
15. Market Structure Analysis (Wood Pellets)
15.1. Market Analysis by Tier of Companies
15.2. Market Concentration
15.3. Market Share Analysis of Top Players
15.4. Key Players Capacity Expansion Plans
16. Competition Analysis (Black Pellets)
16.1. Competition Dashboard
16.2. Competition Benchmarking
16.3. Competition Deep Dive
16.3.1. Idemitsu Kosan Co., Ltd.
16.3.1.1. Overview
16.3.1.2. Product Portfolio
16.3.1.3. Profitability by Market Segments (Product/Channel/Region)
16.3.1.4. Sales Footprint
16.3.1.5. Strategy Overview
16.3.2. Blackwood Technology
16.3.3. Zilkha Biomass Energy
16.3.4. Arbaflame AS
16.3.5. TTCL Public Company Limited
16.3.6. Verdo Holding A/S
16.3.7. Airex Energie Inc.
17. Competition Analysis (Wood Pellets)
17.1. Competition Dashboard
17.2. Competition Benchmarking
17.3. Competition Deep Dive
17.3.1. Graanul Invest
17.3.1.1. Overview
17.3.1.2. Product Portfolio
17.3.1.3. Profitability by Market Segments (Type/Application/End Use/Country)
17.3.1.4. Sales Footprint
17.3.1.5. Strategy Overview
17.3.2. Iwatani Corporation
17.3.2.1. Overview
17.3.2.2. Product Portfolio
17.3.2.3. Profitability by Market Segments (Type/Application/End Use/Country)
17.3.2.4. Sales Footprint
17.3.2.5. Strategy Overview
17.3.3. Land Energy Girvan Limited
17.3.3.1. Overview
17.3.3.2. Product Portfolio
17.3.3.3. Profitability by Market Segments (Type/Application/End Use/Country)
17.3.3.4. Sales Footprint
17.3.3.5. Strategy Overview
17.3.4. Schwaiger Holzindustrie GmbH & Co. KG
17.3.4.1. Overview
17.3.4.2. Product Portfolio
17.3.4.3. Profitability by Market Segments (Type/Application/End Use/Country)
17.3.4.4. Sales Footprint
17.3.4.5. Strategy Overview
17.3.5. Holzwerke Weinzierl GmbH
17.3.5.1. Overview
17.3.5.2. Product Portfolio
17.3.5.3. Profitability by Market Segments (Type/Application/End Use/Country)
17.3.5.4. Sales Footprint
17.3.5.5. Strategy Overview
17.3.6. Balcas Energy
17.3.6.1. Overview
17.3.6.2. Product Portfolio
17.3.6.3. Profitability by Market Segments (Type/Application/End Use/Country)
17.3.6.4. Sales Footprint
17.3.6.5. Strategy Overview
17.3.7. Enviva, LP
17.3.7.1. Overview
17.3.7.2. Product Portfolio
17.3.7.3. Profitability by Market Segments (Type/Application/End Use/Country)
17.3.7.4. Sales Footprint
17.3.7.5. Strategy Overview
17.3.8. Drax Group
17.3.8.1. Overview
17.3.8.2. Product Portfolio
17.3.8.3. Profitability by Market Segments (Type/Application/End Use/Country)
17.3.8.4. Sales Footprint
17.3.8.5. Strategy Overview
17.3.9. Ambienta Biomasse
17.3.9.1. Overview
17.3.9.2. Product Portfolio
17.3.9.3. Profitability by Market Segments (Type/Application/End Use/Country)
17.3.9.4. Sales Footprint
17.3.9.5. Strategy Overview
17.3.10. Naparpellet
17.3.10.1. Overview
17.3.10.2. Product Portfolio
17.3.10.3. Profitability by Market Segments (Type/Application/End Use/Country)
17.3.10.4. Sales Footprint
17.3.10.5. Strategy Overview
18. Primary Survey Analysis
19. Assumptions and Acronyms Used
20. Research Methodology
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Europe Black & Wood Pellets Market
