Sustainable heat in the elevator
The global market for wood pellets is growing faster than ever. Both production and consumption reached a new record in 2025, while Europe further strengthens its position as the global leader. What does this development mean for the energy transition and the future of sustainable heat?
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Record growth for the global pellet market
The global market for wood pellets is once again showing strong growth figures. According to the latest Pellet Statistical Report 2026 from Bioenergy Europe, global production rose to 53.5 million tonnes in 2025. This represents a 10% increase compared to the previous year and the largest annual increase in recent years. Global consumption also reached a new record at 51.5 million tonnes.
The figures confirm that wood pellets are playing an increasingly important role in the global energy transition. Both industry and the built environment are increasingly opting for sustainable heat from biomass.
Europe strengthens its leading position
Europe remains the largest pellet market in the world. Approximately 70% of global demand for wood pellets comes from Europe, while the continent accounts for 45% of total world production.
After two years of slight contraction, European production grew again by 10% in 2025 to 24.1 million tonnes. This set a new production record. This development shows that biomass is taking an increasingly strong position within the European heat supply.
Sustainable heat is becoming increasingly important
The heat transition is one of the greatest challenges within Europe. Although the share of renewable energy is growing, natural gas is still the most important heat source for households and businesses.
To achieve the climate targets for 2030 and 2040, a large proportion of fossil fuel heating systems will need to be replaced by sustainable alternatives. Modern pellet installations make a significant contribution to this, thanks to their high efficiency, reliable fuel supply, and lower CO₂ emissions.
Especially in industrial processes, rural areas, and regions where multiple sustainable heat solutions are required side by side, biomass installations a robust and future-proof solution.
More and more households are choosing pellets
The private market is also continuing to grow. In 2025, residential pellet consumption in Europe rose to 15.3 million tonnes, an increase of 5% compared to 2024. Currently, more than 6.5 million European households heat their homes with a pellet stove or pellet boiler.
According to Bioenergy Europe, incentive schemes in various European countries are ensuring that more and more households are switching from oil- and coal-fired installations to modern pellet systems.
Modern technology makes the difference
The report also highlights the difference between modern pellet installations and older wood-fired systems. Thanks to advanced combustion technology and the use of standardized fuels, modern installations produce significantly fewer emissions and extract more usable energy from the same amount of biomass.
In doing so, they contribute not only to the reduction of CO₂ emissions, but also to a more efficient use of biomass and better air quality.
Bioenergy continues to develop rapidly
The strong growth of the pellet market underscores that biomass plays a lasting role in making heat supplies more sustainable. With increasing demand, rising production, and continuous technological innovation, confidence in bioenergy as a reliable and future-proof energy source is growing.
Source
Bioenergy Europe – Global Pellet Market Hits New High as Europe Weighs its Clean Heat Options
