Global wood pellets production 2021-2022, by region

In 2022, the global production of wood pellets was predominantly concentrated in the European Union (EU 27), which accounted for 20.4 million metric tons, making it the largest producer worldwide. North America followed with 14.3 million metric tons, reflecting its significant role in the industry. Asia produced 5.8 million metric tons, indicating its growing involvement in renewable energy sources. The rest of Europe (excluding the EU 27) contributed 4.1 million metric tons, while South America produced 1.8 million metric tons, showing more modest levels of production. Oceania had the smallest share, with only 0.2 million metric tons, highlighting its limited participation in the global wood pellet market. 

Wood pellet industry worldwide in the EU

Germany was by far one of the largest wood pellet producers in Europe. Like Germany, Austria and Italy use wood pellets primarily for heat production in residential areas while other countries like the United Kingdom and Netherlands use wood pellets primarily for power generation in the industrial sector. In Sweden and Denmark, wood pellet consumption in both sectors is common. Due to high volumes of consumption in the region, replacing raw resources with feedstocks is of increasing necessity. Residual wood and agricultural biomass for pellet production are common types of feedstock bases.