Wood pellets market in Western Europe

Earlier Report Observations

From 2018 to 2020, the wood pellets market in Western Europe expanded significantly, with volume rising from 6.7 million tons to over 10 million tons. This growth was propelled by a global shift toward renewable energy sources, as pellets became a preferred substitute for coal in power generation. Government policies and incentives across Europe further stimulated demand, while the closure of major production facilities like Stelmet in Poland due to COVID-19 initially strained supply but also highlighted reliance on imports.

The market continued to grow through 2022, reaching nearly 12 million tons, supported by the opening of large-scale pellet plants in the United States and extended subsidy schemes in key markets such as the UK. However, 2023 saw a contraction to 11.3 million tons as prices dropped sharply from earlier highs and the market underwent consolidation. At the same time, regional production in Germany exceeded domestic consumption, reducing import dependence and contributing to the overall volume decline.

Into 2024, imports fell further while exports recovered slightly, reflecting sustained regional self-sufficiency and stable pellet prices. Consumer preferences for sustainably certified pellets and ongoing political support for biomass energy continued to shape the market, maintaining its resilience despite global uncertainties.

Production wood pellets in Western Europe

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 Western Europe has grown for the third year in a row. In 2020, the region produced 7 720 K t of wood pellets, marking a modest year-on-year increase of 8.2%. From 2017 to 2020, production rose by 32.6%, which translates to an average annual growth rate of 9.9%.

Annual dynamics of production in Western Europe in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Western Europe's wood pellet production has expanded in value for the third consecutive year. In 2020, the output was valued at 1 933 M $ US, reflecting a moderate increase of 5.6% compared to the previous year. Over the 2017-2020 period, production value grew by 42.2%, with a compound annual growth rate of 12.4%.

Annual dynamics of production in Western Europe in value, 2017-2020, M $ US

Exports wood pellets from Western Europe

Exports in kind, K t

In 2020, Western Europe exported 2 198 K t of wood pellets, showing a slight increase of 1.3% from the year before. Between 2017 and 2020, exports rose by 25.1%, averaging 7.8% per year. The largest decline occurred in 2019, at 0.7%, while the biggest jump was in 2018, with a 24.4% increase.

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

From 2017 to 2020, Italy, Denmark, and Switzerland were the top buyers of wood pellets from Western Europe in volume terms. Italy accounted for 49.1% of exports, Denmark for 5.7%, and Switzerland for 3.6%, together making up 58.3% of total exports.

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

World map of product's exports from Western Europe in kind, 2017-2020

Exports in value, M $ US

After two years of growth, Western Europe's wood pellet export value declined. In 2020, exports stood at 550.3 M $ US, a small drop of 1.2% from the previous year. Over the 2017-2020 period, export value increased by 34.1%, with an average annual growth rate of 10.3%. The peak was in 2019 at 556.8 M $ US, and the largest rise was in 2018, at 35.4%.

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

In value terms, Italy, Denmark, and Switzerland were the leading buyers of wood pellets from Western Europe from 2017 to 2020. Italy made up 47.6% of exports, Denmark 4.0%, and Switzerland 3.8%, collectively representing 55.4% of total export value.

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

World map of product's exports from Western Europe in value, 2017-2020

Imports wood pellets to Western Europe

Imports in kind, K t

Wood pellet imports into Western Europe have risen for the third straight year. In 2020, imports reached 4 841 K t, a dramatic surge of 33.3% compared to 2019. From 2017 to 2020, imports more than doubled, increasing by 101%, with an average annual growth rate of 26.2%.

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

Between 2017 and 2020, wood pellet imports to Western Europe in volume terms were not heavily concentrated. The United States, Latvia, and Russia were the top sources, with the U.S. at 21.4%, Latvia at 11.1%, and Russia at 9.4% of imports, together accounting for 41.9% of total volume.

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

World map of product's imports to Western Europe in kind, 2017-2020

Imports in value, M $ US

Western Europe's wood pellet import value has climbed for the third year in a row. In 2020, imports hit 895.7 M $ US, a sharp year-on-year increase of 41.2%. From 2017 to 2020, import value nearly doubled, rising by 98.9%, which averages out to 25.8% per year.

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

From 2017 to 2020, the sources of wood pellet imports to Western Europe in value terms were quite diverse. The United States, Latvia, and Russia led the way, with the U.S. at 20.3%, Latvia at 9.9%, and Russia at 8.3% of import value, together making up 38.5% of total flows.

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

World map of product's imports to Western Europe in value, 2017-2020