Japan Biomass Pellets Market Size, Share, and COVID-19 Impact Analysis, By Type (Wood Pellets, Agri Pellets, Torrefied Pellets, and Others), By Application (Power Generation, Industrial Heating, Residential Heating, and Others), and Japan Biomass Pellets Market Insights, Industry Trend, Forecasts to 2035

Japan Biomass Pellets Market Insights Forecasts to 2035

• The Japan Biomass Pellets Market Size Was Estimated at USD 426.6 Million in 2024
• The Market Size is Expected to Grow at a CAGR of Around 4.71 % from 2025 to 2035
• The Japan Biomass Pellets Market Size is Expected to Reach USD 707.5 Million by 2035

According to a Research Report Published by Spherical Insights & Consulting, The Japan Biomass Pellets Market Size is anticipated to Reach USD 707.5 Million by 2035, Growing at a CAGR of 4.71 % from 2025 to 2035. The biomass pellets market in Japan is driven by various factors, including a strong emphasis on renewable energy sources, government support for renewable energy, rising demand for sustainable energy solutions, and technological advancements in biomass production.

Market Overview

Biomass pellets are small, cylindrical pieces of compressed organic material, primarily used as a renewable fuel source. The Japan biomass pellets market refers to the production, trade, and application of biomass pellets. These pellets, typically 6–10 mm in diameter and a few centimetres long, are derived from various organic materials such as wood pellets, agri pellets, torrefied pellets, and others. They are widely used across various applications, including power generation, industrial heating, residential heating, and more. The biomass pellets market is largely driven by the growing need for renewable energy sources, particularly for heating and electricity generation. This growth is further supported by a changing regulatory environment and an increasing focus on sustainability. Additionally, rising consumer demand for biodegradable products is expected to boost biomass pellet sales, as they are made from agricultural or wood waste helping reduce waste and offering eco-friendly benefits.

Report Coverage

This research report categorizes the market for the Japan biomass pellets market based on various segments and regions, and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan biomass pellets market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan biomass pellets market.

Driving Factors

The Japanese government encourages renewable energy, with the goal of having renewables account for 24% of the energy mix by 2030. Policies such as feed-in tariffs and subsidies are increasing demand for biomass pellets to minimize carbon emissions. The Renewable Energy Promotion Act further promotes expanded biomass consumption, which boosts market growth. Increased awareness of the environment and global climate change is compelling Japan to turn to sustainable energy forms. The government aims to cut greenhouse gas emissions by 26% by 2030 (based on the 2013 level), as per the Paris Agreement. This necessitates the use of biomass pellets as a cleaner, sustainable form of energy. Additionally, technological advancements in biomass production play a crucial role in market expansion.

Restraining Factors

The biomass production requires high capital investment, including the cost of equipment, technology, and operational setup, which is the main limiting factor for this market. Additionally, competition from other renewable sources such as solar, wind, and hydropower further limits the market expansion.

Market Segmentation

The Japan biomass pellets market share is classified into type and application.   

• The wood pellets segment held the largest share of the market in 2024 and is expected to grow at a rapid CAGR during the forecast period.    

The Japan biomass pellets market is segmented by type into wood pellets, agri pellets, torrefied pellets, and others. Among these, the wood pellets segment held the largest share of the market in 2024 and is anticipated to grow at a rapid CAGR during the forecast period. This segmental growth is attributed to its high energy density and efficacy. Additionally, they are typically derived from sawmill residues, hence it is the preferred choice for residential and industrial heating.

• The power generation segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.  

The Japan biomass pellets market is segmented by application into power generation, industrial heating, residential heating, and others. Among these, the power generation segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is due to increasing emphasis on renewable energy sources to meet national energy goals and reduce greenhouse gas emissions.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan biomass pellets market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Oji Paper Co.
• Nippon Steel Corporation
• Sumitomo Corporation
• Shimizu Corporation
• RENOVA, Inc.
• Tokushima Tsuda Biomass
• Ishinomaki Hibarino Biomass
• Omaezakikou Biomass
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the Japan, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Japan biomass pellets market based on the below-mentioned segments:

Japan Biomass Pellets Market, By Type

• Wood Pellets
• Agri Pellets
• Torrefied Pellets
• Others

Japan Biomass Pellets Market, By Application

• Power Generation
• Industrial Heating
• Residential Heating
• Others