Biochar Market Size, Share & Trends Analysis Report By Technology (Gasification, Pyrolysis, Others), By Application (Agriculture, Others), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global biochar market size was valued at USD 507.2 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 12.1% from 2023 to 2030. Increasing the consumption of products in producing organic food and its ability to enhance soil fertility and plant growth is expected to be the key growth driver. The European Biochar Certificate has passed regulations on direct utilization of biochar in soil across several European countries including Austria and Switzerland.

Biochar is 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 a soil amendment to reduce pollutants and toxic elements and to prevent reducing moisture level, soil leaching, and fertilizer runoff. Environmental awareness, cheaper cost of the raw material, and cohesive government policies for waste management are the factors anticipated to create greater avenues for the market expansion.

The industry comprises the organized and unorganized sector owing to the presence of very few large scale manufacturers and a growing number of small and medium-scale manufacturers, especially in North America and Europe. Asia Pacific and the Middle East countries are expected to grow at a slower rate with a 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 in the market place in the past few years.

In rural areas of countries such as China, Japan, Brazil, and Mexico, a 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 the growing demand for organic food.

The full potential of biochar is yet to realize in other sectors than the agricultural sector. It is used as a fabric additive in the textile industry, as a raw material in the 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.

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

The raw materials required for the 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 products in agricultural production and waste management. Several new rules have been released by the U.S. EPA regarding the production and by the EU commission regarding the production and consumption of the product. As the product is still into the preliminary stage, there are huge opportunities for the development of blended products to grow in the future.

Technology Insights

Pyrolysis was the dominating technology segment in 2022 accounting for a revenue share of over 64.0% owing to the high end-product yield of high carbon content and stability of a process. The growing need for electricity generation has displayed a moderate rise in the 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 during the forecast period.

Other manufacturing processes such as hydrothermal carbonization, acid hydrolysis, and cooking stove are used by the small producers to gain high profit. Asia Pacific has witnessed strong growth in the use of such processes owing to the rising number of small scale producers.

Application Insights

Agriculture was the dominating application segment in 2022 accounting for a revenue share of over 76.0%. 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 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.

Livestock farming contributes to a large proportion of the overall consumption in agricultural application

s. The 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 the 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 a growing need for the advanced water infrastructure and hygiene awareness.

In organic farming, factors such as growing demand for the organic food, health consciousness, and increasing consumer spending capacity are complementing this sector to grow exponentially during 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 the 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 the organic food and the high consumption of meat. Awareness about biochar is very high in this region as compared to others, and the 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.

The 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. Despite several companies exiting from the industry owing to lack of capital and expected growth, the overall growth prospects will be highly positive during the upcoming period.

Asia Pacific is expected to witness extremely high growth owing to the 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 to spreading awareness about biochar and its benefits among the farming community and would result in increased demand.

China is the third-largest organic food-producing country in the world. The use of genetically modified crops has affected the soil and crop productivity in the agriculture fields of the country. An 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.

Key Companies & Market Share Insights

Key players involved in the manufacturing of Biochar are BSEI, Airex Energy Inc., and Diacarbon Energy. More than 80.0% of medium and large scale manufacturers are concentrated in North America while the Asia Pacific and Europe comprise lesser concentration. The biochar market, especially in North America, has numerous small entrepreneurs who are completely integrated into the value chain, from the production stage to the selling stage.

Aberystwyth University, Massey University, Federal Rural University of the Amazon, and the University of East Anglia are among the few of the research institutions engaged in the 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 Co

ol Planet Energy Systems Inc., who have integrated their value chain at all 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. Some of the prominent players in global biochar market include:

• Biochar Products, Inc.

• Biochar Supreme, LLC

• ArSta Eco

• Carbon Gold Ltd

• Airex Energy Inc.

• Pacific Biochar Benefit Corporation

Biochar Market Report Scope

Global Biochar Market Report Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels in addition to provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global biochar market report based on technology, application and region:

• Technology Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Pyrolysis

  • Gasification

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Agriculture

    • Livestock

    • Farming

    • Others

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Sweden

    • Denmark

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • Malaysia

  • Central & South America

  • Middle East & Africa