Biomass Briquettes Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Sawdust Briquettes, Agro waste Briquettes, Wood Briquettes), By Application (Power Generation, Thermal Energy and Others), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.11 Billion
CAGR (2026-2031)	7.99%
Fastest Growing Segment	Sawdust Briquettes
Largest Market	North America
Market Size (2031)	USD 1.76 Billion

Market Overview

The Global Biomass Briquettes Market will grow from USD 1.11 Billion in 2025 to USD 1.76 Billion by 2031 at a 7.99% CAGR. Biomass briquettes are densified biofuel substitutes manufactured by compressing organic materials, such as agricultural residues, sawdust, and industrial waste, into solid blocks for thermal energy generation. The global market is primarily driven by the escalating transition toward renewable energy sources and the enforcement of stringent government regulations aimed at reducing carbon emissions. Furthermore, the economic viability of converting agricultural waste into fuel, which offers a cost-effective alternative to fossil fuels like coal, significantly supports market growth. According to the World Bioenergy Association, in 2024, solid biomass constituted 83% of the total global biomass supply, underscoring the dominant position of solid fuels within the bioenergy sector.

However, a substantial challenge impeding market expansion is the logistical complexity associated with feedstock procurement and supply chain consistency. The seasonal availability of agricultural residues creates fluctuations in raw material supply and price volatility, which complicates continuous production for manufacturers. Additionally, the high costs incurred in transporting low-density raw biomass to processing facilities often strain profit margins, potentially deterring investment in large-scale briquetting infrastructure and limiting the product's widespread adoption in cost-sensitive industrial applications.

Key Market Drivers

The growing mandates for biomass co-firing in thermal power plants serve as a primary catalyst for market expansion, driven by stringent environmental regulations aimed at decarbonizing the energy sector. Governments globally are enforcing policies that compel utility companies to blend a specific percentage of densified biomass with coal, thereby creating a guaranteed, large-scale demand channel for briquettes and pellets. This regulatory push not only mitigates carbon emissions but also stabilizes the supply chain by providing manufacturers with long-term offtake assurance. For instance, according to Argus Media, December 2025, overall biomass consumption in India reached 1.62 million tonnes in the fiscal year ending March 2025, a surge directly attributed to the government's compliance targets for co-firing in coal-based power generation facilities.

Simultaneously, the surging industrial adoption of biomass briquettes as a coal substitute in boilers is fundamentally reshaping the market landscape. Manufacturing units, particularly in energy-intensive sectors like FMCG and textiles, are aggressively retrofitting boilers to accommodate biomass fuels to hedge against fossil fuel price volatility and meet net-zero operational goals. This transition allows industries to decouple from fluctuating coal markets while utilizing locally available agricultural residues. Highlighting this shift, according to Hindustan Unilever Limited, May 2025, in its 'Business Responsibility and Sustainability Report 2024-25', the company successfully reduced carbon emissions in its manufacturing operations by 99% compared to its 2008 baseline, largely by eliminating coal usage in favor of biomass and green fuels. Reflecting the scale of this broader sector growth, according to Bioenergy Europe, June 2025, global wood pellet production remained robust, reaching 48.3 million tonnes in 2024, underscoring the rising availability of densified biofuels.

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Key Market Challenges

The logistical complexity associated with feedstock procurement and supply chain consistency constitutes a significant barrier to the Global Biomass Briquettes Market. Manufacturers frequently struggle with the seasonal nature of agricultural residues, which leads to erratic raw material availability and substantial price volatility. This instability disrupts continuous production cycles, making it difficult for producers to assure industrial consumers of a reliable fuel source. Consequently, potential adopters often hesitate to transition from fossil fuels to biomass briquettes, fearing operational downtime caused by unpredictable supply shortages.

Furthermore, the high cost of transporting low-density raw biomass to processing facilities severely strains financial viability. The expense of moving voluminous agricultural waste often erodes profit margins, thereby limiting capital investment in large-scale briquetting infrastructure. This supply-side bottleneck stands in stark contrast to the sector's expanding requirements. According to the World Bioenergy Association, global biopower capacity reached 151 GW in 2024, a figure that highlights the immense scale of demand relying on these often fragile supply chains. The disparity between this growing capacity and the inefficient mobilization of feedstock directly restricts the market's potential for sustained expansion and widespread industrial adoption.

Key Market Trends

The accelerated adoption of torrefaction technology is fundamentally upgrading the market by enabling the production of bio-coal, a high-density fuel that overcomes the caloric and storage limitations of traditional biomass briquettes. Unlike standard densification, torrefaction processes biomass in an oxygen-deprived environment to create a water-resistant, energy-dense product that can be co-fired with coal at high ratios without requiring costly boiler retrofits. This technological shift is rapidly moving toward commercial scale, creating a new class of drop-in renewable fuels for industrial applications. Validating this expansion, according to Bioenergy Insight, March 2025, plans were announced for a large-scale torrefaction facility in New Zealand with an annual production capacity of 180,000 tonnes, designed to directly supply utility-scale power stations and displace fossil coal.

Simultaneously, the monetization of carbon credits within the briquette value chain is emerging as a critical financial driver, allowing manufacturers to decouple revenue solely from fuel sales. By quantifying the emissions avoided through agricultural residue management and fossil fuel displacement, stakeholders are generating high-integrity carbon credits that attract significant institutional investment. This mechanism transforms the sector's economic model, providing the capital necessary to secure fragmented feedstock supply chains. Exemplifying this trend, according to ESG Dive, November 2025, the climate-tech developer Varaha secured $30 million in funding to scale its operations, which include generating verified carbon credits from biochar and agricultural waste reduction projects, thereby incentivizing the upstream collection networks vital for the industry.

Segmental Insights

Market research indicates that Sawdust Briquettes are currently the fastest-growing segment in the Global Biomass Briquettes Market. This growth is fundamentally driven by the abundance of raw material generated as a byproduct of wood processing, ensuring a reliable and cost-efficient supply chain. Additionally, sawdust briquettes provide high calorific value and low ash content, establishing them as a viable substitute for coal in industrial power generation. This trend is reinforced by environmental policies, such as the European Union’s Renewable Energy Directive, which actively promote the conversion of industrial wood waste into sustainable energy sources.

Regional Insights

North America commands a leading position in the Global Biomass Briquettes Market, primarily due to the vast availability of forestry residues and agricultural waste which secures a consistent feedstock supply. The region is witnessing a significant shift toward renewable energy sources, driven by strict environmental mandates and the industrial sector's need for low-carbon heating solutions. Support from institutions like the U.S. Department of Energy further catalyzes market growth through initiatives that advance biomass utilization technologies. This robust regulatory and resource framework enables the United States and Canada to effectively drive the adoption of sustainable fuel alternatives.

Recent Developments

• In January 2025, Piramal Pharma Limited announced a significant sustainability milestone by converting the coal-fired steam boiler at its manufacturing facility in Digwal, India, to operate on biomass briquettes. This transition to a renewable energy fuel source is part of the company's broader strategy to reduce its greenhouse gas emissions and decarbonize its operations. The adoption of biomass briquettes at the API and intermediates plant is expected to eliminate approximately 24,000 tonnes of carbon dioxide equivalent emissions annually. This initiative highlights the growing industrial uptake of biomass briquettes as a cleaner alternative to traditional fossil fuels in the pharmaceutical sector.
• In June 2024, BiofuelCircle, a digital platform for the bioenergy supply chain, reported a significant surge in market activity, noting that both the demand and supply of biomass briquettes on its platform had risen during the previous month. The company highlighted that the demand for briquettes doubled in May 2024 as buyers sought to lock in lower prices, while supply increased by 38% compared to April. The platform's data provided insights into price trends, revealing a narrowing spread between the delivered prices of biomass briquettes and imported coal, further incentivizing the industrial shift towards biomass fuels for power generation and thermal applications.
• In February 2024, EKI Energy Services, a leading carbon credit developer, announced that its subsidiary, GHG Reduction Technologies, had inaugurated a new biomass briquettes manufacturing plant in Dindori, Maharashtra. The facility was established to produce biomass briquettes from agricultural residues such as sugarcane trash, corn cobs, and soya husks, serving as a sustainable substitute for coal in industrial boilers and furnaces. With an initial production capacity of 800 metric tonnes per month, the plant represents a strategic expansion into the biofuel manufacturing sector, aiming to address the rising demand for eco-friendly energy solutions and contribute to the reduction of biomass burning in farmlands.
• In February 2024, ProcMart, a business-to-business procurement marketplace, entered into a strategic collaboration with local vendors in the biomass briquettes and pellets manufacturing sector. This partnership focused on four key locations—Manwath, Jintur, Phulambari, and Hanumangarh—to strengthen the biomass supply chain and provide localized support to manufacturers. Through this initiative, the company aimed to assist vendors in upgrading their machinery, improving operational efficiency, and ensuring the consistent quality of raw materials. The collaboration underscored the company's commitment to sustainable sourcing practices and its effort to organize the fragmented biomass fuel market by facilitating better market access for local producers.

Key Market Players

• Westervelt Company
• Pacific Bioenergy Corporation
• German Pellets GmbH
• RWE Innogy UK Ltd
• Pfeifer Holding GmbH
• DRAX BIOMASS HOLDINGS LIMITED
• General Biofuels
• Biomass Secure Power Inc
• Biomass Secure Power
• IntelliFlux Controls, Inc
• Energex Power Private Limited
• Enviva Inc.

By Type	By Application	By Region
Sawdust Briquettes Agro waste Briquettes Wood Briquettes	Power Generation Thermal Energy and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Biomass Briquettes Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Biomass Briquettes Market, By Type:

• Sawdust Briquettes
• Agro waste Briquettes
• Wood Briquettes

• Biomass Briquettes Market, By Application:

• Power Generation
• Thermal Energy and Others

• Biomass Briquettes Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE