Market Segmentation
Increased population density and human activities such as rise in infrastructure and industrial development have led to the degradation of soil. Some of the major causes of declined soil quality include deforestation, overgrazing, industrialization, increased agricultural activities, and natural calamities. According to Earthworm Foundation, in 2021, the United States faced a significant issue with soil erosion, which resulted in an estimated cost of $67.00 billion annually. This cost, known as an externality, is not directly paid by farmers or businesses but is often shouldered by the public sector, consumers, and future generations. Furthermore, the effects of climate change have further exacerbated the challenges faced by conventional agricultural supply chains in the U.S., leading to record low wheat harvests in 2021 due to drought and a significant portion of sugar beets in a critical production region going unharvested in 2019 due to flooding. These factors have generated the need for soil remediation, especially for agricultural purposes. Crop production requires the appropriate amount of water content and nutrients. Biochar is considered as one of the most effective and safe products for soil remediation. Addition of biochar provides nutrients such as phosphorus, potassium, calcium, nitrogen, and magnesium required for plant growth. The product also improves the nutrient absorption of plants and the water retaining capacity of the soil. The carbon present in biochar holds the water, thereby preventing the crops during draught situations.
Biochar is a carbon-rich, stable form of charcoal, derived from natural resources. It is thus a suitable choice in organic farming practices as it helps in increasing carbon content in the soil and is responsible for enhancing microbial activity which further results in augmenting crop productivity. Nitrogen is one of the vital elements required for crop growth. Organic farming products, especially fertilizers often have a low nitrogen content, which can be overcome by adding biochar to the soil. Organic farming is expected to greatly benefit from the use of biochar as it nurtures the crop quality by providing the essential nutrients required for plant growth and circulates carbon dioxide in the atmosphere, which benefits the photosynthesis process. Organic farming in the U.S. is growing significantly over the past few years owing to rising health concerns among consumers due to usage of synthetic chemicals. According to the USDA, National Agricultural Statistics Service surveys, the certified organic cropland acres in the U.S. increased by 79% from 2011 to 2021 accounting to 3.6 million acres.
Lack of awareness among farmers regarding biochar and its advantages as compared to other fertilizers is a major concern. Most of the farmers are still using synthetic pesticides for crop protection, soil amendment, and enhancement of plant growth. Furthermore, factors such as the lack of consistent production standards, and varying product prices restrict the market growth. Thus, end users including fertilizer manufacturers and farmers must be educated by soil scientists and horticulturalists about the potential benefits of using biochar. Awareness regarding the product can be increased among the end users via farm planning & management, crop advisors, and representatives from various seed companies. The farmers are also reluctant to purchase the product in bulk owing to the lack of awareness. This results in farmers purchasing biochar at higher costs, thereby disturbing the entire price cycle of agricultural produce. Oregon conducted a survey among some biochar manufacturers in the U.S. According to the results of the survey, over 50% of the manufacturers claimed a lack of awareness among the buyers to be the major barrier for the growth of biochar market in the country.
This section will provide insights into the contents included in this u.s. biochar market report and help gain clarity on the structure of the report to assist readers in navigating smoothly.
Industry overview
Industry trends
Market drivers and restraints
Market size
Growth prospects
Porter’s analysis
PESTEL analysis
Key market opportunities prioritized
Competitive landscape
Company overview
Financial performance
Product benchmarking
Latest strategic developments
Market size, estimates, and forecast from 2018 to 2030
Market estimates and forecast for product segments up to 2030
Regional market size and forecast for product segments up to 2030
Market estimates and forecast for application segments up to 2030
Regional market size and forecast for application segments up to 2030
Company financial performance