South Korea Biomass Pellets Market Size, Share, and COVID-19 Impact Analysis, By Type (Wood Pellets, Agri Pellets, Torrefied Pellets, and Others), By Source (Industrial -product, Agriculture Residue, Food Waste, Energy Crops, Virgin Lumber, and Others), and South Korea Biomass Pellets Market Insights, Industry Trend, Forecasts to 2035

South Korea Biomass Pellets Market Insights Forecasts to 2035

• The South Korea Biomass Pellets Market Size was Estimated at USD 281.2 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 5.97% from 2025 to 2035
• The South Korea Biomass Pellets Market Size is Expected to Reach USD 532.12 Million by 2035

According to a research report published by Spherical Insights & Consulting, The South Korea Biomass Pellets Market Size is anticipated to reach USD 532.12 Million by 2035, growing at a CAGR of 5.97% from 2025 to 2035.  South Korea's Green New Deal, which promotes biomass as a cleaner alternative to fossil fuels, is driving the market's expansion.

Market Overview

The South Korea biomass pellets market refers to the production, importation, and use of biomass-based pellets, mainly wood pellets, for residential, commercial, and power generation purposes are all included in the South Korea Biomass Pellets Market. Additionally, A plentiful supply of biomass feedstock is available from the local agricultural sector for use in the production of pellets. In addition to reducing waste, South Korea can boost rural economies by incorporating agricultural waste and residues into the biomass supply chain. Furthermore, establishing alliances between energy users and biomass producers may open up new avenues for market expansion. Co-firing technology, in which biomass pellets are mixed with coal to produce cleaner energy, is becoming more and more popular in power plants. This shows that the potential of biomass to help move away from reliance on coal is becoming increasingly acknowledged. Moreover, there is a trend toward enhancing the effectiveness and quality of the processes used to produce biomass pellets, making sure they satisfy the requirements of both domestic and international markets. The demand for biomass pellets is being driven by consumers' growing awareness of environmental sustainability, which positions South Korea as a major player in the global renewable energy market.

Report Coverage

This research report categorizes the market for the South Korea 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 South Korea biomass pellets market. Recent market developments and competitive strategies such as expansion, product launch, and 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 South Korea biomass pellets market.

Driving Factors

In South Korea, the production of biomass pellets is now more economical and efficient due to technological developments in biomass processing. The yield and quality of biomass pellets are increasing due to advancements in processing methods and machinery. Industry organizations have reported that improved processing not only lowers production costs by about 20% but also enables businesses to use a greater range of raw materials, strengthening supply chains and increasing market potential overall. The construction and implementation of cutting-edge processing facilities, backed by regional research institutes and universities, demonstrate a dedication to developing the South Korean biomass pellets market industry. The use of biomass as a renewable energy source is anticipated to increase as operational efficiencies rise, which will increase market demand.

Restraining Factors

The environmental effects of biomass, especially imported wood pellets, have drawn criticism, primarily for their carbon emissions and deforestation. In South Korea, this has led to increased regulations and public concern, which has lowered investor confidence and slowed market growth.

Market Segmentation

The South Korea biomass pellets market share is classified into type and source.

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

The South Korea biomass pellets market is segmented by type into wood pellets, agri pellets, torrefied pellets, and others. Among these, the wood pellets segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. Wood pellets have a significant place and are frequently chosen for their high energy content and adaptability in both industrial and residential heating applications.

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

The South Korea biomass pellets market is segmented by industrial-product, agriculture residue, food waste, energy crops, virgin lumber, and others. Among these, the industrial-product segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. Since South Korea's industrial sector is always looking for sustainable ways to manage waste, industrial products play a significant role. This source is especially valuable for producing biomass, ensuring less landfill space is used, and encouraging recycling programs.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korea 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

• Hanah G&B Co., Ltd.
• Woojoo Ind. Co. Ltd.
• Korum Co., Ltd.
• Korea Biomass Energy
• Others

Recent Developments:

• In December 2024, South Korea announced a major reform of government support for biomass energy, phasing down subsidies for most biomass categories. The Ministry of Trade, Industry and Energy (MOTIE), Korea Forest Service, and Ministry of Environment’s joint initiative, titled “Plans to Improve the Biomass Fuel and Power Market Structures,” aimed to address domestic and international criticism of biomass for its environmental impacts. As the largest policy rollback of its kind in Asia, this reform was poised to curtail the rapid and often unchecked growth of the biomass industry in the region.

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 South Korea, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the South Korea Biomass Pellets Market based on the below-mentioned segments:

South Korea Biomass Pellets Market, By Type

• Wood Pellets
• Agri Pellets
• Torrefied Pellets
• Others

South Korea Biomass Pellets Market, By Source

• Industrial -product,
• Agriculture Residue
• Food Waste
• Energy Crops
• Virgin Lumber
• Others