Wood pellets market in Eastern Asia

Earlier Report Observations

From 2018 to 2020, the wood pellet market in Eastern Asia expanded steadily, with market volume rising from 5 689 thousand tonnes to 6 379 thousand tonnes. This initial growth phase was supported by the industry's development, where small-scale rural producers utilized available agricultural residues, and global technology pioneers helped advance biomass fuel applications for heating and power generation.

Between 2021 and 2023, market volume surged dramatically to 11 432 thousand tonnes, driven primarily by renewable energy policies across the region. Government incentives and subsidies for biomass fuels, particularly in Japan where demand grew significantly, boosted consumption. The COVID-19 pandemic introduced supply chain adjustments in 2022, but robust demand for clean heating and power generation kept imports and market volume on a strong upward trajectory.

In 2024, imports of wood pellets reached 10 396 thousand tonnes, continuing the growth trend. This occurred alongside active government promotion of domestic production and use in Japan, and preparatory measures in South Korea where a shift away from imported pellet subsidies is set to encourage local fuel sourcing.

Production wood pellets in Eastern Asia

In kind, 2017-2020, K t

Top producers of wood pellets, 2017-2020

World map of production of wood pellets, 2017-2020

Wood pellet production in Eastern Asia has increased for the third consecutive year. In 2020, the region produced 1 353 K t of wood pellets, marking a 7.1% rise from the previous year. From 2017 to 2020, production grew by 26.7%, which translates to an annualized growth rate of 8.2%.

Annual dynamics of production in Eastern Asia in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Eastern Asia's wood pellet production has risen for the third year in a row. In 2020, the output was valued at 335.7 M $ US, showing a strong increase of 23.9% compared to 2019. Over the period from 2017 to 2020, production expanded by 59.6%, with a compound annual growth rate of 16.9%.

Annual dynamics of production in Eastern Asia in value, 2017-2020, M $ US

Exports wood pellets from Eastern Asia

Exports in kind, K t

In 2020, Eastern Asia's wood pellet exports totaled 6 K t, representing a 20.2% decrease from 2019. Between 2017 and 2020, exports fell by 24.5%, with a compound annual growth rate of -9.0%. The largest increase occurred in 2019, at 0.1%.

Annual dynamics of product's exports from Eastern Asia in kind, 2017-2020, K t

From 2017 to 2020, three key markets—Asia, not elsewhere specified, Vietnam, and Malaysia—collectively accounted for 25.7% of total wood pellet exports in kind from Eastern Asia.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Eastern Asia in kind, 2017-2020

Exports in value, M $ US

In 2020, wood pellet deliveries from Eastern Asia amounted to 1.5 M $ US, a 7.7% decline compared to 2019. Between 2017 and 2020, exports decreased by 4.9%, equating to an annualized rate of -1.7%. The minimum value was recorded in 2018 at 1.4 M $ US, while the maximum was in 2019 at 1.6 M $ US. The largest decline occurred in 2018 at 10.3%, and the largest increase was in 2019 at 14.9%.

Annual dynamics of product's exports from Eastern Asia in value, 2017-2020, M $ US

From 2017 to 2020, wood pellet exports in value terms from Eastern Asia were distributed across numerous countries. Asia, not elsewhere specified (18.0% of exports), Vietnam (8.2%), and Malaysia (4.0%) together represented only 30.2% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Eastern Asia in value, 2017-2020

Imports wood pellets to Eastern Asia

Imports in kind, K t

Wood pellet imports into Eastern Asia have increased for the third consecutive year. In 2020, imports reached 5 032 K t, up by 9.2% from the previous year. Over the period from 2017 to 2020, imports grew by 70.2%, with a compound annual growth rate of 19.4%.

Annual dynamics of product's imports to Eastern Asia in kind, 2017-2020, K t

From 2017 to 2020, Vietnam (59.1% of imports in kind), Canada (14.2%), and Malaysia (13.2%) formed the primary group of sources for wood pellet imports into Eastern Asia, together making up 86.6% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Eastern Asia in kind, 2017-2020

Imports in value, M $ US

The data shows irregular changes, indicating a volatile market environment. Imports peaked in 2018 at 716.6 M $ US and reached their lowest point in 2019, with a 1.9-fold difference between these years. In 2020, Eastern Asia imported approximately 672.7 M $ US of wood pellets, which is 3.9% higher than the previous year. The largest decline was recorded in 2019 at 9.6%, and the largest increase occurred in 2018 at 94.0%.

Annual dynamics of product's imports to Eastern Asia in value, 2017-2020, M $ US

Throughout 2017 to 2020, Vietnam (55.8% of imports in value terms), Canada (18.7%), and Malaysia (12.3%) remained the main markets for wood pellet imports into Eastern Asia, jointly accounting for 86.9% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Eastern Asia in value, 2017-2020