Global Pellet Demand Outlook 2021

High energy prices are powering strong demand for heating fuel alternatives and renewable energy policies are leading power plants to swap pellets for coal. How will these forces affect global wood pellet demand through 2031?

Charting the growth trajectory of wood pellet demand, this new outlook analyses key drivers behind demand and provides a 10-year demand forecast for Europe, Asia and North America.

Demand for wood pellets, used for power generation and heating, are influenced by regional and global trends. This outlook can help biomass pellet producers, energy companies, utilities, shippers, and investors to analyze:

  • Country-level renewable energy goal and biomass support policies like the impact of biomass subsidy expiration in the UK, the Netherland’s phase-out of coal and other key policies.
  • Energy markets and weather trends. Weather events and oil/gas prices can affect the competitiveness of biomass heat.
  • The resilience of pellets during pandemic downturned economies.

How could major policy changes impact the industry? We’ve analyzed factors like:

  • Policy updates in the UK, the Netherlands, Denmark, Japan and South Korea that will influence industrial pellet demand.
  • The future prospects of key power plants utilizing pellets in the UK, Netherlands, Denmark and Belgium.
  • How the weather and global energy prices have impacted the European and North American heating markets.
  • How the closure of 15.3 GW of coal-fired capacity in South Korea will impact pellet demand.

Included in this outlook:

  • 2021-2031 forecast for 16 key countries /regions that consume wood pellets for heating and industrial uses.
  • Detailed outlooks for industrial and heating use.
  • Policy developments and implications in key markets
  • Major projects using industrial pellets and their projected consumptions.
  • Pellet appliance shipment and stock outlook for key heating markets.
  • Global energy price forecast and trade data.
  • Impact of COVID-19

Request more information


What’s happening in the forest products market today?

The ongoing conflict in the Middle East has had a pronounced impact on the packaging industry across the GCC region, sending March containerboard prices and demand soaring. With shipping routes disrupted and fuel costs climbing, packaging producers are facing considerable logistical hurdles. As import delays persist, Saudi Arabia has seen a surge in containerboard demand, with orders increasingly redirected to local mills. Meanwhile, UAE fuel prices have jumped by 72%, though Saudi prices have remained stable despite volatility in global oil markets.

The EU-Mercosur trade agreement, set to take provisional effect in 2026, aims to reduce trade barriers between the two regions. However, the deal faces significant opposition from environmental groups and EU agricultural sectors. For the pulp and paper industry, the effects will be phased in over several years, with an analysis by Cepi showing that tariff reductions will be gradual, eventually benefiting about 85% of EU pulp exports and 90% of paper and board exports.

Discover the latest tissue paper market trends in China. Learn why China tissue jumbo roll prices are fluctuating and what it means for buyers and mills.

Fastmarkets is proposing to launch new price series for its benchmark European PIX Pulp gross prices and North American effective list pulp prices from June 1, 2026. The new prices would run concurrently alongside existing prices for one year before the existing prices with higher discount levels are discontinued on June 1, 2027.

See how surging fuel costs and inflation reshape North American paper and board markets. Read our analysis of the oil shock impact on paper packaging. Read more.

The publication of Fastmarkets’ India domestic recycled containerboard price assessments for Friday April 3 will be delayed due to staffing availabilities.

Fastmarkets proposes to launch four monthly price assessments for tissue jumbo rolls delivered to Europe on Thursday May 28.

European sawn timber markets moved into February 2026 in a broadly cautious mood, with price stability across most grades and destinations masking a more anxious undercurrent driven by the eruption of the Iran conflict and its mounting consequences for global freight markets.

Fastmarkets is inviting feedback from the industry on its pricing methodologies and product specifications for softwood wood products, as part of its annual methodology review process.

The Middle East energy shock is driving up European natural gas prices, inflating paper packaging costs. Protect your F&B margins today with our data-driven procurement intelligence.