Solid Biomass Feedstock Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Chips, Pellets, Briquettes, Others), By Source (Agriculture Waste, Forest Waste, Animal Waste, Municipal Waste), By End-User (Residential & Commercial, Industrial, Utilities), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 28.92 Billion
CAGR (2026-2031)	5.64%
Fastest Growing Segment	Pellets
Largest Market	North America
Market Size (2031)	USD 40.19 Billion

Market Overview

The Global Solid Biomass Feedstock Market will grow from USD 28.92 Billion in 2025 to USD 40.19 Billion by 2031 at a 5.64% CAGR. The Global Solid Biomass Feedstock Market comprises the supply and utilization of organic non-fossil materials, such as wood pellets, wood chips, agricultural residues, and forestry waste, primarily for the generation of heat and electricity. The fundamental drivers propelling this market include the global imperative to decarbonize energy grids and stringent government mandates aimed at reducing greenhouse gas emissions. Additionally, the strategic push for energy security compels nations to diversify their energy portfolios with reliable, locally sourced renewable resources, creating a structural demand for biomass distinct from temporary market fluctuations.

However, the sector encounters a significant challenge in the form of policy inconsistency and complex supply chain logistics, which can impede the consistent availability of raw materials. Regulatory uncertainty regarding sustainability criteria frequently complicates long-term investment decisions for producers. According to Bioenergy Europe, in 2025, global wood pellet production remained broadly stable at 48.3 million tonnes in 2024. This stabilization indicates that while the sector is resilient, scaling production to meet future demand requires overcoming substantial regulatory and logistical barriers.

Key Market Drivers

The Implementation of Stringent Environmental Regulations and Carbon Emission Targets serves as the foremost catalyst for the solid biomass feedstock market. Legislative frameworks across major economies are increasingly mandating the phase-out of coal, incentivizing utilities to transition toward lower-carbon alternatives like wood pellets and agricultural residues. This regulatory pressure effectively creates a guaranteed market for feedstock producers, as power generators must secure long-term supply contracts to comply with decarbonization mandates. For instance, the United Kingdom's subsidy schemes for bioenergy continue to drive substantial trade flows. According to the USDA Foreign Agricultural Service, February 2025, in the 'Global Agricultural Information Network Report', the United Kingdom imported 7 million metric tons of U.S. wood pellets in 2024, maintaining its position as a top destination due to continued government support for renewable baseload power.

Escalating Global Demand for Clean Power Generation and Electricity further accelerates market expansion, particularly through the advancement of industrial-scale infrastructure. Unlike intermittent renewables, solid biomass offers baseload capability, prompting utility-scale investments in biomass-firing technologies to ensure grid stability while meeting renewable energy quotas. This shift necessitates robust supply chains to transport high-density feedstock from resource-rich regions to industrial consumption hubs. According to the U.S. Energy Information Administration, April 2025, in the 'Monthly Densified Biomass Fuel Report', U.S. manufacturers produced 9.16 million metric tons of utility-grade pellets in 2024 specifically to meet this rising sector demand. To satisfy such industrial appetite, trade volumes remain significant; according to the USDA Foreign Agricultural Service, in 2025, the Netherlands imported 1.50 million metric tons of wood pellets in 2024, highlighting the continued reliance on biomass for energy security in key markets.

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Key Market Challenges

Policy inconsistency and complex supply chain logistics represent a critical barrier hindering the expansion of the Global Solid Biomass Feedstock Market. These structural challenges create a volatile operating environment where regulatory uncertainty regarding sustainability criteria discourages the long-term capital investment necessary for capacity expansion. Unlike solar or wind, biomass relies on a continuous, physical supply chain that is highly susceptible to logistical disruptions and fluctuating raw material availability, making it difficult for producers to guarantee the consistent volumes required for large-scale energy baseloads.

This unpredictability directly hampers market growth by forcing the sector into a trajectory of stagnation relative to other renewable technologies. While global energy demand rises, the friction caused by these non-technical hurdles limits the sector's ability to scale at a competitive pace, keeping it from fulfilling its potential as a primary renewable source. According to the World Bioenergy Association, in 2024, bioenergy power generation reached 711 TWh, representing just 7% of global renewable electricity. This restricted market share illustrates how logistical and regulatory complexities effectively constrain the industry, preventing it from keeping pace with the broader acceleration of the green energy transition.

Key Market Trends

The Widespread Adoption of Torrefaction and Black Pellet Technology is fundamentally reshaping the market by addressing the logistical and energy density limitations of traditional white pellets. This thermal pre-treatment process converts biomass into a hydrophobic, coal-like material that allows for outdoor storage and direct co-firing in existing coal power plants without expensive infrastructure retrofitting. The technology is rapidly moving from pilot phases to industrial-scale commercialization, particularly in regions prioritizing efficient coal-to-biomass transitions. According to Argus Media, July 2024, in the article 'Idemitsu to start black pellet output in December', Japanese energy firm Idemitsu is planning to start black pellet production of 120,000 tonnes per year in Vietnam in late 2024, with a long-term target of reaching 3 million tonnes annually by 2030.

Simultaneously, the sector is experiencing a significant Diversification into Agricultural Residues and Dedicated Energy Crops to mitigate the supply risks associated with forestry-based feedstocks. Producers are increasingly tapping into non-woody resources such as straw, bagasse, and fast-growing grasses to decouple from volatile timber markets and address sustainability concerns regarding forest harvesting. This strategic shift transforms underutilized agricultural byproducts into critical energy assets, ensuring a more resilient and circular supply chain. According to the World Bioenergy Association, November 2024, in the 'Global Bioenergy Statistics 2024' report, approximately 660 million tons of primary crops were utilized globally for biofuel and energy production in 2023, highlighting the industry's decisive expansion into agrarian raw materials.

Segmental Insights

The Pellets segment is emerging as the fastest-growing category in the Global Solid Biomass Feedstock Market, primarily driven by its advantageous storage and combustion characteristics. Pellets provide a uniform shape and higher energy density compared to other feedstocks, enabling more efficient transportation and seamless integration into automated heating systems. This expansion is strongly supported by regulatory frameworks from authorities like the European Union, which promote the replacement of fossil fuels with renewable energy sources to reduce carbon emissions. Consequently, utilities increasingly rely on pellets for co-firing in power plants, thereby sustaining high demand across international markets.

Regional Insights

North America maintains a leading position in the global solid biomass feedstock market due to the extensive availability of forest-based resources and agricultural residues. The region benefits from established government mandates that promote renewable power generation, including environmental standards monitored by the U.S. Environmental Protection Agency. Additionally, the United States and Canada possess developed infrastructure for the production and transport of wood pellets, facilitating steady supply for both domestic consumption and international exports. These factors collectively establish North America as the central hub for solid biomass expansion.

Recent Developments

• In November 2025, a joint venture led by Sumitomo Corporation commenced commercial operations at the Sendai Port Biomass Power Plant in Japan. The facility, which possesses a generation capacity of 112 megawatts, began utilizing wood pellets and wood chips sourced from certified forests to supply renewable electricity to approximately 260,000 households. Developed in collaboration with regional utility and gas partners, this project represented a significant expansion of the country's dedicated solid biomass power infrastructure. The plant was designed to consume solid woody biomass fuels derived from thinning timber and mill residues, ensuring a stable energy supply while contributing to carbon reduction targets in the power generation sector.
• In October 2025, Musser Biomass and Wood Products entered into a strategic partnership with Trex Company to advance sustainability standards in the wood pellet market. The collaboration involved the application of a recycling verification label to the biomass producer's heating pellets and animal bedding packaging. This initiative certified that the products utilized reclaimed wood fiber and contributed to the diversion of waste from landfills, supporting a circular economic model. By integrating this recycled content standard into its retail offerings, the company aimed to validate the environmental credentials of its solid biomass products for consumers in the residential heating and agricultural sectors.
• In June 2025, USA BioEnergy signed a letter of intent with LP Building Solutions to establish a long-term supply chain for woody biomass feedstock. The agreement detailed the annual procurement of approximately 2.2 million tons of forest thinnings and wood fiber to support a planned biorefinery in Texas over a twenty-year term. This collaboration intended to secure a consistent volume of solid feedstock for the production of sustainable aviation fuel and renewable naphtha. The arrangement utilized the building products manufacturer’s forestry management capabilities to source raw materials responsibly, highlighting the critical role of solid biomass in the emerging advanced biofuels industry.
• In November 2024, Comstock Inc. expanded its collaboration with SACL Pte. Limited through a binding agreement to deploy biomass refining technology in Vietnam. The deal focused on the development of facilities capable of converting lignocellulosic solid biomass into renewable fuels, such as sustainable aviation fuel and renewable diesel. Under the terms, the partner gained exclusive marketing rights and support for the financing and construction of a new refinery in Quang Tri Province. This project aimed to valorize regional agricultural and forestry residues as solid feedstock, addressing the growing requirement for low-carbon energy sources in the Asia-Pacific market.

Key Market Players

• Enviva
• Drax Group
• RWE
• Georgia Biomass
• Pacific BioEnergy
• Iberdrola
• Fortum
• ArcelorMittal
• Pellet Fuels Institute members
• Biomass Energy Group

By Type	By Source	By End-User	By Region
Chips Pellets Briquettes Others	Agriculture Waste Forest Waste Animal Waste Municipal Waste	Residential & Commercial Industrial Utilities	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Solid Biomass Feedstock Market, By Type:

• Chips
• Pellets
• Briquettes
• Others

• Solid Biomass Feedstock Market, By Source:

• Agriculture Waste
• Forest Waste
• Animal Waste
• Municipal Waste

• Solid Biomass Feedstock Market, By End-User:

• Residential & Commercial
• Industrial
• Utilities

• Solid Biomass Feedstock 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