Wood Chips Market: Global Industry Analysis and Forecast 2025-2032

The Wood Chips Market size was valued at USD 8.92 Billion in 2024 and the total Wood Chips revenue is expected to grow at a CAGR of 10.3 % from 2025 to 2032, reaching nearly USD 19.54 Billion.
Wood Chips Market Overview
The Wood chips are small-to-medium-sized wood pieces created by cutting and chipping large pieces of wood such as trees, logging leftovers, branches, roots, stumps, and wood trash. Depending on the kind of wood chip processing, each chipper has a different purpose. Residual forest resources, such as tree branches, treetops, unsaleable materials, or undersized trees, can also be used to make wood chips. Degrading bioreactors, orchards, and gardens are frequently constructed with woodchips.

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Wood Chips Market Dynamics
The wood chip on the energy market begins to shift substantially with the introduction of several major projects that may create new supply markets. In small plants, usually little more than 20MW in size, wood chips are utilized throughout Europe for electricity and heat generating. Also, the increase in the use of renewable energy sources such as biomass as a result of the depletion of traditional energy sources promotes the market in wood chips. Increased demand for pulp chips in wood chips is also increasing in the pulp market, with wood chips being used as a raw material to create pulp.

In addition, market growth is expected to be driven by increased usage of the product for domestic heating solutions, primarily in Europe and North America. The market is likely to benefit from rising demand for generating thermal energy from renewable and green feedstock products. Wood chips have a high energy coefficient, allowing them to meet high demand throughout the forecast period.

Restraints: The wood chips market is likely to be hampered by the requirement for sustainability-related certifications and limitations imposed on GHG emissions from wood chips when used for energy generation. In addition, the growing use of wood pellets for power production in the residential and commercial sectors may limit the growth of the wood chips market during the forecast period.
Wood Chips Market Segmentation Analysis
By wood Type, the Softwood chips segment holds the largest market share in the Global Stainless Steel Fermenter Market. According to MMR analysis, the segment is further expected to grow at a CAGR of 10.4% during the forecast period. The wood chip market is segmented based on wood type, primarily into softwood and hardwood categories. Softwood chips, derived from coniferous trees like pine and spruce, are predominantly utilized in applications such as gardening mulch and playground surfacing. Hardwood chips, sourced from deciduous trees like oak and maple, are valued for their higher carbon content and are extensively used in landscaping, ecosystem restoration, and as raw materials in denitrification bioreactors. While the hardwood segment is experiencing moderate growth due to increasing demand in these areas, the softwood segment continues to dominate the market. This dominance is attributed to the broader availability of softwood resources and their cost-effectiveness, making them a preferred choice for various industrial and commercial applications.
Regional Insights
The Asia Pacific market is expected to account for xx% of revenue in the global market. This is linked to the growing use of wood chips for domestic heating in the region's countries. A large pipeline of biomass projects is being developed in Japan, thanks to the Feed-in-Tariff subsidy system. Japan is one of the world's major exporters of wood chips for pulp and paper, is expected to boost its usage of wood chips for energy generation in the country.

Furthermore, the North American market is expected to have the second-highest revenue share in the global market. In Europe and North America, stringent restrictions are expected to raise demand for wood chips. Wood chips have long been utilized in small-scale (20MW) facilities in Europe to generate heat and power. Locally grown wood is utilized to create heat the majority of the time in Europe.
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Wood Chips Market


Report Coverage
Details


Base Year:
2024
Forecast Period:
2025-2032


Historical Data:
2019 to 2024
Market Size in 2024:
USD 8.92 Bn.


Forecast Period 2025 to 2032 CAGR:
10.3%
Market Size in 2032:
USD 19.54 Bn.


 Segments Covered:
by Wood Type
Softwood Chips
Hardwood Chips


by Source
Forest Residues
Sawmill Residues
Short Rotation Coppice (SRC)
Whole Tree Chips


by Application
Pulp & Paper
Bioenergy & Biomass Power Plants
Wood Pellets & Briquettes
Mulching & Landscaping
Animal Bedding
Others



Wood Chips Market by Region
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
North America (United States, Canada and Mexico)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Wood Chips Market, Key Players are:
1. Axpo Holding AG
2. Cogent Forest Products Inc.
3. Great Northern Timber Inc.
4. LA.SO.LE. EST S.P.A.
5. Orsted
6. Sojitz
7. Rentech
8. Chip Chip
9. Eastwood Energy
10. Jamrow
11. CMPC (Latin America)
12. Suzano (Latin America)
13. Vietnam Woodchip and Pulp Co., Ltd. (Vietnam)
14. Gunns Limited (Australia)
15. Midway Limited (Australia)
16. Nippon Paper Group (Japan)
17. Oji Holdings Corporation (Japan)
18. Södra Skogsägarna (Sweden)
19. Canfor Corporation (Canada)
20. West Fraser Timber Co. Ltd. (Canada)
21. Georgia-Pacific LLC (USA)
22. Weyerhaeuser Company (USA)
23. Rayonier Inc. (USA)
24. Polythetic Corporation (USA)
25. Others
Frequently Asked Questions
1. What is the projected market size & growth rate of the Global Wood Chips Market?

Ans- Wood Chips Market was valued at USD 8.22 billion in 2023 and is projected to reach USD 16.12 billion by 2030, growing at a CAGR of 10.1% during the forecast period.

2. What are the key driving factors for the growth of the Global Wood Chips Market?

Ans- Market growth is expected to be driven by increased usage of the product for domestic heating solutions, primarily in Europe and North America. The market is likely to benefit from rising demand for generating thermal energy from renewable and green feedstock products. Wood chips have a high energy coefficient, allowing them to meet high demand throughout the forecast period.

3. Which region accounted for the largest Global Wood Chips Market share?

Ans- The Asia Pacific market is expected to account for xx% of revenue in the global market. This is linked to the growing use of wood chips for domestic heating in the region's countries. A large pipeline of biomass projects is being developed in Japan, thanks to the Feed-in-Tariff subsidy system.

4. What makes North America a Lucrative Market for Global Wood Chips Market?

Ans- the North American market is expected to have the second-highest revenue share in the global market. In North America, stringent restrictions are expected to raise demand for wood chips.

5. What are the top players operating in the Global Wood Chips Market?

Ans- The major players operating in the Wood Chips market include Cogent Fibre, EVOWORLD GmbH, Enviva Pellets, St. Boniface Ballet, American Wood Resources, and Boniface Pallet Company Ltd.