Sweden Wood Pellets Market size was valued at USD 76.26 million in 2018 to USD 113.85 million in 2024 and is anticipated to reach USD 192.66 million by 2032, at a CAGR of 6.33% during the forecast period.
REPORT ATTRIBUTE
DETAILS
Historical Period
2020-2023
Base Year
2024
Forecast Period
2025-2032
Sweden Wood Pellets Market Size 2024
USD 113.85 million
Sweden Wood Pellets Market, CAGR
6.33%
Sweden Wood Pellets Market Size 2032
USD 192.66 million
The Sweden Wood Pellets Market is shaped by established players such as Norrskog Pellet, Svebio, Sundsvall Energi, Granen Energy, Sveg Träpellets, Pelletsfabriken AB, Smålands Träpellets, and Torsåker Pellets AB, which strengthen their positions through sustainable sourcing, ENplus-certified products, and reliable supply networks. Larger producers focus on industrial demand from district heating and CHP plants, while smaller firms serve residential and commercial users with localized distribution. Continuous investments in pelletizing capacity and adherence to strict environmental standards support their competitiveness domestically and across European export markets. Northern Sweden leads the market with 42% share in 2024, driven by dense forestry resources, advanced production facilities, and strong district heating infrastructure, reinforcing its position as the country’s dominant hub for wood pellet production and trade.
Market Insights
The Sweden Wood Pellets Market grew from USD 76.26 million in 2018 to USD 113.85 million in 2024 and is projected to reach USD 192.66 million by 2032, growing at a CAGR of 33%.
Forest wood & waste dominates with 72% share in 2024, supported by vast forestry resources, sustainable management, and advanced pelletizing facilities ensuring a steady and reliable supply chain.
By application, industrial pellets for CHP/district heating lead with 54% share in 2024, driven by Sweden’s strong district heating infrastructure and supportive renewable energy policies.
Northern Sweden leads with 42% share in 2024, benefiting from dense forestry, advanced production facilities, and well-developed heating networks, reinforcing its role as the primary hub.
Key players include Norrskog Pellet, Svebio, Sundsvall Energi, Granen Energy, Sveg Träpellets, Pelletsfabriken AB, Smålands Träpellets, and Torsåker Pellets AB, focusing on sustainable sourcing and certified products.
Access crucial information at unmatched prices!
Request your sample report today & start making informed decisions powered by Credence Research Inc.!
Forest wood & waste dominates the Sweden wood pellets market, accounting for 72% share in 2024. This dominance is supported by Sweden’s vast forestry resources, sustainable forest management practices, and advanced pelletizing facilities that ensure consistent supply. Agriculture residue holds around 18% share, primarily driven by initiatives to utilize crop by-products and reduce waste in rural areas. The remaining 10% share is captured by other biomass sources, which are gradually expanding through innovation and circular economy practices.
For instance, Lantmännen Agroetanol integrates cereal residues from ethanol production into pellet manufacturing, reducing agricultural waste volumes by thousands of tons annually.
By Application
Industrial pellets for CHP/district heating lead the application segment, securing 54% share in 2024. Sweden’s strong district heating infrastructure and government policies promoting renewable energy adoption drive this demand. Industrial pellets for co-firing account for 22% share, supported by the transition of coal-based plants to biomass blending. Pellets for residential and commercial heating represent 19% share, driven by rising consumer preference for sustainable heating solutions in rural and semi-urban households. The remaining 5% share falls under other uses, including niche industrial applications and export-oriented supply.
For instance, in the UK, Drax Power Station has converted four of its six units from coal to sustainable biomass, requiring around 7.5 million tonnes of pellets per year to generate electricity for over 4 million homes.
Market Overview
Strong Forestry Resources and Sustainable Supply
Sweden’s abundant forestry resources provide a stable foundation for the wood pellets market, ensuring consistent raw material supply. Sustainable forest management practices supported by government regulations strengthen the production base while reducing environmental concerns. Advanced pelletizing technologies further optimize output, making Sweden a leading producer in Northern Europe. This reliable supply chain attracts domestic and international buyers, reinforcing Sweden’s position in renewable energy. The synergy of sustainable forestry and advanced infrastructure drives long-term growth in the country’s wood pellet sector.
For instance, Swedish wood pellet exports to Denmark reached over 150,000 tons in 2022, according to Eurostat, reflecting strong cross-border demand for renewable fuels
Government Policies and Renewable Energy Targets
Sweden’s renewable energy targets significantly drive the adoption of wood pellets in heating and power generation. Policies favoring biomass energy over fossil fuels, along with subsidies and tax benefits, incentivize both producers and consumers. District heating networks, which form a vital part of Sweden’s energy infrastructure, rely heavily on pellet consumption. These supportive frameworks reduce investment risks for producers and encourage expansion of production capacity. The government’s focus on achieving climate neutrality by 2045 ensures continued demand growth for wood pellets across applications.
Rising Demand from District Heating and CHP Plants
District heating and combined heat and power (CHP) plants dominate Sweden’s pellet consumption, creating strong demand stability. With more than half of Swedish households connected to district heating, pellets provide a reliable renewable option. The sector benefits from high energy efficiency and cost competitiveness compared to fossil-based systems. CHP facilities also utilize pellets for co-generation, further boosting market uptake. This growing reliance on pellets in both residential and industrial networks ensures a steady growth trajectory, positioning Sweden as a biomass energy leader.
For instance, Växjö Energi’s Sandviksverket CHP plant runs almost entirely on biomass fuels, including wood pellets, supplying district heating to thousands of households while producing electricity.
Key Trends & Opportunities
Increasing Focus on Agricultural Residue Utilization
The market is witnessing a rising shift toward agricultural residue as an alternative raw material. Farmers and energy producers are exploring straw, husks, and crop residues to diversify supply sources. This trend reduces reliance on forestry resources while addressing waste management challenges. The integration of agriculture-based pellets provides an opportunity for rural economic development. It also strengthens circular economy models in Sweden’s renewable sector, offering long-term resilience. With supportive innovation and pilot projects, agricultural residues are likely to expand their market share steadily.
For instance, Stockholm Exergi tested oat husk pellets sourced from Swedish mills to supplement its bioenergy plants, reducing carbon intensity while valorizing agricultural by-products.
Export Growth Potential in European Markets
Sweden’s strategic position and advanced production capacity create significant export opportunities within Europe. Countries with high pellet demand but limited domestic supply, such as Denmark and the Netherlands, represent key target markets. Sweden’s reputation for sustainable sourcing and ENplus-certified pellets further enhances its competitiveness abroad. Export diversification allows producers to reduce reliance on domestic consumption cycles while capturing higher margins internationally. With EU renewable energy directives tightening, Sweden stands to benefit by becoming a larger supplier to neighboring states.
For instance, Lantmännen Agroetanol, which produces biofuels and pelletized by-products in Norrköping, has supplied ENplus-certified pellets to the Netherlands for co-firing in power plants.
Key Challenges
Raw Material Price Fluctuations
The market faces risks from volatility in raw material prices due to weather conditions, global demand shifts, and forestry regulations. Inconsistent availability of wood feedstock may lead to production cost instability, reducing profit margins for producers. Price fluctuations can also limit competitiveness in export markets where cost efficiency is critical. Managing sustainable forestry while meeting rising demand requires balancing supply and pricing strategies. Companies must adopt flexible sourcing models and diversify inputs to minimize risks from raw material price swings.
Competition from Alternative Renewable Energy Sources
Wood pellets compete with other renewable energy options such as wind, solar, and biogas, which are growing rapidly in Sweden. The cost reductions in solar and wind technologies are particularly challenging for pellet-based heating systems. This competition may reduce investment flow into pellet projects and limit long-term market growth. Policy incentives also increasingly favor electrification and hybrid solutions, further challenging biomass adoption. To remain competitive, pellet producers must highlight sustainability, reliability, and carbon neutrality advantages while integrating with broader renewable frameworks.
Environmental Concerns and Regulatory Pressures
Despite being renewable, wood pellet production raises concerns about land use, carbon emissions during processing, and biodiversity impacts. Regulatory scrutiny is tightening, with stricter sustainability certification requirements becoming mandatory for market entry. Meeting these regulations demands higher investments in compliance, monitoring, and reporting systems. Smaller producers may struggle to bear such costs, leading to consolidation in the market. Balancing environmental accountability with cost efficiency remains a critical challenge for Sweden’s pellet industry, requiring continuous innovation in production and supply chain practices.
Regional Analysis
Northern Sweden
Northern Sweden leads the Sweden Wood Pellets Market with 42% share in 2024. It benefits from dense forestry resources, advanced pelletizing plants, and well-developed district heating systems. The region’s strong focus on renewable energy adoption drives both residential and industrial pellet demand. Export activity from northern ports further strengthens its role as a hub for international supply. Companies in this region emphasize sustainable sourcing, ensuring compliance with European certification standards. It continues to dominate production and distribution, reinforcing its leadership in the national market.
Central Sweden
Central Sweden holds 33% share in 2024, supported by a mix of industrial and residential consumption. The region has a growing concentration of CHP plants, which rely heavily on pellets for stable energy generation. Strong infrastructure and easy access to raw materials from nearby forests aid consistent supply. It also benefits from rising household adoption of pellet-based heating solutions. Policy support for carbon reduction has accelerated demand growth in urban and semi-urban areas. Central Sweden serves as a balanced market, combining both production and end-use demand.
Southern Sweden
Southern Sweden accounts for 25% share in 2024, making it the smallest but steadily growing regional market. It has limited forestry resources compared to northern regions but compensates through efficient distribution and import activity. Rising residential demand and commercial heating applications drive consumption in this region. Ports in southern Sweden facilitate cross-border pellet trade with European markets, supporting its expansion. It also witnesses investment in small-scale biomass projects that enhance local supply reliability. The region plays a vital role in strengthening Sweden’s overall pellet trade network.
Market Segmentations:
By Product
Forest Wood & Waste
Agriculture Residue
Others
By Application
Industrial Pellet for CHP/District Heating
Industrial Pellet for Co-Firing
Pellet for Heating Residential/Commercial
Others
By Region
Northern Sweden
Central Sweden
Southern Sweden
Competitive Landscape
The Sweden Wood Pellets Market is highly competitive, with a mix of established producers and regional suppliers driving growth through sustainable sourcing, capacity expansion, and strategic partnerships. Leading companies such as Norrskog Pellet, Svebio, Sundsvall Energi, Granen Energy, Sveg Träpellets, Pelletsfabriken AB, Smålands Träpellets, and Torsåker Pellets AB dominate production, focusing on ENplus-certified products and reliable supply chains. Larger players strengthen their presence by serving industrial customers in district heating and CHP plants, while smaller producers cater to residential and commercial heating demand in local markets. The market is characterized by continuous investment in modern pelletizing facilities, efficient logistics, and adherence to strict environmental standards. Export-oriented strategies also enhance competitiveness, particularly in meeting demand from European countries with limited domestic production. It remains a fragmented yet dynamic industry, where sustainability practices, long-term contracts, and innovation in biomass utilization define competitive advantage.
Shape Your Report to Specific Countries or Regions & Enjoy 30% Off!
In October 2024, BK Tech Pellets AB expanded production by consolidating operations into a new pellet facility in Ruda, Småland, boosting capacity and efficiency.
In November 2024, Moelven Valåsen AB inaugurated its first Swedish wood pellet plant in Karlskoga, marking a major step in Moelven’s 125-year journey in wood processing.
In December 2024, LEAG Group acquired Scandbio, Scandinavia’s largest wood pellet producer, with five plants in Sweden and one in Latvia.
In June 2025, Adven took over district heating operations in Kungsör, Sweden, running the network fully on renewable fuels, including wood pellets.
Report Coverage
The research report offers an in-depth analysis based on Type, Distribution Channel and Region. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook
Demand from district heating networks will continue to drive long-term pellet consumption.
Sustainable forestry management will secure reliable raw material supply for producers.
Agricultural residues will gradually gain a larger share in pellet production.
Export opportunities to European countries will expand Sweden’s trade presence.
Rising household adoption will support growth in the residential heating segment.
Investments in modern pelletizing facilities will improve efficiency and capacity.
Stricter environmental regulations will encourage certified and traceable sourcing practices.
Industry consolidation may increase as smaller producers face compliance costs.
Technological innovation in biomass utilization will create new product applications.
Policy support for carbon neutrality will reinforce the role of pellets in energy transition.
10.1.1. Sweden Wood Pellets Revenue Share By Country
10.1.2. Country
10.1.3. Sweden Wood Pellets Revenue By Country
10.1.4. Product
10.1.5. Sweden Wood Pellets Revenue By Product
10.1.6. Application
10.1.7. Sweden Wood Pellets Revenue By Application
CHAPTER NO. 11: COMPANY PROFILES
11.1. Norrskog Pellet
11.1.1. Company Overview
11.1.2. Product Portfolio
11.1.3. Financial Overview
11.1.4. Recent Developments
11.1.5. Growth Strategy
11.1.6. SWOT Analysis
11.2. Svebio
11.3. Sundsvall Energi
11.4. Granen Energy
11.5. Sveg Träpellets
11.6. Pelletsfabriken AB
11.7. Smålands Träpellets
11.8. Torsåker Pellets AB
11.9. Others
Request Sample
We prioritize the confidentiality and security of your data. Our promise: your information remains private.
Ready to Transform Data into Decisions?
Request Your Sample Report and Start Your Journey of Informed Choices
Providing the strategic compass for industry titans.
Frequently Asked Questions
What is the current market size for Sweden Wood Pellets Market, and what is its projected size in 2032?
The Sweden Wood Pellets Market size reached USD 113.85 million in 2024 and is projected to attain USD 192.66 million by 2032, demonstrating sustained market expansion.
At what Compound Annual Growth Rate is the Sweden Wood Pellets Market projected to grow between 2025 and 2032?
The Sweden Wood Pellets Market is expected to grow at a Compound Annual Growth Rate (CAGR) of 6.33% during the forecast period spanning 2025 to 2032.
Which Sweden Wood Pellets Market segment held the largest share in 2024?
The Forest Wood & Waste segment held the largest share in the Sweden Wood Pellets Market, accounting for 72% share in 2024, supported by strong forestry resources.
Who are the leading companies in the Sweden Wood Pellets Market?
Prominent companies in the Sweden Wood Pellets Market include Norrskog Pellet, Svebio, Sundsvall Energi, Granen Energy, Sveg Träpellets, Pelletsfabriken AB, Smålands Träpellets, and Torsåker Pellets AB.
About Author
Ganesh Chandwade
Senior Industry Consultant
Ganesh is a senior industry consultant specializing in heavy industries and advanced materials.
Mycelium Based Packaging Market size was valued at USD 420 million in 2024 and is anticipated to reach USD 1047.4 million by 2032, at a CAGR of 12.1% during the forecast period.
Multi Touch Equipment Market size was valued at USD 20.5 billion in 2024 and is anticipated to reach USD 43.2 billion by 2032, at a CAGR of 9.8% during the forecast period.
Multi Split Air Conditioning Systems Market size was valued at USD 22.3 billion in 2024 and is anticipated to reach USD 32 billion by 2032, at a CAGR of 4.6% during the forecast period.
The robotic combat vehicles market size was valued at USD 701.8 million in 2024 and is anticipated to reach USD 1179 million by 2032, at a CAGR of 6.7 % during the forecast period (2024-2032).
The robot end effector market size was valued at USD 3,330 million in 2024 and is anticipated to reach USD 8145.4 million by 2032, at a CAGR of 11.8 % during the forecast period (2024-2032).
The robotic pool cleaner market size was valued at USD 2,220 million in 2024 and is anticipated to reach USD 5061 million by 2032, at a CAGR of 10.9 % during the forecast period (2024-2032).
The robotic paint booth market size was valued at USD 3,990 million in 2024 and is anticipated to reach USD 6779.1 million by 2032, at a CAGR of 6.85 % during the forecast period (2024-2032).
The robot controller market size was valued at USD 7,552 million in 2024 and is anticipated to reach USD 17402.9 million by 2032, at a CAGR of 11 % during the forecast period (2024-2032).
The robotic medical imaging market size was valued at USD 8,762 million in 2024 and is anticipated to reach USD 24645.4 million by 2032, at a CAGR of 13.8 % during the forecast period (2024-2032).
Purchase Options
The report comes as a view-only PDF document, optimized for individual clients. This version is recommended for personal digital use and does not allow printing. Use restricted to one purchaser only.
$4999
To meet the needs of modern corporate teams, our report comes in two formats: a printable PDF and a data-rich Excel sheet. This package is optimized for internal analysis. Unlimited users allowed within one corporate location (e.g., regional office).
$6999
The report will be delivered in printable PDF format along with the report’s data Excel sheet. This license offers 100 Free Analyst hours where the client can utilize Credence Research Inc. research team. Permitted for unlimited global use by all users within the purchasing corporation, such as all employees of a single company.
Thank you for the data! The numbers are exactly what we asked for and what we need to build our business case.
Materials Scientist (privacy requested)
The report was an excellent overview of the Industrial Burners market. This report does a great job of breaking everything down into manageable chunks.
