Global Pellet Market Hits New High as Europe Weighs Its Clean Heat Options
Brussels, 24 June 2026 – Bioenergy Europe Bioenergy Europe has published its latest Pellet Statistical Report, providing a detailed overview of global and European pellet market trends and their role in the clean heat transition.
Record Growth in Global Pellet Production and Consumption
The report shows renewed momentum for the sector in 2025. Global wood pellet production reached 53,5 million tonnes, a 10% increase compared with 2024 and the strongest year-on-year growth recorded in recent years. Global pellet consumption also reached a new all-time high of 51,5 million tonnes, confirming the continued relevance of pellets across both industrial applications and small-scale heating.
Europe Strengthens Its Leadership in Global Pellet Markets
Europe remains the world’s largest pellet-consuming region, representing 70% of global demand when industrial and small-scale uses are combined. It also continues to lead global production, accounting for 45% of world output. After two consecutive years of contraction, European pellet production, excluding Belarus and Russia, increased by 10% to 24,1 million tonnes, setting a new regional record.
Pellet Heating’s Growing Role in Europe’s Clean Heat Transition
The 2026 Pellet Report comes at a decisive moment for Europe’s heating sector. In EU buildings, renewable energy sources represent around one third of household heating consumption, while natural gas remains the dominant fuel.
This underlines both the scale of the challenge and the opportunity. Fossil fuel heating systems will need to be progressively replaced by renewable alternatives if Europe is to meet its 2030 and 2040 objectives. Modern pellet heating systems can contribute to this shift by offering a renewable, cost-competitive solution that is resilient to geopolitical supply-shocks. Citizens, municipalities, and businesses, can benefit from them, especially in rural areas, colder regions and buildings where different clean heat options must work together.
Residential Pellet Consumption and Heating Adoption
European small-scale pellet consumption reached more than 19 million tonnes in 2025, a new historical record. Residential consumption alone rose to 15,3 million tonnes, increasing by 5% compared with 2024 after several years of more modest growth. Across Europe, pellet appliances now provide renewable heating to more than 6.5 million households.
“In 2025, we have seen signs of recovery in pellet stove sales across several markets, highlighting that such appliances complement well the wider electrification trend in household heating. said Manolis Karampinis, Business Development & Membership Director at Bioenergy Europe and General Manager of the European Pellet Council, in the report’s foreword. “Well-designed public support can support households to address upfront investment costs for the replacement of their heating appliance. Schemes available in Austria and Poland have enabled an almost record number of households to adopt modern pellet-boiler solutions and move away from heating oil and coal fired systems,” he added.
Diverse Roles of Pellet Heating Across Europe
Pellet heating plays different roles across Europe. Italy and France have the largest installed stocks of pellet appliances, with more than 2,3 million and 2 million units in operation respectively, mostly pellet stoves. In Austria, Germany, Poland, Sweden and Czechia, pellet boilers are more prominent and often serve as primary central heating systems, leading to higher annual pellet consumption per household.
Modern Pellet Appliances Improve Efficiency and Air Quality
The report also highlights an important distinction in the current debate on air quality. Modern certified pellet appliances, operating with a standardised fuel, perform very differently from older and inefficient solid-fuel devices. Replacing obsolete heating systems with modern certified alternatives can reduce emissions, improve efficiency and allow households to generate more useful heat from less biomass.
As Europe prepares a new EU Heating and Cooling Strategy in 2026, the Pellet Statistical Report shows that pellets are already part of the renewable heating landscape. With stable market conditions and enabling public policy, the sector can help more households move away from fossil fuels while supporting Europe’s energy resilience and climate objectives.
