The paper presents the results of researching wood pellets market in nine countries in South East Europe and Slovakia. Objective of the research was to observe the actual situation regarding the number of producers, size of installed capacities, production volume, foreign trade flows and existing problems and obstacles which significantly limit the sustainable development of wood pellets market in the selected countries. Selection of such an objective results from the fact that according to the stated elements there are no sufficiently reliable data, wherefore this region is a huge gap in numerous reports of international and national organizations and institutions. Results of the conducted research show that in the middle of 2014, 245 producers were engaged in wood pellets production in South East Europe and Slovakia, 116 of which were located in Bulgaria and Serbia. Most of the producers of wood pellets has installed capacities of 1,000-5,000 tons annually, while only 18 factories in the entire region have the installed capacity over 30,000 tons/year. Observed collectively in all stated countries, the total installed capacities for wood pellets production were 2.2 million tons in 2013 and the realized production was 1.36 million tons. The largest part of the produced amounts of wood pellets in this region is exported. 1.06 million tons were exported from the region in 2013, which is 77.9% of the realized production. Such high export is the result of the underdevelopment of the local market (Slovenia is the only exception) and the problems which exist and limit its faster development in most countries.