Updated Jan 17, 2023 12:44

Wood Pellets Market in China

Market Overview
The Chinese wood pellets market fell modestly to $ in , declining by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption, however, enjoyed a significant increase. Wood pellets consumption peaked at $ in 2018; however, from 2019 to , consumption failed to regain momentum.

In value terms, wood pellets production declined to $ in estimated in export price. Over the period under review, production posted a significant expansion. The most prominent rate of growth was recorded in 2013 when the production volume increased by %. Wood pellets production peaked at $ in 2018; however, from 2019 to , production stood at a somewhat lower figure.


Consumption
After two years of growth, consumption of wood pellets decreased by -% to tons in . Over the period under review, consumption, however, enjoyed a significant expansion. Wood pellets consumption peaked at tons in 2018; however, from 2019 to , consumption remained at a lower figure.

The size of the wood pellets market in China shrank modestly to $ in , reducing by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, showed a significant increase. Over the period under review, the market reached the maximum level at $ in 2018; however, from 2019 to , consumption remained at a lower figure.


Market Forecast
Driven by increasing demand for wood pellets in China, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of wood pellets in China were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for wood pellets. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
China remains a net exporter of wood pellets; in physical and value terms, exports consistently exceeded imports from 2012 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.