The United States continues to serve as a high-growth engine for the global biomass industry, characterized by its dual role as the world’s leading exporter and a rapidly expanding domestic consumer. In 2026, the U.S. market is leveraging a sophisticated forestry supply chain and stringent renewable energy mandates to maintain a dominant regional position. 

The wood pellet market was valued at US$ 9,630.99 million in 2020 and is projected to reach US$ 23,892.77 million by 2028; it is expected to grow at a CAGR of 12.1% from 2021 to 2028.

Market Growth Analysis: United States

The U.S. wood pellet market growth is entering a phase of structural expansion, moving beyond traditional residential heating into high-tech industrial applications and sustainable fuel feedstocks. Several key factors are accelerating this growth:

1. Residential Energy Security and Fossil Fuel Replacement

In the domestic market, specifically the Northeast U.S., growth is driven by the volatility of heating oil and propane prices. Wood pellets offer a regionally sourced, price-stable alternative. Federal tax credits, such as the Section 25D credit, have made the installation of high-efficiency, automated pellet boilers economically attractive for homeowners. This has led to a consistent increase in domestic premium-grade pellet consumption, which now accounts for a significant portion of the North American market share.

2. Emerging Industrial Applications: SAF and Bio-Coal

The U.S. market is witnessing a shift toward high-value industrial uses. A primary growth catalyst in 2026 is the use of wood pellets as a feedstock for Sustainable Aviation Fuel (SAF). With major production facilities scheduled for construction in Texas and the Gulf Coast, the demand for industrial-grade pellets as a primary carbon-neutral feedstock is expected to create a multi-billion dollar niche market by 2030.

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Competitive Landscape and Top Industry Players

The U.S. competitive field is led by vertically integrated biomass giants and specialized manufacturers focusing on sustainable forestry management and international port logistics.

Key players leading the market include:

  • Enviva Inc.

  • Drax Group PLC

  • Graanul Invest

  • Lignetics, Inc.

  • Highland Pellets LLC

  • Fram Renewable Fuels LLC

  • Segezha Group

  • Energex American Inc.

  • Biopower Sustainable Energy Corp

  • Curran Renewable Energy LLC

2031 Forecast: The Future of U.S. Biomass

By 2031, the U.S. wood pellet market will be defined by Digital Traceability and Advanced Torrefaction. We anticipate the mainstream adoption of blockchain-based tracking to verify the sustainability of every ton produced, satisfying the stringent ESG requirements of global utilities and aviation partners.

As the industry moves toward 2031, the combination of Chemical Pretreatment—which increases the energy density of pellets—and the expansion of the Circular Bioeconomy will ensure that wood pellets remain the premier choice for the high-efficiency, renewable energy ecosystem in the United States.

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