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Wood Pellets - Industrial: Market Size & Forecast 2026

The global industrial wood pellet market sits at approximately USD 14.2B in 2025 (base year), held in a tight balance between record global production of 53.5 million tonnes in 2025 and a demand-side ceiling set by the EU's RED II sustainability and GHG saving criteria, the new CBAM definitive regime from 1 January 2026, and the structural overhang in US Southeast supply that followed the Enviva Chapter 11 process concluded in 2024. We forecast a 6.8% CAGR through 2032, anchored at USD 22.6B, on the back of Asian biomass co-firing mandates and continued European utility displacement of coal, but with material asymmetry between European premium-grade demand and US Southeast utility supply. > Synthesised from secondary and publicly verifiable sources via Claight Category Watch:

Market size · 2025
$14.2bn
CAGR · 2025–2030
6.8%
Forecast · 2030
$19.7bn
Basis
Claight Analysis
Market size (USD)
Base year 2025
Official data · Claight AnalysisForecast
Market size and CAGR extracted from the published Claight report; figures match the report..
Forecast
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2025 base: $14.2bn2032 est: $22.5bn
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Market size and forecast are Claight Analysis, informed by public research and industry data. Historical years before 2025 and all forecast years are Claight estimates at the stated CAGR. Retrieved 2026.