PUBLISHER: The Insight Partners | PRODUCT CODE: 1713259
PUBLISHER: The Insight Partners | PRODUCT CODE: 1713259
The biochar market size was valued at US$ 195.73 million in 2024 and is expected to reach US$ 277.04 million by 2031; it is estimated to register a CAGR of 5.4% from 2025 to 2031.
Biochar is produced through various processes that involve heating organic materials such as agricultural waste, forestry residues, and biomass in the absence of oxygen, thus generating biochar, syngas, and bio-oil. These by-products serve as valuable sources of renewable energy, which can be used to generate electricity or heat, offering a dual benefit of carbon sequestration and renewable energy generation.
Various regions and countries strive to lower their dependence on fossil fuels and meet goals focused on climate change mitigation, and biochar production as a form of energy generation aligns with these objectives. The integration of biochar production with energy systems can help reduce greenhouse gas emissions by replacing traditional energy sources with cleaner, carbon-neutral alternatives. Additionally, the use of biomass feedstocks provides a sustainable approach to managing waste. Various government policies are focused on promoting renewable energy development and carbon reduction. As advancements in technology make biochar production more efficient and cost-effective, its importance and feasibility as an energy source are contributing to the biochar market growth.
Based on the process, the market is segmented into pyrolysis, gasification, torrefaction, and others. The pyrolysis segment held the largest share of the market in 2024. Pyrolysis is one of the major processes used to manufacture biochar. It is a thermochemical conversion of lignocellulosic biomass and other waste materials (at 350°C and above) in limited- or no-oxygen conditions. The pyrolysis process involves high levels of heat and pressure, and its parameters influence the characteristics of biochar. Biochar, which is obtained as a solid fraction of the pyrolytic process, is gaining considerable importance due to its renewable nature, structural and morphological diversity, and physicochemical properties with similarity to conventional fossil resource-based carbon materials. The pyrolysis process also yields a fuel gas that could potentially be used as a cleaner alternative to natural gas.
Asia Pacific is estimated to register the fastest CAGR in the global biochar market from 2025 to 2031. In August 2024, the Union Cabinet of India approved the Agriculture Infrastructure Fund (AIF) to strengthen the infrastructure and support the farming community in the country. It aims to propel the number of eligible projects and integrate additional favorable measures to support a robust agricultural infrastructure. In 2023, the Government of Japan announced a new economic stimulus package of US$ 113 billion to boost agriculture, forestry, and fishery exports. Such supportive agriculture policies and growing sustainable agriculture practices drive the demand for biochar to enhance soil structure and health. Further, being the world's largest agricultural producer, there is a growing demand for biochar to enhance soil fertility in the region. The governments in Asia Pacific have been actively promoting the use of biochar through policies such as the National Soil Pollution Control Plan and the Healthy Soil Action Plan in China aimed at supporting organic farming, enhancing soil quality, and reducing greenhouse gas emissions. Moreover, biochar is widely used in animal feed to improve animal health and livestock productivity. Thus, the flourishing organic agriculture and animal feed production industries generate a significant demand for biochar in Asia Pacific.
A few players operating in the global biochar market include BC Biochar, SOLER Group, Green Man Char-Cyclic Carbon Pty Ltd, American BioCarbon, Elkem ASA, Carbonis GmbH & Co KG, Element Biochar, Oregon Biochar Solutions, Envigas AB, BioCarbon Australia, Glanris, Genesis Enterprises Inc, Biochar Supreme LLC, Phoenix Energy, Olivketts Global Energy Ltd. Players operating in the market focus on providing high-quality products to fulfill customer demand. Also, they are focusing on launching new and high-quality products for their customers.
The overall global biochar market size has been derived using both 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 into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers-along with external consultants such as valuation experts, research analysts, and key opinion leaders-specializing in the biochar market.