Wood pellets market in Northern America

Earlier Report Observations

The wood pellet market in Northern America saw substantial expansion from 2018 to 2023, with production increasing from 10 517 thousand tons to 13 271 thousand tons and market volume growing from 7 920 thousand tons to 9 955 thousand tons. This rise was particularly strong in 2019 and 2020, after which the market entered a phase of stabilization.

Growth was underpinned by a broader shift toward renewable energy and the abundant supply of wood waste feedstock. In 2023, Drax Group PLC inaugurated a new pellet facility in Alabama, converting sawmill residues into biomass pellets and adding significant production capacity. Legislative support, including subsidies for power generation from wood pellets, further stimulated demand.

By 2024, the market's development was reinforced by large-scale supply agreements, such as Drax's deal with Pathway Energy to supply over 1 million tonnes of pellets annually for sustainable aviation fuel, and a USD 100 million U.S. Department of Energy program to advance biomass supply chains, signaling continued investment and industry expansion.

Production wood pellets in Northern America

In kind, 2017-2020, K t

Top producers of wood pellets, 2017-2020

World map of production of wood pellets, 2017-2020

Northern America's wood pellets production has increased for the third consecutive year. In 2020, the region produced 12,242 Kt of wood pellets, marking a 3.8% year-over-year gain. From 2017 to 2020, production grew by 24.8%, with a compound annual growth rate of 7.7%.

Annual dynamics of production in Northern America in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Wood pellets production in Northern America has risen for the third year in a row. In 2020, the output was valued at 1,696 million US dollars, which is 0.7% higher than in 2019. Between 2017 and 2020, production increased by 23.2%, equating to an annualized growth rate of 7.2%.

Annual dynamics of production in Northern America in value, 2017-2020, M $ US

Exports wood pellets from Northern America

Exports in kind, K t

Cross-border shipments of wood pellets from Northern America have increased for the third consecutive year. In 2020, exports reached 2,929 Kt, reflecting a robust 11.0% increase from 2019. From 2017 to 2020, exports grew by 34.6%, with a compound annual growth rate of 10.4%.

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

From 2017 to 2020, the main destinations for wood pellets exports from Northern America in kind were the United Kingdom, with 59.7% of exports, Japan at 19.7%, and the Netherlands at 4.6%. Together, these three countries accounted for 83.9% of total export flows.

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

World map of product's exports from Northern America in kind, 2017-2020

Exports in value, M $ US

In 2020, wood pellets deliveries from Northern America totaled 405.8 million US dollars, showing a limited increase of 7.7% compared to 2019. Between 2017 and 2020, exports grew by 32.8%, equating to an annualized rate of 9.9%. The largest decline occurred in 2019 at 0.2%, while the largest increase was in 2018 at 23.6%.

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

Throughout 2017 to 2020, the United Kingdom, with 57.4% of exports in value terms, Japan at 19.0%, and the Netherlands at 4.4%, remained the primary markets for wood pellets exports from Northern America. Collectively, they represented 80.8% of total export flows.

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

World map of product's exports from Northern America in value, 2017-2020

Imports wood pellets to Northern America

Imports in kind, K t

There were noticeable fluctuations in market performance during this period. Imports bottomed in 2019 at 0.4 Kt and peaked in 2018 at 38 Kt, with an 86-fold difference between these years. In 2020, Northern America's volume of wood pellets imports was recorded at 1 Kt, amounting to a 44.7% uptick compared to the previous year. The largest decline was recorded in 2019 at 98.8%, while the largest increase occurred in 2018 at 1,081.8%.

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

From 2017 to 2020, the country structure of imports in kind was largely shaped by Norway and China, which together accounted for 5.9% of total import flows.

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

World map of product's imports to Northern America in kind, 2017-2020

Imports in value, M $ US

Wood pellets imports into Northern America have increased for the third consecutive year. In 2020, the region imported approximately 13.7 million US dollars of wood pellets, showing a steep increase of 27.0% versus the previous year. Between 2017 and 2020, imports grew by 83.8%, equating to an annualized rate of 22.5%.

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

From 2017 to 2020, three principal markets—Norway, China, and Germany—together accounted for 9.1% of total imports in value terms of wood pellets to Northern America.

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

World map of product's imports to Northern America in value, 2017-2020