Wood Pellets And Other Agglomerates Market

The global market for wood pellets and other agglomerates is expected to see continued growth in consumption and value over the next eight years. Market performance is forecast to expand with a CAGR of +3.5% in volume and +5.4% in value from 2022 to 2030. Consumption has been on an upward trend, with the UK, Japan, and South Korea leading in terms of volume. The market is dominated by wood pellets, comprising 83% of total volume and leading in value as well. Production and imports have also seen growth, with the United States being the largest exporter. Prices have increased, with wood pellets being the most expensive product. Overall, the global market for wood pellets and other agglomerates is expected to see gradual growth in the coming years.

Market Forecast

Driven by increasing demand for wood pellets and other agglomerates worldwide, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +3.5% for the period from 2022 to 2030, which is projected to bring the market volume to 72M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +5.4% for the period from 2022 to 2030, which is projected to bring the market value to $18.1B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Wood Pellets And Other Agglomerates

For the eleventh year in a row, the global market recorded growth in consumption of wood pellets and other agglomerates, which increased by 3.9% to 55M tons in 2022. Overall, the total consumption indicated prominent growth from 2012 to 2022: its volume increased at an average annual rate of +5.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +77.9% against 2012 indices. Over the period under review, global consumption reached the maximum volume in 2022 and is likely to continue growth in the immediate term.

The revenue of the market for wood pellets and other agglomerates worldwide declined to $11.9B in 2022, waning by -10.1% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, the total consumption indicated a moderate expansion from 2012 to 2022: its value increased at an average annual rate of +4.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +51.1% against 2015 indices. Global consumption peaked at $13.2B in 2021, and then dropped in the following year.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were the UK (8.2M tons), Japan (4.6M tons) and South Korea (4.4M tons), with a combined 32% share of global consumption.

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the main consuming countries, was attained by Japan (with a CAGR of +40.4%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, the UK ($1.7B), Italy ($1.2B) and Brazil ($1.1B) constituted the countries with the highest levels of market value in 2022, with a combined 34% share of the global market. Japan, Germany, South Korea, France, the Netherlands, Denmark, Sweden, Austria, the United States and Russia lagged somewhat behind, together accounting for a further 45%.

Japan, with a CAGR of +36.8%, saw the highest rates of growth with regard to market size among the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of wood pellets and other agglomerates per capita consumption in 2022 were Denmark (433 kg per person), Sweden (254 kg per person) and the Netherlands (164 kg per person).

From 2012 to 2022, the biggest increases were recorded for Japan (with a CAGR of +40.7%), while consumption for the other global leaders experienced more modest paces of growth.

Consumption By Type

Wood pellets (46M tons) constituted the product with the largest volume of consumption, accounting for 83% of total volume. Moreover, wood pellets exceeded the figures recorded for the second-largest type, other agglomerates (9.5M tons), fivefold.

For wood pellets, consumption expanded at an average annual rate of +9.9% over the period from 2012-2022.

In value terms, wood pellets ($9.8B) led the market, alone. The second position in the ranking was taken by other agglomerates ($1.9B).

For wood pellets, market increased at an average annual rate of +10.7% over the period from 2012-2022.

Production

World Production of Wood Pellets And Other Agglomerates

In 2022, the amount of wood pellets and other agglomerates produced worldwide reached 56M tons, stabilizing at 2021 figures. Over the period under review, the total production indicated a prominent increase from 2012 to 2022: its volume increased at an average annual rate of +6.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +93.9% against 2012 indices. The pace of growth appeared the most rapid in 2014 when the production volume increased by 13%. Over the period under review, global production hit record highs in 2022 and is expected to retain growth in the near future.

In value terms, wood pellets and other agglomerates production declined modestly to $9.1B in 2022 estimated in export price. Overall, the total production indicated resilient growth from 2012 to 2022: its value increased at an average annual rate of +6.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production decreased by -1.4% against 2017 indices. The pace of growth was the most pronounced in 2014 when the production volume increased by 50%. Over the period under review, global production hit record highs at $9.2B in 2017; however, from 2018 to 2022, production remained at a lower figure.

Production By Country

The country with the largest volume of wood pellets and other agglomerates production was the United States (10M tons), accounting for 18% of total volume. Moreover, wood pellets and other agglomerates production in the United States exceeded the figures recorded by the second-largest producer, Russia (4.4M tons), twofold. Canada (4M tons) ranked third in terms of total production with a 7.1% share.

In the United States, wood pellets and other agglomerates production expanded at an average annual rate of +11.2% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Russia (+4.2% per year) and Canada (+9.2% per year).

Production By Type

Wood pellets (47M tons) constituted the product with the largest volume of production, comprising approx. 83% of total volume. Moreover, wood pellets exceeded the figures recorded for the second-largest type, other agglomerates (9.6M tons), fivefold.

From 2012 to 2022, the average annual rate of growth in terms of the volume of wood pellets production amounted to +9.8%.

In value terms, wood pellets ($7.6B) led the market, alone. The second position in the ranking was held by other agglomerates ($1.5B).

For wood pellets, production increased at an average annual rate of +8.0% over the period from 2012-2022.

Imports

World Imports of Wood Pellets And Other Agglomerates

In 2022, the amount of wood pellets and other agglomerates imported worldwide reached 34M tons, surging by 6.8% against the previous year. Over the period under review, total imports indicated a buoyant increase from 2012 to 2022: its volume increased at an average annual rate of +6.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +55.5% against 2017 indices. The pace of growth appeared the most rapid in 2018 when imports increased by 21%. Global imports peaked in 2022 and are likely to see gradual growth in the immediate term.

In value terms, wood pellets and other agglomerates imports skyrocketed to $7.5B in 2022. In general, imports continue to indicate resilient growth. As a result, imports reached the peak and are likely to continue growth in the immediate term.

Imports By Country

In 2022, the UK (7.6M tons), distantly followed by Japan (4.5M tons), South Korea (4.1M tons), Italy (3.8M tons), the Netherlands (3M tons) and Denmark (2.8M tons) were the major importers of wood pellets and other agglomerates, together achieving 77% of total imports. Belgium (1,227K tons), France (991K tons), Sweden (856K tons), Germany (809K tons) and Austria (538K tons) took a little share of total imports.

From 2012 to 2022, the biggest increases were recorded for Japan (with a CAGR of +49.0%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, the largest wood pellets and other agglomerates importing markets worldwide were the UK ($1.7B), Italy ($1.1B) and Japan ($933M), together accounting for 50% of global imports.

In terms of the main importing countries, Japan, with a CAGR of +43.0%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Imports By Type

Wood pellets dominates imports structure, reaching 30M tons, which was near 92% of total imports in 2022. It was distantly followed by other agglomerates (2.5M tons), constituting a 7.7% share of total imports.

Wood pellets was also the fastest-growing in terms of imports, with a CAGR of +13.2% from 2012 to 2022. other agglomerates (-11.9%) illustrated a downward trend over the same period. While the share of wood pellets (+43 p.p.) increased significantly in terms of the global imports from 2012-2022, the share of other agglomerates (-43 p.p.) displayed negative dynamics.

In value terms, wood pellets ($7.1B) constitutes the largest type of wood pellets and other agglomerates imported worldwide, comprising 94% of global imports. The second position in the ranking was held by other agglomerates ($425M), with a 5.6% share of global imports.

From 2012 to 2022, the average annual growth rate of the value of wood pellets imports amounted to +15.4%.

Import Prices By Type

In 2022, the average import price for wood pellets and other agglomerates amounted to $225 per ton, with an increase of 25% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +5.1%. As a result, import price attained the peak level and is likely to continue growth in the immediate term.

Average prices varied somewhat amongst the major imported products. In 2022, the product with the highest price was wood pellets ($234 per ton), while the price for other agglomerates amounted to $167 per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by other agglomerates (+7.3%).

Import Prices By Country

The average import price for wood pellets and other agglomerates stood at $225 per ton in 2022, jumping by 25% against the previous year. Over the last decade, it increased at an average annual rate of +5.1%. As a result, import price attained the peak level and is likely to continue growth in the immediate term.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Italy ($303 per ton), while Sweden ($78 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by France (+12.4%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Wood Pellets And Other Agglomerates

For the fifth year in a row, the global market recorded growth in overseas shipments of wood pellets and other agglomerates, which increased by 0.2% to 35M tons in 2022. Over the period under review, total exports indicated a resilient expansion from 2012 to 2022: its volume increased at an average annual rate of +8.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +48.3% against 2017 indices. The pace of growth appeared the most rapid in 2013 with an increase of 25%. Over the period under review, the global exports hit record highs in 2022 and are expected to retain growth in the near future.

In value terms, wood pellets and other agglomerates exports soared to $7.3B in 2022. Overall, exports recorded prominent growth. The pace of growth appeared the most rapid in 2013 with an increase of 37%. The global exports peaked in 2022 and are likely to see gradual growth in years to come.

Exports By Country

The United States was the largest exporter of wood pellets and other agglomerates in the world, with the volume of exports reaching 9M tons, which was near 26% of total exports in 2022. It was distantly followed by Canada (3.6M tons), Russia (2.8M tons), Vietnam (2.7M tons) and Latvia (1.9M tons), together generating a 32% share of total exports. Estonia (1,420K tons), Germany (951K tons), Ukraine (923K tons), Malaysia (807K tons), Belgium (773K tons), Austria (751K tons), Belarus (706K tons) and Lithuania (690K tons) followed a long way behind the leaders.

From 2012 to 2022, average annual rates of growth with regard to wood pellets and other agglomerates exports from the United States stood at +16.6%. At the same time, Vietnam (+34.2%), Ukraine (+15.2%), Malaysia (+14.3%), Belarus (+12.5%), Estonia (+11.4%), Russia (+10.1%), Canada (+8.6%), Lithuania (+7.2%), Latvia (+6.8%) and Belgium (+6.3%) displayed positive paces of growth. Moreover, Vietnam emerged as the fastest-growing exporter exported in the world, with a CAGR of +34.2% from 2012-2022. Austria experienced a relatively flat trend pattern. By contrast, Germany (-5.7%) illustrated a downward trend over the same period. The United States (+14 p.p.), Vietnam (+7 p.p.), Ukraine (+2.7 p.p.) and Malaysia (+2.3 p.p.) significantly strengthened its position in terms of the global exports, while Austria and Germany saw its share reduced by -2.3% and -8% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest wood pellets and other agglomerates supplying countries worldwide were the United States ($1.6B), Vietnam ($807M) and Canada ($576M), with a combined 40% share of global exports.

Vietnam, with a CAGR of +43.9%, saw the highest growth rate of the value of exports, among the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Exports By Type

Wood pellets prevails in exports structure, reaching 32M tons, which was near 92% of total exports in 2022. It was distantly followed by other agglomerates (2.6M tons), mixing up a 7.7% share of total exports.

Wood pellets was also the fastest-growing in terms of exports, with a CAGR of +12.8% from 2012 to 2022. other agglomerates (-8.6%) illustrated a downward trend over the same period. From 2012 to 2022, the share of wood pellets increased by +33 percentage points.

In value terms, wood pellets ($6.7B) remains the largest type of wood pellets and other agglomerates supplied worldwide, comprising 93% of global exports. The second position in the ranking was taken by other agglomerates ($489M), with a 6.8% share of global exports.

From 2012 to 2022, the average annual growth rate of the value of wood pellets exports stood at +15.1%.

Export Prices By Type

The average export price for wood pellets and other agglomerates stood at $212 per ton in 2022, picking up by 32% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +3.8%. As a result, the export price reached the peak level and is likely to continue growth in the immediate term.

Average prices varied noticeably amongst the major exported products. In 2022, the product with the highest price was wood pellets ($213 per ton), while the average price for exports of other agglomerates stood at $186 per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by other agglomerates (+5.9%).

Export Prices By Country

The average export price for wood pellets and other agglomerates stood at $212 per ton in 2022, increasing by 32% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +3.8%. As a result, the export price attained the peak level and is likely to continue growth in the immediate term.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Austria ($382 per ton), while Belarus ($133 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Vietnam (+7.3%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform