Pelletizing is a process in which material is turned into small dry pellets. There are a wide range of applications for pelletizing, and it is a commonly utilized industrial process all over the world, seen everywhere from plants which make animal feed to recycling facilities processing materials for reuse. This process is usually accomplished with a specialized machine called a pelletizer, which can operate in a number of different ways, depending on the material being pelletized.

One classic use of pelletizing is in plastics manufacturing. Raw plastics and recycled plastics being reprocessed are often converted into pellets because pellets are easy to handle and transport. To use the pellets, a manufacturer introduces them to equipment used in plastics molding, the equipment melts the pellets, and the liquid mixture is shot into molds, extruded, or otherwise processed to make a finished plastic product. Known as nurdles, plastic pellets come in a range of colors and types for manufacturing use.

Animal feed is also pelletized. This type of feed is produced by grinding constituent ingredients to make a mash which can be turned into pellets and allowed to dry before packaging. Dry animal feed is lighter and easier to handle, and pelletizing allows companies to create a range of feed blends for different animals, with various additives as needed. Pelletized feed can be eaten dry or rehydrated to make a soft mash for animals who prefer soft food.

Fuels can also be pelletized. Scrap wood and paper products are pelletized so that they can be burned in pellet stoves, and other types of fuel may be sold in pellet form again. Pelletization of fuels is a popular way to ensure that excess materials are not wasted, but rather repackaged in a way which makes them usable. This is environmentally friendly in addition to cost effective, by turning a former discard into an item of value with the assistance of pelletizing equipment.

Some metals are pelletized during production, creating pellets of standard sizes used during the refining process. Fertilizers can also be processed as pellets. Pelletized fertilizer is a popular time-release fertilizer product in many regions of the world which is readily available from a number of sources. It is even possible to obtain organic fertilizer products in pelletized form, for people who prefer a dry and tidy way to deliver fertilizer to their gardens.

Certain pharmaceuticals may be produced in pelletized form to control dosage, especially with time release medications. In this case, the pellets are usually small enough to be packed inside a pill which is swallowed whole. As the coating on the pill breaks down, it releases the pellets, which deliver medication to the body.