Global wood pellet demand increased
The size of the global wood pellet market for 2019 was estimated to be valued at over $8.5 billion, and is estimated to exhibit over 10% CAGR from 2019 to 2025, said Global Markets Insights October 2019.
Over 22 million tons of wood pellets were shipped globally in 2018, up 21% from 2017. The US, Canada, Vietnam, Latvia, and Russia, accounted for 69% of global exports in 2018. Demand for imported pellets in Japan and South Korea continued a three-year growth trend in the 4Q 2018, when import volumes reached new record highs of 339,000 tons and 993,000 tons, respectively. In 2018, the total annual import volume for the two countries was just over 4.5 million tons, more than doubling in just two years, according to Madison’s Reporter.
The Residential wood pellet heating sector will account for the largest pellet market share throughout the Global Markets Insights study period. Growing product consumption in North America and major European countries will drive the segment’s growth. Major countries in these regions have taken initiatives to increase dependency on renewable energy sources in order to reduce carbon emission.
Solid biomass from forests, farms and cities provides a major energy source for heat and power generation, potentially accounting for one-ﬁfth of global energy consumption by 2050 amid accelerated adoption of renewables, said the International Renewal Energy Association (IRENA).
Europe is currently the major market for wood pellets. The region is the largest consumer, the largest producer, and the largest importer in the world. North America (Canada and the United States) follows in second place.
Europe is also a key region for the international wood pellet trade. While most European consumption is produced within Europe, a significant share of demand is supplied from abroad, mainly from Canada and the United States. This is currently the largest intercontinental trade flow.
In addition, growth in the Asian market, especially Japan and South Korea, has been seen recently.