Report predicts EU to have a pellet demand for 30.8 million metric tons in 2020

An European Union wide demand for 30.8 million metric tons of pellets is forcasted for 2020 by an annual report filed with the USDA Foreign Agricultural Service’s Global Agriculture Information Network. In 2019 the consumption reached 29.1 million metric tons. According to the report, the EU currently produces approximately 30% of world pellet production, but accounts for 50% of global consumption. It shows that the market has been relatively unaffected by the pandemic, which leads to growth expectations.

The EU currently has approximately 25 million metric tons of wood pellet production in place, with capacity use at 74%. If EU demand and trade flows remain consistent with current patterns, the U.S has the potential to supply 65% of EU import demand for wood pellets, which would represent a trade value of approximately $1.6 billion in 2020. Manufacturers in the EU are expected to produce 18.5 million metric tons of wood pellets this year, up from 17.7 million metric tons in 2019. Imports are expected to reach 12.5 million metric tons, up from 11.48 million metric tons.

The U.K. is the top pellet consumer, with 9 million metric tons last year, followed by Italy at 3.3 million metric tons and Denmark at 2.5 million metric tons. Germany is the main pellet producing country in the EU, with 2019 production reaching 2.82 million metric tons, followed by Sweden at 1.625 million metric tons and Latvia at 1.6 million metric tons. The U.S. was the top supplier of wood pellets to the EU in 2019 with 6.779 million metric tons, followed by Russia at 1.689 million metric tons and Canada at 1.624 million metric tons.