The wood pellet market, valued at $12 billion in 2023, saw a significant drop last year compared to the highs of 2022. High stock levels and reduced consumption due to a mild winter were the main factors influencing the European pellet market, leading to a substantial decline in consumer prices. However, the early months of 2024 have shown an encouraging trend reversal in pellet appliance sales. It is expected that the Italian market will finally return to the traditional cyclicality of pellet prices in 2024.
For the European market, experts predict a year of stability, overcoming the significant imbalances between supply and demand that characterized the past two years. As of April 2024, market trends show a decrease in pellet costs compared to the previous year, making pellets an even more cost-effective home heating option than natural gas. The national average price of pellets, according to April 2024 data, is €5.4 per 15 kg bag, with a 14% saving compared to the same month last year, equivalent to about €1 per bag. This price reduction is positive news for consumers, especially considering the recent increases in energy prices.
The rapid expansion of biomass pellet markets raises increasing concerns along the entire pellet supply chain, from production to storage and final use. A European Union-funded project has been launched to develop guidelines for monitoring safety and quality.
Beech, birch, poplar, and spruce are some of the pellet varieties available, each suitable for different needs. In Italy, the demand for pellets has significantly increased in recent years. However, despite their growing popularity, imports outweigh domestic production. Data collected from 21 countries show that most consumers choose pellets for their lower cost compared to other energy solutions (52%) and their lower environmental impact (56%). Besides price, the quality and sustainability of the material are decisive factors in purchasing decisions.
Wood pellets are stored in dedicated areas to prevent crumbling during filling. Compared to other products, pellets require a special warehouse and appropriate storage service, including temperature management for conservation. All stages of pellet warehouse management and storage are meticulously followed, ensuring compliance with the highest quality standards, from conservation and packaging to distribution to retail points and large distribution.