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 Trump administration has concluded its investigation against Brazil under Section 301, with the country’s Trade Representative Jamieson Greer proposing a 25% tariff on the South American country’s imports but putting forth a list of exempted items.

Fastmarkets invited feedback from the industry on the pricing methodology for PIX Packaging Europe indices via an open consultation process between May 7 and June 8, 2026. This consultation was done as part of our published annual methodology review process.

The eight assessments will cover the United States for tissue jumbo/parent rolls made from wood pulp and recycled pulp for both retail and away-from-home markets. The new prices will replace the price estimates currently published in Fastmarkets’ US Tissue Monthly Data report and will be a part of the Fastmarkets tissue package. The new prices will […]

These prices will complement the existing assessments for testliner 2, testliner 3 and recycled fluting delivered to Poland. The decision follows a one-month consultation period that ended on Sunday May 31. The prices will have the following specifications: FP-CTB-0214 Containerboard, kraftliner, 170 g, dap Poland, € per tonne Quantity: min. 20 tonnes Basis weight: 170 g Incoterm: Delivered at place […]

The publication date for Fastmarkets’ Southeast Asia fine paper assessments has been changed to June 19, 2026, from June 12, 2026 following a correction to a technical error in the original publication schedule.

A surplus in bleached softwood kraft (BSK) pulp has driven US prices down by $20 per tonne, while bleached hardwood kraft (BHK) prices rose by $50 per tonne.

The European sawn timber market entered Q2 with modest price gains, driven by external cost pressures rather than strong demand. Sluggish construction continues, but seasonal factors and a spruce/pine imbalance are shaping market dynamics.

Prices for recycled fiber-based containerboard in the GCC region were mostly up in May amid mixed market demand.

A widening gap between rising Indonesian containerboard prices and weak packaging demand is creating market uncertainty, fueled by global conflicts and supply chain disruptions.

Tissue jumbo roll prices continued their upward trend in Europe during May, driven by rising input costs. Virgin fiber-based rolls increased by €20-30 per tonne, with similar hikes seen for recycled grades.