The wood fuel pellet industry has been growing rapidly in recent years. The survey results reported here are focused on the annual production, raw material, production cost rankings, market radius, barriers to market expansion, and other data that give an overview of the industry during a very difficult economic period. Eighty-four mills across the United States were contacted and 53 responded. The average volume of production was over 59,000 tons per year. Raw materials for pelletizing and labor were the principal costs of production according to respondents. Market demand and capital costs were cited as the chief barriers to expansion.

The industry is clearly subject to market forces that influence the cost and availability of raw materials as well as the cost of heating fuel alternatives such as oil. Despite the economic difficulties, demand continues to grow for pellet fuels both in the United States and in Europe.