Charcoal Market Overview
The global charcoal market is estimated to value $5,813.2 million in 2017 and is projected to grow at a CAGR of 2.0% during the forecast period. The growing demand for charcoal as a metallurgical fuel in the metal and mining industries is driving the growth of the market.
On the basis of type, the charcoal market is segmented into lump charcoal, charcoal briquettes, Japanese charcoal, sugar charcoal, and others. Others include various forms of activated charcoal. In terms of value, lump charcoal is estimated to contribute the largest share, of more than 67.0%, to the market in 2017. Lump charcoal burns quickly and produces a high amount of heat on burning. Owing to these properties, the demand for lump charcoal is growing for barbecue cooking purposes.
GLOBAL CHARCOAL MARKET, BY APPLICATION, KILOTONS (2013–2023)
Based on application, the charcoal market is segmented into metallurgical fuel, barbecue, industrial, filtration, and others. Others include medical, pharmaceutical, horticulture, automotive, and art applications. In value terms, metallurgical fuel is estimated to dominate the market in 2017, accounting for more than 65.0%. Growing usage of charcoal in the smelting and sintering of iron ores and extraction of non-ferrous metals is driving its market growth.
Globally, Latin America (LATAM) is estimated to hold a share of 45.0% in terms of value in the charcoal market in 2017. Wide availability of charcoal, strong presence of the metallurgical industry in different countries, and relatively lenient environmental regulations regarding the industrial use of charcoal are the factors driving the growth of the market in LATAM. In terms of value, Brazil is estimated to be the largest charcoal market in LATAM in 2017, accounting for more than 65% share.
Charcoal Market Dynamics
Barbecue is a food tradition that is deeply rooted in the history of developed economies, such as the U.S. and Germany. The tradition has extended beyond these developed nations, to all parts of the world. With growing interest of people in barbecued meals, the demand of barbecue fuel and accessories is on the rise. Charcoal is increasingly being utilized as a fuel for cooking barbecued food and preferred over gas grills, as it not only provides a caramelized exterior to the food and but also lends a smoky flavor to it. Thus, the growing trend of barbequed food among people is expected to support the growth of the charcoal market during the forecast period.
Charcoal is increasingly being used in the production of steel, ferroalloys, aluminum, lead, cast iron, tin, copper, lanthanides, nickel, and some rare metals. It is also employed in the smelting of certain types of brass and bronze. The demand for charcoal is increasing due to technological developments and growing inclination toward the use of clean and renewable resources. Charcoal briquettes compressed from biomass materials produce less ash and reduce greenhouse gas emissions. They are therefore more preferred than traditional fuels. Such environmental sustainability benefits are fueling their demand among users, which, in turn, is driving the growth of the charcoal market.
Low investments in raw materials (such as the use of agro-forestry waste for the production of charcoal briquettes) and increasing prices of traditional fossil fuels are also key factors propelling the usage of different charcoal products in industries. After burning, the leftover of charcoal briquettes can be utilized as a fertilizer. Owing to this, the demand for charcoal briquettes is growing in the field of agriculture in emerging economies. Thus, these factors are contributing to the growth of the charcoal market.
Rapid industrialization across the globe has unfortunately increased the amount of pollutants in our surroundings. One such pollutant is wastewater. According to the Organisation for Economic Co-operation and Development (OECD), the water demand is projected to increase by more than 50.0% by 2050. Thus, managing wastewater through wastewater treatment plants has become the need of the hour. Japanese white charcoal is widely being used for water purification purposes, as it eliminates chemicals from the water and enriches it with natural minerals. Such wide-scale applications of Japanese white charcoal in water and waste water treatment industry are supporting the growth of the global charcoal market.
Charcoal production is often perceived to have destructive environmental and ecological effects. One of the most cited impacts is the clearance of woodland or forest, i.e. deforestation. Developing countries follow unsustainable ways of producing charcoal to meet their energy needs, as sustainable solutions, such as the utilization of metal kilns, are too expensive. Majority of unsustainable charcoal production comes from the cutting down of forest trees. Deforestation also causes an adverse impact on the local species present in the area. Thus, the usage of charcoal is getting restricted owing to its negative ecological impact. This, in turn, is impeding the growth of the charcoal market.
Charcoal Market Competitive Landscape
Some of the major players operating in the global charcoal industry are Royal Oak Enterprises LLC, Maurobera SA, GRYFSKAND SP z o.o., Sagar Charcoal Depot, Parker Charcoal Company, NAMCHAR (Pty.) Ltd., Timber Charcoal Company LLC, Bricapar S.A.E., Duraflame Inc., and Kingsford Products Company LLC.