1/ Market Report
- Wood pellet consumption in the European Union fell by 1.2% last year despite increased production, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network. EU wood pellet demand and production are both expected to increase in 2024.
- The report attributes the decline in EU wood pellet demand last year to a mild winter and lower demand from the commercial electricity sector. Current low prices, combined with government incentives, are expected to support the uptake of biomass for residential heating in 2024. However, demand for wood pellets is expected to remain stagnant this year. With EU wood pellet production failing to keep pace with rising demand, wood pellet imports are expected to partially recover from the reported decline in 2023.
- According to the report, the EU produced 20.8 million metric tons of wood pellets last year, up from 20.3 million metric tons in 2022 and 19.361 million metric tons in 2021. Production is expected to grow to 21.2 million metric tons this year. Total EU wood pellet production capacity is expected to reach 27.5 million metric tons per year in 2024, up from 27.2 million metric tons per year last year. Capacity utilization is expected at 77.1% for 2024, compared to 76.5% in 2023.
- Approximately 24.5 million metric tons of wood pellets were consumed in the EU last year, compared to 24.8 million metric tons in 2022 and 22.951 million metric tons in 2021. WoodpPellet consumption is expected to reach 25.4 million metric tons this year.
- The EU is expected to export 1 million metric tons of wood pellets this year, compared to 1.16 million metric tons last year and 1.487 million metric tons in 2022. Wood pellet imports are expected to reach 5.3 million metric tons in 2024, compared to 4.889 million metric tons in 2023 and 5.89 million metric tons in 2022.
- Germany was the EU’s top wood pellet consumer last year at 3.4 million metric tons, followed by France at 3.15 million metric tons and Italy at 2.7 million metric tons.
- Germany was also the EU’s top producer of wood pellets last year, at 3.71 million metric tons, followed by France at 2.25 million metric tons and Latvia at 1.95 million metric tons.
- The Netherlands was the EU’s top importer of wood pellets in 2023 at 2.328 million metric tons, with 1.546 million of that volume coming from the U.S., followed by Denmark at 2.237 million metric tons and Italy at 2.058 million metric tons. The Netherlands was the top destination for U.S. wood pellet exports to the EU, followed by Denmark at 498,000 metric tons, Belgium at 429,000 metric tons and France at 290,000 metric tons.
- Overall, the U.S. was the top source of wood pellet imports to the EU last year at 2.907 million metric tons, followed by Ukraine at 466,000 metric tons, Brazil at 369,000 metric tons and Canada at 337,000 metric tons.
2/ Key Findings
The EU wood pellet market is characterized by:
- Increased production: Despite a slight dip in consumption in 2023, production has steadily grown.
- Shifting consumption patterns: A decrease in demand from the commercial power sector and a mild winter impacted consumption in 2023. However, growing residential demand is expected to drive consumption in 2024.
- Trade dynamics: Import volumes are expected to recover as domestic production struggles to meet demand. The Netherlands is the largest importer, with the U.S. being the primary supplier.
Note: The information in this article is for reference only and may change depending on the manufacturer and source of raw materials. For the most accurate information, you should consult experts, wood pellet suppliers or contact Overc.vn to answer your questions and problems related to wood pellets and wood chips.
Source:
- Biomass Magazine
- Overc Team synthesise, analyse and write articles.
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OVERC was established in Vietnam, which has 17 FTA (Free Trade Agreement).
Vietnam is one of the countries with the most FTAs in the world.
Our main activities are manufacturing and distributing Wood Pellets and Wood Waste. Our wood pellet products, which are made from Acacia veneer residual 100% or wood waste (logs, sawdust, wood chips, wood shavings,…), have been exported to many countries around the world such as Japan, Korea, EU, etc.
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