The United Kingdom was the largest single wood pellet market in Europe in 2025, around 23% of regional revenue, driven heavily by industrial power generation. As long-running industrial support schemes wind down, that demand is expected to soften, which reshapes where Baltic and Nordic suppliers send their volume.
The opportunity is on the heat side: residential heating, small-scale combined heat and power, and district heating remain resilient because pellets stay cost-competitive against volatile gas. For suppliers rooted in the Baltic region, the strategy is to follow the heat demand across the EU rather than depend on a few large industrial off-takers.