Development of forestry biomass briquette industry is of great significance for the forestry ecological construction in China, for the optimization of energy structure and for the ensuring of energy security. The developing experience of forest biomass briquettes industry in developed countries was analyzed, and it was pointed out that, the development of this industry in China depends on a complete industrial chain. China owns 0.3 billion tons of forestry biomass that could be used in this industry, with a full comparative advantage. Meanwhile, the analysis of situation and problems in heating market showed that the forestry biomass briquette market should be locked on the distributed heating. Also some suggestions for promoting the industry were given.