After price spikes in 2022 due to international tensions and uncertainties over raw material supplies, the global pellet market is showing signs of stabilisation, with Europe and Italy at the centre of this development.
Price stabilisation and capacity growth
The year 2022 was characterised by a surge in pellet prices, caused by geopolitical tensions and difficulties in the supply chain. However, the market is now seeing a stabilisation phase, supported by increases in production capacity in countries such as Austria, France and Sweden. These increases are driven by proactive environmental policies and growing ecological awareness among consumers.
Impact of climate change and long-term contracts
Climate change, which is leading to milder winters, may reduce residential pellet consumption. Despite this, the industry sector maintains robust demand thanks to long-term contracts. These contracts offer economic stability that balances the variability of residential consumption.
Italy and the Development of National Production Chains
Italy is committed to reducing import dependency and is developing domestic production chains. These efforts are in line with the 2030 decarbonisation targets, which foresee a significant increase in the use of renewable energies and a 33% reduction of CO2 emissions in non-ETS sectors.
Resumption of pellet appliance sales
After a period of decline in 2023, the first half of 2024 marked a positive change for pellet appliance sales. The data show encouraging signs of recovery, indicating renewed consumer confidence and a recovering market.
The global pellet market is going through a phase of stabilisation and sustained growth. With increasing production capacity in Europe, favourable environmental policies and national efforts such as those in Italy, the future of pellets looks promising. The recovery of pellet appliance sales in 2024 further underlines this positive trend.
