Biochar Market Growth is Expanding at a CAGR of 11.14% by 2032
Precedence Research
8 min read
Precedence Research
The global biochar market is poised to grow at a registered CAGR of 11.14% over the forecast period 2023 to 2032. Rising importance for organic products to boost the demand for biochar in the global biochar market.
Tokyo, Feb. 17, 2023 (GLOBE NEWSWIRE) -- The global biochar market size estimated for USD 220.27 billion in 2022 and it is anticipated to worth around USD 633.31 billion by 2032, as per new report study by Precedence Research.
Key Insights
Asia-Pacific region has accounted for 70.7% of total revenue share in 2022.
The pyrolysis segment has generated revenue share of 56% in 2022.
By application, the soil amendment segment has held revenue share of 39% in 2022.
A fine-grained, high-carbon residue called biochar. It is produced most frequently using sophisticated pyrolysis processes (direct thermal decomposition of biomass in the absence of oxygen and preventing combustion). Biochar can improve soil nutrients when applied to the ground in agricultural applications, increasing crop output. By preserving nutrients and agrochemicals in the soil for plant and crop consumption, biochar also improves water quality and quantity. More nutrients stay in the soil, preventing pollution-causing seepage into the groundwater. The quality of biochar highly depends on the raw material or feedstock used in the preparation. Woody biomass, agricultural waste and animal manure are a few feedstocks used to produce biochar. Among all, the importance for animal manure feedstock is increasing noticeably owing to the high nutritional value available in it. The global biochar market is estimated to achieve a significant growth during the forecast period due to rising awareness for organic products globally and growing government initiatives to reduce the carbon emissions from agricultural activities.
Growing demand for environmentally friendly and organic food products is expected to boost the demand for biochar worldwide.
Advancements in pyrolysis and gasification technology will open lucrative opportunities for key players involved in the global biochar market.
Airex Energy Inc., Biochar Supreme, Farm2Energy Pvt Ltd, Pacific Biochar Corporation, ProActive Agriculture, Phoenix Energy and Others.
Regional snapshot:
Asia Pacific acquires the largest revenue share in the global biochar market. Being the most significant food producer globally, the demand for biochar from the agriculture sector has been boosted in the Asia Pacific. Countries with higher agricultural activities, such as India, China, Indonesia and Malaysia, are significant contributors to the market’s growth. Rising government spending on agriculture is another primary reason for the market to grow. For instance, in the annual budget for 2022, the Indian government allocated Rs.1,24,000 crore for the development of the agriculture sector. Along with this, a certain amount was allocated for research and development in the agriculture sector to boost the production of millet and oilseeds. At the same time, China’s agricultural share has increased dramatically in recent years. The increased spending on the agriculture sector, with highlighted recent developments in organic farming, has provided lucrative opportunities for the biochar market to grow. In India's northern states, stump burning is a serious problem. Around 150 million tons of CO2 are thought to be released each year, seriously endangering both human health and soil quality. India burns between 70 and 80 million tons of excess agricultural trash annually, including wheat straw and rice. The rising carbon emissions have forced companies to enter the biochar market to combat this severe environmental concern. Moreover,
Furthermore, North America is the second largest market for biochar production. The rising deployment of biochar in the energy production sector has boosted the demand for biochar in the region. The presence of major key players in North America has propelled the market's growth. Companies such as Black Owl Biochar, CharGrow USA LLC., Cool Planet, Pacific Biochar Benefit Corporation, Phoenix Energy, Bioforce Tech Corporation and American Biochar Company are present in the United States that contribute to the growth of the market.
Europe is another major marketplace for biochar business with the presence of significant vital players. The abundance of forestry waste is anticipated to propel the biochar industry throughout the region. High disposable expenses and European organic waste disposal restrictions are also expected to contribute to the market's expansion. The expansion of the biochar business is also extensively driven by several governments and private funding initiatives for biochar demonstration projects in major countries of Europe.
Additionally, the use of biochar in horticultural and agricultural applications has increased due to its capacity to sequester carbon and act as a soil amendment. The UK, Germany, and Italy are three powerful nations with major research centers for biochar. All these factors collectively increase the biochar market's prosperity in Europe.
Market dynamics:
Driver:
Growing demand for environmentally friendly products
Rising environmental concerns are a significant driver for the increasing demand for biochar in the global market. Carbon dioxide levels in the atmosphere rise due to the combustion of fossil fuels and the breakdown of biomass, which releases a lot of carbon dioxide. However, because biochar may retain up to 50% of the carbon from its feedstock, adding it to these soils can help reduce carbon dioxide emissions. A remarkably stable substance is biochar. By doing this, organic decomposition's carbon dioxide emissions are significantly reduced. It is crucial for controlling soil emissions of methane and nitric oxide.
Utilizing biochar in the soil can aid in lowering off-site pollution. Moreover, it increases water retention for maintaining moisture in the dry season. It enhances the soil's capacity to hold onto nutrients like nitrogen and phosphorus. This lessens soil nutrient loss to groundwater and aids in preventing nutrient loss from surface water flow-induced erosion. Thus, the growing demand for eco-friendly products that are beneficial for both human health and the ecosystem is seen as a driving factor for the growth of the biochar market.
Restraint:
High price of biochar production
The manufacture of biochar is a pricey process that requires a range of high-end, expensive pyrolysis equipment. At the same time, storing and transporting the pyrolysis gas produced during biochar manufacturing costs money since it needs an oxygen-free environment kept at a specific temperature. Because of this, it is challenging for producers with low starting capital to enter the biochar industry. Thus, the high price of biochar production acts as a restraining factor for the market’s growth.
Opportunity:
Advancement in pyrolysis technology
Pyrolysis is the most standard and globally used procedure for the formation of biochar. The process includes heating biomass or biowaste at a specific temperature. The rising demand for biochar from the agricultural sector requires advanced technology for faster delivery of biochar through the pyrolysis process. Advancement in pyrolysis machinery and technology will take less time to form biochar. Modernizing existing pyrolytic facilities will offer advanced distillation systems to utilize biomass and smooth operation properly. Technological advancement will provide profit-making opportunities for companies involved in biochar formation. Subsequently, it will boost the growth of the overall biochar market.
Challenge:
Easy access to chemical fertilizers
Usually, chemical fertilizers are cheaper than organic fertilizers. They are readily available everywhere and help to fertilize the soil immediately. At the same time, biochar is comparatively costly and may take time to fertilize. Many customized chemical fertilizers for soil are available in the global market. The easy access to chemical fertilizers creates an obstacle to the growth of the biochar market.
In December 2022, PepsiCo India started offering a ‘Biochar Program’ to farmers in order to generate a sustainable future in agricultural activities. This program will work as a prototype of the Positive Agriculture Philosophy of the company.
In September 2022, WasteX launched a program to help Southeast Asia convert biomass into higher-value products such as biochar. The company will provide end-to-end solutions to agriculture producers, from choosing the right technology to deploying the technology.
In August 2022, Restoration Bioproducts, a Lynchburg-based company, announced an investment of $5.8 billion in a new biochar plant in Virginia. This plant will offer jobs and purchase 34,650 tons of Virgina-grown wood products.
In June 2022, Verra announced the release of a new methodology for allowing biochar projects to quantify their climate benefits and generate nature-based carbon removal credits.
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