Europe Biomass Pellets Market: Industry Analysis and Forecast (2024-2030) Trends, Statistics, Dynamics, Segmentation by Source, Application and Region

  • Europe Biomass Pellets Market was valued at USD 7.97 billion in 2023. The Europe Biomass Pellets Market size is estimated to grow at a CAGR of 5.5% over the forecast period

  • Format : PDF | Report ID : SMR_768

Europe Biomass Pellets Market Definition:

Biomass pellets produce negligible greenhouse emissions and hence do not contribute to global warming. They're also used to heat stoves and boilers as an alternative to coal in power plants. Coconut shells, treetops, fruit bunches, and palm kernel shells are used to make biomass pellets. When fossil-fuel reserves run out and carbon emission regulations increase, they become extremely important sustainable energy sources.


Further, the Europe Biomass Pellets market is segmented by Source, Application, and geography. On the basis of Source , the Europe Biomass Pellets market is segmented under Agriculture Residue& Waste, Forest& Wood waste, Virgin Lumber, Food Waste , Energy Crop, Industrial waste & other. Based on the Application, the market is segmented under Pellet Stove, Pellet Boilers, Free-Standing stoves, Animal Bedding, Combined Heat and Power(CHP), Commercial heating, Residential heating, Power generation and Other. By geography, the market covers the major countries in Europe i.e., Italy, Germany, United Kingdom, Russia, France and Rest of Europe For each segment, the market sizing and forecasts have been done on the basis of value (in USD Billion).


Europe Biomass Pellets Market


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Europe Biomass Pellets COVID 19 Insights:

Due to lockdowns, travel bans, and business shutdowns, the COVID-19 has had a negative impact on economies and businesses in the European region. The closing of various plants and factories has had a severe influence on supply chains, negatively affecting manufacturing, delivery schedules, and product sales in the market. A few companies have already announced that there may be delays in product deliveries and a decrease in future sales.


Europe Biomass Pellets Market Dynamics:

Market Drivers:

Europe is a leading country in biomass pellet production, as the European Union promotes green energy policies to combat major environmental pollution caused by rapid fossil fuel combustion. Due to the strong demand for space heating, household, and industrial purposes, Germany, Sweden, Austria, Latvia, Estonia, France, and other countries are producing biomass pellets at an incredible rate.


The United Kingdom is a major consumer of biomass pellets. Around 40% of biomass pellets generated in Europe are likely to be used in the country. In the United Kingdom, strict restrictions are in place to promote environmental protection. The United Kingdom is also a leader in the manufacture of clean energy.


Market Trend:

The majority of stoves in rural regions use firewood as a fuel source. Firewood has a low burning efficiency and is difficult to store. Also, developing a device that can automatically feed in firewood and control the quantity of firewood during the combustion period is difficult. However, using gas or electricity as a burning fuel is far more expensive than using firewood. This conflicted situation gives biomass pellets a broad commercial possibility since they retain advantages such as high burning efficiency, ease of storage, and low cost, among others.


Apart from stoves, biomass pellets can be used as burning fuel for residential and central heating systems. In North European nations like Denmark and Hungary, biomass pellet heating systems are highly recommended. This type of biomass pellet boiler may reliable automatic operation over a week by using the pre-setting mode. It can control temperature, feed biomass pellets, and automatically supply hot water.


Market Challenges:

Because of the lack of centralized capital, poor profitability, frequent fluctuations in crude oil prices, and high market risk, few investors have taken the lead in the biomass pellets power generation market. Biomass pellet power generation is constrained by high operating costs and excessive investment. Biomass pre-treatment technologies come with additional costs that many small farmers and fuel companies cannot afford.


The moisture content of conventional wood is 30%, which means that for every tonne of wood transported, 300 kg are water. Also, biomass pellets feedstock shape (chipped, pelletized, rounded, baled) has a strong influence on bulk density and transportation economics. As a result, compaction and densification are regarded as critical for an efficient biomass supply.


Europe Biomass Pellets Market Segment Analysis:

By Source, Plant-based materials used as a source of energy are referred to as agricultural products. Agricultural products can be grains like corn and wheat, or they can be plants like switchgrass and miscanthus. These plant-based materials are burned to generate electricity or heat. Agricultural products, unlike traditional fossil fuels, provide an environmentally friendly option for generating renewable energy.


Plants that can generate electricity or produce fuels like ethanol and biodiesel are known as energy crops. Switchgrass, Miscanthus, willow, poplar and hybrid poplar, sugarcane, and soybean are the most frequent energy crops. Energy crops can be cultivated on land that isn't suited for food production. They can also be grown using environmentally friendly farming methods that help to increase soil health and minimize agricultural emissions.


Europe Biomass Pellets Market


By Application, Pellet stoves are stoves that burn compressed wood or biomass pellets to provide heat for residential and industrial environments. It produces a constant flame that requires little to no physical modifications by steadily feeding fuel from a storage container (hopper) into a burn pot area.


Facilities with consistent electric and thermal loads, such as hospitals, schools, recreational facilities, industrial facilities, hotels, and nursing homes, are good fits for cogeneration. CHP is most common in locations with a high concentration of industrial and commercial activity, high electric rates, and CHP-friendly policies. One of the most common uses for biomass pellets is industrial heating. Biomass pellets can be used in a variety of industries, including pharmaceutical, leather, brick manufacture, thermal plants, and tire manufacturing because they can effectively replace coal in boilers.


Europe Biomass Pellets Market Key Players Insights:

The market is characterized by the existence of a number of well-known firms. These companies control a large portion of the market, have a wide product portfolio, and have a global presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, some of which are self-publishing organizations.


The market's major companies have a significant impact because most of them have extensive global networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the Europe market, key players in the market, particularly in this region, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.


The objective of the report is to present a comprehensive analysis of the Europe Biomass Pellets market to the stakeholders in the industry. The report provides trends that are most dominant in the Europe Biomass Pellets market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Europe Biomass Pellets Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.


The qualitative and quantitative data provided in the Europe Biomass Pellets market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Europe Biomass Pellets market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Europe Biomass Pellets market.


The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their product quality is in the Europe Biomass Pellets market. The report also analyses if the Europe Biomass Pellets market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly, if the market is dominated by a few players, etc.


The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Europe Biomass Pellets market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Europe Biomass Pellets market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Europe Biomass Pellets market is aided by legal factors.


Europe Biomass Pellets Market Scope:

Europe Biomass Pellets Market 

Market Size in 2023

USD 7.97 Bn.

Market Size in 2030

USD 11.60 Bn.

CAGR (2024-2030)


Historic Data


Base Year


Forecast Period


Segment Scope

by Source

  • Agriculture Residue & Waste
  • Forest & Wood Waste
  • Virgin Lumber
  • Food Waste
  • Energy crop
  • Industrial Waste
  • Other

by Application

  • Pellet Stove
  • Pellet Boilers
  • Free -Standing stoves
  • Animal Bedding
  • Combined Heating and power (CHP)
  • Residential Heating
  • Commercial Heating
  • Power Generation
  • Other

Country Scope

  • UK 
  • France
  • Germany
  • Italy 
  • Spain 
  • Sweden
  • Austria
  • and Rest of Europe


Europe Biomass Pellets Market Key Players:


  • German Pellets ( Germany)
  • Drax Group (UK)
  • AS Granul Invest (Estonia)
  • Ulma AB ( France)
  • ALFAGY (France)
  • 3F Pellets (UK)
  • KAHL (Germany)
  • SALMATECH GmbH (Germany)

Frequently Asked Questions

The segments covered in the Europe Biomass Pellets Market report are based on Source and Application.

  1. Scope of the Report
  2. Research Methodology
    • Research Process
    • Europe Biomass Pellets Market: Target Audience
    • Europe Biomass Pellets Market: Primary Research (As per Client Requirement)
    • Europe Biomass Pellets Market: Secondary Research
  3. Executive Summary
  4. Competitive Landscape
    • Stellar Competition matrix
      • Europe Stellar Competition Matrix
    • Key Players Benchmarking: - by Product, Pricing, Investments, Expansion Plans, Physical Presence, and Presence in the Market.
    • Mergers and Acquisitions in Industry: - M&A by Region, Value, and Strategic Intent
    • Market Dynamics
    • Market Drivers
    • Market Restraints
    • Market Opportunities
    • Market Challenges
    • PESTLE Analysis
    • PORTERS Five Force Analysis
    • Value Chain Analysis
  5. Europe Biomass Pellets Market Segmentation
    • Europe Biomass Pellets Market, by Source (2023-2030)
      • Agriculture Residue& Waste
      • Forest & Wood Waste
      • Virgin Lumber
      • Food Waste
      • Energy Crops
      • Industrial Waste
      • Other
    • Europe Biomass Pellets Market, by Application (2023-2030)
      • Pellet Stove
      • Pellet Boilers
      • Free-standing stoves
      • Animal bedding
      • CHP
      • Commercial heating
      • Residential heating
      • Power generation
      • Other
    • Europe Biomass Pellets Market, by Country (2023-2030)
      • Italy
      • France
      • Russia
      • United kingdom
      • Rest of Europe
  6. Company Profiles
    • Key Players
      • German Pellets ( Germany)
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Business Strategy
        • Key Developments
      • Drax Group
      • AS Granul Invest ( Estonia)
      • Ulma AB (France)
      • ALFAGY ( France)
      • KAHL (Germany)
      • SALMATECH GmbH (Germany)
  7. Key Findings
  8. Recommendations

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