Wood pellet is a solid fuel that is produced by crushing and densifying waste timber like sawdust, forestry residues, industrial byproducts like old paper and forestry wastes. The length is 1-2 cm and the diameter is generally 6, 8, 10, or 12mm. It is possible to produce 25mm wood pellet at maximum. In Sweden, 6mm wood pellet is encouraged to use in house as it can realize the best condition of combustion. Wood pellet production doesn’t need to add binder as lignin, an element of wood, plays a role of binder and helps to pelletize when it is melted by heat.,

The global average price of wood pellets went up in 2012-2014 but declined in 2014-2016, from about 172 $/MT in 2012 to 188 $/MT in 2014 and . And the price rose up in 2017. North America (USA and Canada) is the biggest producer for wood pellets, and produced about 11.6 billion MT (more than 48% of the global total) of wood pellets in 2016. Europe is the other key producer of the wood pellets market with the share of about 33%. USA, Canada, Germany, Russia, Latvia, and China, etc. are other key country producers of the product, the five took up more than 70% of the market.Europe and North America are the two largest consumption markets of wood pellets in the world in the past few years and it will keep the same position in the next years. Sales volume of the Europe took up about 58% the global market in 2016 while North America took up about 20%. And North America is the largest exporter of Wood pellets in the world at present. China is the third largest market in the report with a consumption share of about 8% in 2016. Other key markets are Korea, Japan, etc. which have the large potential demand. Over the next five years, Wood-Pellets will register a 3.3% CAGR in terms of revenue, reach US$ 5710 million by 2023, from US$ 4270 million in 2019.