Asia Charcoal Briquettes Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Asia Charcoal Briquettes Market Analysis

The Asian charcoal briquettes market was valued at USD 1,124.6 million in 2023, which is expected to reach USD 1,711.5 million by 2030, progressing at a CAGR of 6.3% during 2024–2030. This is due to the increasing popularity of barbecued food and the growing steel and cement industries, where heat is of high importance.

Moreover, the market growth can be mainly attributed to the growing popularity of activated charcoal briquettes for the production and processing of silicon, steel, iron, and other metals and the rising number of barbecue restaurants in the region.

Consumers are looking for unique food concepts and are, thus, becoming attracted to barbecue restaurants that offer a vibrant atmosphere with live cooking, good music, and great food.

According to industry experts, competition among barbecue restaurants in the Asian region is expected to increase, with the growing popularity of this culinary concept. The barbecue culture is gaining traction in emerging economies, such as India and China, where consumers are increasingly embracing the idea of grilling their food in a controlled environment.

In addition, other Asian countries, such as Malaysia, the Philippines, and Indonesia, widely use coconut shells and coconut shell products, such as charcoal briquettes, as a source of energy, owing to their easy availability, environment friendliness, low ash content, and safety quotient for indoor cooking. Owing to its high calorific value, thermal efficiency, and long burning time, charcoal briquettes are widely used by the metallurgy industry for the processing of steel and iron.

According to the South East Asia Iron and Steel Institute (SEAISI), steel consumption in six countries under the Association of Southeast Asian Nations (ASEAN), namely, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, is expected to increase the demand by 5.2% in 2024.

In addition, steel production in India stood at 128.15 million tons in 2023, and in China stood at 76.1 million tons in 2023. The growing consumption of steel has led to the increased demand for charcoal briquettes, which make for a cost-effective raw material. Charcoal briquettes work well as a substitute for traditional fuel, owing to their affordability and price predictability.

Furthermore, charcoal briquettes are considered the best alternative fuel option to mitigate global warming, as their burning does not lead to any smoky emissions. The growing concern over the enormous amounts of carbon emissions and the growing trend of the adoption of clean energy sources are expected to boost the demand for charcoal briquettes in this region.

Here, the briquettes are used in coal-fired heaters, boilers, and modern combustion systems, as an alternative to fossil fuels that release greenhouse gases.

In addition to these attributes, charcoal briquettes have a low production cost and are also considered a clean and renewable source. Furthermore, charcoal briquettes burn for a longer duration. Hence, these attributes continue to contribute to the demand for charcoal briquettes in the metallurgical industry in the Asian region.

Asia Charcoal Briquettes Market Trends & Drivers

Growing Popularity of Barbecued Food

• Trends in the food industry keep changing with varying customer demands and tastes. Customers always look for unique flavors to satiate their palate and are, therefore, attracted to new styles of cooking as well.
• One of the trends observed in the food industry in recent years is the increased consumption of barbecued food, which mainly corresponds with a live cooking setting, complemented well by a vibrant atmosphere, extensive buffet spread, and great music.
• Moreover, the number of restaurants offering barbequed food is increasing at a rapid pace in emerging economies, such as India and China, owing to the growing popularity of this food.
• Barbecue is a food tradition deeply rooted in the history of developed economies, such as the U.S. and Germany. However, in recent years, barbecue culture has extended beyond these developed nations, to all parts of the world, especially Asian countries. With the growing interest of people in barbecued meals, the demand for barbecue fuel and accessories is on the rise.
• Charcoal briquettes are increasingly being utilized as a fuel for barbecue applications and are preferred over gas grills, as they not only provide a caramelized exterior to the food but also lend a smoky flavor to it.

Increasing Use of Charcoal Briquettes in Recreational Cooking

• The use of charcoal briquettes in cooking is significantly increasing across Asian countries. Increasing awareness of a healthy lifestyle and changing food preferences of people are resulting in the increased consumption of food that is grilled and barbecued, which, in turn, is providing impetus to the demand for charcoal briquettes as cooking fuel.
• Grilled food is gaining popularity among people across the region, owing to the various health benefits associated with it. It is generally low in fat, as the excess oil drips off the grates during the cooking process. Moreover, grilled food retains much of its nutritional value, as the process locks in more moisture and consumes less oil or butter.
• Thus, increasing health consciousness and changing food choices, complemented by the growing culture of hosting private get-togethers in the open, are contributing to the rising popularity of barbecued food, which, in turn, is resulting in the increased demand for charcoal briquettes across Asia. Additionally, the growing consumption of meat in various parts of the region is boosting the market growth.

Environmental Regulations with Respect to Deforestation

• Charcoal, which is one of the key raw materials of charcoal briquettes, is often perceived to have a destructive environmental and ecological impact. One of the most cited effects is the clearance of woodlands or forests, i.e., deforestation.
• Some of the emerging nations in Asia stick to legitimate methods to produce charcoal to fulfill the need for energy.
• Thus, most of the unsustainable production is carried out through the cutting down of forest trees. The level of deforestation varies from country to country, depending on factors such as tree-cutting methods and government laws regulating charcoal production. Deforestation also causes an adverse impact on the local species inhabiting the area.
• In view of this, the International Union for Conservation of Nature, which is a collaborative effort of international agencies, is working toward providing local, regional, and national support to prevent biodiversity loss and ensure sustainable ecosystem management.
• Thus, the increasing regulatory pressure with respect to deforestation is moderately restraining the market growth.

Asian Charcoal Briquettes Industry Outlook

Type Insights

• Based on type, the hexagonal category accounts for the largest share of the Asian charcoal briquettes market. This is mainly ascribed to its preference among restaurants and hotels for the preparation of barbecued food. The hexagonal shape provides uniform heating during grilling, thus resulting in tasty food.
• Further, the easy conversion of non-uniformly shaped charcoal to hexagonal shape, which results in its higher availability, is also propelling its demand.

Types covered in the report include:

• Hexagonal (Largest Category)
• Coconut Shell (Fastest-Growing Category)
• Octagonal
• Round
• Others

Application Insights

• Based on application, the use of charcoal briquettes in industrial applications is projected to showcase the fastest growth during the forecast period.
• Industries prefer charcoal, in place of coal, in order to contribute to the mitigation of global warming, as their burning does not lead to any smoky emission.
• Further, in several countries, governments are imposing stringent regulations to protect the environment, which, in turn, has added to the demand for non-smoky fuels, including charcoal.
• Moreover, charcoal briquettes are utilized in silicon manufacturing, which is increasing in the region because of the growing use of aluminum–silicon alloys in the automotive sector. This, in turn, is contributing to the growth of the market in Asia.

The following applications are included in the report:

• Metallurgical Fuel
• Barbecue (Largest Category)
• Industrial (Fastest-Growing Category)
• Others

Composition Insights

• By composition, the wood category holds a larger share in the market and it is expected to witness faster growth in the coming years as well.
• This is due to the increasing pollution globally. Wood is easily available, renewable, and offers a good heating effect.
• Moreover, wood is less expensive as compared to other compositions. Wood-based charcoal briquettes are popular because they add a natural smoky flavor to grilled food.

Compositions covered in the report are:

• Wood (Larger and Faster-Growing Category)
• Others

China is the Largest Market

• China holds the largest market share. This is due to the presence of a large number of charcoal manufacturers and high-volume consumption of charcoal for food preparation in rural areas and in the metallurgical industry, for several heat-intensive methods.
• Further, the changing consumer food preferences are also propelling the demand for charcoal briquettes in the county.
• On the other hand, the Japanese charcoal briquettes market is expected to showcase the fastest growth during the forecast period, as the country utilizes almost all of its charcoal briquettes in grilling food.
• The demand for barbecued food is set to increase in the nation, owing to the arrival of a large number of international visitors. To meet the growing demand for barbecued food, the country will import a greater number of charcoal briquettes than at present.

Further, countries analyzed for this report include:

• China (Largest Country Market)
• India
• Japan (Fastest-Growing Country Market)
• South Korea
• Singapore
• Australia
• Philippines
• Indonesia
• Thailand
• Rest of Asia

Market Nature - Consolidated

The charcoal briquettes market is highly unorganized in the region, with the presence of numerous small players. Various regional and local companies cater to local preferences and markets, and they often focus on niche markets or specialty products leveraging factors like organic materials or unique flavors to differentiate themselves. In addition, some countries that are key charcoal producers continue to play a significant role in the market, supplying charcoal briquettes alongside other charcoal products.