The Biochar Market Projected to Grow at a CAGR of 16.1% and Generate a Revenue of $1,147,715.3 Thousand by 2028Download Sample Reports Overview
The global biochar market is predicted to be valued at $1,147,715.3 thousand by 2028, surging from $353,863.5 thousand in 2020, at a noteworthy CAGR of 16.1%.
COVID-19 Impact on Biochar Market
The coronavirus outbreak has created enormous economic crisis due to lockdown imposed across various countries. However, the impact of pandemic on biochar market was very less or negligible as agriculture and related activities were functional during the COVID-19 pandemic. Also, the raw materials required for biochar production such as manure and agricultural waste were easily available to the biochar producers. In fact, the role of biochar in mitigating the climate change and boosting the crop yield has paved the way for various investment & growth opportunities. For instance, in 2021, Standard Biocarbon, the technology platform that offers various solutions for reducing the atmospheric carbon, received $2000 funding from three US-based institutes namely Coastal Enterprises (CEI), Finance Authority of Maine (FAME), and Maine Technology Institute (MTI). With the help of this funding, Standard Biocarbon can purchase equipment for producing high quality biochar. The high-quality biochar in pure form of carbon will be produced at the former site of the Great Northern Paper mill in East Millinocket.
Global Biochar Market Analysis
Growing popularity of biochar being carbon negative and its role in soil amendment is driving the biochar market size. Biochar is becoming increasingly popular in the agricultural sector as it is highly porous which can retain essential soil nutrients such as nitrogen, phosphorous, and water. Biochar obtained from various feedstock have different benefits. For instance, biochar produced from manure is rich in nutrient content. The biochar obtained from woody biomass persists over longer time and does not degrade quickly. In depleted soil with less nutrients and inadequate water supplies, biochar can be extremely useful. For instance, when biochar is applied in such soil conditions, its fertility can be improved by retaining the nutrients and water as well as biochar can sequester carbon in soils. This prevents the release of carbon into the atmosphere that helps in reducing carbon emissions and helps in achieving sustainability. The application of biochar gives rise to healthier plants that can improve the air quality by consuming more carbon dioxide. Also, biochar reduces the need for chemical fertilizers thereby maintaining the good soil health.
However, the production of biochar requires kilns where the temperature of 400-700 C must be maintained for several hours that produces lot of thermal energy and emits carbon. In addition, sewage biochar contains heavy metals such as zinc, nickel, chromium, and others which are toxic and cause soil compaction. These factors are anticipated to hamper the biochar market size during the analysis timeframe.
The use of biochar in filtration, livestock feed, building materials, and in other sectors is estimated to drive huge growth opportunities. For instance, biochar has high carbon content and activated carbon can be used for water filtration which is a cheaper solution. In livestock feed, biochar can act as a binding agent in feed that can improve the animal health. In addition, in building materials, biochar plaster is known to provide excellent insulation along with sound and odor reduction. Also, mixing biochar with cement, lime, and other additives can enhance the plaster properties. Moreover, biochar application has shown huge potential in fuel cell technology owing to its chemical properties and electrical conductivity.
Global Biochar Market, Segmentation
The global biochar market is segmented based on feedstock, production method, application, and region.
The feedstock segment is further classified into agricultural waste, animal manure, and others. Among these, the agricultural waste sub-segment is anticipated to have a dominant market share and shall surpass $795,990.4 thousand by 2028, with an increase from $240,148.9 thousand in 2020. Agricultural wastes such as rice, wood, fruit peels, corn, and others are high in hemicellulose, cellulose, and lignin. Cellulose has high tensile strength and has high tolerance to degradation. Hence, the biochar obtained via pyrolysis of agricultural waste is rich in cellulose fiber that has an influence on uptake of nutrients such as nitrogen from the soil. This helps in increasing the soil fertility by facilitating enhanced adsorptive action and retention of essential nutrients.
The production method segment is further classified into pyrolysis, gasification, and others. Among these, the pyrolysis sub-segment is anticipated to have a dominant market share and shall surpass $604,285.9 thousand by 2028, with an increase from $180,811.7 thousand in 2020. Pyrolysis process involves heating the biomass at elevated temperatures in the absence of oxygen. Pyrolysis is simple and inexpensive technology that can process variety of feedstocks such as manure, agricultural waste, and others. Pyrolysis process limits the amount of waste entering the landfill and reduces the emission of greenhouse gases as well as pollution. The construction of pyrolysis plant is quick and easy process that helps in generating biochar and energy from waste.
The application segment is further classified into agriculture, livestock feed, building materials, and others. Among these, the agriculture sub-segment is anticipated to have a dominant market share and shall surpass $496,764.6 thousand by 2028, with an increase from $145,527.3 thousand in 2020. Biochar fertilizer and biochar soil amendment are the important applications of biochar in agriculture. The use of biochar as fertilizer increases the microbial activity and helps in the retention of soil nutrients. This is majorly owing to high porosity and large surface area which act as a safe habitat for micro-organisms. Biochar enhances the microbial activity for greater nutrient uptake by plants. This helps in increasing the crop yield. Also, biochar helps in disposing the massive amount of manure generated by livestock.
The biochar market for the North America region is projected to acquire dominant market share during the forecast period. This region’s market generated a revenue of $208,425.6 thousand in 2020 and is projected to reach up to $667,970.3 thousand by 2028. Rising environmental concerns such as emission of harmful greenhouse gases is major growth driving factor. For instance, the use of biochar prevents the emission of harmful carbon dioxide and reduces the degradation of soil from agricultural activities. The U.S. government has recognized the importance of biochar in promoting soil health and providing food security. Biochar promotes sustainable farming and helps in soil conservation. Biochar retains carbon in the soil and biochar mixes find range of application in agriculture farms, gardens, and household applications. It is one of the most inexpensive methods of eliminating carbon from the atmosphere which is estimated to propel the North America biochar market growth.
Key Players in the Global Biochar Market
Some of the leading biochar market players are
- Agri-Tech Producers, LLC
- Biochar Supreme, LLC
- CharGrow USA LLC
- Cool Planet
- Earth Systems Pty Ltd.
- Full Circle Biochar
- Pacific Biochar
- Benefit Corporation
- Pacific Pyrolysis Pty Ltd
- Phoenix Energy
- ArSta Eco Pvt Ltd.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Biochar Market:
- Bargaining Power of Suppliers: The biochar producers are less likely to depend on the suppliers as the raw material required for biochar production is easily available. Raw materials such as manure, agricultural waste, and others are available at low cost. Hence, suppliers have less bargaining potential.
Thus, the bargaining power of suppliers is low.
- Bargaining Power of Buyers: In this market, the concentration of buyers is increasing steadily owing to the role of biochar in climate change and sustainable farming. Biochar is produced from biomass and purchase quantity of biochar is high.
Thus, buyer’s bargaining power will be moderate.
- Threat of New Entrants: The threat of new entrants is high as this market is evolving rapidly across the world. The initial capital cost for setting up biochar plant is moderate, and demand is high.
Thus, the threat of the new entrants is high.
- Threat of Substitutes: There are no substitute for biochar as this market is in its development stage and technology is being adopted gradually by the European and Asia-Pacific countries.
Thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: The biochar producers are growing rapidly across the world especially in Asia-Pacific countries such as China and Australia. The manufacturers are focusing on increasing their production capacity to attract consumers.
Therefore, competitive rivalry in the market is high.