European heating demand lifts global wood pellet output to record 53.5 million tonnes

Global production and consumption set records

Global wood pellet production reached a record 53.5 million tonnes in 2025, increasing 10% from the previous year and posting its strongest annual growth in recent years. Worldwide consumption also reached a new high of 51.5 million tonnes, according to data published by industry association Bioenergy Europe and reported by Gramwzielone.pl.

Europe remained the industry's central market. The region accounted for 70% of global demand when industrial and small-scale uses were combined, while producing 45% of the world's pellets. European output, excluding Belarus and Russia, recovered after two consecutive annual declines and increased 10% to a regional record of 24.1 million tonnes.

The figures indicate that global production exceeded consumption by 2 million tonnes in 2025. The source did not provide country-level trade data or prices, but the regional imbalance between Europe's 70% share of consumption and 45% share of production underscores the importance of supply from outside the region and commercial flows within Europe.

Household heating supports European demand

European pellet consumption in small-scale applications exceeded 19 million tonnes in 2025, another record. Household use alone climbed 5% from 2024 to 15.3 million tonnes after several years of more moderate growth. Pellet appliances now provide renewable heat to more than 6.5 million European households, Bioenergy Europe said.

Manolis Karampinis, business development and membership director at Bioenergy Europe and chief executive of the European Pellet Council, said pellet stove sales showed signs of recovery in several markets during 2025. He described the appliances as a complement to the broader electrification of household heating.

The structure of demand varies substantially by country. Italy has more than 2.3 million pellet appliances in operation and France has more than 2 million, with stoves forming most of the installed base in both markets. Pellet boilers are more prevalent in Austria, Germany, Poland, Sweden and the Czech Republic. Because these boilers often serve as the main source of central heating, annual pellet consumption per household is higher in those countries.

Subsidies and equipment standards shape expansion

Bioenergy Europe pointed to support programmes in Austria and Poland, where close to record numbers of households replaced oil- and coal-fired heating with modern pellet boilers. Karampinis said well-designed public support could help households meet the upfront cost of changing heating equipment.

The association also distinguished modern certified pellet appliances using standardised fuel from older, inefficient solid-fuel systems. It said replacing outdated equipment could reduce emissions, raise efficiency and produce more useful heat from less biomass. The claim comes amid debate over the air-quality effects of solid-fuel heating.

EU heating policy becomes the next test

Renewable energy currently supplies about one-third of household heating energy used in European Union buildings, while natural gas remains the dominant fuel. Bioenergy Europe argues that fossil-fuel heating will need to be progressively replaced if Europe is to meet its 2030 and 2040 targets.

The European pellet market is entering this debate as the EU prepares a new Heating and Cooling Strategy for 2026. The industry's prospects will depend on stable market conditions, public policy and the fit between heating technology and national building stocks. The contrast between stove-led markets in Italy and France and boiler-led markets in Central Europe and Scandinavia suggests that support programmes will need to reflect local climate, housing and existing heating systems.