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Biochar Market

Biochar Market

Biochar Market Analysis, By Technology (Pyrolysis, Gasification, Hydrothermal Carbonization), Feedstock (Woody Biomass, Agricultural Waste, Animal Manure, Others), Application (Agriculture, Animal Farming, Electricity Generation, Others) - Global Market Insights 2021 to 2031

Biochar Market

Biochar Market Outlook

The global biochar market reached a valuation of US$ 8 Mn in 2020, which amounts to around 0.23% share of the overall charcoal market.

Biochar Market Size Value in 2020 US$ 8 Mn
Sales Forecast for Biochar by 2031 US$ 23 Mn
Global Market Growth Rate (2021 to 2031) 11% CAGR
Share of Top 5 Biochar Manufacturing Companies 50%

Sales of biochar are slated to rise at a CAGR of 11% to top US$ 23 Mn by 2031. Demand for pyrolysis technology in biochar is set to increase at a CAGR of 10% across the assessment period of 2021 to 2031.

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Demand Analysis of Biochar from 2016 to 2020 Vs Market Outlook for 2021 to 2031

As per Fact.MR, a market research and competitive intelligence provider, the global biochar market was valued at US$ 8 Mn in 2020.

Biochar sales are primarily driven by its growing use as a charcoal alternative and widening applicability in electricity and power generation. Non-energy applications also remain a major booster to biochar sales.

Carbon sequestration and water retention properties of biochar and driving demand for biochar in agriculture. Though the use of biochar in building materials, plastics recycling, and as a carbon black alternative is currently at its nascent stage, its industrial applications are likely to grow as government agencies continue to research in this area.

Growing demand for biochar in electricity production, rising adoption of gasification biochar systems, and increasing sales of biochar in agriculture are driving the market growth.

All of these factors are expected to drive the biochar products market at 11% CAGR over the 2021 to 2031 forecast period.

What are the Main Factors Fueling Market Growth for Biochar?

Potential adoption of biochar as a sorbent in processes that are aimed at immobilizing the residues of bacteriostatic antibiotics, and pharmaceuticals, for instance, sulfamethoxazole from sewage, holds significant growth potential for stakeholders.

Growing interest of market players in developing biochar into novel products that are based on its unique chemical properties is likely to uphold sales. For instance, biochar makes a viable substitute for activated carbon, which is widely used in wastewater treatment facilities to help absorb potential contaminants and reduce odors.

With potential abilities to be used as a tool to slash down soil nitrogen leaching, and thereby achieve reduced nitrogen loss from soils in croplands, biochar holds the promise to be a part of soil amendment solutions that target improved N availability in soil.

Rising use of biochar pyrolysis equipment, latest advancements in gasification biochar systems, and growing demand for biochar in farming are expected to boost the biochar market value.

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What are the Hurdles being Faced by Biochar Manufacturers?

Biochar’s expensive price point remains a significant challenge to the biochar charcoal market development, alongside fundamental structural barriers such as lack of capital for producers, an immature carbon market, and shorter timelines for mine land remediation bonds.

Lack of efficient technology for low emission biochar production, particularly for remote or mobile production, has been impeding the biochar market value over the recent past.

While biochar commercialization is still in its early stages, this hard-selling asset lacks consistency and standardization, which continues to impede the growth of the market.

Severing concerns about unsustainable production process of biochar will remain among the prominent factors responsible for hampering the growth potential of biochar consumption.

Which Region is a Lucrative Market for Biochar Manufacturers?

The North America market will continue to reign supreme globally, through 2031, and is projected to expand 1.3X by 2031.

A large number of biochar producers in North America are increasingly focusing on innovating their offerings and biochar commercialization to expand their footprint in the global market.

Growing demand for pyrolysis equipment and rising use of biochar in electricity generation are expected to fuel the biochar market value in the region.

Burgeoning environmental concerns and growing availability of inexpensive feedstock have been creating significant demand for biochar products, in North America, which continues to spearhead the global market.

Biochar market regional analysis by Fact.MR

Country-wise Analysis

What is the Biochar Demand Outlook for the U.S.?

The U.S. dominates the global market for biochar in terms of revenue. The U.S. biochar market is expected to increase 1.2X by 2031.

The United States dominates the market because of the growing demand for organic food and high meat consumption. Furthermore, the increased awareness of the product would support the market growth in the country.

Adoption of chemical-free farming techniques is becoming more popular as people become more aware of the health benefits of organic food. Moreover, expanding the use of biochar in chicken production to reduce litter and ammonia odors is a prominent market trend.

It may absorb liquids, gases, and ammonia to neutralize odors. Increasing number of small and large-scale manufacturing enterprises are expected to boost market growth over the next ten years.

Why are Sales of Biochar Flourishing in China?

Regenerative agriculture has grown in popularity in China as it improves soil fertility, soil biology, and watersheds while also absorbing carbon to mitigate the consequences of climate change.

Furthermore, with growing demand for high-quality food and majority of the population becoming interested in organic crop foods, demand for biochar is increasing in various farming processes in China.

China is the global leader in chemical fertilizer output, use, and imports, as per the International Biochar Initiative (IBI). Several research and development initiatives by the government are expected to propel biochar sales in China over the forecast period.

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Category-wise Insights

Why is Pyrolysis Technology Gaining Immense Popularity for Biochar?

On the basis of technology, pyrolysis will continue to remain a highly sought-after technology for biochar production. The pyrolysis technology segment is expected to increase 2.1X over the forecast period.

Biochar pyrolysis machines are used for manufacturing high-quality pyrolysis biochar products that are both, efficient and effective. Pyrolysis biochar production will continue to grow as it produces rich in carbon content and highly stable yield.  Pyrolysis technology is widely used by several market players, including Earth Systems and Clean Fuels B.V., for high-yield production.

Organic waste-based biochar and its role in improving biomass production by enhancing soil fertility and contaminant remediation are projected to be a key determinant that will drive biochar demand over the coming years.

Will Growing Demand for Biochar in Agriculture Applications Fuel Market Growth?

Agriculture is likely to be the largest biochar application over the coming years, and it is expected to maintain its dominance. Biochar increases water and fertilizer holding capacity of the soil, providing important nutrients to crops and promoting plant growth.

Biochar is increasingly becoming more popular in developing countries due to its ability to improve the physical and chemical qualities of soil, as well as boost soil fertility and productivity, resulting in increased crop strength and growth while generating fewer pollutants.

Because biochar has a liming action that balances acidic soil towards a neutral pH, it improves agriculture crops and plants by lowering nutrients leaching from the crop root zone and fertilizer requirements while increasing land cultivation.

Governments are pushing people to use biochar for farming because it can reduce greenhouse gas emissions such as nitrous oxide and methane. With increase in technological developments in sustainable agriculture, biochar uses in agriculture from both, developed and developing countries, has been steadily increasing.

COVID-19 Impact on Biochar Industry

COVID-19 brought the world to a halt, which has had an impact on overall the charcoal market. Despite the fact that the market was disrupted by the coronavirus epidemic, stakeholders are encouraging farmers to install reactors on their fields to speed up the process of turning stubble into biomass.

Biochar has been recognized by the UN's Intergovernmental Panel on Climate Change as a viable technique for reducing pollution. Rising government and corporate backing could aid in the fight against this extremely contagious disease, putting the market back on track.

Such changes are turning into income potential for biochar manufacturers, who are now dealing with fluctuating demand and supply as a result of the COVID-19 outbreak. Biochar has received a lot of attention for its potential to improve soil health and agricultural productivity while still being environmentally friendly.

Competitive Landscape

Several biochar suppliers are currently leading the way and continue to dedicate their strategies to the innovation of competitively priced as well as energy-efficiency variants.

As low-emission, low-cost biochar products have been recently capturing the attention of participants in the market, it is highly likely that companies will remain adhered to advanced production techniques for a variety of economical substitutes for activated carbon applications.

Industry stakeholders are also eyeing gains out of the biochar application in limiting compost greenhouse gas (GHG) emissions and odors, and hydrogen sulfide sorption in wastewater treatment.

Biochar Industry Report Scope

Attribute Details
Forecast Period 2021-2031
Historical Data Available for 2016-2020
Market Analysis Value in US$ Mn, Volume in MT (Metric Tons)
Key Regions Covered
  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East Africa
Key Countries Covered
  • U.S.
  • Canada
  • Mexico
  • Brazil
  • Mexico
  • Argentina
  • Germany
  • Italy
  • France
  • U.K
  • Nordic
  • Spain
  • Japan
  • China
  • India
  • Malaysia
  • Thailand
  • Australia
  • GCC Countries
  • South Africa
  • Turkey
Key Market Segments Covered
  • Technology
  • Feedstock
  • Application
  • Region
Key Companies Profiled
Pricing Available upon Request

Key Segments Covered in Biochar Industry Research

  • Technology

    • Pyrolysis
    • Gasification
    • Hydrothermal Carbonization
  • Feedstock

    • Woody Biomass
    • Agricultural Waste
    • Animal Manure
    • Others
  • Application

    • Biochar for Agriculture
    • Biochar for Animal Farming
    • Biochar for Electricity Generation
    • Others

- FAQs -

The global biochar market is currently worth more than US$ 8 Mn.

From 2016-2020, sales of biochar registered a CAGR of 6%.

Environmental awareness, cheaper cost of raw material, and cohesive government policies for waste management are anticipated to create greater avenues for market expansion for biochar producers.

Airex Energy, ArSta Eco, Biochar Industries, Biochar Supreme, and Carbon Gold are some renowned manufacturers of biochar.

North America, with 50% of the global market share, will largely contribute to the growth of biochar revenue.

Sales of biochar in Europe will most likely flourish at a CAGR of 10% over the next ten years.

Pyrolysis technology continues to be the highest revenue-generating segment, accounting for 60% of global biochar revenue.

Sales of biochar in China are forecasted to reach over US$ 4.5 Mn by 2031.

The U.S., China, Germany, Canada, and Japan are expected to drive most of the demand for biochar.

The worldwide biochar sector is expected to rise at 11% CAGR from 2021-2031.

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