Market Overview

Last updated: 4 Sept 2025

8 Views

Market Overview

The global renewable energy market, particularly the biomass sector, is experiencing robust growth as industries and governments shift towards sustainable energy solutions. According to international energy reports, biomass is projected to grow at a CAGR of 67% over the next decade, driven by the dual pressures of decarbonization and rising fossil fuel costs. Global Market: Japan, South Korea, and the European Union are among the largest importers of biomass, supported by strong renewable energy policies and subsidies. Their demand centers on Palm Kernel Shell (PKS), Palm Kernel Shell Charcoal, Palm Kernel Expeller, wood pellets, and activated carbon.

Domestic Market (Indonesia):

Local industries, particularly cement plants, textile manufacturers, and independent power producers, are under pressure to reduce coal usage due to national commitments to lower carbon emissions. This creates a stable domestic demand base for biomass energy sources. Indonesia, being one of the worlds largest producers of palm oil and wood products, holds a strategic advantage as a long-term biomass supplier, with abundant raw materials and close proximity to premium export markets.

Target Market

Demographic Detail

Domestic Buyers:

Location: Major industrial hubs in Java, Sumatra, and Kalimantan.
Company size: Medium to large scale corporations with annual energy expenditures exceeding millions of dollars.
Decision-makers: Procurement directors, sustainability officers, and financial managers.

Export Buyers:

Location: Japan, South Korea, and EU member states.
Company type: Energy utilities, large scale industrial manufacturers, and trading companies specializing in renewable resources / Biomass.
Characteristics: Preference for suppliers with international certifications, strict quality standards, and long-term delivery capacity.

Behaviour Patterns

Domestic buyers are price sensitive, prioritizing consistent supply and cost savings over premium certifications. They often purchase in large but shorter term contracts and negotiate aggressively on logistics and delivery costs.
Export buyers are quality and compliance driven, seeking partners who can guarantee reliability, international standards, and transparent operations. They value long term contracts to secure stable biomass supply chains. Both markets increasingly demand traceability and sustainability documentation to ensure environmental compliance and alignment with ESG goals.

Pain Points

Domestic Market: Supply inconsistency due to fragmented local suppliers. Rising transportation costs and logistical inefficiencies. Lack of reliable partners with scalable operations.
Export Market: Difficulty in finding Indonesian suppliers that meet strict international quality standards. Limited access to suppliers with transparent governance and certification compliance. Concerns over fluctuating supply caused by poor raw material management.

Core Needs

Domestic Buyers: Affordable, consistent, and locally available biomass energy solutions to reduce reliance on coal while improving sustainability compliance.
Export Buyers: Reliable, large scale suppliers with guaranteed quality, certifications (ISO, sustainability, traceability), and long term delivery capacity. Both Segments a trusted partner who can reduce risks, stabilize costs, and ensure long term business continuity through professional management and transparent operations.

Market Size Estimation (TAM, SAM, SOM)

TAM (Total Addressable Market): The global biomass energy market is worth USD 120 billion (2024), projected to reach USD 170 billion by 2030.
SAM (Serviceable Available Market): Focused on Asia Pacific (Japan, South Korea, Southeast Asia), where biomass demand is projected at USD 35 billion annually. Japan imports 10 million MT of biomass annually (USD 2.5B).South Korea imports 5 million MT annually (USD 1.2B). Indonesias domestic biomass market is valued at USD 1.5B annually.
SOM (Serviceable Obtainable Market): With our current capacity and growth strategy, the company aims to capture: Domestic share: 1% of Indonesias biomass market = USD 15M annually. Export share: 0.5% of Japan & Koreas import market = USD 18M

Market Research: Customer Analysis

Understanding the customer landscape is critical to ensuring long-term success in the biomass and animal feed export industry. The customer base for Palm Kernel Shell Charcoal and Palm Kernel Expeller is diverse, spanning multiple sectors and geographies.

1. Customer Segments

The customers can be grouped into two primary categories:

Energy Sector Buyers: Power plants, biomass energy producers, and industrial facilities in Japan, South Korea, and the European Union that are actively seeking renewable and carbon-neutral fuel alternatives. These buyers prioritize large volumes, sustainability certifications, and long-term supply security.
Agribusiness and Feed Industry Buyers: Importers, feed mills, and livestock farms in China, South Korea, New Zealand, and Europe who rely on PKE as a cost-efficient and protein-rich alternative to soybean meal. They prioritize consistency in quality, price competitiveness, and nutritional content.

2. Customer Needs

For PKS Charcoal Buyers: Stable calorific value, low ash content, and sustainability certification (e.g., FSC, ISCC, or equivalent) are critical to compliance with import regulations and renewable energy policies.
For PKE Buyers: Reliable nutritional profile, low contamination, and timely delivery are essential to ensure consistent livestock production and maintain cost efficiency.

3. Buying Behavior

International buyers generally prefer long-term contracts (612 months or multi-year agreements) to secure supply and hedge against price fluctuations. They typically purchase in bulk (5,00030,000 MT per shipment) through FOB or CIF terms. Buyers rely heavily on trust, compliance, and supply chain transparency when selecting suppliers from emerging markets.

4. Customer Decision Drivers

Price competitiveness compared to alternative fuels or feed ingredients.
Supply reliability with minimal delays in shipping and logistics.
Sustainability compliance to meet government policies and corporate ESG commitments.
Supplier reputation and proven track record in export fulfilment.

5. Customer Challenges (Pain Points)

A limited number of reliable suppliers who can deliver both volume and quality consistently.
Rising logistics and shipping costs impact the total landed price.
Increasingly strict import regulations on sustainability and traceability.
Volatility in global commodity markets makes long term budgeting difficult.

6. Customer Lifetime Value (CLV)

Due to recurring demand for renewable energy feedstock and animal feed, customers in this sector represent high long-term value. Once trust and reliability are established, repeat contracts and partnerships are highly likely, often spanning multiple years.