Globally, the wood pellet industry has crossed USD 6 billion in exports in 2023. As per the industrial trends, this market is supposed to grow at a speed of 6.2% annually from 2024 to 2030, driven by the shift toward renewable energy. The USA with its superior manufacturing power and suitable climatic conditions is leading the global wood pellet industry, and presenting its export market as a top supplier in the industry.
USA: The Major Exporter of Wood Pellet
The favourable climatic conditions and technological advancement established the USA as a major wood pellets supplier. Over the years, exports increased from 1051 million in 2021 to 1753 in 2023. Here’s a quick view of USA’s top partners by quarter –
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USA’s total export of wood pellets from Q1 to Q2 of 2024 stood at USD 312 million. Among the top partners, Europe emerges as the favourable market with top buyers, for instance, the UK, Netherlands, and Denmark imported wood pellets of USD 111.5, 17, and 5.4 million respectively, in Q2 of 2024. Surprisingly, exports declined to all partners except Denmark, which increased from 0.06 million in Q1 2024 to Q2 of USD 5.4 million in 2024.
| Countries | Q1 – 23 | Q2 – 23 | Q3 – 23 | Q4 – 23 | Q1 – 24 | Q2 – 24 |
| World | 140 | 135 | 174.3 | 157 | 167 | 145 |
| UK | 101.9 | 91 | 109 | 99 | 122 | 111.5 |
| Netherlands | 3.2 | 3.5 | 19.0 | 6.7 | 14.5 | 17.0 |
| Japan | 16.8 | 5.0 | 13.0 | 30.7 | 26.2 | 9.5 |
| Denmark | 6.1 | 21.8 | 16.7 | 0.6 | 0.06 | 5.4 |
| Canada | 1.4 | 1.4 | 0.8 | 1.1 | 1.3 | 1.0 |
USA’s Top Export Destination for Wood Pellet
Over the years, the USA has improved its manufacturing capacity to produce wood pellets, and with surplus production, the country is continuously looking to expand its market size. The expansion is especially in the United Kingdom, Netherlands, Japan, Denmark, and France. Let’s try to understand how US trade values with these countries.
From 2021 to 2023, the USA wood pellet export increased by 66.7% or by USD 702 million. Among the top partners, the UK remained at the top spot with more than 70% of the USA’s exports, which stood at USD 1020 million in 2023. Surprisingly, Japan has seen a remarkable rise, from 0.136 million USD in 2021 to 234 million USD in 2023, highlighting the likeness of the product. On the other hand, Denmark, Netherlands, and France also increased value, indicating broader European demand.
| Countries | Exports in 2021 | Exports in 2022 | Exports in 2023 |
| World | 1,051 | 1,545 | 1,753 |
| UK | 713 | 946 | 1020 |
| Netherlands | 185 | 272 | 240 |
| Japan | 0.136 | 109 | 234 |
| Denmark | 80 | 94 | 128 |
| France | 32 | 31 | 58 |
Top Five Wood Pellet Exporters
The global market has observed that the demand for wood pellets is significantly increasing. This rise presents a lucrative avenue for sustainable growth. Further, it forces associated businesses to expand their exports across the world. For instance, the USA, Vietnam, Canada, Latvia, and Estonia, emerge as the top wood pellets exporters globally. Here’s the quick journey of top suppliers –
Analysis of wood pellets export from 2019 to 2023 increased by USD 1860 million, compared to the previous year. This significant increase shows the rise in demand for renewable energy sources. The USA’s immense potential for manufacturing power has made the country secure the top position with USD 1,753 Million in 2023. On the other hand, Canada, Latvia, and Estonia have seen the slightest downfall in their export value with USD 49, 77, and 36 million, respectively in 2023, compared with the export value of the previous year.
| Countries | Year 2019 | Year 2020 | Year 2021 | Year 2022 | Year 2023 |
| World | 4,196 | 4,439 | 4,657 | 6,538 | 6,056 |
| USA | 947 | 981 | 1,051 | 1,545 | 1,753 |
| Vietnam | 309 | 351 | 417 | 774 | 824 |
| Canada | 376 | 406 | 429 | 533 | 484 |
| Latvia | 342 | 373 | 411 | 373 | 296 |
| Estonia | 185 | 187 | 254 | 310 | 274 |
What Are the Opportunities for Wood Pellets Businesses with US Exports?
As major economies are moving toward renewable energy, the demand for wood pellets is rising as an alternative option globally. Here are ways through which a business can take advantage of the USA’s Export –
Business Diversification –
Both exporters and importers can use the vast resources of the USA’s forest to thrive in the business of wood pellet, By doing this they can secure their top marketing position, and offer best quality in the industry.
Competitive Price –
The USA’s favourable climatic conditions and surplus production help it to supply wood pellets at a competitive price. Hence establishing trade relations can help businesses to expand their horizons.
Efficient Logistics –
Utilising the USA’s strong logistics and trade network you can streamline your products, and business service to new clients efficiently.
USA’s well-established manufacturing plants and capacity to produce goods at a competitive price enhanced its market reach and established it as a trusted partner. Hence, a strong partnership with the USA can provide an all-weather supply of wood pellets of high quality and quantity.
