Activated Carbon Industry Procurement Intelligence, Supplier Intelligence, Supplier Ranking, Pricing & Cost Structure Intelligence, Best Practices, Engagement Model, Low & Best Cost Country, Day One Analysis Report, 2020 - 2025

Procurement Outlook

Activated carbon is a form of carbon that is processed to contain small, low-volume pores. These pores increase the surface area available for adsorption or chemical reactions. Activated carbon is used in various applications like gas purification, analytical chemistry, industrial use, medical purposes, fuel storage, chemical purification, mercury scrubbing, etc. The two most commonly used types of activated carbon are powdered activated carbon and granular activated carbon.

Activated carbon is sold in wholesale quantity at a flat fee transactional model. The prices are regulated. The price of activated carbon has demonstrated fluctuations over the last year. For example, the domestic price trend in China for activated carbon in August 2020 averaged at USD 1,550.57 per metric tonne. In the last year, it rose to an all-time high of USD 1,642.19 in November 2020. Post then, the prices have dipped. Currently, the price stands at USD 1381.58 per metric tonne.

Demand Outlook

The global activated carbon market was valued at USD 6.5 billion as of 2020 and is expected to grow at a CAGR of 17.5% till 2025. The geographic demand will be driven by APAC with three countries like China, India, and Japan being the major growth drivers from the APAC market.

North America is the second-largest market for activated carbon. The US market is valued at USD 1.1 billion in 2020 and is expected to grow at a CAGR of 11.5% till 2025. The United States Environmental Protection Agency and government regulatory bodies have recommended the use of activated carbon as the best available material for removing impurities like mercury. These recommendations are propelling the growth of the activated carbon industry.

Cost Drivers

The major raw materials required to manufacture activated carbon are wood chips and coconut shells. As such, the availability of these components affects the final cost of activated carbon. Countries in the Asia-Pacific, with their tropic climate and vegetation cover, have an abundance of wood chips and coconut shells supply. With an excess of raw materials, the cost of procuring them for the manufacture of activated carbon is reducing. The lower cost of activated carbon is helping in increased uptake of the product in these regions and driving volume-driven growth.

Constraints

The increased adoption of reactivated carbon is both a blessing as well as a bane for the market. Reactivated carbon price ranges from 65% to 85% of the cost of virgin activated carbon. Also, the technology and manufacturing process of reactivating carbon is significantly less as compared to manufacturing activated carbon. This will propel a jump from activated virgin carbon to reactivated carbon. While this transition will be leveraged the maximum by the present suppliers in the market, the lower cost will also attract other smaller players. Essentially, this will make the market more fragmented as well as result in declined demand for activated carbon.

Supply Chain

The key manufacturers for activated carbon services are Calgon Carbon Corp, Osaka Gas Co, Cabot Corporation, Jacobi Carbons, Haycarb Plc, Kuraray Chemical, Donau Carbon GmbH, Silcarbon Aktivkohle GmbH, etc.

The activated carbon industry features a fragmented competitive landscape and several small players are entering the market. Grand View Research will help our client identify the best-suited suppliers by mapping their core capabilities and operational efficiency.