The increasing barbecue and grilling as a recreational activity and ability of charcoal to eliminate contaminants from water are some of the factors supporting the demand for it. Due to the aforementioned factors, the North American charcoal market is projected to reach $466.6 million by 2030.
In the year 2020, COVID-19 brought about an economic downturn in most of the industries. Several manufacturing companies halted their operations during the pandemic, which impacted the market for charcoal. This is majorly attributed to the imposition of temporary lockdowns, travel bans, and trade restrictions, which disrupted the supply chain in the two North American countries. Besides, the lower demand for charcoal from end-use industries has negatively impacted the market in North America.
Based on type, the North American charcoal market is categorized into lump, briquettes, Japanese, sugar, and others. Amongst these, the lump charcoal category accounted for the largest revenue share in 2020, and it is expected to dominate the market throughout the forecast period (2021–2030). This is primarily attributed to the high-volume usage of lump charcoal in metallurgical processes and its ability to remove harmful compounds, such as gasoline and pesticides, from water and air. Additionally, owing to its fastest lighting time, better control over temperature, low ash content, long burn period, and the flavor it imparts to food, lump charcoal is preferred for barbecuing and grilling.
Based on application, the industry is categorized into metallurgical fuel, barbecue, industrial, filtration, and others. Among these, the barbecue category is expected to witness the highest demand in the North American charcoal market during the forecast period due to the high-volume consumption of barbecued food in the U.S. and Canada. The growing demand for grilled food, particularly among the young population, coupled with the high consumer spending, leads to a high demand for charcoal for barbecue and grilling.
Geographically, the U.S. held the larger revenue share in the market in 2020, and it is expected to remain dominant on the region during the forecast period. This is attributed to the increasing popularity of grilled food in the U.S., which, coupled with the environmental benefits of this fuel, are supporting its usage at specialty bakeries and restaurants and by caterers.
The North American charcoal industry is fragmented in nature. Some of the key players operating in the market are Royal Oak Enterprises LLC, Parker Charcoal Company, Timber Charcoal Company LLC, Duraflame Inc., Kingsford Products Company LLC, BOB–Q Charcoal, The Saint Louis Charcoal Company LLC, The Fogo Charcoal Company, Basques Hardwood Charcoal, and B&B Charcoal.