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The wood pellet production industry is one of the industries in the BCG economy that tends to grow in tandem with the capacity of renewable energy power plants. Production has been supported and promoted by the government. The outlook of the Wood Pellets Manufacturing Industry in Thailand by Krungthai COMPASS estimated that the value of the industry is to expand to 2.6 billion baht by 2025 from 1.4 billion baht in 2021, or an accelerated average growth of 17%CAGR. This will be driven by domestic sales of wood pellets and exports. As Thailand's wood pellet industry continues to grow, the demands come especially from the agro-processing and chemical industries, as well as biomass and coal-fired power plants. This will enable the production of thermal energy and electricity generation, while emitting less carbon dioxide in the production process than using conventional fuels.

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