It is expected that the global wood pellets market will rise at a remarkable 14.1% CAGR between 2015 and 2023, by which year the market is expected to touch a value of US$20,073.1 million. Governments and environmental regulation agencies have stressed on the use of wood pellets as a means to cut back on the high degree of dependence on fossil fuel, especially coal.
As wood pellets are widely regarded as a carbon-neutral fuel and energy source, environmental agencies are formulating policies that encourage the use of pellet fuel. Subsidies have been the most effective way to attract the attention of industrial players and prompt them to replace fossil fuel with wood pellets. This has caused the demand for wood pellets to swing upward – it will continue to show this upward trend for the next few years, expect market analysts.
Europe, which is a region that lays great emphasis on green industrial policies, was the largest wood pellet market in the world as of 2014. The United Kingdom, with a slew of initiatives encouraging the uptake of wood pellets, was the largest wood pellet market within Europe. Germany is yet another large market for wood pellets – the country produced an estimated 980,000 tons of the fuel source in 2015 (H1), says IHB, a network for professionals in the German timber market. Likewise, stringent emission norms enforced in most states in the United States create a conducive environment for the growth of the wood pellet market here.
