Biochar Market Report: Size, Share and Outlook by 2031

The biochar market is anticipated to grow significantly, reaching an estimated US$ 368.85 million by 2028, up from US$ 177.06 million in 2021. This growth represents a compound annual growth rate (CAGR) of 11.1% from 2021 to 2028.

A key driver of this expansion is the increasing demand for biochar, which is closely linked to the thriving feedstock industry. Feedstock, the raw material used in the production of biochar, can be classified into several categories, including woody biomass, agricultural waste, and animal manure. Agricultural waste, which encompasses materials such as corn, rice, and fruit peels, along with wood sourced from forests, serves as a primary feedstock for biochar production. Additionally, biochar can be derived from other original materials, including wastewater sludges and microalgae, and is also utilized as animal feed.

Feedstocks are essential for the manufacturing of various products. For instance, crude oil, corn, and soybean oil are processed to produce gasoline and ethanol, which are further used to create biodiesel. Consequently, the robust growth of the feedstock industry is positively influencing the global biochar market.

The biochar market is categorized based on feedstock types, which include woody biomass, agricultural waste, animal manure, and other feedstock. In 2020, the segment comprising woody biomass and agricultural waste held the largest market share. Biochar is produced from forest waste, agricultural residues, and urban green waste, and it is increasingly recognized for its potential in energy production. The two primary methods for biochar production are pyrolysis and gasification. Pyrolysis involves the thermal decomposition of biomass in the absence of oxygen, resulting in a carbon-rich and porous material known as biochar. During this process, the gases released can be harnessed as an energy source. Gasification, on the other hand, is an efficient conversion method that transforms biomass into energy fuel while generating biochar as a byproduct. Both pyrolysis and gasification not only produce biochar but also contribute to energy generation and soil enhancement. The production of biochar through cogeneration of electricity, particularly in rural areas, can stimulate regional development and energy production.

Geographically, the biochar market is segmented into North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and South & Central America. In 2021, the Asia-Pacific region dominated the market and is projected to exhibit the highest CAGR during the forecast period. Numerous biochar producers are increasingly focusing on markets in China, India, and other developing nations within the Asia-Pacific region to capitalize on the substantial growth opportunities available. The Asia-Pacific area is a major producer and consumer of biochar, and the regulatory environment in countries like India is more favorable compared to that in developed nations, further propelling the market's growth in this region.

Key players in the biochar market include Carbon Gold Ltd., Genesis Industries, Black Owl Biochar, Biochar Now, LLC, Airfex Energie Inc., Phoenix Energy, American BioChar Company, Bioforcetech Corp, ECOERA, and PYROPOWER. These companies are increasingly emphasizing the environmental advantages of biochar and are experiencing significant growth in the global market. As the demand for electricity rises, many countries are turning their attention to renewable energy sources, including biomass, which further supports the biochar market's expansion.

The market size for biochar has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. Additionally, numerous primary interviews were conducted with industry stakeholders to validate the findings and obtain deeper analytical insights. Participants in this research included vice presidents, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the biochar sector.