Report Overview

Europe Biopellet Energy Market – Industry Trends & Forecast Report, 2030

Europe Biopellet Energy Market size was estimated at USD 66 million in 2023. During the forecast period between 2024 and 2030, Europe Biopellet Energy Market size is projected to grow at a CAGR of 6.80% reaching a value of USD 102.8 million by 2030. Prominent drivers of the market include rising demand for sustainable energy solutions, technological advancements in biofuel production, and supportive government policies promoting renewable energy. Biopellets, derived from organic materials like wood, agricultural residues, and forestry waste, are valued for their convenience, efficiency, and carbon-neutral properties, making them essential in reducing greenhouse gas emissions. Widely used for heat and electricity generation across residential, commercial, and industrial sectors, biopellets are central to Europe’s renewable energy strategy, supported by favorable regulations. While challenges such as sustainable biomass sourcing and competition from other renewable energy sources persist, biopellets remain a critical element in the global shift toward cleaner energy solutions.

Biopellet Energy – Overview

Biopellet Energy refers to the energy produced from biopellets, which are a form of biofuel created by compressing organic materials such as wood, agricultural residues, forestry waste, or energy crops into small, dense pellets. These pellets serve as a renewable, carbon-neutral energy source, widely used for heat and electricity generation. Biopellet energy is a sustainable alternative to fossil fuels, contributing to reduced greenhouse gas emissions and supporting global efforts to transition to environmentally friendly energy solutions.

Europe Biopellet Energy Market

Growth Drivers

Increasing Demand for Renewable Energy

The growing demand for renewable energy is a significant driver of the Europe Biopellet Energy Market, as biopellets emerge as an efficient, cost-effective, and eco-friendly energy source. Manufactured from biomass such as wood chips, forestry waste, and agricultural residues, biopellets offer high energy density and low moisture content, ensuring efficient combustion and minimizing energy losses. Their compact size facilitates easy transportation and storage, making them suitable for various applications across residential, commercial, and industrial sectors. Biopellets are also cost-competitive due to their production from organic waste, further enhancing their appeal as an alternative to traditional fossil fuels. Additionally, their carbon-neutral nature supports global efforts to reduce greenhouse gas emissions, contributing to climate change mitigation. Europe's strong focus on renewable energy adoption, supported by favorable policies and advancements in biomass collection and application systems, positions biopellets as a critical component in meeting the region's sustainable energy goals and reducing reliance on non-renewable resources.

Challenges

Competition from other Renewable Energy Sources

Europe Biopellet Energy Market faces significant competition from other renewable energy sources, such as solar, wind, and hydropower, which poses a challenge to its growth. Although Europe remains a global leader in wood pellet production and consumption, market expansion has slowed due to elevated production costs, reduced industrial demand, and the impact of warmer winters decreasing the need for heating. Additionally, the volatility of energy markets and the rising costs of electricity, a critical input for pellet manufacturing, have further undermined the cost-competitiveness of biopellets. While residential heating continues to drive demand, the market's dependence on biomass-rich rural areas limits broader adoption. These factors highlight the urgent need for targeted strategies to address competition, enhance cost efficiency, and position biopellets as a sustainable and viable energy alternative within Europe’s evolving renewable energy landscape.

Impact of Escalating Geopolitical Tensions on Europe Biopellet Energy Market

Escalating geopolitical tensions among countries and further spreading across regions could have a significant impact on the growth of Europe Biopellet Energy Market. These tensions disrupt energy security by increasing the volatility of global fuel prices and hindering the smooth flow of raw materials, such as biomass feedstock, which is critical for biopellet production. Geopolitical conflicts can also lead to uncertainty in energy policies, as governments may shift focus towards securing fossil fuel supplies rather than investing in renewable energy initiatives. As a result, the expansion of biopellet energy may face delays or financial constraints due to a lack of political stability or support for green energy projects. Moreover, shifting international trade agreements and tariffs in response to geopolitical disputes may disrupt the import and export of biopellets or their raw materials. Countries that rely on bioenergy imports or biomass feedstock from politically unstable regions may struggle to secure a consistent supply chain, leading to increased costs and supply shortages. This could ultimately reduce the competitiveness of biopellets compared to other energy sources, slowing market adoption. The growing political pressure and shifting priorities in energy strategies also pose risks to long-term investments in the biopellet sector. A focus on short-term energy security over long-term renewable energy development could stymie necessary innovations and infrastructure investments in biomass energy, further limiting the market’s growth potential. Furthermore, as Europe strives to meet its climate goals amidst such uncertainty, the path to decarbonization may become more complex, making the transition to sustainable energy solutions more challenging.

Europe Biopellet Energy Market

Segmental Coverage

Europe Biopellet Energy Market – By Type

Based on type, Europe Biopellet Energy Market is divided into Pellet Stoves, Boilers, and Burners segments. The boilers segment holds the highest share in Europe Biopellet Energy Market by type. Biopellet boilers have gained prominence due to their versatility in residential and industrial applications, offering a cost-effective and sustainable heating solution. Recent technological advancements, such as self-cleaning wood pellet boilers, have enhanced their appeal by reducing maintenance requirements. While these boilers continue to grow in popularity, regular upkeep is necessary to ensure optimal performance. To drive sales, manufacturers are increasing awareness of the environmental benefits of biomass boilers and the affordability of wood pellets. Additionally, companies are focusing on educating customers about available biomass boiler grants to incentivize investment in these eco-friendly systems.

Europe Biopellet Energy Market – By Application

By application, Europe Biopellet Energy Market is divided into Vehicle Fuel, Heat Generation, Lubrication, Reduction of Emission, and other segments. The heat generation segment holds the highest share in Europe Biopellet Energy Market by application. Biopellets are extensively used for heat and power generation in both industrial and commercial sectors and for residential purposes, including cooking, grilling, and home heating. Their affordability, as they are less expensive than other fuel options, makes them a cost-effective solution for heat production. As a result, several major economies have embraced biopellets for renewable heating on a large scale. In 2019, Europe accounted for over 50% of global pellet demand, with its usage split across residential heating (40%), power plants (36%), commercial heating (14%), and combined heat and power plants (10%). Furthermore, biopellets have also found application in coal conversion projects in public buildings, such as schools and offices.

Europe Biopellet Energy Market – By End User

On the basis of end user, Europe Biopellet Energy Market is divided into Transportation, Electronics, Commercial, and other segments.

Europe Biopellet Energy Market – By Country

The in-depth research report on the Europe Biopellet Energy Market covers the market in the region’s major countries including Germany, United Kingdom, Italy, France, Spain, Belgium, Russia, The Netherlands, and Rest of Europe. United Kingdom holds the highest share in Europe Biopellet Energy Market and is expected to maintain its dominance during the forecast period. The country’s substantial growth in biomass-based power generation and heating installations is largely fueled by favorable government policies and incentives, such as the Renewable Heat Incentive (RHI) and the Renewable Obligation Certificate (ROC) schemes. These initiatives have significantly boosted biomass pellet production and consumption investments, supporting market expansion. The United Kingdom's commitment to reducing carbon emissions and moving away from fossil fuels has further accelerated the adoption of biomass pellets as a cleaner energy solution. With a robust industrial and transportation sector driving demand, the country’s strategic location and efficient logistics infrastructure ensure a reliable supply of biomass pellets to meet growing needs. As the United Kingdom continues to prioritize sustainability and renewable energy goals, it remains at the forefront of the European biomass pellet market, driving innovation and investment to create a more sustainable energy future.

Competitive Landscape

Major players operating in Europe Biopellet Energy Market include Drax Group, Verbio, Enviva, Pelletsano, DS Smith, Stora Enso, Södra, UPM, Smurfit Kappa, and Kronospan. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Type

• Pellet stoves

• Boilers

• Burners

By Application

• Vehicle Fuel

• Heat Generation

• Lubrication

• Reduction Of Emission

• Others

By End User

• Transportation

• Electronics

• Commercial

• Others

By Country

• Germany

• United Kingdom

• Italy

• France

• Spain

• Belgium

• Russia

• The Netherlands

• Rest of Europe

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Europe Biopellet Energy Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing Demand for Renewable Energy
         2. Government Policies and Incentives
         3. Rising Energy Demand
      2. Restraints
         1. High Initial Investment Costs
         2. Feedstock Availability and Logistics
      3. Opportunities
         1. Advancement in Technology
         2. Diversification of Biomass Feedstock
      4. Challenges
         1. Competition from Other Renewable Energy Sources
         2. Environmental Concerns and Sustainability
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Europe Biopellet Energy Market: Marketing Strategies
5. Europe Biopellet Energy Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Pellet Stoves
         2. Boilers
         3. Burners
      2. By Application
         1. Vehicle Fuel
         2. Heat Generation
         3. Lubrication
         4. Reduction of Emission
         5. Others
      3. By End User
         1. Transportation
         2. Electronics
         3. Commercial
         4. Others
      4. By Country
         1. Germany
         2. United Kingdom
         3. Italy
         4. France
         5. Spain
         6. Belgium
         7. Russia
         8. The Netherlands
         9. Rest of Europe
6. Germany Biopellet Energy Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Application
      3. By End User
7. United Kingdom Biopellet Energy Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Application
      3. By End User
8. Italy Biopellet Energy Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Application
      3. By End User
9. France Biopellet Energy Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Application
      3. By End User
10. Spain Biopellet Energy Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Type
       2. By Application
       3. By End User
11. Belgium Biopellet Energy Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Type
       2. By Application
       3. By End User
12. Russia Biopellet Energy Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Type
       2. By Application
       3. By End User
13. The Netherlands Biopellet Energy Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Type
       2. By Application
       3. By End User
14. Rest of Europe Biopellet Energy Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Type
       2. By Application
       3. By End User
15. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Europe Biopellet Energy Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
16. Impact of Escalating Geopolitical Tensions on Europe Biopellet Energy Market
17. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. Drax Group
    2. Verbio
    3. Enviva
    4. Pelletsano
    5. DS Smith
    6. Stora Enso
    7. Södra
    8. UPM
    9. Smurfit Kappa
    10. Kronospan
    11. Other Prominent Players
18. Key Strategic Recommendations
19. Research Methodology
    1.    Qualitative Research
       1.  Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.    Breakdown of Primary Research Respondents, By Country
    5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Europe Biopellet Energy Segmentation

Figure 2       Europe Biopellet Energy Market Value Chain Analysis       

Figure 3       Company Market Share Analysis, 2023

Figure 4       Europe Biopellet Energy Market Size, By Value (USD Million), 2019–2030      

Figure 5       Europe Biopellet Energy Market Share, By Type, By Value, 2019–2030

Figure 6       Europe Biopellet Energy Market Share, By Application, By Value, 2019–2030 

Figure 7       Europe Biopellet Energy Market Share, By End User, By Value, 2019–2030   

Figure 8       Europe Biopellet Energy Market Share, By Country, By Value, 2019–2030     

Figure 9       Germany Biopellet Energy Market Size, By Value (USD Million), 2019–2030  

Figure 10     Germany Biopellet Energy Market Share, By Type, By Value, 2019–2030      

Figure 11     Germany Biopellet Energy Market Share, By Application, By Value, 2019–2030         

Figure 12     Germany Biopellet Energy Market Share, By End User, By Value, 2019–2030

Figure 13     United Kingdom Biopellet Energy Market Size, By Value (USD Million), 2019–2030         

Figure 14     United Kingdom Biopellet Energy Market Share, By Type, By Value, 2019–2030         

Figure 15     United Kingdom Biopellet Energy Market Share, By Application, By Value, 2019–2030 

Figure 16     United Kingdom Biopellet Energy Market Share, By End User, By Value, 2019–2030 

Figure 17     Italy Biopellet Energy Market Size, By Value (USD Million), 2019–2030

Figure 18     Italy Biopellet Energy Market Share, By Type, By Value, 2019–2030    

Figure 19     Italy Biopellet Energy Market Share, By Application, By Value, 2019–2030    

Figure 20     Italy Biopellet Energy Market Share, By End User, By Value, 2019–2030       

Figure 21     France Biopellet Energy Market Size, By Value (USD Million), 2019–2030      

Figure 22     France Biopellet Energy Market Share, By Type, By Value, 2019–2030

Figure 23     France Biopellet Energy Market Share, By Application, By Value, 2019–2030 

Figure 24     France Biopellet Energy Market Share, By End User, By Value, 2019–2030    

Figure 25     Spain Biopellet Energy Market Size, By Value (USD Million), 2019–2030        

Figure 26     Spain Biopellet Energy Market Share, By Type, By Value, 2019–2030  

Figure 27     Spain Biopellet Energy Market Share, By Application, By Value, 2019–2030   

Figure 28     Spain Biopellet Energy Market Share, By End User , By Value, 2019–2030     

Figure 29     Belgium Biopellet Energy Market Size, By Value (USD Million), 2019–2030    

Figure 30     Belgium Biopellet Energy Market Share, By Type, By Value, 2019–2030

Figure 31     Belgium Biopellet Energy Market Share, By Application, By Value, 2019–2030

Figure 32     Belgium Biopellet Energy Market Share, By End User, By Value, 2019–2030  

Figure 33     Russia Biopellet Energy Market Size, By Value (USD Million), 2019–2030      

Figure 34     Russia Biopellet Energy Market Share, By Type, By Value, 2019–2030 

Figure 35     Russia Biopellet Energy Market Share, By Application, By Value, 2019–2030 

Figure 36     Russia Biopellet Energy Market Share, By End User, By Value, 2019–2030    

Figure 37     The Netherlands Biopellet Energy Market Size, By Value (USD Million), 2019–2030         

Figure 38     The Netherlands Biopellet Energy Market Share, By Type, By Value, 2019–2030         

Figure 39     The Netherlands Biopellet Energy Market Share, By Application, By Value, 2019–2030 

Figure 40     The Netherlands Biopellet Energy Market Share, By End User, By Value, 2019–2030 

Figure 41     Rest of Europe Biopellet Energy Market Size, By Value (USD Million), 2019–2030         

Figure 42     Rest of Europe Biopellet Energy Market Share, By Type, By Value, 2019–2030         

Figure 43     Rest of Europe Biopellet Energy Market Share, By Application, By Value, 2019–2030 

Figure 44     Rest of Europe Biopellet Energy Market Share, By End User, By Value, 2019–2030         

List of Tables

Table 1        Europe Biopellet Energy Market Size, By Value (USD Million), 2019–2030      

Table 2        Europe Biopellet Energy Market Size, By Type, By Value, 2019–2030   

Table 3        Europe Biopellet Energy Market Size, By Application, By Value, 2019–2030   

Table 4        Europe Biopellet Energy Market Size, By End User, By Value, 2019–2030      

Table 5        Europe Biopellet Energy Market Size, By Country, By Value, 2019–2030        

Table 6        Germany Biopellet Energy Market Size, By Value (USD Million), 2019–2030  

Table 7        Germany Biopellet Energy Market Size, By Type, By Value, 2019–2030

Table 8        Germany Biopellet Energy Market Size, By Application, By Value, 2019–2030

Table 9        Germany Biopellet Energy Market Size, By End User, By Value, 2019–2030   

Table 10      United Kingdom Biopellet Energy Market Size, By Value (USD Million), 2019–2030         

Table 11      United Kingdom Biopellet Energy Market Size, By Type, By Value, 2019–2030

Table 12      United Kingdom Biopellet Energy Market Size, By Application, By Value, 2019–2030 

Table 13      United Kingdom Biopellet Energy Market Size, By End User, By Value, 2019–2030         

Table 14      Italy Biopellet Energy Market Size, By Value (USD Million), 2019–2030

Table 15      Italy Biopellet Energy Market Size, By Type, By Value, 2019–2030      

Table 16      Italy Biopellet Energy Market Size, By Application, By Value, 2019–2030       

Table 17      Italy Biopellet Energy Market Size, By End User, By Value, 2019–2030

Table 18      France Biopellet Energy Market Size, By Value (USD Million), 2019–2030      

Table 19      France Biopellet Energy Market Size, By Type, By Value, 2019–2030   

Table 20      France Biopellet Energy Market Size, By Application, By Value, 2019–2030    

Table 21      France Biopellet Energy Market Size, By End User, By Value, 2019–2030      

Table 22      Spain Biopellet Energy Market Size, By Value (USD Million), 2019–2030        

Table 23      Spain Biopellet Energy Market Size, By Type, By Value, 2019–2030     

Table 24      Spain Biopellet Energy Market Size, By Application, By Value, 2019–2030     

Table 25      Spain Biopellet Energy Market Size, By End User , By Value, 2019–2030       

Table 26      Belgium Biopellet Energy Market Size, By Value (USD Million), 2019–2030    

Table 27      Belgium Biopellet Energy Market Size, By Type, By Value, 2019–2030 

Table 28      Belgium Biopellet Energy Market Size, By Application, By Value, 2019–2030  

Table 29      Belgium Biopellet Energy Market Size, By End User, By Value, 2019–2030    

Table 30      Russia Biopellet Energy Market Size, By Value (USD Million), 2019–2030      

Table 31      Russia Biopellet Energy Market Size, By Type, By Value, 2019–2030   

Table 32      Russia Biopellet Energy Market Size, By Application, By Value, 2019–2030    

Table 33      Russia Biopellet Energy Market Size, By End User, By Value, 2019–2030       

Table 34      The Netherlands Biopellet Energy Market Size, By Value (USD Million), 2019–2030         

Table 35      The Netherlands Biopellet Energy Market Size, By Type, By Value, 2019–2030         

Table 36      The Netherlands Biopellet Energy Market Size, By Application, By Value, 2019–2030 

Table 37      The Netherlands Biopellet Energy Market Size, By End User, By Value, 2019–2030         

Table 38      Rest of Europe Biopellet Energy Market Size, By Value (USD Million), 2019–2030         

Table 39      Rest of Europe Biopellet Energy Market Size, By Type, By Value, 2019–2030 

Table 40      Rest of Europe Biopellet Energy Market Size, By Application, By Value, 2019–2030         

Table 41      Rest of Europe Biopellet Energy Market Size, By End User, By Value, 2019–2030

Table 42      Drax Group Company Overview

Table 43      Drax Group Financial Overview

Table 44      Verbio Company Overview

Table 45      Verbio Financial Overview

Table 46      Enviva Company Overview

Table 47      Enviva Financial Overview

Table 48      Pelletsano Company Overview

Table 49      Pelletsano Financial Overview

Table 50      DS Smith Company Overview

Table 51      DS Smith Financial Overview

Table 52      Stora Enso Company Overview

Table 53      Stora Enso Financial Overview

Table 54      Södra Company Overview

Table 55      Södra Financial Overview

Table 56      UPM Company Overview

Table 57      UPM Financial Overview

Table 58      Smurfit Kappa Company Overview

Table 59      Smurfit Kappa Financial Overview

Table 60      Kronospan Company Overview

Table 61      Kronospan Financial Overview