North American Wood Pellet Exports Gain Momentum Ahead of Heating Season

North American wood pellet exports showed continued strength as the market entered August 2025, with U.S. shipments recording a notable surge in July. According to trade data, the U.S. exported 979,283 metric tons of wood pellets in July, up sharply from 743,158 tons in June. Export revenues followed the same trajectory, climbing to approximately USD $183.4 million in July, compared to $144.4 million the prior month.

The majority of these exports were destined for Europe, where biomass remains a critical component of both industrial energy production and residential heating. Demand has been particularly robust in the United Kingdom, the Netherlands, and Denmark, as utilities prepare for the upcoming winter season and households continue to rely on pellets as a heating alternative amid volatile fossil fuel prices.

Canada, though exporting a smaller volume compared to the U.S., remains an important supplier, especially to Asian markets such as Japan and South Korea. These countries are seeking to diversify their renewable energy mix, and North American wood pellets are increasingly seen as a stable option.

Industry analysts point to several factors behind the mid-year growth:

• Seasonal demand: European importers typically build inventory during the summer months ahead of winter.

• Policy drivers: Biomass continues to benefit from renewable energy targets in Europe and Asia, even as environmental scrutiny increases.

• Price competitiveness: Despite logistics challenges, wood pellets have remained cost-competitive relative to coal and natural gas.

Looking forward, exporters face a shifting policy landscape. The European Union’s Deforestation-Free Supply Chain Regulation (EUDR), set to take effect in December 2025, will require additional traceability and sustainability assurances. North American suppliers are preparing for tighter compliance rules that may affect trade flows, certification requirements, and costs.

Still, the outlook for the sector remains positive. Market research forecasts project that the North American pellet market will continue to grow at a compound annual rate of nearly 9% in both volume and value terms over the next decade. Strong demand in both Europe and Asia, combined with growing investments in production capacity in the U.S. Southeast and Western Canada, are expected to support this trend.

As of August 2025, the message is clear: North American wood pellets remain in high demand, with exporters well-positioned to serve global markets as renewable energy commitments deepen worldwide.

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