Wood pellets market in the United Kingdom

Earlier Report Observations

From 2018 to 2020, the UK wood pellet market volume increased steadily from 8.2 million tons to 9.4 million tons. This expansion was driven by the conversion of coal-fired power stations to biomass co-firing, supportive government renewable energy policies, and growing consumer awareness of wood pellets as a low-carbon alternative to fossil fuels.

Market volume peaked at 9.5 million tons in 2021, bolstered by the industry's efficient use of sawmill and harvest residuals as feedstock, which improved cost-effectiveness. However, the European energy crisis in 2022 caused a sharp decline to 7.8 million tons, as rising energy, labor, and logistics costs disrupted supply chains and import flows, despite continued demand from biomass plant conversions.

In 2023, market volume contracted further to 6.7 million tons, likely reflecting ongoing adjustments from the energy crisis. During this period, the UK Government developed its Biomass Strategy to establish a framework for biomass use, while technological advancements in pellet manufacturing progressed, indicating potential for future market evolution.

Production wood pellets in the United Kingdom

In kind, 2018-2021, K t

From 2018 to 2021, the United Kingdom maintained the 30th position globally in wood pellet production volume.

Top producers of wood pellets, 2018-2021

World map of production of wood pellets, 2018-2021

In 2021, the United Kingdom produced 304.4 K t of wood pellets, marking a slight increase of 2.3% compared to the previous year. Between 2018 and 2021, production grew by 9%, which translates to an annualized growth rate of 2.9%. The largest decline occurred in 2020, with a drop of 0.3%, while the most significant increase was in 2019, at 6.9%.

Annual dynamics of production in the United Kingdom in kind, 2018-2021, K t

Exports wood pellets from the United Kingdom

Exports in kind, K t

Exports of wood pellets from the United Kingdom declined for the third consecutive year. In 2021, exports reached 2 K t, representing a reduction of 59.4% compared to 2020. Over the period from 2018 to 2021, exports decreased by 97.3%, with a compound annual growth rate (CAGR) of -70.1%.

Annual dynamics of product's exports from the United Kingdom in kind, 2018-2021, K t

From 2018 to 2021, Poland, Denmark, and Ireland formed the core group of markets for wood pellet exports in kind. Poland accounted for 52.4% of exports, Denmark for 27.2%, and Ireland for 16.8%, together representing 96.4% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from the United Kingdom in kind, 2018-2021

Exports in value, M $ US

Cross-border shipments of wood pellets from the United Kingdom declined for the third consecutive year. In 2021, export volume stood at 1 M $ US, reflecting a sharp decrease of 30.5% compared to 2020. Over the period from 2018 to 2021, exports decreased by 91.6%, with a compound annual growth rate (CAGR) of -56.3%.

Annual dynamics of product's exports from the United Kingdom in value, 2018-2021, M $ US

In 2018–2021, three main markets—Denmark, Ireland, and Poland—together absorbed 95.2% of the total value of wood pellet exports from the United Kingdom.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from the United Kingdom in value, 2018-2021

Imports wood pellets to the United Kingdom

Imports in kind, K t

Imports of wood pellets into the United Kingdom increased for the third consecutive year. In 2021, the United Kingdom imported a total of 9 199 K t of wood pellets, indicating a slight uptick of 1.2% compared to the previous year. Between 2018 and 2021, imports grew by 14.8%, equating to an annualized growth rate of 4.7%.

Annual dynamics of product's imports to the United Kingdom in kind, 2018-2021, K t

From 2018 to 2021, the United States, Canada, and Latvia consistently held leading positions in the country structure of wood pellet imports in kind. The United States accounted for 54.1% of imports, Canada for 20.4%, and Latvia for 13.1%, jointly making up 87.6% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to the United Kingdom in kind, 2018-2021

Imports in value, M $ US

The United Kingdom's wood pellet imports increased for the third consecutive year. In 2021, import volume amounted to 1 795 M $ US, showing a moderate advance of 4.0% year-over-year. Between 2018 and 2021, imports rose by 20.2%, which translates to an annualized growth rate of 6.3%.

Annual dynamics of product's imports to the United Kingdom in value, 2018-2021, M $ US

From 2018 to 2021, the United States, Canada, and Latvia stood out as the main markets for wood pellet imports in value terms. The United States accounted for 63.5% of imports, Canada for 16.0%, and Latvia for 10.5%, together representing 90.1% of total import flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to the United Kingdom in value, 2018-2021