The biochar market is projected to reach US$ 368.85 million by 2028 from US$ 177.06 million in 2021. It is expected to grow at a CAGR of 11.1% from 2021 to 2028.
The growing feedstock industry increases the demand for biochar. The feedstock can be categorized as woody biomass, agricultural waste, and animal manure. Agricultural waste, such as corn, rice, and fruit peels, and wood from forests, is a feedstock used to produce biochar. Furthermore, biochar is produced from original materials, such as wastewater sludges and microalgae. It is also being used to feed animals. A feedstock is the raw material used for processing or manufacturing another product. The feedstocks such as Crude oil, corn, soyabean oil used to produce gasoline, and ethanol, which is used to create biodiesel. Therefore, the flourishing feedstock industry is favoring the growth of the global biochar market.
Based on feedstock, the biochar market is segmented into woody biomass and agricultural waste, animal manure, and other feedstock. The woody biomass and agricultural waste segment accounted for the largest market share in 2020. Biochar is made using forest waste, agricultural waste, urban green waste and is highly adopted to be used for the production of energy. There are two most adopted processes for production of Biochar namely pyrolysis and gasification. Biochar is a carbon-rich and porous material obtained in pyrolysis of biomass. During the production of biochar, pyrolysis gases are considered as an energy source. Also, gasification is an effective conversion process that converts biomass into energy fuel while producing biochar as a byproduct. Production of Biomass through gasification and pyrolysis production systems creates energy and soil additives. Biochar made with cogeneration of electricity especially in rural regions can lead to regional development and energy production.
Based on geography, the biochar market is primarily segmented into North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. In 2021, Asia-Pacific held the largest share of the market, and the Asia Pacific is expected to register the highest CAGR in the market during the forecast period. Many biochar producers are increasingly targeting China, India, and developing economies in the Rest of Asia Pacific to expand their business operations to explore the strong growth potential of these markets. Asia Pacific is one of the significant producers and consumers of biochar. Laws imposed on biochar in countries such as India are lenient compared to the laws in developed countries. These factors are fueling the growth of the biochar market across Asia Pacific.
The leading 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. The companies are focusing on environmental benefits and are witnessing lucrative growth for the biochar market across the globe. With the burgeoning demand for electricity, various countries across the world are focusing on renewable energy sources, such as biomass.
The size of the biochar market has been derived using primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights. Participants of this process include VPs, business development managers, market intelligence managers, national sales managers, and external consultants, including valuation experts, research analysts, and key opinion leaders, specializing in the biochar market.