The North American domestic pellet market, which includes grilling and home heating pellets, is approximately 5.7 million tons in size. The U.S. North accounts for the majority of North America’s capacity at 44%, with the U.S. South at 25%, U.S. West at 22%, Canada East at 8% with Canada West containing just 1%.
Figure 1. Current Domestic Pellet Production Capacity by Region
From the standpoint of individual producers, the domestic pellet market is far more fragmented than the current export pellet market. The top four producers only capture 33% of the total production capacity market with Lignetics producing 20%, Dansons 5%, Traeger Pellet Grills and American Wood Fibers rounding out the top four with 4% each. The export pellet production capacity is much more concentrated, with the top four producers accounting for 80% of total capacity. Enviva has 39%, Drax has 30% with FRAM Renewables and Highland Pellets rounding off the top four with 6% and 4% in terms of market share.
Figure 2. Current Domestic Pellet Production Market Share
Figure 3. Current Export Pellet Production Market Share
Source: The other pellet producers: North American domestic market - Forisk