6/13/2025

Strategic Challenges of Biofuel Trading in 2024: Market Analysis and Inflame's Solutions for 2025

Strategic Challenges of Biofuel Trading in 2024: Market Analysis and Inflame's Solutions for 2025
The year 2024 marked a period of trials and transformation for the European wood pellet and briquette market. After years of growth, the sector faced its first slowdown. According to Bioenergy Europe, pellet consumption remained stable but did not increase, while sales of new boilers and stoves hit a five-year low. At the same time, the market experienced an oversupply, putting pressure on prices and pushing companies to seek new approaches.

Key Challenges of 2024

Mild winter 2023/24: This significantly reduced the demand for heating materials. High inventory levels after the 2022 price peak further decreased purchasing activity.

Drop in equipment sales: The European Pellet Council reported that pellet boiler and stove sales in early 2024 were down nearly 30% compared to 2022.

Price volatility: Prices in Western Europe stabilized in the second half of 2024 at €350–420/t, but the market became even more sensitive to seasonal and political factors (Argus, December 2024).

Competition from heat pumps: Despite a drop in heat pump sales in 2024 (Euractiv), this segment remains the primary competitor to biofuels in the private heating sector.

‍

What Did We Learn From the 2024 Market?

  • The pellet market is no longer growing by default.

Growth has stalled due to the mild winter, high warehouse stocks, and fewer new heating installations. Success now depends on stability, quality, and service.

  • Clients value transparency and partnership.

Simply selling is not enough — responsiveness, flexible contracts, and proactive support are becoming crucial.

  • Quality and certification are the foundation of trust.

In 2024, buyers paid even closer attention to product origin and standards. ENplus and FSC certification are now essential for cooperation.

  • Customer education is the new trend.

Many users lack knowledge on selecting, storing, or efficiently using pellets. Providing education and guidance is now part of a quality service offering.

‍

Inflame’s Strategic Actions for 2025

  • Expanding our pool of certified suppliers

Ensuring a consistent stock of high-quality products — even during peak demand — is a top priority.

  • Implementing digital tools for clients

We’re integrating CRM solutions to allow customers to track their orders in real time and improve communication.

  • Supporting long-term and flexible contracts

A contract is not just a formality — it’s a foundation of mutual stability. We adapt to the needs of our regular partners.

  • Focusing on service and education

In 2025, we will invest even more in customer support, product guidance, and service improvements for end users.

‍

2024 taught us that trust, stability, and continuous service development are key to successful cooperation. That’s exactly where Inflame is focusing its efforts in 2025.

‍