What is the future of Wood Pellet Market? Know Covid Impact on Size,
Share & Forecasts

Mar 15,2021/IndustryNewsGlobal/ The unexpected shifts in the global
markets because of the sudden outbreak of the COVID-19 virus have brought many
major and minor tremors to industries of all sizes including the Wood
Pellet Market.

It was estimated prior to this unanticipated
outbreak that the Wood Pellet Market was expected to grow at a CAGR of 10.5%
during the forecast period. However, the gradual slowing down of industries
will undoubtedly impose limits on the previously estimated growth rate.

Wood pellets are the biofuels
that are manufactured by the process of crushing and densifying waste wood
including industrial byproducts such as forestry wastes, old paper, and
forestry residues. Wood pellets have come a long way as promising renewable
energy sources, which substitute coal and natural gas in various industrial
sectors, owing to their low cost and reduced carbon emission. The easy
availability of wood pellet feedstock and low cost of production has immensely
contributed towards its higher consumption, especially in the industrial
sector.

Increasing consciousness towards the use of
renewable energy sources for space heating in residential and commercial
heating, along with the increasing adoption of recyclable and eco-friendly
energy sources for power generation are the prime factors that are contributing
to the demand for wood pellets. The clean-burning and cost-effective fuel
option for heating needs for households is another factor that is driving the
demand for wood pellets.

This report studies the market
covering a period of 12 years of trend and forecast. The report provides
detailed insights into the market dynamics to enable informed business decision
making and growth strategy formulation based on the opportunities present in
the market.

Based on the grade type, the
market is segmented as premium, standard, and utility. The utility
grade segment held the largest share of the market in 2019, and is
expected to register the fastest growth during the forecast period.
The utility grade segment is mainly driven by its low bulk density compared to
that of premium grade wood pellets. The utility grade wood pellets provide
benefits for space utilization to the industrial sector and due to this factor
the usage of utility grade wood pellets has been growing for the industrial
heating applications.

Based on the application type,
the wood pellet market is segmented as residential, commercial, industrial, and
animal bedding. The residential segment held the largest share of
the market in 2019. Increasing consumption of wood pellets in North America and
major European countries, owing to the growing initiatives to increase
dependency on renewable energy sources for reducing carbon emission is the
major factor behind the growth of the segment.

In terms of regions, Europe
is estimated to be the largest market during the forecast period, with
France, Germany, Russia, and the United Kingdom being the major countries with
promising growth opportunities. The growth of the region’s market is mainly
driven by the growing initiatives towards replacement of coal-fired power
plants with pellet-based power plants, along with the growing focus on
renewable energy sources in the region to reduce carbon emissions.

Key Players:

Some of the major wood
pellet manufacturers are-

• Stora Enso Oyj


• Enviva Partners


• LP


• Pacific Bioenergy Corporation


• Drax Group plc


• AS Graanul Invest


• Lignetics, Inc.


• Ecochipp


• Svenska Cellulosa AB


• InstantHeat Wood Pellets, Inc.


• Pinnacle Renewable Energy Inc.