South Africa Wood Pellet Market

South Africa Wood Pellet Market Overview:

The South Africa wood pellet market size reached USD 62.79 Million in 2024. The market is projected to reach USD 101.40 Million by 2033, exhibiting a growth rate (CAGR) of 5.47% during 2025-2033. Utilizing forestry byproducts for pellet manufacturing adheres to the circular economy principles, minimizing waste and promoting green energy objectives. Besides this, government incentives for renewable energy projects and private sector participation are encouraging the establishment of biomass plants, thus contributing to the expansion of the South Africa wood pellet market share.

South Africa Wood Pellet Market Trends:

Abundant forestry resources

Abundant forestry resources act as a fundamental driver for the South Africa wood pellet market, as they provide a sustainable and cost-effective raw material base for pellet production. The country benefits from extensive forest coverage, which includes both natural forests and vast plantation areas that are actively managed for timber, pulp, and paper industries. As per the World Population Review, forest area coverage of South Africa was 14.1% in early 2025. Forestry resources generate significant volumes of by-products, such as sawdust, wood chips, bark, and other residues, which would otherwise go underutilized but can be effectively converted into value-added wood pellets. The availability of this raw material ensures steady supply at competitive costs, making South Africa well-positioned to meet both domestic demand and export requirements. Furthermore, using forestry residues for pellet production aligns with the principles of the circular economy, reducing waste while supporting renewable energy goals. Local forestry industries also benefit economically by diversifying revenue streams through pellet supply chains. Additionally, the presence of abundant raw material enables the scalability of operations, supporting rural employment opportunities.

Expansion of biomass power plants

The broadening of biomass power plants is impelling the South Africa wood pellet market growth. In October 2024, Navosync announced intentions to construct the kuze Biomass Power Plant, a 16.5MW biopower initiative, in KwaZulu-Natal, South Africa. The project aimed to produce 132,000MWh of electricity, providing sufficient clean energy to support 40,000 homes. With increasing concerns about climate change and the need to diversify the energy mix, biomass plants are gaining momentum as sustainable alternatives to coal and other fossil fuels. Wood pellets, due to their high energy density and low emissions profile, are increasingly preferred by investors and project developers in this space. Government incentives for renewable energy projects and private sector participation are further encouraging the establishment of biomass plants across the country. This surge in biomass infrastructure is creating stable and large-scale demand for wood pellets, ensuring consistent market growth.

Rising export activities

Increasing export activities are positively influencing the market in South Africa. According to Volza's export data on ‘Wood Pellets from South Africa’, from November 2023 to October 2024, 12 suppliers participated, with Toolmaster Sales Pty Ltd, PICK AND PAY, and SPAREPRO comprising 50% of the total wood pellets exports from South Africa. South Africa’s strategic geographic location and established port infrastructure make it a favorable hub for pellet exports. Rising global regulations on reducing carbon emissions have increased the reliance on wood pellets as a substitute for coal in power generation, creating sustained external demand. By tapping into exports, local manufacturers are gaining higher revenue streams and economies of scale, which in turn aid in attracting further investments into production facilities.

South Africa Wood Pellet Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on feedstock type and application.

Feedstock Type Insights:

• Forest Wood and Waste
• Agriculture Residue
• Others

The report has provided a detailed breakup and analysis of the market based on the feedstock type. This includes forest wood and waste, agriculture residue, and others.

Application Insights:

• Power Plants
• Residential Heating
• Commercial Heating
• Combined Heat and Power (CHP)
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes power plants, residential heating, commercial heating, combined heat and power (CHP), and others.

Regional Insights:

• Gauteng
• KwaZulu-Natal
• Western Cape
• Mpumalanga
• Eastern Cape
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Gauteng, KwaZulu-Natal, Western Cape, Mpumalanga, Eastern Cape, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

South Africa Wood Pellet Market Report Coverage:

Key Questions Answered in This Report:

• How has the South Africa wood pellet market performed so far and how will it perform in the coming years?
• What is the breakup of the South Africa wood pellet market on the basis of feedstock type?
• What is the breakup of the South Africa wood pellet market on the basis of application?
• What is the breakup of the South Africa wood pellet market on the basis of region?
• What are the various stages in the value chain of the South Africa wood pellet market? 
• What are the key driving factors and challenges in the South Africa wood pellet market?
• What is the structure of the South Africa wood pellet market and who are the key players?
• What is the degree of competition in the South Africa wood pellet market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the South Africa wood pellet market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the South Africa wood pellet market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the South Africa wood pellet industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.