Solid Biofuel Market

The global solid biofuel market is expected to see continued growth from 2022 to 2030, with consumption volume reaching 129M tons and market value reaching $78.5B by the end of 2030. Key trends include increasing demand for wood pellets and wood charcoal, with strong growth from countries like South Korea and Vietnam in production and exports. The market is forecasted to expand at a CAGR of +2.8% in volume and +3.9% in value. Major importing countries include the UK, Japan, and South Korea, while the United States and Vietnam lead in exports. Overall, the solid biofuel market is poised for gradual growth in the coming years.

Market Forecast

Driven by increasing demand for solid biofuels worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +2.8% for the period from 2022 to 2030, which is projected to bring the market volume to 129M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.9% for the period from 2022 to 2030, which is projected to bring the market value to $78.5B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Solid Biofuels

For the seventh consecutive year, the global market recorded growth in consumption of solid biofuels, which increased by 4.1% to 104M tons in 2022. The total consumption volume increased at an average annual rate of +4.0% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2018 when the consumption volume increased by 7.3% against the previous year. Over the period under review, global consumption reached the peak volume in 2022 and is likely to see gradual growth in the near future.

The global solid biofuel market value expanded rapidly to $57.7B in 2022, increasing by 6.4% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +2.9% from 2012 to 2022; however, the trend pattern remained consistent, with only minor fluctuations being recorded in certain years. Over the period under review, the global market hit record highs in 2022 and is likely to see gradual growth in years to come.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were the UK (7.9M tons), Brazil (7.8M tons) and Ethiopia (5M tons), with a combined 20% share of global consumption. Nigeria, South Korea, Japan, Italy, Germany, Democratic Republic of the Congo, France, China, India and the Netherlands lagged somewhat behind, together accounting for a further 34%.

From 2012 to 2022, the biggest increases were recorded for South Korea (with a CAGR of +41.4%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, the largest solid biofuel markets worldwide were Ethiopia ($7.1B), China ($3.8B) and Brazil ($3.3B), together accounting for 25% of the global market. Nigeria, the UK, Italy, Japan, South Korea, Germany, India, Democratic Republic of the Congo, France and the Netherlands lagged somewhat behind, together comprising a further 19%.

South Korea, with a CAGR of +31.8%, saw the highest growth rate of market size among the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of solid biofuel per capita consumption in 2022 were the Netherlands (149 kg per person), the UK (117 kg per person) and South Korea (90 kg per person).

From 2012 to 2022, the biggest increases were recorded for South Korea (with a CAGR of +40.9%), while consumption for the other global leaders experienced more modest paces of growth.

Consumption By Type

The products with the highest volumes of consumption in 2022 were wood charcoal (58M tons) and wood pellets (46M tons).

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the leading consumed products, was attained by wood pellets (with a CAGR of +9.9%).

In value terms, wood charcoal ($47.9B) led the market, alone. The second position in the ranking was taken by wood pellets ($9.8B).

From 2012 to 2022, the average annual growth rate of the value of wood charcoal market totaled +1.9%.

Production

World Production of Solid Biofuels

In 2022, global solid biofuel production totaled 105M tons, growing by 4.1% compared with the previous year's figure. The total output volume increased at an average annual rate of +4.3% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2018 with an increase of 6.7% against the previous year. Over the period under review, global production hit record highs in 2022 and is likely to continue growth in the near future.

In value terms, solid biofuel production soared to $54B in 2022 estimated in export price. Over the period under review, production posted a resilient increase. The most prominent rate of growth was recorded in 2013 when the production volume increased by 360%. As a result, production attained the peak level of $120.3B. From 2014 to 2022, global production growth remained at a lower figure.

Production By Country

The countries with the highest volumes of production in 2022 were the United States (10M tons), Brazil (8.3M tons) and Vietnam (5.1M tons), with a combined 23% share of global production.

From 2012 to 2022, the biggest increases were recorded for Vietnam (with a CAGR of +27.0%), while production for the other global leaders experienced more modest paces of growth.

Production By Type

The products with the highest volumes of production in 2022 were wood charcoal (57M tons) and wood pellets (47M tons).

From 2012 to 2022, the most notable rate of growth in terms of production, amongst the main produced products, was attained by wood pellets (with a CAGR of +9.8%).

In value terms, wood charcoal ($46.4B) led the market, alone. The second position in the ranking was held by wood pellets ($7.6B).

From 2012 to 2022, the average annual rate of growth in terms of the value of wood charcoal production stood at +7.5%.

Imports

World Imports of Solid Biofuels

In 2022, the amount of solid biofuels imported worldwide reached 33M tons, with an increase of 4.3% against the year before. In general, imports posted a prominent expansion. The pace of growth appeared the most rapid in 2013 when imports increased by 28%. Over the period under review, global imports hit record highs in 2022 and are likely to see gradual growth in the near future.

In value terms, solid biofuel imports skyrocketed to $8.6B in 2022. Overall, imports enjoyed a remarkable increase. The pace of growth was the most pronounced in 2013 with an increase of 34%. Over the period under review, global imports reached the maximum in 2022 and are likely to see gradual growth in years to come.

Imports By Country

In 2022, the UK (7.6M tons), distantly followed by Japan (4.5M tons), South Korea (4M tons), Italy (3.7M tons), the Netherlands (3M tons) and Denmark (2.7M tons) were the largest importers of solid biofuels, together constituting 77% of total imports. Belgium (1,216K tons), France (851K tons) and Germany (577K tons) followed a long way behind the leaders.

From 2012 to 2022, the biggest increases were recorded for South Korea (with a CAGR of +41.7%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, the UK ($1.7B), Italy ($1.2B) and Japan ($1B) constituted the countries with the highest levels of imports in 2022, with a combined 45% share of global imports. South Korea, the Netherlands, Denmark, France, Belgium and Germany lagged somewhat behind, together comprising a further 34%.

South Korea, with a CAGR of +32.2%, recorded the highest growth rate of the value of imports, among the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Imports By Type

Wood pellets prevails in imports structure, accounting for 30M tons, which was approx. 92% of total imports in 2022. It was distantly followed by wood charcoal (2.7M tons), creating an 8.2% share of total imports.

Wood pellets was also the fastest-growing in terms of imports, with a CAGR of +13.2% from 2012 to 2022. Wood charcoal (-3.1%) illustrated a downward trend over the same period. Wood pellets (+21 p.p.) significantly strengthened its position in terms of the global imports, while wood charcoal saw its share reduced by -21.5% from 2012 to 2022, respectively.

In value terms, wood pellets ($7.1B) constitutes the largest type of solid biofuels imported worldwide, comprising 83% of global imports. The second position in the ranking was taken by wood charcoal ($1.5B), with a 17% share of global imports.

From 2012 to 2022, the average annual growth rate of the value of wood pellets imports amounted to +15.4%.

Import Prices By Type

The average solid biofuel import price stood at $259 per ton in 2022, with an increase of 22% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +2.0%. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

Prices varied noticeably by the product type; the product with the highest price was wood charcoal ($539 per ton), while the price for wood pellets totaled $234 per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by wood charcoal (+7.7%).

Import Prices By Country

In 2022, the average solid biofuel import price amounted to $259 per ton, picking up by 22% against the previous year. Over the last decade, it increased at an average annual rate of +2.0%. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Germany ($404 per ton), while South Korea ($194 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Belgium (+3.1%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Solid Biofuels

In 2022, global exports of solid biofuels rose modestly to 34M tons, growing by 4.3% compared with the previous year's figure. Over the period under review, exports recorded strong growth. The growth pace was the most rapid in 2013 with an increase of 25%. The global exports peaked in 2022 and are likely to continue growth in the immediate term.

In value terms, solid biofuel exports surged to $8.2B in 2022. In general, exports continue to indicate buoyant growth. The most prominent rate of growth was recorded in 2013 when exports increased by 32% against the previous year. The global exports peaked in 2022 and are likely to see steady growth in years to come.

Exports By Country

In 2022, the United States (9M tons), distantly followed by Vietnam (4.8M tons), Canada (3.5M tons), Latvia (1.7M tons) and Russia (1.7M tons) were the largest exporters of solid biofuels, together achieving 61% of total exports. Estonia (1,379K tons), Indonesia (865K tons), Malaysia (821K tons), Austria (747K tons), Germany (735K tons), Belgium (675K tons), Poland (549K tons) and Portugal (543K tons) followed a long way behind the leaders.

From 2012 to 2022, the biggest increases were recorded for Vietnam (with a CAGR of +53.6%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, the United States ($1.6B), Vietnam ($995M) and Canada ($535M) appeared to be the countries with the highest levels of exports in 2022, together comprising 38% of global exports.

Vietnam, with a CAGR of +49.6%, saw the highest growth rate of the value of exports, in terms of the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Exports By Type

Wood pellets dominates exports structure, amounting to 32M tons, which was approx. 93% of total exports in 2022. It was distantly followed by wood charcoal (2.5M tons), generating a 7.4% share of total exports.

Wood pellets was also the fastest-growing in terms of exports, with a CAGR of +12.8% from 2012 to 2022. At the same time, wood charcoal (+4.3%) displayed positive paces of growth. From 2012 to 2022, the share of wood pellets increased by +7.5 percentage points.

In value terms, wood pellets ($6.7B) remains the largest type of solid biofuels supplied worldwide, comprising 82% of global exports. The second position in the ranking was held by wood charcoal ($1.5B), with an 18% share of global exports.

From 2012 to 2022, the average annual rate of growth in terms of the value of wood pellets exports amounted to +15.1%.

Export Prices By Type

In 2022, the average solid biofuel export price amounted to $240 per ton, increasing by 24% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +1.4%. As a result, the export price attained the peak level and is likely to continue growth in the immediate term.

Prices varied noticeably by the product type; the product with the highest price was wood charcoal ($585 per ton), while the average price for exports of wood pellets stood at $213 per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by wood charcoal (+3.6%).

Export Prices By Country

In 2022, the average solid biofuel export price amounted to $240 per ton, increasing by 24% against the previous year. Over the last decade, it increased at an average annual rate of +1.4%. As a result, the export price attained the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Poland ($459 per ton), while Canada ($153 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Germany (+5.2%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform