Biomass Briquette Fuel Market Size, Share, Growth, and Industry Analysis, By Type (Biomass Briquette,Biomass Pellet), By Application (Residential and Commercial Heating,Power Generation,Others), Regional Insights and Forecast to 2034

Biomass Briquette Fuel Market Overview

Global Biomass Briquette Fuel market size is estimated at USD 10670 million in 2025, set to expand to USD 22061.54 million by 2034, growing at a CAGR of 8.4%.

The global Biomass Briquette Fuel market encompasses production and usage of densified solid fuels derived from biomass feedstock such as agricultural residues, wood waste, and industrial by-products. In recent years, global production of densified biomass fuel reached about 0.94 million tons per month across 75 operating manufacturers, with aggregate annual production capacity of roughly 13.04 million tons per year. The scale of raw biomass feedstock purchasing was approximately 1.6 million tons monthly indicating robust supply-side activity. The densified biomass fuel output meets demand for thermal energy, cooking, industrial heating and power generation, reflecting broad adoption across sectors. The Biomass Briquette Fuel Market Report and Biomass Briquette Fuel Market Analysis suggest steadily rising global adoption, expanding manufacturing capacity, and increasing feedstock utilization.

In the USA market, the biomass briquette fuel sector is characterized by densified biomass production and sales: in August 2025 alone, about 0.94 million tons of densified biomass fuel was produced, of which 0.15 million tons were sold domestically and 0.79 million tons exported. The industry in the U.S. supports approximately 2,441 full-time equivalent employees, reflecting a structured manufacturing base. The U.S. industrial sector consumed about 2,225 TBtu of biomass energy in 2023, forming 45 % of total U.S. biomass energy consumption, indicating substantial industrial usage of biomass fuels including briquettes and pellets. These figures underpin the strategic importance of the U.S. within global Biomass Briquette Fuel Market Outlook and Market Size assessments.

Key Findings

• Key Market Driver: 37.2 % of briquette usage in 2024 went to power-generation applications.
• Major Market Restraint: ~29.7 % feedstock share in 2024 derived from sawdust, indicating limited feedstock diversity.
• Emerging Trends: ~59.2 % of global biomass fuel consumption in 2024 is pellet form rather than briquette.
• Regional Leadership: Europe produced about 20 million tons of wood-pellets in 2023, covering ~36 % of global pellet output.
• Competitive Landscape: Over 75 densified biomass manufacturing facilities operate in U.S. with 13.04 million tons annual capacity.
• Market Segmentation: Agro-residue derived briquettes and pellets account for major share, with power generation ~37.2 % and thermal/industrial heating share rising.
• Recent Development: In August 2025 U.S. densified biomass production hit ~0.94 million tons per month.

Biomass Briquette Fuel Market Latest Trends

The Biomass Briquette Fuel Market Trends emphasize rising preference for pelletized biomass over traditional briquettes. In 2024, pellet form captured approximately 59.2 % of global biomass fuel market share, reflecting advantages in energy density, transportability and combustion efficiency. Pellet production in Europe reached roughly 20 million tons in 2023 — representing about 36 % of global output — underlining Europe’s dominance in pellet manufacturing. In parallel, global monthly production data show that densified biomass fuel production reached 0.94 million tons per month across major manufacturing facilities, with raw biomass feedstock purchase around 1.6 million tons monthly, confirming the high volume supply-chain activity supporting both briquettes and pellets. On the U.S. front, of the 0.94 million tons produced in August 2025, 0.15 million tons were sold domestically while 0.79 million tons were exported — suggesting a strong export orientation and international demand for U.S.-produced biomass fuel.

The industrial sector remains the largest consumer of biomass energy in the U.S., with 2,225 TBtu consumed in 2023, accounting for 45 % of total U.S. biomass energy use. This underlines that industrial heating and power generation represent the backbone of biomass fuel demand, reinforcing pellet and briquette usage in large-scale energy and thermal applications. Meanwhile, feedstock composition remains concentrated: sawdust accounted for about 29.7 % of raw-material share in 2024, indicating feedstock sourcing remains a critical operational aspect. These trends in the Biomass Briquette Fuel Industry Report and Biomass Briquette Fuel Market Analysis reflect shifting consumption patterns, supply-chain scale-up, and export-driven manufacturing strategies.

Biomass Briquette Fuel Market Dynamics

DRIVER

Expanding demand for industrial and power-generation thermal applications.

The key driver of the Biomass Briquette Fuel Market Growth lies in industrial and power-generation sectors embracing biomass as a sustainable alternative. In 2024, roughly 37.2 % of briquette usage was directed to power generation, signaling substantial demand for densified biomass fuel in energy infrastructure. Given the availability of large biomass feedstock volumes — for example 1.6 million tons of raw biomass purchased monthly by U.S. producers — supply chains can support consistent manufacturing. In the U.S., industrial consumption of biomass energy accounted for 2,225 TBtu in 2023, constituting 45 % of total biomass energy usage — a strong indicator of industrial dependence on biomass-based fuel. The monthly production of 0.94 million tons densified biomass fuels across operating manufacturers reflects manufacturing capacity scaling in response to this demand. For B2B purchasers, these dynamics underscore that investing in biomass briquette fuel production or supply aligns with long-term energy and thermal fuel replacement strategies, offering a stable demand base from industrial and power-generation clients.

RESTRAINT

Limited feedstock diversity and reliance on sawdust-heavy biomass supply.

A significant restraint affecting the Biomass Briquette Fuel Market is the concentration of raw-material sourcing: in 2024, approximately 29.7 % of feedstock used for briquettes/pellets came from sawdust. This reliance on a single dominant feedstock type can create vulnerability in supply chain continuity, especially if sawmill output fluctuates. Lack of diversification limits ability to adapt to changes in raw material availability — agricultural residues, nut shells, husks remain under-utilized. This feedstock concentration also constrains capacity to scale pellet or briquette production sustainably, since supply chain resilience depends on varied biomass sources. For manufacturers and B2B suppliers in the Biomass Briquette Fuel Market, feedstock logistics, pre-processing, and supply-chain risk mitigation become critical operational concerns, potentially reducing the attractiveness of large-scale investments in regions with limited feedstock diversity.

OPPORTUNITY

Utilization of vast global agricultural residue potential and expansion into export markets.

Global studies estimate that there are approximately 1.44 billion tons of crop residues usable for pellet/briquette production worldwide, representing a vast latent supply pool that remains largely untapped. This feedstock potential offers significant opportunity for expansion of biomass briquette fuel manufacturing in regions with abundant agricultural waste. For B2B investors and stakeholders in Biomass Briquette Fuel Market Forecast and Market Opportunities, establishing pelletization and briquetting facilities near residue-rich agricultural areas can secure sustainable raw-material supply. Additionally, export-oriented pellet production — as evidenced by U.S. exports of 0.79 million tons in August 2025 — opens opportunities to serve international markets, especially in Europe and Asia where demand for clean biomass fuel is substantial. Diversifying feedstock sources to include agricultural residues, forestry waste, and nut shells enhances supply stability and reduces dependence on sawdust, improving sustainability and scalability. For industrial players, these opportunities translate into long-term contracts, supply-chain control, and participation in global biomass fuel trade.

CHALLENGE

Fragmented supply base, commodity-level competition, and low differentiation.

A major challenge facing the Biomass Briquette Fuel Market is fragmentation of supply base and positioning of briquettes/pellets as commodity fuels. Many producers are small- to medium-sized entities with limited geographical reach and low production capacity; large-scale brand recognition or differentiation is low. Because products compete primarily on price and feedstock cost, margins can be narrow — especially when feedstock logistics, drying, pelletizing, and distribution costs are taken into account. For B2B stakeholders, this means securing profitability requires scale, cost-efficient logistics, and reliable feedstock supply. Additionally, competition from alternative renewable energy sources — such as solar or wind — and traditional fossil fuels reduces the relative attractiveness of biomass in certain markets. These dynamics pose a challenge for companies seeking to establish sustainable operations, maintain quality, and avoid price-driven commoditization. In the context of Biomass Briquette Fuel Market Analysis and Industry Report, firms need to focus on feedstock certification, logistics efficiencies, contract offtake agreements, and supply-chain optimization rather than mere production volume to remain competitive.

Biomass Briquette Fuel Market Segmentation

The Biomass Briquette Fuel Market segmentation can be presented by Type and Application, reflecting product forms and end-use sectors.

BY TYPE

Biomass Briquette: Traditional biomass briquettes remain widely used due to lower processing complexity and suitability for industrial boilers, small-scale thermal heating, and localized energy needs. Briquette production leverages raw materials such as sawdust, agricultural residues, and wood waste, contributing to feedstock utilization. In markets where pelletising infrastructure is limited, briquettes offer a lower-capital-intensity alternative. Their density and combustion characteristics make them appropriate for industrial thermal heating and residential/ commercial boilers, offering a stable demand base in regions with available feedstock and existing boiler infrastructure.

Biomass Pellet: Biomass pellets represent the more industrialized, densified fuel form, offering higher energy density, uniform size, easier transport and automated combustion compatibility. In 2024, pellet form captured around 59.2 % share of biomass fuel consumption globally — indicating strong preference for pellets among large-scale consumers. Pellet production scales easily for export: for example, pellet output in Europe reached ~20 million tons in 2023, representing ~36 % of global pellet output. Pellets are especially suitable for power generation plants, centralized heating, and industrial boiler systems, making them the dominant type in large-volume applications and the most attractive for export-oriented manufacturing.

BY APPLICATION

Residential and Commercial Heating: Biomass briquettes and pellets are used in residential and commercial heating appliances — boilers, stoves, central heating systems — especially in regions with colder climates or where traditional fuels are expensive. Demand in this application reflects the push for cleaner heating alternatives and sustainable energy solutions. Residential heating and small-scale commercial heating applications contribute significantly to overall consumption volumes, especially where wood-pellet stoves and briquette boilers are common. This application segment supports smaller-scale demand but provides consistent baseline usage.

Power Generation: A substantial share of biomass briquette fuel consumption goes into power generation — in 2024 about 37.2 % of briquette usage was allocated to power generation applications. This includes co-firing with coal in thermal power plants or dedicated biomass-fired plants. Pelletized fuel is particularly popular for power generation because of its uniformity, combustibility, and suitability for automated feed systems. Large-scale energy producers and utilities adopt pellets to meet renewable energy targets and reduce reliance on fossil coal, driving demand at scale.

Others: Other applications include industrial thermal heating, process heat in manufacturing facilities (food processing, paper, wood products), and small-scale energy needs in rural or off-grid settings. Biomass briquettes and pellets serve as alternative fuels in boiler systems, furnaces, and thermal processing units. Such diversified usage broadens the market base beyond heating and power generation, helping to stabilize demand across sectors with varying energy needs.

Biomass Briquette Fuel Market Regional Outlook

North America

The North American biomass briquette fuel market exhibits strong manufacturing capacity and export orientation. As of August 2025, 75 densified biomass manufacturing facilities reported a combined annual production capacity of approximately 13.04 million tons per year. Monthly production data from these plants reached 0.94 million tons in a typical month, highlighting scaled operations. In the United States, domestic sales during the same month were about 0.15 million tons, while exports accounted for around 0.79 million tons, indicating that over 80 % of output is destined for export markets. The U.S. industrial sector remains a key consumer — consuming 2,225 TBtu of biomass energy in 2023, which represents 45 % of total U.S. biomass consumption. These factors suggest North America is positioned as a major supply hub in the global Biomass Briquette Fuel Market, leveraging abundant feedstock, established manufacturing base, and export logistics infrastructure.

Europe

Europe stands out for large-scale pellet production and consumption. In 2023, European pellet production reached approximately 20 million tons, representing about 36 % of global pellet output. Pellet form — favored for its quality, energy density, and automated combustion compatibility — is widely used across power generation, district heating, and industrial thermal applications in Europe. Countries with strong biomass infrastructure and renewable energy policies drive demand. The dominance of pellet usage underlines that Europe remains a regional leader in the Biomass Briquette Fuel Market, both in domestic consumption and as an import destination for densified biomass from export hubs. The prevalence of uniform pellet standards and large-scale supply contracts enhances stability and supports long-term demand.

Asia-Pacific

The Asia-Pacific region offers significant long-term potential within the Biomass Briquette Fuel Market. Agricultural economies in this region generate large volumes of crop residues and agricultural waste, representing part of the estimated 1.44 billion tons of global crop residue feedstock available for densified fuel production. As industrialization, urbanization, and energy demand grow, there is increasing interest in biomass briquettes and pellets for thermal energy, cooking fuel, and industrial heating. Emerging pelletization infrastructure could tap this feedstock pool, enabling large-scale production and domestic consumption. For B2B investors and manufacturers, Asia-Pacific represents a frontier region where establishing pellet plants, feedstock logistics, and supply-chain networks can capture substantial latent demand.

Middle East & Africa

The Middle East & Africa region currently holds a modest share of global biomass briquette fuel consumption, but presents potential opportunities for growth. Limited industrial biomass infrastructure and under-utilized agricultural residues offer scope for establishing new briquetting and pelletization plants. As global demand for renewable energy rises, and as countries in the region consider diversification away from fossil fuel dependency, biomass briquette fuel could offer a viable alternative — especially for small-scale thermal energy, cooking fuel, and rural energy access. For manufacturers and investors, this region represents a long-term market development opportunity, particularly in biomass-feedstock sourcing, localized briquette production, and distribution for domestic heating or cooking applications.

List of Top Biomass Briquette Fuel Companies

• German Pellets
• Enviva
• Pinnacle Renewable Energy Group
• Pacific BioEnergy Corporation
• Vyborgskaya Cellulose
• Rentech
• Graanul Invest Group
• RWE Innogy
• Lignetics
• E-pellets
• Drax Biomass
• General Biofuels
• BlueFire Renewables
• Pfeifer Group
• Biomass Secure Power
• Viridis Energy
• Westervelt
• Energex
• Fram Renewable Fuels
• Protocol Energy
• Premium Pellet Ltd.
• Granules LG
• Enova Energy Group
• Corinith Wood Pellets
• Maine Woods Pellet
• Appalachian Wood Pellets
• Bear Mountain Forest Prod
• Agropellets
• West Oregon Wood Prod
• Bayou Wood Pellets

Top Two Companies With Highest Share

• Enviva
• German Pellets

These companies hold significant share of production capacity and output volume in the global Biomass Briquette Fuel Market, supplying pellets and briquettes for both domestic consumption and international export markets.

Investment Analysis and Opportunities

The Biomass Briquette Fuel industry presents considerable investment opportunities, driven by high global biomass feedstock availability and rising demand for sustainable energy solutions. With a global potential feedstock base of about 1.44 billion tons of crop residues, the scope for establishing large-scale pellet and briquette manufacturing facilities is significant. Export-oriented production is especially promising: U.S. producers exported around 0.79 million tons in a single month (August 2025), indicating strong overseas demand and viable international trade channels. For investors focusing on B2B supply chains, opportunities exist in feedstock aggregation (agricultural residues, wood waste), logistics infrastructure (collection, transport, drying), and capacity expansion — particularly in regions with under-utilized biomass. There is also scope for long-term supply contracts with industrial energy consumers, power generation plants, and heating utilities. Given global energy transitions and increasing regulatory support for renewable fuels, investments in biomass briquette fuel production yield strategic value: they align with sustainability goals, diversification from fossil fuels, and stable demand from power generation and industrial heating sectors. Businesses that secure feedstock supply, streamline logistics, and scale pelletization capacity are likely to benefit from growing global demand.

New Product Development

Innovations in the Biomass Briquette Fuel Market are focusing on advanced pelletization and densification technologies, feedstock diversification, and enhancing fuel quality for industrial applications. Manufacturers are experimenting with torrefied briquettes — densified biomass subjected to low-oxygen heat treatment — which offers higher energy density and improved combustion properties compared to traditional briquettes. The shift toward pellet fuel is evident: in 2024 pellet form accounted for around 59.2 % of global biomass fuel consumption, underscoring pelletization as the preferred product format. There is also movement towards utilizing a broader range of feedstocks beyond sawdust: agricultural residues, rice husk, nut shells, and forestry waste are being processed into briquettes and pellets, reducing reliance on one feedstock type and improving supply diversity. Additionally, automated pellet-based fuel systems for power generation and industrial boilers facilitate standardized fuel logistics, storage and combustion. For B2B clients — power plants, heating utilities, industrial heat consumers — these developments translate into more reliable, high-quality fuel supplies, better energy yield per ton, and easier integration with existing fuel infrastructure. As environmental sustainability pressures grow, improved traceability and feedstock certification processes are also being adopted to meet regulatory and corporate ESG standards.

Five Recent Developments

• As of August 2025, 75 densified biomass manufacturing facilities reported monthly production of approximately 0.94 million tons and raw biomass feedstock purchases of 1.6 million tons, reflecting scaling manufacturing output.
• In 2023, European pellet production reached around 20 million tons, accounting for roughly 36 % of global pellet output — signalling large-scale manufacturing and export capacity in Europe.
• In 2024, pelletized biomass captured approximately 59.2 % of global biomass fuel consumption, surpassing traditional briquettes and indicating a shift toward higher-efficiency pellet fuel usage.
• Feedstock composition in 2024 remained concentrated — sawdust contributed about 29.7 % of raw-material share — highlighting supply-chain constraints and the need for feedstock diversification.
• The U.S. densified biomass fuel export in August 2025 stood at 0.79 million tons, representing the majority of production and underlining the role of U.S. production in meeting international demand.

Report Coverage of Biomass Briquette Fuel Market

The Biomass Briquette Fuel Market Research Report covers comprehensive global and regional analyses, offering segmentation by Type (Biomass Briquette, Biomass Pellet), Application (Residential/Commercial Heating, Power Generation, Others), and Feedstock Source (sawdust, agricultural residues, forestry waste, industrial by-products). The report details production volumes — for instance, global densified biomass production at 0.94 million tons monthly, and European pellet output of about 20 million tons in 2023 — and raw-material sourcing patterns (sawdust share ~29.7 % in 2024). It examines regional market performance across North America, Europe, Asia-Pacific, and Middle East & Africa, illustrating manufacturing capacity (e.g., 13.04 million tons/year in North America), export flows (e.g., U.S. exports of 0.79 million tons in a single month), and regional demand drivers.

The competitive landscape is mapped out, identifying leading companies such as Enviva and German Pellets among global producers, along with many small- and medium-sized players. The report also evaluates market dynamics — drivers such as industrial energy demand, restraints like feedstock constraints, opportunities from under-utilized agricultural residues, and challenges including supply fragmentation and commodity competition. Additionally, product development trends are covered (e.g., pelletization, torrefied briquettes, feedstock diversification), along with long-term investment and supply-chain strategies. This scope makes the report a valuable tool for manufacturers, investors, energy utilities, and B2B stakeholders seeking actionable Market Insights, Market Analysis, Market Forecast, and Market Opportunities in the Biomass Briquette Fuel industry.

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