Global Wood Chips Industry: Key Statistics and Insights in 2025-2033

Summary:

• The global wood chips market  size reached USD 10.3 Billion in 2024.
• The market is expected to reach USD 16.9 Billion by 2033, exhibiting a growth rate (CAGR) of 5.39% during 2025-2033.
• Asia Pacific leads the market, accounting for the largest wood chips market share.
• Softwood exhibits a clear dominance in the market owing to its higher calorific value and widespread availability.
• Forest chips hold the biggest market share, as they are directly sourced from forestry operations, making them a cost-effective and widely available biomass resource.
• Wood chips, as a biomass source, are considered a renewable resource and are used to meet these targets. This is leading to an increasing demand for wood chips in energy production.
• Innovations in forestry equipment, such as more efficient and sustainable tree harvesters, allow for quicker and less labor-intensive gathering of wood chips.

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Industry Trends and Drivers:

• Increasing Energy Production:

Various nations across the world have formulated ambitious and lofty renewable energy targets to reduce carbon emission and achieve climate change mitigation goals. Wood chips, as a biomass source, are considered renewable and are utilized to power these targets. This has therefore increased the demand for wood chips for energy production. Furthermore, wood chips are being co-fired in coal-fired power plants for electricity generation. With this procedure, the carbon footprint of existing coal-fired power plants is reduced and major new infrastructure investments aren't required. This option of wood chip utilization is greatly demanding for energy producers.

• Technological Advancements:

Innovative forestry equipment, including tree harvesters that are much more efficient and sustainable, greatly enhance the quick and less labor-intensive collection of wood chips. This not only reduces the costs involved but also minimizes the negative environmental impacts associated with wood chips, making them even more competitive and sustainable. Moreover, technology advancement during wood processing contributes to producing wood chips of better quality and uniformity, which are important for energy conversion and other industrial applications. Newer chipping machines are capable of producing chips of more uniform size, which is crucial for optimal combustion in a biomass power plant.

• Thriving Pulp and Paper Industry:

Wood chips are mechanically or chemically processed into wood pulp, which is further used for manufacturing paper and paper products. The demand for wood chips is increasing continuously owing to the demand for printing, writing, and various packaging papers. However, the wood chips demand also derives strength from the fact that the modern pulp and paper industries are embarking more and more into sustainable and environmentally friendly practices with regard to sourcing wood chips from well managed forests. Thus, encouraging and enhancing sustainable forestry practices bring stability in wood chip supply.

Our report provides a deep dive into the market analysis, outlining the current trends, underlying wood chips market demand, and growth trajectories.

Wood Chips Market Report Segmentation:

By Product:

• Softwood
• Hardwood

Softwood exhibits a clear dominance in the market owing to its higher calorific value and widespread availability.

By Variety Type:

• Forest Chips
• Recycled Chips
• Wood Residue Chips
• Others
   

Forest chips hold the biggest market share, as they are directly sourced from forestry operations, making them a cost-effective and widely available biomass resource.

By Application:

• Combined Heat and Power (CHP)
• Household Furnishing
• Residential Heating
• Others
   

Residential heating represents the largest segment attributed to the growing demand for sustainable and renewable heating solutions in homes.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Asia Pacific dominates the market due to extensive forestry activities and the increasing adoption of wood chips for energy production.

Top Wood Chips Market Leaders:

The wood chips market research report outlines a detailed analysis of the competitive landscape, offering in-depth profiles of major companies. Some of the key players in the market are:

• 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 

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

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