To provide pellets capable of preventing inadequate dispersion of a raw material in an extruder, and of forming molded products continuously for a long period of time using the extruder, and to provide a method of manufacturing the pellets.

A pellet 1A constitutes a starting material for molded products to be formed through a molding process, and the pellet 1A comprises a mixture of a fine powder of a hydrophilic polymer, fine powder of a polyolefin thermoplastic synthetic resin, fine powder of plant fibers, and fine powder of an inorganic compound, and contains a given amount of water. The particle size of the fine powder is within the range of from 30 to 200 m, the water content of the pellet 1A is within the range of from 5 to 30% based on the total weight of the pellet 1A, and the fine powder is dispersed substantially uniformly in the pellet 1A. A method of manufacturing the pellet, and resulting molded products thereof are also provided.