Biochar Market Size, Share & Trends Report

Biochar Market Size, Share & Trends Analysis Report By Technology (Gasification, Pyrolysis), By Application (Agriculture (Farming, Livestock)), By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Apr, 2019
  • Base Year for Estimate: 2018
  • Report ID: 978-1-68038-681-3
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 166

Industry Insights

The global biochar market sizewas worth USD 1.3 billion in 2018, while demand was estimated at 395.3 kilo tons that year. Increasing consumption of product in producing organic food and its ability to enhance soil fertility and plant growth are expected to be the key growth drivers.

Biochar is basically a charcoal derived by controlled heating of waste materials, such as agricultural waste, wood waste, forest waste, and animal manure. Among all the end uses, it is widely used in soil amendment to reduce pollutants and toxic elements, and to prevent reducing moisture level, soil leeching, and fertilizer run off. Environmental awareness, cheaper cost of raw material, and cohesive government policies for waste management are anticipated to create greater avenues for the market expansion.

U.S. biochar market

The industry comprises the organized and unorganized sector owing to presence of very few large scale manufacturers and growing number of small and medium scale manufacturers, especially in North America and Europe. Asia Pacific and Middle East countries are expected to grow at a slower rate with lack of awareness regarding product benefits and its long-term advantages. Manufacturing of high quality biochar requires heavy capital investment. As a result of it, several companies have exited the market place in past few years.

In rural areas of countries such as China, Japan, Brazil, and Mexico, large amount of this product is produced in collaboration with research groups and institutions. The number of organized players in the industry manufacturing high quality products is expected to increase with growing demand for organic food.

Full potential of biochar is yet to realize in other sectors than agricultural sector. It is used as a fabric additive in the textile industry, as a raw material in manufacturing of building materials and as a shield against electromagnetic radiation in the electronics industry. Growing demand from the food sector is expected to be an extremely important factor in boosting the biochar market growth.

Use of biochar in water treatment process is anticipated to be another important application in near future supported by rising demand for water treatment facilities, especially in emerging economies. Moreover, production of biochar using biogas and crop residue is expected to compliment market growth over the forecast period.

The raw materials required for manufacturing of the product are wood waste, forest waste, agricultural waste, and animal manure. These are mainly procured from suppliers of the wood and forest based product sector. Companies such as Georgia-Pacific, Weyerhaeuser, and West Fraser are the few among major suppliers of wood pellets and residue to various manufacturers.

The EU Commission and the U.S. (Environmental Protection Agency) EPA are the regulatory authorities governing the market. It has made regulations related to the use of product in agricultural production and waste management. Several new rules has been released by the U.S. EPA regarding production and by the EU commission regarding production and consumption of the product. As the product is still into the preliminary stage, there are huge opportunities for development of blended products to grow in future.

Technology Insights

Among various manufacturing technologies available, pyrolysis is the most efficient production process. It is expected to expand at a CAGR of 13.8% in terms of revenue over the forecast period owing to high end-product yield of high carbon content and stability of process.

Growing need for electricity generation has displayed moderate rise in use of gasification technology. Since the process does not yield stable biochar that can be used in agricultural applications, it is expected to lose its market share over the forecast period. Other manufacturing processes such as hydrothermal carbonization, acid hydrolysis, and cooking stove are used by small producers in order to gain high profit. Asia Pacific has witnessed strong growth in use of such processes owing to rising number of small scale producers.

Application Insights

In 2018, the agriculture application segment accounted for 71.1% of the total biochar demand. Biochar helps to enhance water and fertilizer holding capacity and improve soil’s biological productivity, which helps in providing crop nutrition and accelerating growth. However, a large number of farmers still lack in knowledge about the product and its benefits.

In agricultural applications, general farming is a major segment that is expected to rise substantially and augment the demand of the overall market owing to increasing awareness among farmers by research groups and institutes.

Global biochar market

Livestock farming contributes to a large proportion of the overall consumption in agricultural applications. Ability of the product to provide essential nutrients and maintain the health of livestock has increased its consumption in livestock farming, including poultry farming, cattle farming, and meat production. Growing government support for organic farming is expected to create huge potential in forthcoming years.

Other major applications including water and waste treatment have witnessed rising demand in emerging economies, such as China and India, along with growing need for advanced water infrastructure and hygiene awareness.

In organic farming, factors such as growing demand for organic food, health consciousness, and increasing consumer spending capacity are complementing this sector to grow exponentially over the coming years. Whereas, conventional farming is still used in several rural areas as it provides more yield. The use of biochar into mixed farming, zero tillage farming, and biodynamic agriculture would witness strong growth with supportive initiatives taken by government and private institutions.

Regional Insights

North America has been the highest consumer of the product and it is expected to witness significant growth with increasing demand for organic food and high consumption of meat. Awareness pertaining to biochar is very high in this region as compared to others, and farming community has more knowledge about the product and its benefits. Moreover, low feed costs for livestock are expected to expand the consumption in this sector.

U.S. has been generating the highest revenue in the world as a result of huge awareness about the product in the country. Numerous small and large scale manufacturers operating at domestic and international levels have contributed to the growth of the sector. In spite of several companies exiting from the industry owing to lack of capital and expected growth, the overall growth prospects will be highly positive over the upcoming period.

Asia Pacific is expected to witness extremely high growth owing to presence of large and developing agriculture sector in growing economies, such as China and India. Various R&D activities and government initiatives are expected to contribute in spreading awareness about biochar and its benefits among farming community and would result in increased demand.

China is the third largest organic food producing country in the world. Use of genetically modified crops has affected the soil and crop productivity in agriculture fields of the country. Amalgamation of biochar in farming led by several research initiatives in the country is expected to increase awareness about the product and propel the consumption.

Biochar Market Share Insights

Key players involved in manufacturing of Biochar are BSEI, Airex Energy Inc., and Diacarbon Energy. More than 80% of medium and large scale manufacturers are concentrated in North America while, Asia Pacific and Europe comprise lesser concentration. Aberystwyth University, Massey University, Federal Rural University of the Amazon, and University of East Anglia are among few of the research institutions engaged in production and R&D activities of biochar.

Timber manufacturers such as Georgia-Pacific, West Fraser, and Weyerhaeuser supply wood pellets and waste wood to various manufacturers in North America. This industry has numerous small manufacturers including Cool Planet Energy Systems Inc., who has integrated their value chain at all the levels. Companies such as Cool Planet Energy Systems Inc., 3R ENVIRO TECH Group, Phoenix Energy, and Pacific Pyrolysis deliver pyrolysis technology to manufacture the product and waste to energy solutions.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation                                

Volume in kilotons, Revenue in USD Million, and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Country scope

U.S., Canada, Mexico, Germany, U.K., France, Sweden, Denmark, Australia, China, India, Japan, and Malaysia.

Report coverage      

Volume & revenue forecast, company share, competitive landscape, growth factors and trends, list of 200 biochar manufacturers with annual production

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Segments Covered in the Report:

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global biochar market report on the basis of technology, application, and region:

  • Technology Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Pyrolysis

    • Gasification

    • Others

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Agriculture

      • Livestock

      • Farming

      • Others

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

      • Sweden

      • Denmark

    • Asia Pacific

      • Australia

      • China

      • India

      • Japan

      • Malaysia

    • Central & South America

    • Middle East & Africa

Key questions answered by the report
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