Biomass Briquette Market Size, Share and Trends 2025 to 2034

Emerging economies such as India, China, and Brazil are scaling up briquette usage by utilizing agricultural residues and pursuing renewable energy targets. Simultaneously, Western countries are focusing on decarbonizing heating systems, contributing to rising global demand for renewable solid biofuels.

Both public and private sectors are investing in R&D to improve the energy content, combustion efficiency, and storage stability of biomass briquettes. Governments are funding pilot projects in biomass densification and co-firing technologies, aiming to meet efficiency benchmarks and environmental compliance.

National renewable energy programs are attracting investment from utilities, agro-processing companies, and public-private partnerships. These stakeholders are supporting the development of production plants and biomass supply chains, often through aggregation models to ensure consistent feedstock supply and market reliability.

The wood briquettes segment led the market in 2024, capturing about 39.9% share. This is mainly due to the increased preference for wood briquettes for their high energy density, consistent combustion properties, and versatility across industrial applications, particularly in heating and co-firing systems. Compared to fossil fuels, they offer advantages such as ease of handling, low ash content, and enhanced sustainability. The rising use of wood-based residues from sawmills and the furniture industry continues to fuel growth in this segment, positioning wood briquettes as a reliable and eco-friendly energy alternative.

The charcoal briquettes segment is expected to expand at a 7.2% CAGR over the projection period. This segment’s growth is driven by increasing consumer demand for green alternatives to traditional charcoal, particularly for residential and commercial heating. Additionally, advancements in low-emission carbonization technologies and the growing adoption of charcoal briquettes in co-firing and industrial applications, especially in developing economies, are expected to accelerate this segment’s expansion, making it one of the fastest-growing subsegments in the biomass briquette market.

In 2024, the cylindrical briquettes segment accounted for approximately 31.4% share of the market due to their high compressive strength, easy storage convenience, and effective burning characteristics. Additionally, cylindrical briquettes are compatible for use in a variety of biomass boilers and industrial furnaces, which is valuable for larger energy operations. The uniform size and low moisture level of these briquettes contribute to their fuel efficiency, and they continue to be adopted strongly by both industrial and residential sectors.

The hexagonal briquettes segment is expected to grow at a 7.3% CAGR during the forecast period of 2025-2034 due to their better burning efficiency and hollow design, which promotes more air circulation while combusting. Demand for hexagonal briquettes is being fueled by increasing use in barbeques, cooking, and/or heating applications in smaller residential settings. Increasing technology with extrusion machinery and an increasing preference for high-performance low-emission biomass fuels are also helping to accelerate growth in this segment, nationally and globally.

The heating segment dominated the market while holding about 42.2% share in 2024. The segment’s dominance is attributed to the rapid adoption of biomass briquettes as a cleaner, cheaper fuel alternative to coals and other fossil fuels in industrial and residential heating applications. The demand for space and processing heating is increasing, especially in cold regions, while tougher emission regulations continue to create a favorable profile for the use of briquettes for sustainable thermal energy generation.

The power generation segment is expected to grow at the fastest CAGR of 7.3% in the upcoming period. This is mainly due to the rising investments in biomass-based power generation and the broader shift toward renewable energy utilization. The use of biomass briquettes in co-firing with coal is gaining traction, as it helps reduce greenhouse gas emissions while enhancing the efficiency of coal-fired power plants. Further accelerating this trend are supportive government policies, renewable energy targets, and the increasing demand for decentralized (stranded) power solutions, particularly in remote or underserved regions. These factors are collectively fostering asynchronous yet rapid adoption of biomass briquettes in power generation across both developed and emerging economies.

The power plants segment led the market in 2024, accounting for approximately 52.2% share. This is primarily due to the extensive usage of biomass briquettes as a renewable fuel alternative in thermal power production. Biomass briquettes have a consistent calorific value, low sulfur emissions, and can be co-fired with coal, making them an ideal fuel source for co-firing. The ambition to decarbonize the energy system and transition away from fossil fuels globally reinforces the prominence of this segment.

The commercial segment is expected to grow at a CAGR of 7.5% during the projection period, driven by the increasing adoption of biomass briquettes by hotels, restaurants, and institutional facilities for clean heating and cooking. As businesses intensify efforts to meet sustainability targets and comply with emissions regulations, biomass briquettes are emerging as a cost-effective, renewable alternative to conventional fuels. Moreover, rising awareness of the economic and environmental benefits of briquettes, along with the availability of customized solutions for smaller-scale commercial applications, is further supporting this segment’s growth.

North America is expected to experience the fastest growth during the forecast period. This momentum is driven by public investment programs that promote forest-based biomass innovations, focusing on converting wood residues into a reliable commercial supply. Growing interest in biomass for distributed heating and industrial applications is further accelerating regional demand.

Government grants and innovation initiatives are effectively lowering barriers related to technology adoption and logistics. These efforts enable the densification of woody residues and lower-value roundwood into briquettes for use in local industries, district heating systems, and as exportable bio-products. Significant capital influx through public funding is expediting the modernization of sawmill by-product management and the development of aggregation hubs, which enhance feedstock supply chains and mitigate seasonal shortages. These advancements collectively strengthen North America’s position as a key growth region in the global biomass briquette market.

U.S Biomass Briquette Market Trends

The U.S. continues to lead regional growth in the market, supported by robust production capacity and employment in densified biomass fuels. As of May 2025, the country hosts 75 operating producers with a combined production capacity of 13.04 million tons annually, employing approximately 2,417 full-time workers.

In the same period, U.S. producers procured 1.8 million tons of raw biomass, produced 0.90 million tons of densified fuel, and sold 0.85 million tons of these briquettes and pellets. This operational stability underscores the U.S. government’s strong commitment to advancing sustainable energy objectives and fostering a circular economy.

• Furthermore, federal initiatives actively promote growth in both domestic production and export markets for renewable heating fuels, signaling sustained support for briquette and pellet manufacturing as vital components of the renewable energy landscape.

Europe’s biomass briquette sector is experiencing robust growth, underpinned by strong regulatory frameworks, ambitious decarbonization targets, and increasing demand for locally sourced renewable heating fuels. The European Union’s Renewable Energy Directive (RED III) mandates sustainable biomass procurement, which is catalyzing investment in briquette production using regional agricultural and forestry residues. These converging factors are reinforcing Europe’s position as a key market for biomass briquettes, reducing dependence on imported fossil fuels, and advancing the continent’s 2050 carbon neutrality goals.

UK Biomass Briquette Market Analysis

The UK stands out as a leading market in Europe, driven by evolving clean energy policies and stringent sustainability regulations. The UK’s decision to tighten biomass subsidy rules and mandate timber certification has solidified the market for briquette production using domestic feedstock. Additionally, increased investments in carbon-neutral heating infrastructure and active public-private partnerships are fostering innovation in densified biomass technologies. These efforts are cementing the UK’s leadership role in advancing Europe’s transition toward sustainable biofuels.

Collected biomass undergoes processing, shredding, and drying to significantly reduce moisture content. Properly processed and dried biomass enhances briquette quality, combustion efficiency, and addresses key storage and transportation challenges.

Dried biomass is compressed using mechanical or hydraulic briquetting machines. This stage determines briquette density, shape, and energy content—factors that directly influence the final market value and application suitability of the briquettes.

Finished briquettes are distributed through wholesalers, distributors, and retailers to serve both industrial and residential consumers. Efficient logistics and regional supply chains are essential to optimize pricing while minimizing transportation costs.

Biomass briquettes are widely used in power generation, utility boilers, and residential heating. Demand fluctuations across these sectors drive market growth and support the broader transition towards renewable energy adoption.