Wood Chips Market Share, Size, and Growth Analysis 2025-2033

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:

Carbon emissions reduction and abatement of climate change remains an objective with many countries setting ambitious renewable energy targets. Wood chips, considered to be biomass, are deemed renewable for purposes of meeting targets. Hence, this has led to an increasing demand for wood chipping in energy enterprises. In addition, wood chips are co-fired with coal in thermal electric generation, whereby reductions in the carbon footprint of an existing coal-fired power plant can be made without expenditures in new major infrastructure. Such an avenue for using wood chips is driving demand amongst energy producers.

• Technological Advancements:

Innovation in forestry equipment, such as tree harvesters of enhanced efficiency and sustainability, permits rapid and less labor-intensive gathering of wood chips. This endeavor not only saves the cost but also reduces the environmental burden, rendering wood chips more competitive and sustainable. In addition, advancements in wood processing technologies aimed at achieving greater quality and consistency in wood chips are important for energy and other industrial applications. Modern chipping machines have the capacity to produce very uniform chip sizes, which are essential for best combustion in biomass power plants.

• Thriving Pulp and Paper Industry:

Wood chips are transformed into wood pulp, either mechanized or chemically, and are subsequently manufactured into paper and paper products. Various types of paper are manufactured for printing, writing, and packaging materials, thereby creating a demand for wood chips. Also, as the pulp and paper industry is moving toward sustainable and environmental practices, wood chips from responsibly managed forests are gaining in desirability. This development promotes sustainable forestry practices that, in turn, buttress the steady supply of wood chips.

We explore the factors driving the growth of the market, including technological advancements, consumer behaviors, and regulatory changes, along with emerging wood chips market trends.

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 

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