In 2015, the global market for biochar stood at $4.27 million, and is expected to witness a significant growth at a CAGR of 17.1%, across the forecast period. The major factor for this significant growth rate is attributed to the waste management potential, improved soil fertility, natural carbon sequestration feature of biochar, and increased government programs. Also, stringent environmental regulations act as a major driver for the current biochar market.
Insights on market segments
Based on the applications of biochar, agricultural application of biochar witnesses a prominent growth rate in the biochar market, wherein biochar can improve crop yield and soil quality. The chemical fertilizers are majorly used in agriculture fields, which led to decline in the soil quality per capita agricultural land gradually. In order to improve the soil quality, biochar is the best alternative and it remains be high in demand. As per feedstock, forestry waste is accounted to be the largest market share in the global market. Also, it is projected to be continue as a largest market segment during the forecast period as well. Further, the need for improvement of soil quality and texture in the North America region is expected to boost the demand for biochar in the global market during the forecast period.
North America biochar market accounts for the largest market share in 2015
On the basis of geography, North American biochar market accounted for the largest market share in the global market in 2015. This significant market share is owing to the high demand for agricultural products and improvement in soil quality and crop yield. In addition, this region registers a high degradation in soil quality and texture, due to high consumption of chemical fertilizers, followed by mining and deforestation. The same factor encourages the demand for biochar in the region. The reason behind the same, is the biochar’s potential to reduce the quantity of nitrogen leaching into ground water and moderate soil acidity.
Several organizations in the North America as well as other regions, such as APAC, LATAM, and Europe are making guidelines to improve the soil quality. This generates opportunities for research and development (R&D) for biochar.
Stringent environment regulations drive the market growth
The key drivers that positively impacting the biochar market are strict environment regulations and increase in government initiatives. These are owing to the increase in environmental pollution and global warming, which leads towards rise in demand for biochar. Additionally, governments of several countries have initiated various projects that encourages the use of biochar in various soil related applications. For example, American Power Act of 2010, has several provisions to fasten biochar initiative projects. Additionally, International Biochar Initiative is a non-government organization that 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. Also, it helps in the cost cutting of waste disposal. Therefore, biochar is better than charcoal that produced from forest fires, which release harmful gases into the atmosphere.
The cost of biochar becomes a key restraint for the global biochar market
Several factors are positively impacting the biochar market growth across the globe. However, high cost of biochar acts as a key restraint in the market. The high cost leads to unaffordability from farmers wherein they find difficult to buy for their agricultural practices. Thus, this high price can be impact negatively on the biochar market globally, majorly in developing and undeveloped countries.
The major market players in the global biochar market are Genesis Industries, The Biochar Company, Biochar Products Inc., Green Charcoal International, Agri-Tech Producers LLC, Diacarbon Energy Inc., Vega Biofuels Inc., Full Circle Biochar, Cool Planet Energy Systems Inc., and Pacific Pyrolysis Pty Ltd.
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The information and data in the publication “Global Biochar Market Size, Share, Development, Growth and Demand Forecast to 2020”, represents the research and analysis of data from various primary and secondary sources. An amalgamation of top-down and bottom-up approach has been used to calculate the market size. P&S Intelligence analysts and consultants interacted with leading companies of the concerned domain to substantiate every value of data presented in the report. The company bases its primary research on discussions with prominent professionals and analysts in the industry, which is followed by informed and detailed, online and offline research.
GLOBAL BIOCHAR MARKET SEGMENTATION
By Manufacturing Process