European Union: Wood Pellets Annual

In 2023, EU wood pellet consumption fell by 1.2 percent to 24.5 million metric tons (MMT), the first reduction since 2015. This drop is caused by a mild winter and a reduced demand from the commercial power sector. Current low prices, combined with government incentives, are forecast to support the popularity of biomass for residential heating in 2024. Demand for pellets by the industrial power sector is anticipated to remain stagnant this year. As EU pellet production is not keeping up with the growing demand, EU imports are projected to partially recover from the dip reported in 2023. A potential trade barrier is the EU Deforestation-free Supply Chain Regulation (EUDR).