Global Biochar Market to Grow at an Estimated CAGR of 16.0% By 2030

Global biochar market is estimated to grow at a CAGR of 16.0 % during forecast period (2022 to 2030). Global biochar market refers to the market of a fine-grained charcoal which is obtained from biomass (plant material and agricultural waste). Biochar may be produced from various thermochemical technologies that include pyrolysis, gasification and others which involves slow burning of organic matter in a limited or no-oxygen environment. The biochar is used as an additive to soils to improve carbon storage and nutrient retention.The global biochar market has been segmented on the basis of application and technology.  The application segment is further segmented into agriculture, water, and waste water treatment and other applications.

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The key factor driving the growth of global biochar market is the ability of biochar to reduce greenhouse gas emission. Increasing environmental concern regarding emission of greenhouse gases led to increased adoption of biochar. in December 2015 Paris climate accord or Paris climate agreement was signed by 175 countries aimed at reducing the global CO2 emission by 28% 2025. The governments across the globe are proactively involved in reducing the carbon footprint in their respective countries aiding growth in the global biochar market. According to International Biochar Initiative, soil is considered as the major source of nitrous oxide (N2O) and acts as sink and source of methane (CH4). N2O is 23 times and CH4 is 298 times more harmful than carbon dioxide (CO2) as greenhouse gases in the atmosphere. Hence, biochar is extensively used in agricultural fields due to its property to reduce N2O emissions up-to 90%.

Agricultural application of the biochar leads the global biochar market by capturing largest market share of over 74% in 2021 with an estimated CAGR of 16.3% during the forecast. According to the Agricultural Marketing Resource Center (AMRC), biochar helps to improve the earth’s soil resource by increasing crop yields and productivity, reducing the need for artificial fertilizers and chemicals as well as it helps to reduce soil acidity that act as a primary driver for the high adoption of biochar in agriculture.

Pyrolysis leads technology segment in the global biochar market by capturing largest market share of over 64% in 2021 with an estimated CAGR of 16.3% during the forecast period and is also expected to be the fastest growing market during the forecast period. Rising greenhouses gases emissions across the world that because global warming is the primary driver for the global biochar market by pyrolysis. The warming effect associated with carbon dioxide alone increased by 30%. As per the EPA the agriculture, forestry and other land use contributes around 24% of the total greenhouse gas emissions globally. The biomass when converted through pyrolysis into biochar can retain carbon for a much longer time ranging between 100 to 1000 years and may reduce the CO2 emission up to 50-65% as per California Energy Commission.

North America leads the global Biochar market by capturing largest market share of over 47% in 2021. North American Biochar market is anticipated to grow at a CAGR of 16.3% during the forecast period. North America biochar market is primarily driven by government’s proactive stance to reduce green-house gas emission in US and Canada coupled with supportive initiatives for the adoption of Biochar. Asia Pacific Biochar market is expected to grow at a highest CAGR of 16.8% during the forecast period. Asia Pacific biochar market is primarily driven by rising of agriculture products owing to rise in population. Coupled with the increasing attention of the governments of India, China japan etc. on sustainable development goals aimed at reducing carbon emission and to promote organic farming that promotes the adoption of biochar and other environment friendly manures. The percentage of population in Asia Pacific is bound to reach 60% of the world’s total population by 2025. Further, the government initiatives promote organic farming such as “Paramparagat Krishi Vikas Yojana”, Chinese government focus on green and organic agriculture and others have positively influenced the growth of biochar market in Asia Pacific. 

Expansion and investment is among the primary strategy adopted by the companies in the biochar market. The capacity expansion allows the companies to increase their production capacity there by helping the companies to generate more revenue.The threat of new entrant in the global biochar market is expected to shift from Moderate in 2021 to high during the forecast period. The entry barriers for the companies in the biochar market are moderate as the regulations for manufacturing biochar are flexible, however strict regulations persist on the use of materials and transportation of the biomass. Moreover, the large scale manufacturing of biochar requires a large pyrolysis kiln, a dedicated place for the retrieval and storage of biomass that requires a considerable capital. Further the major players in terms of revenue in the biochar market that include Full Circle Biochar, Biochar Supreme LLC, Vega Biofuels Inc., Cool Planet Energy Systems, and Airex energy Inc have captured a considerable market share that influences the new entrants in biochar market. Over the forecast period owing to substantial funding to the companies in biochar market and increasing consumption of biochar globally the threat of new entrant is expected to intensify.

KEY MARKET MOVEMENTS

• Global biochar market is estimated to grow at a CAGR of 16.0 % during forecast period (2022 to 2030).
• The key factor driving the growth of global biochar market is the ability of biochar to reduce greenhouse gas emission.
• Agricultural application of the biochar leads the global biochar market by capturing largest market share of over 74% in 2021 with an estimated CAGR of 16.3% during the forecast.
• Pyrolysis leads technology segment in the global biochar market by capturing largest market share of over 64% in 2021 with an estimated CAGR of 16.3% during the forecast period.
• North America leads the global biochar market by capturing largest market share of over 47% in 2021.North American biochar market is anticipated to grow at a CAGR of 16.3% during the forecast period.
• Asia Pacific biochar market is expected to grow at a highest CAGR of 16.8% during the forecast period.
• Expansion and investment is among the primary strategy adopted by the companies in the biochar market.
• The threat of new entrant in the global biochar market is expected to shift from moderate in 2021 to high during the forecast period.
• Further the major players in terms of revenue in the biochar market that include Full Circle Biochar, Biochar Supreme LLC, Vega Biofuels Inc., Cool Planet Energy Systems, and Airex energy Inc have captured a considerable market share that influences the new entrants in biochar market.