An increasing number of companies are opting for wood chips for generating electricity and district heating from the woodchips. Bioenergy remains the largest renewable energy source, accounting for 55% of renewable energy and over 6% of the global energy supply according to the IEA. Wood chips are also extensively utilized as raw materials for the pulp and bio-fuel industry.
The market growth is largely driven by wood being a renewable resource and secondly, the process is not dependent on volatile factors such as wind or sun. Further, low levels of capital, technology, and labor requirements encourage rapid investments in the industry. In addition, government policies incentivize the industry’s growth.
Widening applications of wood chips across biomass, pulp and paper, pellet production, panelboard and furniture industries, sawmills, carpentry businesses, wood fiber-packaging manufacturing, and robust export markets are encouraging investments in the industry. Increasing global demand for wood chips, especially from China is encouraging the trade volumes.
In 2024, the trade of the sum of Wood in chips or particles and Coniferous wood in chips or particles stood at $8.1 billion, as compared to $6.1 billion in 2018. Further, the increasing utilization of this product for residential heating solutions, with a predominant focus on Europe and North America, is poised to act as a significant catalyst for the market's expansion. As the demand for sustainable heating options continues to surge, driven by environmental concerns and the pursuit of energy-efficient solutions, the market is anticipated to experience substantial growth in response to this escalating need.
Renewable energy sources are set to play a major role in the global energy mix over the next two decades. The share of renewables in global primary energy will increase from around 12% in 2022 to between 35-65% by 2050, driven by the improved cost competitiveness of renewables, together with the increasing prevalence of policies encouraging a shift to low-carbon energy. The role of Bioenergy continues to increase significantly, driven by robust end-user applications of biomass, biogas, and other fuels. Bioenergy accounted for 8.1% of the global demand in 2023.
The pulp and Paper Industry presents a strong potential to be sustainable and ecological. Sustainable certification systems including the Forest Stewardship Council (FSC) and the Sustainable Forestry Initiative (SFI), ensure that wood is harvested in an environmentally responsible and socially beneficial manner. Wood chips derived from various sources, including sawmill residues, wood residues, and from managed plantations enable efficient utilization of wood resources, minimizing waste and promoting sustainability.
In addition to using virgin wood chips, many pulp and paper mills incorporate recycled wood fiber into their production processes. Furthermore, sustainable forestry practices ensure that forests act as carbon sinks, offsetting the emissions generated by the industry.
Pulpwood consisting of selected tree species with specific characteristics straight and slender trunks are widely marketed. Trees harvested and chipped for their high fiber content are marketed for the pulp and paper industry. In particular, Pulp chips made from softwood and hardwood trees are sold as raw materials for producing wood pulp, panelboards, and energy applications. Driven by high fiber content, they are widely used in paper production. Further, pulpwood supply is consistent, but sustainable sourcing is a key focus. In particular, Scandinavia and North America regions present strong demand for pulpwood as a raw material for wood chips.
Owing to faster growth that results in quicker harvests, softwood is widely used for wood chips. Further, it has lower moisture content and is well-suited for paper production, industrial processes, and is often used in wood pellet manufacturing. Abundant in regions with coniferous forests, such as Northern Europe, North America, and Russia, softwood is widely exported from these industries. Softwood chips are gaining steady demand due to applications in various industries, including paper and biomass energy, and continued interest in wood pellets for renewable energy. Pulp and paper production, Biomass energy, Industrial processes, Wood pellet manufacturing, and others are among the key applications of softwood chips.
Around 2.2% of U.S. annual total energy consumption originates from wood and wood waste—bark, sawdust, wood chips, wood scrap, and paper mill residues according to the EIA. The top industrial users are wood products and paper manufacturers. Owing to the benefits such as significant environmental and consumer benefits, including improving forest health, protecting air quality, and providing the most dependable renewable energy source, several companies are establishing plants in rural areas. Companies often market their Forest Stewardship Council® (FSC®) certification standards to gain market shares in domestic and overseas markets. Further, ongoing investments in improving the quality of sorting wood chips by scanning are likely to drive the market outlook.
Farmers and forest owners use wood chips to supply biomass fuel to local companies or public buildings. The U.S. has a well-established pulp and paper industry, which consumes significant quantities of wood chips. In addition, the country is one of the largest consumers and producers of wood pellets, which are derived from wood chips. In addition, the country presents significant trade opportunities. Canada, Chile, Brazil, and Mexico are among the key importers of the country’s Wood in chips or particles. Further, Coniferous wood in chips or particles is predominantly exported to Japan, Canada, China, Turkey, and others. About 90% of the US export volume is softwood chips.
The industry is partly consolidated in nature and is characterized by the presence of both capital-intensive global players and medium-scale local companies. Leading companies in the industry include- American Wood Resources LLC, Axpo Holding AG, Bio Eneco Sdn Bhd, Cogent Forest Products Inc, Great Northern Timber Inc, LA.SO.LE. EST S.P.A, Mitsui & Co. Ltd, Verdo Holding A/S, and others.
|
Parameter |
Details |
|
Market Size (2024) |
$9.4 Billion |
|
Market Size (2032) |
$14.8 Billion |
|
Market Growth Rate |
5.87% |
|
Largest Segment- Types |
Softwood ($6.4 Billion Revenue) |
|
Fastest Growing Market- Raw Material |
Pulp Wood (68.9% Market Share) |
|
Largest Segment- Applications |
Combined Heat and Power (CHP) |
|
Segments |
Types, Sizes, Sales Channels, Applications |
|
Study Period |
2018- 2023 and 2024-2032 |
|
Units |
Revenue (USD) |
|
Qualitative Analysis |
Porter’s Five Forces, SWOT Profile, Market Share, Scenario Forecasts, Market Ecosystem, Company Ranking, Market Dynamics, Industry Benchmarking |
|
Companies |
American Wood Resources LLC, Axpo Holding AG, Bio Eneco Sdn Bhd, Cogent Forest Products Inc, Great Northern Timber Inc, LA.SO.LE. EST S.P.A, Mitsui & Co. Ltd, Verdo Holding A/S |
|
Countries |
US, Canada, Mexico, Germany, France, Spain, Italy, UK, Russia, China, India, Japan, South Korea, Australia, South East Asia, Brazil, Argentina, Middle East, Africa |
Raw Material
Type
Applications
Countries Analyzed
Wood Chips Companies Profiled in the Study
*- List Not Exhaustive
About USD Analytics
Table of Contents
1. Executive Summary
What’s New in 2024?
Top 10 Takeaways from the Industry
Potential Opportunities for Industry Stakeholders
Strategic Imperatives
Company Market Positioning
Industry Benchmarking Matrix
2. Research Scope and Methodology
Market Definition
Market Segments
Companies Profiled
Research Methodology
Data Sources
Conversion Rates for USD
Abbreviations
3. Strategic Landscape: Key Insights and Implications
Spotlight: Key Strategies Opted by Business Leaders
Competitive Landscape
SWOT Analysis
Porter’s Five Force Analysis
Macro-Environmental Analysis
4. Growth Opportunity Analysis
Trends at a Glance
Market Dynamics
Key Industry Stakeholders
Regulatory Landscape
5. Market Size Outlook to 2032
Global Wood Chips Market Size Forecast, USD Million, 2018- 2032
Scenario Analysis
Pricing Analysis and Outlook
6. Historical Wood Chips Market Size by Segments, 2018- 2023
Key Statistics, 2024
Wood Chips Market Size Outlook by Type, USD Million, 2018-2023
Growth Comparison (y-o-y) across Wood Chips Types, 2018-2023
Wood Chips Market Size Outlook by Application, USD Million, 2018-2023
Growth Comparison (y-o-y) across Wood Chips Applications, 2018-2023
7. Wood Chips Market Size Outlook by Segments, 2024- 2032
Wood Chips Market Size Outlook by Type, USD Million, 2024-2032
Growth Comparison (y-o-y) across Wood Chips Types, 2024-2032
Wood Chips Market Size Outlook by Raw Material, USD Million, 2024-2032
Growth Comparison (y-o-y) across Wood Chips Raw Materials, 2024-2032
Wood Chips Market Size Outlook by Application, USD Million, 2024-2032
Growth Comparison (y-o-y) across Wood Chips Applications, 2024-2032
8. Wood Chips Market Size Outlook by Region
North America
Europe
Asia Pacific
South America
Middle East and Africa
9. United States Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
United States Wood Chips Market Size Outlook by Type, 2021- 2032
United States Wood Chips Market Size Outlook by Application, 2021- 2032
United States Wood Chips Market Size Outlook by End-User, 2021- 2032
10. Canada Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Canada Wood Chips Market Size Outlook by Type, 2021- 2032
Canada Wood Chips Market Size Outlook by Application, 2021- 2032
Canada Wood Chips Market Size Outlook by End-User, 2021- 2032
11. Mexico Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Mexico Wood Chips Market Size Outlook by Type, 2021- 2032
Mexico Wood Chips Market Size Outlook by Application, 2021- 2032
Mexico Wood Chips Market Size Outlook by End-User, 2021- 2032
12. Germany Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Germany Wood Chips Market Size Outlook by Type, 2021- 2032
Germany Wood Chips Market Size Outlook by Application, 2021- 2032
Germany Wood Chips Market Size Outlook by End-User, 2021- 2032
13. France Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
France Wood Chips Market Size Outlook by Type, 2021- 2032
France Wood Chips Market Size Outlook by Application, 2021- 2032
France Wood Chips Market Size Outlook by End-User, 2021- 2032
14. United Kingdom Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
United Kingdom Wood Chips Market Size Outlook by Type, 2021- 2032
United Kingdom Wood Chips Market Size Outlook by Application, 2021- 2032
United Kingdom Wood Chips Market Size Outlook by End-User, 2021- 2032
15. Spain Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Spain Wood Chips Market Size Outlook by Type, 2021- 2032
Spain Wood Chips Market Size Outlook by Application, 2021- 2032
Spain Wood Chips Market Size Outlook by End-User, 2021- 2032
16. Italy Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Italy Wood Chips Market Size Outlook by Type, 2021- 2032
Italy Wood Chips Market Size Outlook by Application, 2021- 2032
Italy Wood Chips Market Size Outlook by End-User, 2021- 2032
17. Benelux Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Benelux Wood Chips Market Size Outlook by Type, 2021- 2032
Benelux Wood Chips Market Size Outlook by Application, 2021- 2032
Benelux Wood Chips Market Size Outlook by End-User, 2021- 2032
18. Nordic Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Nordic Wood Chips Market Size Outlook by Type, 2021- 2032
Nordic Wood Chips Market Size Outlook by Application, 2021- 2032
Nordic Wood Chips Market Size Outlook by End-User, 2021- 2032
19. Rest of Europe Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Rest of Europe Wood Chips Market Size Outlook by Type, 2021- 2032
Rest of Europe Wood Chips Market Size Outlook by Application, 2021- 2032
Rest of Europe Wood Chips Market Size Outlook by End-User, 2021- 2032
20. China Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
China Wood Chips Market Size Outlook by Type, 2021- 2032
China Wood Chips Market Size Outlook by Application, 2021- 2032
China Wood Chips Market Size Outlook by End-User, 2021- 2032
21. India Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
India Wood Chips Market Size Outlook by Type, 2021- 2032
India Wood Chips Market Size Outlook by Application, 2021- 2032
India Wood Chips Market Size Outlook by End-User, 2021- 2032
22. Japan Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Japan Wood Chips Market Size Outlook by Type, 2021- 2032
Japan Wood Chips Market Size Outlook by Application, 2021- 2032
Japan Wood Chips Market Size Outlook by End-User, 2021- 2032
23. South Korea Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
South Korea Wood Chips Market Size Outlook by Type, 2021- 2032
South Korea Wood Chips Market Size Outlook by Application, 2021- 2032
South Korea Wood Chips Market Size Outlook by End-User, 2021- 2032
24. Australia Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Australia Wood Chips Market Size Outlook by Type, 2021- 2032
Australia Wood Chips Market Size Outlook by Application, 2021- 2032
Australia Wood Chips Market Size Outlook by End-User, 2021- 2032
25. South East Asia Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
South East Asia Wood Chips Market Size Outlook by Type, 2021- 2032
South East Asia Wood Chips Market Size Outlook by Application, 2021- 2032
South East Asia Wood Chips Market Size Outlook by End-User, 2021- 2032
26. Rest of Asia Pacific Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Rest of Asia Pacific Wood Chips Market Size Outlook by Type, 2021- 2032
Rest of Asia Pacific Wood Chips Market Size Outlook by Application, 2021- 2032
Rest of Asia Pacific Wood Chips Market Size Outlook by End-User, 2021- 2032
27. Brazil Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Brazil Wood Chips Market Size Outlook by Type, 2021- 2032
Brazil Wood Chips Market Size Outlook by Application, 2021- 2032
Brazil Wood Chips Market Size Outlook by End-User, 2021- 2032
28. Argentina Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Argentina Wood Chips Market Size Outlook by Type, 2021- 2032
Argentina Wood Chips Market Size Outlook by Application, 2021- 2032
Argentina Wood Chips Market Size Outlook by End-User, 2021- 2032
29. Rest of South America Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Rest of South America Wood Chips Market Size Outlook by Type, 2021- 2032
Rest of South America Wood Chips Market Size Outlook by Application, 2021- 2032
Rest of South America Wood Chips Market Size Outlook by End-User, 2021- 2032
30. United Arab Emirates Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
United Arab Emirates Wood Chips Market Size Outlook by Type, 2021- 2032
United Arab Emirates Wood Chips Market Size Outlook by Application, 2021- 2032
United Arab Emirates Wood Chips Market Size Outlook by End-User, 2021- 2032
31. Saudi Arabia Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Saudi Arabia Wood Chips Market Size Outlook by Type, 2021- 2032
Saudi Arabia Wood Chips Market Size Outlook by Application, 2021- 2032
Saudi Arabia Wood Chips Market Size Outlook by End-User, 2021- 2032
32. Rest of Middle East Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Rest of Middle East Wood Chips Market Size Outlook by Type, 2021- 2032
Rest of Middle East Wood Chips Market Size Outlook by Application, 2021- 2032
Rest of Middle East Wood Chips Market Size Outlook by End-User, 2021- 2032
33. South Africa Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
South Africa Wood Chips Market Size Outlook by Type, 2021- 2032
South Africa Wood Chips Market Size Outlook by Application, 2021- 2032
South Africa Wood Chips Market Size Outlook by End-User, 2021- 2032
34. Rest of Africa Wood Chips Market Analysis and Outlook, 2021- 2032
Key Statistics
Rest of Africa Wood Chips Market Size Outlook by Type, 2021- 2032
Rest of Africa Wood Chips Market Size Outlook by Application, 2021- 2032
Rest of Africa Wood Chips Market Size Outlook by End-User, 2021- 2032
35. Key Companies
Market Share Analysis
Company Benchmarking
SWOT Analysis
36. Recent Market Developments
Appendix
Looking Ahead
Research Methodology
Legal Disclaimer
Raw Material
Type
Applications
Countries Analyzed
USD Analytics forecasts the global Wood Chips market size to increase from $9.4 Billion in 2024 to $14.8 Billion in 2032, registering a CAGR of 5.87% during the forecast period
Largest Segment by Type is Softwood ($6.4 Billion Revenue) Fastest Growing Market by Raw Material is Pulp Wood (68.9% Market Share) Largest Segment by Application is Combined Heat and Power (CHP)
American Wood Resources LLC, Axpo Holding AG, Bio Eneco Sdn Bhd, Cogent Forest Products Inc, Great Northern Timber Inc, LA.SO.LE. EST S.P.A, Mitsui & Co. Ltd, Verdo Holding A/S
Base Year- 2023; Estimated Year- 2024; Historic Period- 2018-2023; Forecast period- 2024 to 2030; Currency: USD; Volume
Asia Pacific