Market Overview:

The North America Wood Pellets Market size is estimated to reach $5.07 billion by 2031, growing at a CAGR of 9.2% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “North America Wood Pellets Market – By Raw Material (Softwood pellets, Hardwood pellets), By Application (Residential Heating, Power Plants, Combined Heat and Power (CHP), Commercial Heating and Others), By Geography – North America Opportunity Analysis & Industry Forecast, 2024-2030”

Environmental awareness and expanding local manufacturing are fueling the growth of the North America Wood Pellets industry during the forecast period.

U.S. Dominated the Market in 2023:

Within the North American wood pellets market, the United States dominates due to its robust industrial base, advanced infrastructure, and high demand for renewable energy. Consumer adoption in residential heating and industrial power generation drives significant revenue, bolstered by efficient supply chains and technological innovation. According to the U.S. Energy Information Administration, the industrial sector consumed 45% of the nation’s biomass energy in 2023, fueling wood pellet use as a favored biomass. Established manufacturing, extensive distribution networks, and favorable economic conditions reinforce market leadership. Consistent investments in research and development further enhance product quality and performance, ensuring overall market stability and exceptionally robust long-term growth. 

North America Wood Pellets Market: Key Takeaways

Government Incentives and Rising Environmental Awareness is Driving the Market Growth:

Government incentives and increasing environmental awareness significantly drive the North America wood pellets market. Federal and state programs promote renewable energy adoption through attractive financial incentives and regulatory mandates. The U.S. Energy Information Administration highlights Renewable Portfolio Standards (RPS) requiring a defined percentage of energy from renewable sources, encouraging wood pellet adoption. Lower installation costs and long-term operational savings make these pellets appealing for eco-conscious households and businesses. Advancements in pellet technology and expanded local production enhance product affordability and performance. As climate change awareness intensifies, supportive policies and green financing continue to drive market growth and stability.

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Market Growth Driven by Advancements in Pellet Production Technology:

Technological innovation in pellet production is a powerful driver in North America’s wood pellets market. Manufacturers are investing in advanced automation, process optimization, and precision quality control to boost efficiency and reduce operational costs. In February 2025, AMANDUS KAHL, which has an impactful footprint across North America, introduced the Eco Roll—a revolutionary pan grinder roller that lowers energy consumption to 40–45 kWh per ton, reduces costs, and increases production capacity by up to 25%. This breakthrough extends component lifespan, delivering a sustainable and economically viable solution. Enhanced pellet quality, higher throughput, and lower energy use enable producers to meet growing demand and compete effectively while fostering local manufacturing growth and job creation.

Scope of the Report: 

Report Metric

Details

Base Year Considered

2024

Forecast Period

2025-2031

CAGR

9.2%

Market Size in 2031

$ 5.07 billion

Segments Covered

By Raw Material, By Application, and By Region

Regions Covered

North America (USA, Canada, and Mexico)

Key Market Players
  1. Enviva Partners LP
  2. Fram Renewable Fuels LLC
  3. Lignetics Inc.
  4. Biopower Sustainable Energy Corp.
  5. The Brookridge Group
  6. Energy Pellets of America, LLC
  7. Biopower Sustainable Energy Corp.
  8. Highland Pellets, LLC
  9. Curran Renewable Energy, LLC
  10. Drax Group Plc


North America Wood Pellets Market: Competitive Landscape

Key companies profiled in the North America Wood Pellets Market are Enviva Partners LP, Fram Renewable Fuels LLC, Lignetics Inc., Biopower Sustainable Energy Corp., The Brookridge Group, Energy Pellets of America, LLC, Biopower Sustainable Energy Corp., Highland Pellets, LLC, Curran Renewable Energy, LLC, Drax Group Plc., and others.

About IndustryARC™:

IndustryARC primarily focuses on Market Research and Consulting Services specific to Cutting Edge Technologies and Newer Application segments of the market. The company’s Custom Research Services are designed to provide insights into the constant flux in the global demand-supply gap of markets. 

IndustryARC’s goal is to provide the right information required by the stakeholder at the right point in time, in a format that assists an intelligent and informed decision-making process.
 
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