US Biomass Pellets Market Size to Reach USD 2.07 billion by 2035, Driven by a 5.40% CAGR from 2025-2035

May 20, 2025

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The US Biomass Pellets Market is experiencing significant growth, driven by the global push for renewable energy and the need to reduce carbon emissions. Biomass pellets, especially wood pellets, are increasingly used as a sustainable alternative to fossil fuels in power generation, heating, and industrial processes.

Market Overview

The US Biomass Pellets Market Size was estimated at 0.86 (USD Billion) in 2023. The US Biomass Pellets industry is expected to grow from 1.16(USD Billion) in 2024 to 2.07 (USD Billion) by 2035. The US Biomass Pellets Market CAGR (growth rate) is expected to be around 5.406% during the forecast period (2025 - 2035). This growth is fueled by increasing demand for renewable energy, stringent emission regulations, and rising adoption of bio-based fuels.

Production and Consumption Trends

According to the U.S. Energy Information Administration (EIA), in April 2024, U.S. producers manufactured 0.85 million tons of densified biomass fuel, selling 0.78 million tons. Domestic sales accounted for 0.07 million tons, averaging $220.21 per ton, while exports totaled 0.71 million tons at an average price of $193.58 per ton . The majority of U.S. biomass pellets are exported, primarily to Europe and Asia, where they are used to meet renewable energy targets.

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Key Drivers of Growth

1. Environmental Regulations and Renewable Energy Policies

The U.S. government's commitment to reducing greenhouse gas emissions has led to policies promoting renewable energy sources. Biomass pellets are considered carbon-neutral, as the carbon dioxide released during combustion is offset by the carbon absorbed during the growth of the Biomass feedstock. This has made biomass pellets an attractive option for power generation and heating.

2. Technological Advancements

Advancements in pellet production technology have improved the efficiency and quality of biomass pellets. Modern pellet mills can process various feedstocks, including wood residues, agricultural waste, and energy crops, into high-density pellets with consistent size and moisture content. These improvements have enhanced the combustion efficiency and reduced emissions from pellet-based systems.

3. Rising Demand for Sustainable Heating Solutions

There is a growing demand for sustainable heating solutions in residential, commercial, and industrial sectors. Biomass pellet stoves and boilers offer a renewable alternative to traditional heating systems, reducing reliance on fossil fuels and lowering carbon footprints. This trend is particularly evident in colder regions of the U.S., where heating needs are substantial.

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Challenges and Considerations

1. Supply Chain and Feedstock Availability

The availability and cost of biomass feedstock can impact pellet production. Competition for raw materials, such as wood residues and agricultural waste, may affect supply stability. Ensuring a sustainable and consistent feedstock supply is crucial for the industry's growth.

2. Environmental Concerns

While biomass pellets are considered renewable, concerns have been raised about the environmental impact of large-scale pellet production. Issues such as deforestation, habitat loss, and carbon accounting complexities need to be addressed to ensure the sustainability of biomass energy.

3. Market Dynamics and Competition

The Biomass Pellets Market faces competition from other renewable energy sources, such as solar and wind. Additionally, fluctuations in fossil fuel prices can influence the competitiveness of biomass pellets. Market players must navigate these dynamics to maintain growth.

Future Outlook

The U.S. biomass pellets market is poised for continued growth, driven by environmental policies, technological advancements, and increasing demand for renewable energy. Investments in sustainable feedstock sourcing, efficient production technologies, and robust supply chains will be essential to capitalize on market opportunities. Addressing environmental concerns and ensuring the sustainability of biomass resources will also be critical for the industry's long-term success.

MRFR recognizes the following US Biomass Pellets Companies - Bioenergy International, Enviva, Westervelt, Bluefire Renewables, Drax Group, Magnolia Biofuels, Green Circle Bio Energy, Alder Energy, New England Wood Pellet, Premium Pellet, RWE AG, Landmark Biofuels, Pinnacle Renewable Energy, Georgia Biomass

As the U.S. and the world transition towards cleaner energy sources, biomass pellets are expected to play a significant role in achieving renewable energy targets and reducing carbon emissions.

Table of Contents

SECTION I: EXECUTIVE SUMMARY AND KEY HIGHLIGHTS

EXECUTIVE SUMMARY

Market Overview
Key Findings
Market Segmentation
Competitive Landscape
Challenges and Opportunities
Future Outlook
SECTION II: SCOPING, METHODOLOGY AND MARKET STRUCTURE

SECTION III: QUALITATIVE ANALYSIS

SECTION IV: QUANTITATIVE ANALYSIS

SECTION V: COMPETITIVE ANALYSIS

LIST Of tables

LIST Of figures

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