Biomass Pellets Market Report 2025 (Global Edition)

Global Biomass Pellets Market Report 2025 Market Size Split by Source (Agricultural residue and waste, Forest and wood waste, Virgin lumber, Food waste, Energy crops, Others), by Application Outlook: ...

Biomass Pellets Market Report Description

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How 2025 Tariffs Are Reshaping the Consumer Goods Industry

In 2025, the global trade landscape has shifted dramatically following the U.S. introduction of sweeping tariffs under President Donald Trump’s administration. These "Liberation Day Tariffs," launched in April, aim to reduce trade deficits and boost domestic manufacturing. Tariffs range from 10% on imports from countries like the UK and Australia to 46% on Vietnamese goods, with a blanket 34% tariff on many Chinese imports and 25% on all steel, aluminum, and auto parts. This policy heavily impacts the consumer goods sector apparel, appliances, packaged foods, and personal care products due to their deep reliance on global supply chains, especially in Asia. U.S.–China trade tensions have intensified, with reciprocal tariffs reaching up to 145% on U.S. goods and 125% on Chinese exports, while China’s trade surplus with the U.S. hit USD 102.6 billion in March 2025. In response, the EU and Canada have implemented retaliatory measures, signaling a broader shift toward protectionism.

The consumer goods industry is feeling immediate effects: production costs are rising, sourcing is delayed, and inflation pressures are mounting. Apparel and footwear now face 25% tariffs, prompting brands to seek nearshoring options or raise prices. Household appliances incur 20% tariffs, complicating inventory and procurement strategies. Packaged foods and beverages are hit with 10–15% tariffs, impacting contracts and leading to supplier diversification and product reformulation. Personal care firms face higher costs for imported ingredients and packaging, leading to local sourcing efforts and delays in new product launches. Meanwhile, electronics, though temporarily exempt, are preparing for possible disruptions by diversifying suppliers and increasing inventories.

China remains the backbone of U.S. consumer goods sourcing, accounting for a large portion of imports either directly or through upstream components. This makes tariffs on Chinese goods especially disruptive. The rising input costs 15–30% in many categories combined with seasonal pressures and tight timelines, are causing delays and increased costs. Smaller brands, in particular, are struggling due to limited capital and reduced supplier leverage. Many are being forced to increase prices, cut product variety, or compromise on quality.

Market research is now critical to navigating this volatile environment. It supports supplier mapping and risk assessment, helping brands identify alternative sourcing countries with stable regulations and quality control. It also aids in cost and margin analysis, guiding decisions on pricing and sourcing changes. Optimization of product design and materials through research allows companies to reduce costs while maintaining consumer expectations. Additionally, research helps assess consumer price sensitivity, enabling strategic repositioning. Tracking regulatory changes and running scenario planning models allow firms to anticipate and adapt to future trade shifts.

To cope, companies are restructuring their global sourcing models. Major brands like Nike and IKEA are expanding operations in Vietnam, India, and Mexico, while embracing “in-market for market” strategies to reduce exposure to tariffs and logistics risks. Many are adopting AI-driven demand forecasting and automated procurement, and pushing suppliers for transparency. Product redesign and SKU rationalization are also common. The most successful firms are those using data-driven insights, operational flexibility, and strategic supplier partnerships to adapt not just survive in this new era of global trade.

Biomass Pellets Market Insights Video

Competitive Landscape of the Biomass Pellets Market

Leading biomass pellet manufacturers are focusing on R&D initiatives. They are concentrating on distinctiveness and innovation in biomass pellets to boost their product ranges. They are focusing on launching products that respond to shifting consumer desires, depending on a variety of criteria. Key players may develop strategic alliances and collaborations to enter new markets. The entry of new competitors is expected to accelerate market expansion. New and established market actors are likely to extend their distribution networks to meet rising demand.

In April 2022, Drax Group PLC opened a new pellet facility in Demopolis, Alabama, that transforms sawmill waste like sawdust, chips, and shavings into sustainable biomass pellets. (Source: https://www.drax.com/us/press_release/drax-opens-new-pellet-plant-in-sweet-home-alabama/) In September 2022, Envia opened a wood biomass facility in George County, Mississippi, to meet its annual production capacity of 750,000 metric tons per year (MTPY). (Source: https://financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/enviva-celebrates-its-recently-opened-wood-biomass-facility-in-george-county-mississippi-with-ceremonial-ribbon-cutting)

Top Companies Market Share in Biomass Pellets Industry: (In no particular order of Rank)

• Drax
• Rentech Inc.
• Enviva Inc.
• German Pellets GmbH
• AS Graanul Invest
• Lignetics of Idaho Inc.
• Zilkha Biomass Energy LLC
• Premium Pellets Ltd.
• Fram Renewable Fuels
• Abellon CleanEnergy Limited
• Subham Industries
• Nishant Bioenergy Private Energy
• MVM Bio Green Energy
• Ecostan India Private Limited
• JP Green Fuels
• Kushal Timber Private Limited
• Perfect Traders
• Raghvendra Industries
• Ved Shanti Biomass Energy Fuels
• Siddharth Agro Products Private Limited
• Ankit Bio Fuels LLP
• Confidential Data
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• Data Hidden

*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Biomass Pellets Market

Which Region Dominates the Biomass Pellets Market in 2024?

According to Cognitive Market Research, North America is dominating the biomass pellet market due to advanced technologies and a great concern for sustainability. Strong sector establishment of the same can be experienced in North America due to the well-built infrastructure and legislation that paves the way for a competitive environment in the business and innovation in producing and using biomass pellets

Which Region is Expanding at the Fastest CAGR?

Asia Pacific is the fastest-growing region in the Biomass Pellets market because of rapid urbanization and industrialization, as well as attractive government incentives for the use of biomass products, which are expected to drive market expansion in the Asia Pacific area in the coming years.

The current report Scope analyzes Biomass Pellets Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Biomass Pellets Market

According to Cognitive Market Research, the global Biomass Pellets market size was estimated at USD 9815.2 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 3926.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Biomass Pellets market with a market size of USD 3097.68 million in 2024 and is projected to grow at a CAGR of 4.0% during the forecast period. The U.S. market's maturity and established infrastructure have positioned it as a leader in the production and consumption of biomass pellets, showcasing the country's commitment to sustainability and renewable energy.
• The Canada Biomass Pellets market had a market share of USD 471.13 million in 2024 and is projected to grow at a CAGR of 5.0% during the forecast period. Canada's contribution to the biomass pellets market underscores its dedication to environmental conservation and the transition towards sustainable energy sources.
• The Mexico Biomass Pellets market is projected to witness growth at a CAGR of 4.7% during the forecast period, with a market size of USD 357.27 million in 2024.

Europe Biomass Pellets Market

According to Cognitive Market Research, the global Biomass Pellets market size was estimated at USD 9815.2 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 2944.56 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.5% from 2024 to 2031.

• The United Kingdom's Biomass Pellets market had a market share of USD 494.69 million in 2024 and is projected to grow at a CAGR of 5.3% during the forecast period. In the UK, Biomass Pellets sales witnessed an upswing due to stringent regulations implemented in the country to foster environmental protection.
• The France Biomass Pellets market is projected to witness growth at a CAGR of 3.7% during the forecast period, with a market size of USD 270.90 million in 2024.
• According to Cognitive Market Research, the German Biomass Pellets market size was valued at USD 583.02 million in 2024 and is projected to grow at a CAGR of 4.7% during the forecast period. In Germany, Biomass Pellets surged due to rising rural development.
• The Italy Biomass Pellets market is projected to witness growth at a CAGR of 3.9% during the forecast period, with a market size of USD 253.23 million in 2024.
• The Russia Biomass Pellets market is projected to witness growth at a CAGR of 3.5% during the forecast period, with a market size of USD 456.41 million in 2024.
• The Spain Biomass Pellets market is projected to witness growth at a CAGR of 3.6% during the forecast period with a market size of USD 241.45 million in 2024
• The Luxembourg Biomass Pellets market is projected to witness growth at a CAGR of 4.6% during the forecast period, with a market size of USD 91.28 million in 2024.
• The Portugal Biomass Pellets market is projected to witness growth at a CAGR of 4.3% during the forecast period, with a market size of USD 61.84 million in 2024.
• The Greece Biomass Pellets market is projected to witness growth at a CAGR of 4.8% during the forecast period, with a market size of USD 35.33 million in 2024.
• Rest of Europe's Biomass Pellets market is projected to witness growth at a CAGR of 3.2% during the forecast period, with a market size of USD 456.41 million in 2024.

Asia Pacific Biomass Pellets Market

According to Cognitive Market Research, the global Biomass Pellets market size was estimated at USD 9815.2 Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD 2257.50 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.

• According to Cognitive Market Research, the China Biomass Pellets market size was valued at USD 1015.87 million in 2024 and is projected to grow at a CAGR of 7.5% during the forecast period. China has made substantial investments in biomass energy projects
• The Japan Biomass Pellets market is projected to witness growth at a CAGR of 6.5% during the forecast period, with a market size of USD 311.53 million in 2024.
• The India Biomass Pellets market had a market share of USD 270.90 million in 2024 and is projected to grow at a CAGR of 9.8% during the forecast period. India’s focus on renewable energy sources
• The South Korean Biomass Pellets market is projected to witness growth at a CAGR of 7.1% during the forecast period, with a market size of USD 225.75 million in 2024.
• The Australian Biomass Pellets market is projected to witness growth at a CAGR of 7.7% during the forecast period, with a market size of USD 117.39 million in 2024.
• The South East Asia Biomass Pellets market is projected to witness growth at a CAGR of 9.0% during the forecast period, with a market size of USD 155.77 million in 2024.
• The Rest of Asia Pacific Biomass Pellets market is projected to witness growth at a CAGR of 7.8% during the forecast period, with a market size of USD 160.28 million in 2024.

South America Biomass Pellets Market

According to Cognitive Market Research, the global Biomass Pellets market size was estimated at USD 9815.2 Million, out of which the Latin America held the market share of around 5% of the global revenue with a market size of USD 490.76 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031. .

• According to Cognitive Market Research, the Brazil Biomass Pellets market size was valued at USD 210.05 million in 2024 and is projected to grow at a CAGR of 6.0% during the forecast period. Biomass Pellets flourished in Brazil due to increasing focus on renewable energy sources and sustainability
• Argentina's Biomass Pellets market had a market share of USD 82.45 million in 2024 and is projected to grow at a CAGR of 6.3% during the forecast period. Argentina's technological advancements
• Colombia's Biomass Pellets market is projected to witness growth at a CAGR of 5.2% during the forecast period, with a market size of USD 43.68 million in 2024.
• Peru's Biomass Pellets market is projected to witness growth at a CAGR of 5.6% during the forecast period, with a market size of USD 40.24 million in 2024.
• Chile's Biomass Pellets market is projected to witness growth at a CAGR of 5.7% during the forecast period, with a market size of USD 35.33 million in 2024.
• The Rest of Latin America's Biomass Pellets market is projected to witness growth at a CAGR of 4.5% during the forecast period, with a market size of USD 79.01 million in 2024.

Middle East Biomass Pellets Market

According to Cognitive Market Research, the global Biomass Pellets market size was estimated at USD 9815.2 Million, out of which the Middle East and Africa held the major market share of around 2% of the global revenue with a market size of USD 196.30 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031..

• The GCC Countries Biomass Pellets market is projected to witness growth at a CAGR of 6.5% during the forecast period, with a market size of USD 84.02 million in 2024. Biomass Pellets sales flourish due to the growing interest in renewable energy sources and sustainability.
• The Egypt Biomass Pellets market is projected to witness growth at a CAGR of 6.0% during the forecast period, with a market size of USD 20.61 million in 2024.
• The South Africa Biomass Pellets market is projected to witness growth at a CAGR of 6.7% during the forecast period, with a market size of USD 31.02 million in 2024. Biomass Pellet sales flourish in South Africa due to increasing focus on sustainability.
• The Turkey Biomass Pellets market is projected to witness growth at a CAGR of 5.2% during the forecast period, with a market size of USD 16.88 million in 2024.
• The Nigeria Biomass Pellets market is projected to witness growth at a CAGR of 4.8% during the forecast period, with a market size of USD 20.61 million in 2024.
• The Rest of the MEA Biomass Pellets market is projected to witness growth at a CAGR of 4.7% during the forecast period, with a market size of USD 23.16 million in 2024.

Biomass Pellets Market Analysis

How are Segments Performing in the Global Biomass Pellets Market?

Biomass Pellets Market Source Segment Analysis

According to Cognitive Market Research, Biomass pellets generated from Forest and wood waste account for a significant portion of the global market. The widespread availability of wood sawdust has allowed this segment to account for a sizable portion of the market. Wood sawdust is subjected to high pressure and temperature, causing the lignin in it to melt and form a pellet, yielding an energy source that is not only environmentally beneficial but also has a higher energy density per unit than lost sawdust.

The demand for biomass pellets generated from Agricultural residue and waste is constantly expanding. The growing emphasis on waste reduction around the world is driving biomass pellet makers to use agricultural waste for pellet production. The presence of a strong agriculture industry in some countries is also helping to drive this segment's growth.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Biomass Pellets Industry. Request a Free Sample PDF!

Biomass Pellets Market Application Segment Analysis

According to Cognitive Market Research, the majority of biomass pellets are utilized for power generation, allowing the segment to command a significant market share. A strong emphasis on sustainability has resulted in the broad adoption of renewable energy sources, which is expected to increase demand for biomass pellets for power generation significantly. The expanding global population has resulted in higher energy needs, and governments around the world are attempting to reduce the carbon footprint of the energy business by implementing eco-friendly energy-producing procedures.

The heating sector is the largest and fastest-growing segment in the Biomass Pellets application market. Rising demand for renewable sources of energy in the residential, commercial, and industrial heating application sectors is expected to drive demand for biomass pellets. Increasingly, biomass pellets are coming to be regarded as a clean, sustainable, and effective alternative to conventional fossil fuel systems serving heating applications.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Biomass Pellets Type Segment Analysis

• Wood Pellets
• Agri Pellets
• Torrefied Pellets
• Others

Author's Detail

Sneha Mali

Research Analyst at Cognitive Market Research

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I am a research analyst working in various domains including the Consumer Goods domain, and my primary responsibility is to conduct thorough research on various subjects and provide valuable insights to support client requirements. I have knowledge of research methodologies, and data mining which enables me to analyze large data sets, draw meaningful conclusions, and communicate them effectively. I stay up-to-date with the latest research trends, methodologies, and technologies to ensure that my research is accurate, relevant, and impactful.

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