Biochar Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)
Get a Comprehensive Overview of the Biochar Market Report Prepared by P&S Intelligence, Segmented by Technology (Pyrolysis, Gasification, Hydrothermal Carbonization, Torrefaction), Source (Woody Biomass, Agricultural Waste, Animal Manure), Application (Agriculture, Animal Farming, Electricity Generation) and Geographic Regions. This Report Provides Insights From 2017 to 2030.
Biochar Market Size
Market Statistics
Study Period | 2017 - 2030 |
2023 Market Size | USD 2,607.1 Million |
2024 Market Size | USD 2,860.3 Million |
2030 Forecast | USD 5,144.8 Million |
Growth Rate (CAGR) | 10.3% |
Largest Region | Europe |
Fastest Growing Region | Asia–Pacific |
Nature of the Market | Fragmented |
Fastest Growing Application Category | Agriculture |
Market Size Comparison
Key Players
Key Report Highlights
|
Explore the market potential with our data-driven report
Biochar Market Analysis
The biochar market generated USD 2,607.1 million revenue in 2023, and it is projected to witness a CAGR of 10.3% during 2024–2030, reaching USD 5,144.8 million by 2030. This is mainly due to the increasing production of this material. On the other hand, the strongest factors propelling the consumption of the commodity are the rising awareness of its benefits for the environment, the low cost of raw materials, and the government policies that support sustainable waste management and environmental protection. Additionally, it is being increasingly used in energy production and livestock feeding.
Biochar Market Trends & Drivers
Rising Biochar Demand in Agriculture Industry Is Key Trend
- Biochar, which is produced via pyrolysis, is a porous form of carbon that has a broad range of applications, most prominently soil improvement and remediation.
- It provides nutrition to crops and enhances plant growth and soil fertility.
- It has also the ability to retain the applied fertilizer and release it at the required rate to crops. The advantage of holding water and nutrients on the surface of the soil for longer durations helps prevent the evaporation of nutrients from the crop root zone, which leads to an increase in crop yields and decrease in the need for fertilizers.
- Presently, the U.S. and China are ahead in terms of using biochar in agriculture. The U.S. is one of the largest producers and exporters of agricultural products worldwide. According to reports, around 1.81 billion bushels of wheat were produced in the U.S. in 2023.
Stringent Environment Regulations Drive Market Growth
- The key driver for the biochar market is strict environmental regulations and an increase in the count of government initiatives promoting sustainability. This is owing to the increase in environmental pollution and global warming.
- Specifically, the governments of several countries have initiated various projects that encourage the use of biochar in various soil-related applications.
- For example, the American Power Act of 2010 has several provisions to hasten biochar initiatives.
- Additionally, the International Biochar Initiative encourages good industry practices, stakeholder collaboration, and ethical standards to cultivate cost-effective biochar systems.
- Further, biochar production encourages the management of agricultural and other organic waste in an efficient way.
- It also helps in the cost-cutting of waste disposal.
- Biochar is better than charcoal, which is produced from forest fires and, thus releases harmful gases into the atmosphere.
High Cost of Biochar Is Key Restraint for Market
- The high cost of biochar acts as a key restraint in the market. The high-cost leads to unaffordability for farmers, wherein they find it difficult to buy for their agricultural practices.
- Additionally, an undeveloped carbon market, short periods for mining land renovation bonds, and lack of money for producers also hamper the growth of the biochar market.
- Thus, this high price of the commodity can impact the biochar market negatively, majorly in developing and undeveloped countries.
Biochar Industry Outlook
Technology Insights
- Pyrolysis is the largest technology, holding a market share of 35% in 2023. This is because pyrolysis is an effective and environment-friendly waste treatment method, as it can treat low-value, high-ash waste, such as sewage and deinking sludge, which cannot be treated by other methods.
- Further, this process can be used for waste with large particle sizes and a high moisture content.
- Another of its advantages is that it can be used at small facilities, thus offering cost-effectiveness. These advantages, combined with its dependability, make it suitable for small and medium-sized businesses.
- The gasification category is expected to witness the highest CAGR, of 10.7%, from 2024 to 2030 in the market. This growth is associated with the vigorous advancements in this technology.
- Excellent quality biochar is produced during the process, after igniting biomass/biowaste incompletely. This method was earlier used for converting coal. Since the last few years, biochar has been produced by using this technology.
- Additionally, with this technology, small quantities of this product are created in a reaction vessel that is directly heated and fed with air. The lower environmental impact of this technology makes it popular.
During the study, these technologies have been studied:
- Pyrolysis (Largest Category)
- Gasification (Fastest-Growing Category)
- Hydrothermal Carbonization
- Torrefaction
- Others
Source Insights
- Woody biomass is the largest category, with a market share of around 25% in 2023. It is also the fastest-growing category. This is because woody biomass has a minimal amount of sulfur and heavy metals, and its particulate emissions are controllable. Additionally, it is a relatively cheap raw material for the production of biochar.
This segment has four categories:
- Woody Biomass (Largest and Fastest-Growing Category)
- Agricultural Waste
- Animal Manure
- Others
Application Insights
Agriculture is the largest category, with a market share of around 50% in 2023, and it is also the fastest-growing application. The majority of the biochar produced around the world is expected to be consumed in agriculture. Since there is no need for additional processing, this product can be mixed with nutrients and used as a soil conditioner.
It has been in continuous usage in agriculture over centuries as an intrinsic additional component of the soil organic matter; accounting for up to 30% of the organic matter in fertile soil presently. In addition, the soil surface area, bulk density, porosity, aggregate stability, penetration resistance, and moisture content are improved by biochar.
These applications are covered in the report:
- Agriculture (Largest and Fastest-Growing Category)
- Animal Farming
- Electricity Generation
- Others
Europe Is Largest Region
Europe is the largest region, with a market share of around 45% in 2023. The increasing biochar production capacity, in part, due to the strong government support for it, is leading to its easy availability and high-volume consumption. For example, the Tierpark in Berlin, Germany, one of the largest landscaped animal gardens in Europe, is engaged in a project supported by the European Commission that invests in biochar technology to improve the CO2 footprint of its waste management system. In the same way, Lund in Sweden is investing in it as part of its organic waste management strategy and utilizing it as a soil amendment material for the municipality’s trees and landscaped areas.
APAC is expected to be the fastest-growing market, at a CAGR of 10.6%, during 2024–2030. This is owing to the existence of a huge and evolving agriculture sector in economies such as India and China. Moreover, many government schemes and R&D initiatives are increasing the awareness of biochar and its many advantages in the farming community.
India is widely using thermal chemical processes as they are an economical method to transform crop residue into biochar. China holds the third position in producing organic food globally. Crop productivity and the quality of soil are affected due to the usage of genetically modified crops. Biochar is being incorporated into farming to increase productivity.
These regions and countries were analyzed for this report:
- North America
- U.S. (Largest and Fastest-Growing Country Market)
- Canada
- Europe (Largest Regional Market)
- Germany (Largest Country Market)
- U.K.
- France (Fastest-Growing Country Market)
- Italy
- Spain
- Rest of Europe
- APAC (Fastest-Growing Regional Market)
- China (Largest Country Market)
- Japan
- India (Fastest-Growing Country Market)
- South Korea
- Australia
- Rest of APAC
- Latin America (LATAM)
- Brazil (Largest Country Market)
- Mexico (Fastest-Growing Country Market)
- Rest of LATAM
- Middle East and Africa (MEA)
- Saudi Arabia
- South Africa (Largest Country Market)
- U.A.E (Fastest-Growing Country Market)
- Rest of MEA
Biochar Market Share
The biochar market is fragmented in nature, and market players are pursuing investments in order to expand their product portfolio and develop their technology. Other strategies are mergers & acquisitions, partnerships, and collaborations to stay ahead in the race. Furthermore, businesses such as Microsoft and Shopify are purchasing biochar carbon credits to offset their carbon emissions.
Top Biochar Companies:
- Pacific Biochar Benefit Corporation
- Biochar Solutions Inc.
- Phoenix Energy
- Black Owl Biochar
- Biochar Now
- Airex Energy
- American BioChar Company
- Bioforcetech Corp.
- ECOERA AB
- ArSta Eco Pvt Ltd
Biochar Industry News
In July 2023, an investment of CAD 80 million was made by a group of French and Canadian companies, including SUEZ, Groupe Rémabec, and Airex Energy, to set up North America’s largest biochar production facility.
In July 2023, Eco Allies Inc. and Biochar Now LLC extended the terms of their joint venture. Under the agreement, Mexico received its second plant, and the number of kilns for each plant increased to 180 from 120, making up 360 in total.
In June 2022, BDO Zone Strategic Alliance was joined by Airex Energy as a technology partner.
In June 2021, Airex Energy and SUEZ Group partnered to begin the transformation of biomass scum into biochar.
In June 2021, Nasdaq Inc. became a controlling shareholder in Puro.earth Oy, a trading platform that buys carbon credits from engineered carbon removal methods, such as biochar.
In October 2021, Standard Biocarbon Corporation secured USD 2 million (EUR 1.7 million) in financing from three Maine, U.S.-based institutions to purchase equipment for producing biochar at the former’s site of the Great Northern Paper Mill in East Millinocket.
In September 2021, Sustainable Thinking Scotland secured a EUR 190,000 investment from FirstPort and Social Enterprise Scotland's Catalyst Fund. This fund was granted for the development of its biochar water remediation technology, which involves baking waste wood and other biomass at high temperatures. This can extract carbon from the atmosphere and put it into the soil, storing it for hundreds to thousands of years.
Request the Free Sample Pages