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    UK Biomass Pellets Market

    ID: MRFR/CnM/42700-HCR
    200 Pages
    Chitranshi Jaiswal
    September 2025

    UK Biomass Pellets Market Research Report By Source Outlook (Industrial Waste Co-product, Agriculture Residue, Food Waste, Energy Crops, Virgin Lumber, Others), By Type Outlook (Wood Pellets, Agri Pellets, Torrefied Pellets, Others) and By Application Outlook (Power Generation, Industrial Heating, Residential Heating, Others) - Forecast to 2035

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    Table of Contents

    UK Biomass Pellets Market Summary

    The United Kingdom UK Biomass Pellets market is projected to grow significantly from 218.4 USD Million in 2024 to 460 USD Million by 2035.

    Key Market Trends & Highlights

    UK Biomass Pellets Key Trends and Highlights

    • The market is expected to exhibit a compound annual growth rate (CAGR) of 7.01% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 460 USD Million, indicating robust growth potential.
    • In 2024, the market is valued at 218.4 USD Million, reflecting a strong foundation for future expansion.
    • Growing adoption of renewable energy sources due to increasing environmental concerns is a major market driver.

    Market Size & Forecast

    2024 Market Size 218.4 (USD Million)
    2035 Market Size 460 (USD Million)
    CAGR (2025-2035) 7.01%

    Major Players

    Enviva, Sappi Lanaken, Amaya Biogas, Drax Group, Green Circle Bio Energy, Western Bioenergy, Biomass Energy Limited, Wood Pellet Association, Bioenergy Infrastructure Group, MGT Power, UPM Kymmene, Fletcher Building, Pinnacle Renewable Energy, Energex

    UK Biomass Pellets Market Trends

    The UK Biomass Pellets Market is undergoing substantial transformations as a result of a variety of factors that are influencing its trajectory. The UK government's dedication to the reduction of carbon emissions and the promotion of renewable energy sources, as delineated in a variety of energy and climate policies, is one of the primary market drivers. This emphasis on sustainability promotes the utilization of biomass pellets as a more environmentally friendly substitute for fossil fuels in both residential and industrial applications.

    Moreover, the efficacy of production and combustion processes has been enhanced by technological advancements, which has rendered biomass pellets more appealing to users who are in search of cost-effective energy solutions.

    In recent times, there has been a growing awareness among consumers and businesses about the environmental benefits of biomass energy. This trend is further furled by government initiatives promoting green energy, such as the Renewable Heat Incentive scheme which encourages the adoption of biomass for heating purposes. Additionally, the UK has seen a shift towards more localized production and sourcing of biomass materials, which not only aids in reducing transportation emissions but also supports local economies and job creation.

    Opportunities to be explored in the sector include enhancing the supply chain for sustainable biomass sourcing and investing in research for advanced pelletization technologies.There is also potential growth in markets beyond traditional uses, such as co-firing in coal power plants and using biomass pellets in district heating systems. With increasing investments in infrastructure and the continuous push for sustainable energy practices, the UK Biomass Pellets Market is poised for substantial growth as stakeholders adapt to evolving energy demands and regulatory frameworks.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    UK Biomass Pellets Market Drivers

    Market Segment Insights

    Biomass Pellets Market Source Outlook Insights

    The Source Outlook segment of the UK Biomass Pellets Market presents a diverse and dynamic landscape characterized by various feedstocks, each contributing to the sustainability and efficiency of biomass production. The increasing emphasis on renewable energy sources within the UK has driven significant interest in industrial waste and co-products as fuel sources, owing to their potential for waste reduction and energy recovery.

    Agriculture residue plays a crucial role as it not only minimizes waste on farms but also aids in maximizing resource utilization, aligning with the UK's environmental goals.Food waste, seen increasingly as a valuable input, offers substantial potential for biomass production, hence reducing landfill dependency and greenhouse gas emissions. Energy crops are specifically cultivated to serve as biomass, making them a pivotal player in the market growth narrative, thanks to their tailored productivity and sustainability attributes.

    Virgin lumber offers a more traditional, yet vital, source of biomass, especially in regions where forestry management practices ensure a continuous supply while maintaining ecological balance.Additionally, the 'Others' category encompasses alternative sources that provide flexibility and innovation in biomass feedstock procurement, further driving the diversity in biomass pellet production. The interplay between these sources not only enhances the UK's energy security but also responds to global climate change initiatives. With a regulatory framework favoring renewable energy deployment and a shift towards a circular economy, these sources are set to play an ever-increasing role in the UK's biomass market arena.

    Market trends also indicate a growing concern for sustainability practices across all sources, encouraging stakeholders to optimize their operations while meeting the increasing demand for eco-friendly energy solutions.The potential for growth in this segment is amplified by the various governmental policies and initiatives aimed at promoting biomass energy, underlining the importance of strategic planning and investment in the biomass pellets industry.

    UK Biomass Pellets Market Segment

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Biomass Pellets Market Type Outlook Insights

    The UK Biomass Pellets Market displays considerable diversity in its Type Outlook segment, encompassing Wood Pellets, Agri Pellets, Torrefied Pellets, and Others. Wood Pellets hold a prominent position due to their renewable nature and efficiency in energy production, playing a crucial role in the nation's transition towards cleaner energy sources. On the other hand, Agri Pellets are gaining traction as they utilize agricultural waste, promoting sustainability and circular economy practices, which align with the UK's environmental initiatives.

    Torrefied Pellets have emerged as a specialized option, offering higher energy density and a lower moisture content, making them suitable for long-distance transportation and storage.Furthermore, the category of 'Others' includes various innovative pellet types that may be developed as technology advances in the sector. The increasing emphasis on renewable energy and carbon neutrality in the UK fuels growth in these segments, presenting significant opportunities for industry stakeholders. The growth trajectory in these segments is supported by favorable governmental policies promoting biomass energy utilization across the nation.

    As the market matures, continuous advancements in manufacturing processes and sustainability practices are expected to drive further innovation and investment in the UK Biomass Pellets Market.

    Biomass Pellets Market Application Outlook Insights

    The Application Outlook for the UK Biomass Pellets Market highlights a diversified utilization of biomass pellets across various sectors, notably Power Generation, Industrial Heating, and Residential Heating, among others. The Power Generation segment plays a crucial role in transitioning to renewable energy sources, aligning with the UK's commitment to reduce greenhouse gas emissions and reach net-zero targets.

    Meanwhile, Industrial Heating benefits from biomass pellets as a sustainable alternative to traditional fossil fuels, thus contributing to reduced operational costs and enhanced energy efficiency in manufacturing processes.Residential Heating remains significant due to the increasing adoption of biomass solutions among households, which not only lowers energy bills but also emphasizes environmental responsibility. Other applications encompass various niche markets, benefiting from the overall trend towards sustainable and renewable energy practices.

    The growth of these segments is supported by favorable government policies and initiatives aimed at promoting renewable energy, resulting in a positive impact on the UK Biomass Pellets Market statistics and driving overall market growth.

    UK Biomass Pellets Market Segment

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Regional Insights

    Key Players and Competitive Insights

    The UK Biomass Pellets Market has witnessed significant growth in recent years as a response to increasing energy demands and a push toward more sustainable energy source. The competitive landscape is shaped by various players focusing on the production and distribution of biomass pellets that serve as renewable energy sources, particularly in heating and power generation applications. Players in this market are actively engaging in technological advancements, efficiency improvements, and innovative product offerings to enhance their market positions. The competition is fierce, with companies competing not only on product quality but also on cost-effectiveness and supply chain performance.

    Regulatory policies and consumer awareness about environmental issues are also influencing the dynamics of the market, thereby creating both challenges and opportunities for key stakeholders involved in the biomass pellet production and distribution landscape.In the UK Biomass Pellets Market, Enviva stands out due to its robust production capabilities and commitment to sustainability. Enviva is known for its extensive supply chain management and its ability to offer high-quality biomass pellets sourced from sustainably harvested wood. The company has developed strong relationships with suppliers and customers, ensuring a consistent supply of biomass products to meet growing market demand.

    Enviva’s innovative approaches toward manufacturing processes and its emphasis on stringent quality control contribute to its strengths in this competitive environment. Additionally, the company invests in research and development to further improve the efficiency of biomass production. Enviva’s commitment to sustainability and transparent operations resonates well with UK consumers and businesses increasingly prioritizing renewable energy sources.Sappi Lanaken has established a significant presence in the UK Biomass Pellets Market by leveraging its expertise in papermaking and production processes.

    The company offers a range of biomass products, focusing on high-energy pellets produced from sustainable wood sources that cater to both domestic and industrial clients. Sappi Lanaken has strategically positioned itself in the market with a strong emphasis on sustainability, which has become a key selling point for its products. The company’s strength lies in its advanced manufacturing techniques, along with strong logistics and distribution networks, enabling it to meet customer demands efficiently.

    Sappi Lanaken has also pursued various collaborations and partnerships to enhance its market presence and is continuously exploring opportunities for mergers and acquisitions to expand its product offerings in the UK biomass market. Through these initiatives, the company continues to solidify its stature in the competitive landscape of biomass pellets while adapting to evolving market needs.

    Key Companies in the UK Biomass Pellets Market market include

    Industry Developments

    Market Segmentation

    Biomass Pellets Market Type Outlook

    • Wood Pellets
    • Agri Pellets
    • Torrefied Pellets
    • Others

    Biomass Pellets Market Source Outlook

    • Industrial Waste Co-product
    • Agriculture Residue
    • Food Waste
    • Energy Crops
    • Virgin Lumber
    • Others

    Biomass Pellets Market Application Outlook

    • Power Generation
    • Industrial Heating
    • Residential Heating
    • Others

    Biomass Pellets Market Type Outlook Insights

    Biomass Pellets Market Source Outlook Insights

    Biomass Pellets Market Application Outlook Insights

    • Enviva
    • Sappi Lanaken
    • Amaya Biogas
    • Drax Group
    • Green Circle Bio Energy
    • Western Bioenergy
    • Biomass Energy Limited
    • Wood Pellet Association
    • Bioenergy Infrastructure Group
    • MGT Power
    • UPMKymmene
    • Fletcher Building
    • Pinnacle Renewable Energy
    • Energex

    Report Scope

    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 207.0(USD Million)
    MARKET SIZE 2024 218.4(USD Million)
    MARKET SIZE 2035 460.0(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 7.006% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Million
    KEY COMPANIES PROFILED Enviva, Sappi Lanaken, Amaya Biogas, Drax Group, Green Circle Bio Energy, Western Bioenergy, Biomass Energy Limited, Wood Pellet Association, Bioenergy Infrastructure Group, MGT Power, UPMKymmene, Fletcher Building, Pinnacle Renewable Energy, Energex
    SEGMENTS COVERED Source Outlook, Type Outlook, Application Outlook
    KEY MARKET OPPORTUNITIES Increasing regulatory support, Expansion of renewable energy projects, Rise in sustainable heating solutions, Growing awareness of carbon neutrality, Development of domestic supply chains
    KEY MARKET DYNAMICS increasing renewable energy demand, government incentives and policies, rising awareness of sustainability, fluctuating raw material prices, competitive pricing strategies
    COUNTRIES COVERED UK

    Market Highlights

    Author
    Chitranshi Jaiswal
    Research Analyst Level I

    In her 3 years of experience in the market research field, she has handled critical cross-domain projects. She has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.She holds an engineering degree and is an MBA professional from a well-known university, capable of evaluating the market and competitive conditions. An exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. Proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. Generated business through active client and project development, networking, and high-quality responses. Her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.

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    FAQs

    What is the projected market size of the UK Biomass Pellets Market in 2024?

    The UK Biomass Pellets Market is expected to be valued at 218.4 million USD in 2024.

    What will the market size be by 2035?

    By 2035, the UK Biomass Pellets Market is projected to reach a valuation of 460.0 million USD.

    What is the expected CAGR for the UK Biomass Pellets Market from 2025 to 2035?

    The market is expected to grow at a CAGR of 7.006% from 2025 to 2035.

    Which segment of the market is projected to have the highest value in 2024?

    The Agriculture Residue segment is projected to have a value of 52.0 million USD in 2024.

    What value is expected for the Industrial Waste & Co-product segment in 2035?

    The Industrial Waste & Co-product segment is expected to reach a value of 95.0 million USD by 2035.

    Who are the key players in the UK Biomass Pellets Market?

    Major players in the market include Enviva, Drax Group, and Pinnacle Renewable Energy among others.

    What is the expected market size for the Food Waste segment in 2025?

    The Food Waste segment is expected to be valued at approximately 36.0 million USD in 2024.

    What growth opportunities exist in the UK Biomass Pellets Market?

    The market presents opportunities driven by sustainability and increasing demand for renewable energy sources.

    What is the expected market value for the Virgin Lumber segment by 2035?

    The Virgin Lumber segment is expected to have a projected value of 95.0 million USD by 2035.

    How does the current market scenario impact the growth of the biomass pellets sector?

    The current market scenario is expected to foster growth due to an increased focus on clean energy initiatives.

    1. EXECUTIVE SUMMARY   
      1. Market Overview     
      2. Key Findings     
      3. Market Segmentation     
      4. Competitive Landscape     
      5. Challenges and Opportunities     
      6. Future Outlook        
    2. MARKET INTRODUCTION   
      1. Definition     
      2. Scope of the study   
        1. Research Objective         
        2. Assumption         
        3. Limitations              
    3. RESEARCH METHODOLOGY   
      1. Overview     
      2. Data Mining     
      3. Secondary Research     
      4. Primary Research   
        1. Primary Interviews and Information Gathering Process         
        2. Breakdown of Primary Respondents           
      5. Forecasting Model     
      6. Market Size Estimation   
        1. Bottom-Up Approach         
        2. Top-Down Approach           
      7. Data Triangulation     
      8. Validation        
    4. MARKET DYNAMICS   
      1. Overview     
      2. Drivers     
      3. Restraints     
      4. Opportunities        
    5. MARKET FACTOR ANALYSIS   
      1. Value chain Analysis     
      2. Porter's Five Forces Analysis   
        1. Bargaining Power of Suppliers         
        2. Bargaining Power of Buyers         
        3. Threat of New Entrants         
        4. Threat of Substitutes         
        5. Intensity of Rivalry           
      3. COVID-19 Impact Analysis   
        1. Market Impact Analysis         
        2. Regional Impact         
        3. Opportunity and Threat Analysis              
    6. UK BIOMASS PELLETS MARKET, BY SOURCE OUTLOOK (USD MILLION)   
      1. Industrial Waste  Co-product     
      2. Agriculture Residue     
      3. Food Waste     
      4. Energy Crops     
      5. Virgin Lumber     
      6. Others        
    7. UK BIOMASS PELLETS MARKET, BY TYPE OUTLOOK (USD MILLION)   
      1. Wood Pellets     
      2. Agri Pellets     
      3. Torrefied Pellets     
      4. Others        
    8. UK BIOMASS PELLETS MARKET, BY APPLICATION OUTLOOK (USD MILLION)   
      1. Power Generation     
      2. Industrial Heating     
      3. Residential Heating     
      4. Others        
    9. COMPETITIVE LANDSCAPE   
      1. Overview     
      2. Competitive Analysis     
      3. Market share Analysis     
      4. Major Growth Strategy in the Biomass Pellets Market     
      5. Competitive Benchmarking     
      6. Leading Players in Terms of Number of Developments in the Biomass Pellets Market     
      7. Key developments and growth strategies   
        1. New Product Launch/Service Deployment         
        2. Merger  Acquisitions         
        3. Joint Ventures           
      8. Major Players Financial Matrix    
        1. Sales and Operating Income         
        2. Major Players RD Expenditure. 2023              
    10. COMPANY PROFILES   
      1. Enviva   
        1. Financial Overview         
        2. Products Offered         
        3. Key Developments         
        4. SWOT Analysis         
        5. Key Strategies           
      2. Sappi Lanaken   
        1. Financial Overview         
        2. Products Offered         
        3. Key Developments         
        4. SWOT Analysis         
        5. Key Strategies           
      3. Amaya Biogas   
        1. Financial Overview         
        2. Products Offered         
        3. Key Developments         
        4. SWOT Analysis         
        5. Key Strategies           
      4. Drax Group   
        1. Financial Overview         
        2. Products Offered         
        3. Key Developments         
        4. SWOT Analysis         
        5. Key Strategies           
      5. Green Circle Bio Energy   
        1. Financial Overview         
        2. Products Offered         
        3. Key Developments         
        4. SWOT Analysis         
        5. Key Strategies           
      6. Western Bioenergy   
        1. Financial Overview         
        2. Products Offered         
        3. Key Developments         
        4. SWOT Analysis         
        5. Key Strategies           
      7. Biomass Energy Limited   
        1. Financial Overview         
        2. Products Offered         
        3. Key Developments         
        4. SWOT Analysis         
        5. Key Strategies           
      8. Wood Pellet Association   
        1. Financial Overview         
        2. Products Offered         
        3. Key Developments         
        4. SWOT Analysis         
        5. Key Strategies           
      9. Bioenergy Infrastructure Group   
        1. Financial Overview         
        2. Products Offered         
        3. Key Developments         
        4. SWOT Analysis         
        5. Key Strategies           
      10. MGT Power   
        1. Financial Overview         
        2. Products Offered         
        3. Key Developments         
        4. SWOT Analysis         
        5. Key Strategies           
      11. UPMKymmene   
        1. Financial Overview         
        2. Products Offered         
        3. Key Developments         
        4. SWOT Analysis         
        5. Key Strategies           
      12. Fletcher Building   
        1. Financial Overview         
        2. Products Offered         
        3. Key Developments         
        4. SWOT Analysis         
        5. Key Strategies           
      13. Pinnacle Renewable Energy   
        1. Financial Overview         
        2. Products Offered         
        3. Key Developments         
        4. SWOT Analysis         
        5. Key Strategies           
      14. Energex   
        1. Financial Overview         
        2. Products Offered         
        3. Key Developments         
        4. SWOT Analysis         
        5. Key Strategies              
    11. APPENDIX   
      1. References     
      2. Related Reports        

    UK Biomass Pellets Market Segmentation

     

     

     

    • Biomass Pellets Market By Source Outlook (USD Million, 2019-2035)

      • Industrial Waste Co-product
      • Agriculture Residue
      • Food Waste
      • Energy Crops
      • Virgin Lumber
      • Others

     

    • Biomass Pellets Market By Type Outlook (USD Million, 2019-2035)

      • Wood Pellets
      • Agri Pellets
      • Torrefied Pellets
      • Others

     

    • Biomass Pellets Market By Application Outlook (USD Million, 2019-2035)

      • Power Generation
      • Industrial Heating
      • Residential Heating
      • Others

     

     

     

     

     

     

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    “I am very pleased with how market segments have been defined in a relevant way for my purposes (such as "Portable Freezers & refrigerators" and "last-mile"). In general the report is well structured. Thanks very much for your efforts.”

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