The dip in demand for wood pellets in 2023 and 2024, the resulting low prices, and the increased costs of inputs negatively affected the profit margins of the EU wood pellet sector. Even so, the current strong growth of residential demand is forecast to support a further increase in production in 2025. Below is a brief overview of the main pellet producers by region. In 2025, a strong production growth is forecast in Western Europe, led by France and Germany (after a temporary dip in 2024). Wood pellets, especially for residential use, are crucial for France to reach carbon ...
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