Wood Chips Market: Global Industry Analysis and Forecast (2024-2030) Size, Share, Growth, Trend

Wood Chips Market Overview:

Wood chips are small-to-medium-sized wood fragments created by cutting and chipping big pieces of wood such as trees, logging leftovers, branches, roots, stumps, and wood debris. Wood chipping is the process of generating wood chips. It is done with the help of a wood chipper. Wood chippers come in a variety of shapes and sizes. Depending on the type of wood chip processing, each chipper has a particular purpose. Residual forest products, such as tree limbs, tree crowns, unsaleable materials, or undersized trees, can also be used to make wood chips. Forestry activities offer the raw materials needed to make wood chips. Almost any tree can be transformed into wood chips, although the type and quality of wood utilized in the process are mostly determined by the end-user industry. The SMR report on the wood chips market is with the segment wise analysis on the basis of product, application and region.

 

 

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Wood Chips Market Dynamics:

Wood pellets, which have become popular as a substitute for these chips, are posing a severe threat to the industry. During the forecast period, high pellet penetration in power production in the residential and commercial sectors could impede the market growth. Furthermore, the market is predicted to grow as sustainable production practices for wood growing and processing become more common. The presence of tight regulatory regimes in countries is expected to increase the demand for wood chips. The wood chips market is expected to grow as consumers become more aware of the goods' use in home heating solutions. Wood chips come in both softwood and hardwood varieties, depending on the product.

 

Increasing demand for the product as garden mulch and other applications such as playground surfacing is expected to boost the market during the forecast period. The high carbon content of hardwood-based goods is expected to increase demand during the forecast period. Changes in raw material costs, which are influenced by weather conditions, and shifting regulatory laws governing wood cultivation have caused a lot of price volatility in the wood chips market.

 

The growing preference for wood chips as a source of energy and heating in the residential sector around the world is a primary driver for the wood chips industry. The wood chips market is being driven by rising demand for wood chips as a composting material, as well as increased use of woodchips as a biomass solid fuel along with raw material for manufacturing wood pulp in pulp mills. The use of nanocrystalline cellulose (NCC), which is made from wood pulp, in next-generation flexible electronic displays as the newest wonder material in several electronic sectors, is also a potential prospect for the wood chips market. The availability of wood pellets as a substitute product is a source of concern for the wood chips industry.

 

However, over the forecasted time period, the growing use of wood pellets for electricity generation in the residential and commercial sectors is limiting the market's growth. The need for wood chips has increased dramatically as a result of factors such as increased demand from the pulp industry, which uses wood chips as a raw material in the creation of pulp. Furthermore, as a result of the depletion of conventional energy sources, the wood chips market is being driven by factors such as the use of renewable energy sources such as biomass. The demand for sustainability-related certifications and restrictions imposed on GHG emissions from wood chips when used for electricity generation are projected to stymie the market's overall growth.

 

Wood Chips Market Segment Analysis:

By Product, the Wood Chips Market is segmented into Softwood, Hardwood, and Manual.

The Softwood segment dominated the market share with 46% in 2023. Due to increased demand for softwood products for gardening mulch and playgrounds surfacing across the globe, the softwood sector is expected to dominate the global wood chips market in terms of product type.

 

 

By Application, the Wood Chips Market is segmented into Combined Heat & Power (CHP), Household Furnishing, Residential Heating, Wood pulp, and Others. The Residential Heating segment dominated the market share by 38% in 2023.  One of the most common uses for wood chips is residential heating. The industry is predicted to develop as wood chips gain popularity in industrial and commercial energy generation. In addition, the use of wood chips as a raw material for the production of wood pulp is likely to boost market expansion in the near future. Another application that is driving the market growth is the increased demand for wood chips as composting material. They can also be used to add flavor and a smokey flavor to barbecued meats and vegetables.

 

Wood Chips Market Regional Insights:

The Asia Pacific region has dominated the market with a 39% share in 2023. This is due to the increased usage of wood chips for residential heating in the countries of the region. Thanks to the Feed-in-Tariff subsidy mechanism, Japan is developing a huge pipeline of biomass projects. Japan, which is one of the world's largest exporters of wood chips for pulp and paper, is projected to increase its use of wood chips in energy generation.

 

The European region is expected to witness significant growth at a CAGR of 9.92% during the forecast period. Wood chips have traditionally been used in Europe to generate heat and power in small-scale (20MW) plants. For the most part, locally sourced wood is used for this. For numerous years, West Africa has been a supplier of wood chips for energy, albeit in limited quantities.

 

The objective of the report is to present a comprehensive analysis of the Global Wood Chips Market to the stakeholders in the industry. The report provides trends that are most dominant in the Global Wood Chips 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 global 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 Global Wood Chips 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 Global Blockchain in the Energy Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Global Wood Chips 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 are existing, who they are, and how their product quality is in the Global Wood Chips Market. The report also analyses if the Global Wood Chips 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 Global Wood Chips Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Global Blockchain in the Energy Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Global Blockchain in the Energy Market is aided by legal factors.

 

Wood Chips Market Scope:

Wood Chips Market
Market Size in 2023	USD 10.01 Bn.
Market Size in 2030	USD 19.50 Bn.
CAGR (2024-2030)	10%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By  Product   Softwood Hardwood Manual
	By Application Combined Heat & Power (CHP) Household Furnishing Residential Heating Wood pulp Others
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wood Chips Market Key Players:  

• Enviva Pellets
• St. Boniface Pallet
• American Wood Resources
• EVOWORLD GmbH
• Boniface Pallet Company Ltd
• Mitsui & Co., Ltd.
• Oji Holdings
• Orsted A/S
• Sojitz Corporation
• Verdo A/S
• Axpo Group
• Rentech
• Chip Chip
• Great Northern Timber