Biochar Market

Biochar Market Outlook 2025 to 2035

The global biochar market is projected to increase from USD 11.2 million in 2025 to USD 41.9 million by 2035, with a CAGR of 14.1% during the forecast period. Growth is driven by increasing concern over soil degradation and carbon emissions, which is driving acceptance of biochar as an environmentally sustainable soil additive. Governments are promoting carbon-negative technologies, and industries are investigating their use in wastewater treatment and construction. The increase in the uptake of organic agriculture and circular economy paradigms will also stimulate growth in the agriculture and energy markets.

What are the Drivers of the Biochar Market?

Growing awareness of climate change and soil health is the key driver for the biochar market. Biochar sequestration is attracting interest in soil fertility and soil health improvements seen in many field data across many sites in many locations, along with carbon sequestration potential.

Governments and environmental authorities are increasingly promoting carbon-negative technologies such as biochar via subsidy schemes, pilot projects, and carbon credits, accelerating adoption across industries such as farming, forestry, and waste treatment.

The demand for organic food and sustainable farming practices is also expanding the biochar market. Farmers are using biochar to retain soil nutrients, increase yield, and reduce dependence on chemical fertilizers.

Industrial sectors are exploring biochar for applications beyond agriculture, such as water purification, construction additives, and renewable energy storage, adding to market diversification and scalability.

Metric	Value
Industry Size (2025E)	USD 11.2 million
Industry Size (2035F)	USD 41.9 million
CAGR (2025-2035)	14.1%

What are the Regional Trends of the Biochar Market?

The Asia-Pacific region leads the global biochar market, due to its strong agricultural economy, high rural population, and capacity to enhance demand for organic fertilizers Countries, including China, India, and Japan, are advancing biochar markets through some soil health initiatives and waste-to-energy programs, and projects.

The Asia-Pacific is followed closely by North America due to policies regarding carbon sequestration initiatives, sustainable farming practices, and organic food production being promoted by the U.S. and Canadian governments. The U.S. Department of Agriculture and several state-centered programs have been promoting biochar as a soil enhancer and means to reduce GHG emissions.

In Europe, biochar demand is being driven by environmental regulations and circular economy ambitions, particularly in countries such as Germany, France, and the Netherlands, for soil remediation and renewable energy. Latin America is beginning to undertake biochar as a market, where Brazil is investing in biochar via reforestation and sustainable land-use practices.

The Middle East & Africa are also slowly adopting biochar, particularly in arid locations where soil restoration and water retention are important factors. As these markets begin to evolve, they are contributing to the growth and development of biochar at a global scale, both in developed and developing markets.

What are the Challenges and Restraining Factors of the Biochar Market?

Major issue in the biochar industry is that there are no standardized methods of producing it, and this causes large variations in the quality of the end products. This variability hinders industries in embracing biochar for large-scale use in agriculture, construction, or water treatment. For example, nutrient content, pH value, and porosity vary with feedstock and pyrolysis conditions, precluding their general acceptance.

Another problem is low awareness among farm producers and commercial farmers regarding the long-term advantage of biochar. Regardless of its proven climate-friendly ability to improve soil fertility and sequester carbon, it is still seen by most as an experimental pursuit or too expensive to consider initially. Furthermore, weak evidence of policy support and a lack of carbon credit incentives in some nations discourage investments in production infrastructure.

Distribution and transportation also pose logistical hurdles, particularly in far-flung agricultural regions. Biochar is heavy and voluminous and thus expensive to transport across long distances. Finally, the regulatory environment pertaining to biochar as a soil amendment is still nascent in most locations, which creates barriers to entry for new entrants.

Country-Wise Outlook

Country	CAGR (2025 to 2035)
India	17.3%
China	15.6%
United States	12.4%

India Biochar Gains Traction Amid Crop Residue Challenges and Policy Push

The India biochar market is bolstered by the country’s enormous biomass availability. According to the Ministry of New & Renewable Energy, India generates over 500 million tonnes of agricultural and forestry biomass annually, which can be channeled into decentralized biochar production.

The Jal Jeevan Mission has brought piped water to 15.44 crore rural homes, encouraging soil health and water retention efforts where biochar plays a pivotal role. Its ability to improve moisture retention and nutrient use aligns with national priorities in sustainable agriculture and climate resilience.

Policy initiatives like the National Bioenergy Programme (₹858 crore outlay through 2025–26) are supporting bioenergy and biochar pilots. These programs foster feedstock-to-product ecosystems, benefiting both farmers and energy producers.

Lastly, biochar is becoming more popular in new industrial fields, including water treatment, ecobricks, and construction. This shows that biochar may be used for more than just farming. This cross-sector growth is being driven by the increase in knowledge of the environment and the demand for low-carbon, circular products.

China is rapidly adopting biochar, driven by waste management and the modernization of agriculture.

Advancements in China's Green Energy and Low‑Carbon Economy initiatives are speeding up the carbonization of agricultural residues. As a result, the production of biochar from wheat and rice straw is increasing, supporting sustainable energy goals and low-carbon development. From 2010, both demonstration sites and commercial systems emerged across major crop zones, supported by the Ministries of Agriculture and Science & Technology.

China generates about 3.5 billion tonnes of agricultural, forestry, and household biomass annually, making it one of the world’s richest biomass producers. Yet utilization remains low, creating vast feedstock potential for biochar systems, especially in rural regions.

A Tsinghua University study indicates that sustainable biochar production could remove up to 921 million tonnes CO₂-equivalent per year, helping China meet its carbon‑neutrality targets under the “dual carbon” framework.

Early studies in the middle Yangtze River showed that biochar application (e.g., 4.5 kg/m²) in paddy soils boosted rice yields by 26-61%, increased water-use efficiency by 32-83%, and enhanced soil organic carbon by 23-198%, while reducing greenhouse gas emissions.

U.S. Biochar Market Expands with Focus on Carbon Sequestration and Soil Health

Agriculture continues to be the primary driver of biochar usage in the U.S., particularly in crop-heavy states such as California, which leads the way with its extensive almond, nut, and berry farming. Increasing awareness among farmers about the benefits of soil moisture retention and sustainable farming practices is boosting demand.

Domestic biomass availability provides strong feedstock potential. California alone produces over 9 million dry tons of agricultural residues and 14 million tons of forest residues annually, making it a vital supply region for biochar production.

Federal and state programs significantly support biochar adoption. The USDA’s Conservation Innovation Grants program awarded $40 million in 2022 to biochar-related soil carbon projects, including on-farm trials and community initiatives.

Cities are embracing public production models; for instance, Minneapolis became the first U.S. city to own and operate a biochar facility, converting over 3,000 tons of wood waste to 500+ tons of biochar annually and sequestering nearly 3,700 tons of CO2.

Category-wise Analysis

Pyrolysis to Exhibit Leading by Technology

Pyrolysis dominates the biochar market, as this is the most common and established thermal decomposition method for creating biochar from biomass in an oxygen-limited reaction. This method is utilized due to the possibility for tuning and modifying various pyrolysis regimes: slow, fast, and intermediate, to maximize either char production or energy production, based on feedstock and operational objectives.

Gasification is the fastest-growing segment in the biochar market, owing to its efficiency in converting biomass into syngas, which can be used for electricity or chemical synthesis. This high-temperature process offers a cleaner energy output and reduced waste footprint. Rising interest in renewable energy alternatives and decentralized power systems drives demand for gasification technologies.

Moreover, advancements in reactor design and government incentives for clean energy projects are expanding its commercial applicability in both industrial and rural electrification sectors.

Woody Biomass to Exhibit Leading by feedstock

Woody biomass dominates the biochar market, driven by its abundant availability, consistent composition, and high lignin content that yields stable biochar. Forestry residues, sawdust, and wood chips are widely used in both pyrolysis and gasification systems. The structural integrity of wood-derived biochar also enhances its effectiveness in soil amendment and carbon sequestration. Its dominance is further supported by forest management initiatives and government policies promoting the utilization of forestry waste in renewable energy generation.

Agricultural waste is the fastest-growing feedstock segment in the biochar market, due to increasing efforts to manage crop residues, husks, and straw sustainably. Converting this waste into biochar not only reduces field burning but also improves soil fertility and moisture retention.

Its low-cost availability and suitability across regions with large agrarian economies make it a key focus for small-scale and community-based biochar units. Technological advancements allowing mixed biomass processing further enhance agricultural waste’s attractiveness as a flexible feedstock option.

Agriculture to Exhibit Leading by Application

Agriculture dominates the application segment in the biochar market, driven by biochar’s ability to enhance soil structure, nutrient retention, and water holding capacity. Farmers increasingly use it to boost crop yields, especially in degraded or sandy soils. Its long-lasting carbon content also aids in climate change mitigation through carbon sequestration. Governments and NGOs promoting regenerative agriculture and soil restoration are further driving biochar adoption. The scalability and low entry barrier of biochar in farming continue to support its dominant role.

Animal farming is the fastest-growing application area in the biochar market, as biochar is being used as a feed additive to improve livestock digestion, reduce methane emissions, and enhance manure quality. Its use in bedding material helps control odor and disease. With increasing focus on sustainable animal husbandry and environmental impact reduction, biochar is gaining attention in poultry, swine, and dairy farms. Research-backed benefits and growing acceptance among commercial livestock producers are fueling demand in this niche yet expanding segment.

Competitive Analysis

The global biochar market is becoming increasingly competitive, with both established firms and startups competing on feedstock innovation and application diversity.

North American companies dominate in terms of volume, leveraging government-backed carbon offset programs and growing demand from organic farming. For example, Biochar Now has secured multiple state-level approvals in the U.S., enabling large-scale supply to farms and landscaping firms. Meanwhile, Carbon Gold in the U.K. is active in developing biochar applications for sports turf, horticulture, and tree care.

Startups across Asia and Europe are gaining ground through low-cost feedstock sourcing and collaborations with universities for product testing. However, limited production capacity and a lack of widespread certification remain barriers for smaller firms. Mergers and partnerships are increasing, such as between biochar producers and wastewater treatment firms or construction material manufacturers, to unlock new revenue streams.

Overall, competition centers around cost-efficiency, scalability, and aligning with sustainability goals, particularly in carbon credits and circular economy initiatives.

Key players in the market include Airex Énergie Inc., Biochar Now, Wakefield Biochar, Carbon Gold Ltd, and CharGrow USA LLC.

Recent Development

• In June 2025, ReGenEarth and RER Capital launched a £100 million green bond to scale integrated biochar and anaerobic digestion technologies across the UK. The bond supports traceable carbon removal projects, offers a 12.5% annual coupon, and aligns with ICMA Green Bond Principles.
• In May 2025, a joint venture between SUEZ, Airex Energy, and Groupe Rémabec led to the inauguration of Carbonity, Canada's largest industrial-scale biochar production facility in Port-Cartier, Quebec.This innovative project represents a significant step forward in carbon sequestration and soil regeneration efforts in North America.

Segmentation of the Biochar Market

• By Technology :

  • Pyrolysis
  • Gasification
  • Hydrothermal Carbonization

• By Feedstock :

  • Woody Biomass
  • Agricultural Waste
  • Animal Manure
  • Others

• By Application :

  • Agriculture
  • Animal Farming
  • Electricity Generation
  • Others

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa