After three difficult years marked by weak demand and thin margins, the European Union's wood pellet industry appears to be turning a corner. Total EU27 production is estimated at 19.8 million metric tons for 2025, only a modest increase from 2024, but industry data point to stronger residential heating demand and rising output heading into 2026 — led once again by Germany, the bloc's largest producer.
EU wood pellet production set to rebound in 2026 as Germany leads renewed growth
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