Europe's wood pellet market is set to pass roughly USD 13.3 billion in 2026 and grow at about 6.3% a year through 2031, with heating accounting for nearly two thirds of demand. The reason is simple economics. Heating with pellets costs around €4.5 per gigajoule against roughly €12 for natural gas, and solid biomass already supplies close to half of all renewable heat in the EU.
For procurement teams, the takeaway is that pellet demand is structural, not seasonal. The Nordic region is the fastest-growing market in Europe, expanding at around 9% a year, which keeps Baltic supply lines busy well beyond the winter peak.