Pellet market projected to grow as energy prices rise in Poland

The global pellet market is experiencing significant growth, with its value projected to rise from $18.53 billion this year to $26 billion within five years. According to Mordor Intelligence, the market is expected to maintain a compound annual growth rate of 7%, driven by increasing demand from utility companies and private firms seeking alternatives to fossil fuels.

In Poland, consumers are facing rising costs, with certified pellet prices reaching between 2,200 and 2,500 PLN per ton, up from approximately 1,400 PLN last year. This price surge has led some Polish residents in border regions to look toward the Czech Republic, where prices are reportedly around 1,920 PLN per ton, though transport costs must be considered.

Regional trends show Europe remains a primary consumer, while interest in biomass co-firing is growing in China and India. Japan and South Korea are also transitioning toward renewable energy sources. The industry is increasingly utilizing wood industry byproducts, such as sawdust and chips, to support a circular economy. However, the sector faces challenges, including the financial restructuring of major players like Enviva and rising consumer demand for certified products.