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8 MARKET BEATS MAR/APR 2026 FDM ASIA | www.fdmasia.com

pxhere.com crossed the $1 billion export threshold for the first time.
The rapid rise in global demand for sustainable bioenergy,
especially from Japan and South Korea, has transformed
humble timber waste into one of Vietnam’s most dynamic
exports, as reported by vietnamnet.vn.
According to data from Vietnam Customs, wood pellet

exports reached $1.08 billion in the first 11 months of
2025, marking a 52 percent increase over the same period
in 2024. This surge makes pellets the fastest-growing
product in Vietnam’s wood industry.
In 2025, Vietnam’s total wood and wood product exports
hit $17.3 billion, with pellets alone accounting for seven
percent of that figure—up significantly from 4.8 percent
the previous year.
Made from production leftovers such as sawdust,

“Within the energy component of the consumer price index branches, and wood chips, pellets offer high energy
(CPI), heating oil proved to be a stabilising factor in 2025,” density, long burning times, and low emissions. Their
said Managing Director Martin Reichard. clean-burning properties have attracted eco-conscious
markets in Japan, South Korea, and increasingly, the EU.
US wood pellet exports up In 2024, Vietnam exported 6.03 million tonnes of wood
The US exported 964,860.7 metric tonnes of wood pellets pellets, earning USD 805.27 million—up 29.1 percent
in January, up from 834,615 metric tonnes in December and in volume and 18.5 percent in value compared to the

825,269.9 metric tonnes in January 2025, according to data previous year.
released by the USDA Foreign Agricultural Service on March 12. Japan and South Korea accounted for a combined 94
The US exported wood pellets to more than a dozen percent of Vietnam’s pellet exports.
countries in January. The UK was the top destination for US The global push toward renewable energy has turned
wood pellet exports at 805,760.3 metric tonnes, followed by wood pellets into a vital fuel source for thermal power
Denmark at 97,026 metric tonnes and the French West Indies plants and industrial heating systems.
at 43,119 metric tonnes. As countries tighten carbon emissions targets, demand
The value of US wood pellet exports reached $189.5 million for low-emission fuels like pellets is expected to grow
in January, up from $164.19 million the previous month and even more.

$157.96 million in January of the previous year. Despite the billion-dollar milestone, industry experts from
Forest Trends warn that Vietnam’s pellet sector remains
Vietnam's wood pellet exports set record vulnerable. The industry still relies heavily on secondary
Surging demand from Japan and South Korea turns sawdust raw materials—waste products from other wood processing
and forest debris into gold for Vietnam’s wood industry. operations—and lacks dedicated supply zones.
Vietnam’s timber industry has achieved a historic milestone, This dependency exposes pellet producers to fluctuations
as wood pellets—once seen as mere byproducts—have now in availability, pricing, and seasonal constraints.