EUDR pushes a global pellet market into realignment

The EU’s deforestation regulation is likely to reshape the wood pellet market more by redirecting trade than by cutting global output, according to a new paper by Jinggang Guo, Jeffrey P. Prestemon and Jesse D. Henderson in Biomass and Bioenergy. The study argues that the regulation will hit trade flows, regional prices and supplier market shares harder than overall pellet demand. That matters because the pellet market is still heavily export-driven. The U.S. shipped more than 10 million metric tons of wood pellets in 2025, following 10 million metric tons in 2024, underlining how dependent major ...