Biochar Market is expected to reach US$ 277.04 Million by 2031

Rise in Adoption of Biochar in Energy Generation Bolster Biochar Market Growth

According to our latest study on "Biochar Market Forecast to 2031, Global and Regional Growth Opportunity Analysis – by Form, Process, and Application," the market 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% during 2025–2031. The report highlights key factors contributing to the growing biochar market size and prominent players, along with their developments in the market.

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.

Biochar Market Breakdown – by Region

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.

The biochar market analysis has been performed by considering the following segments: form, process, and application. In terms of form, the market is segmented into granular, powder, and pellets. The powder segment held the largest biochar market share in 2024. Biochar in the form of finely ground powder is proven highly effective for adsorption applications such as water filtration, air purification, and removing toxins from soil. The small size of particles aids in their easy mixing with soil, compost, or other materials, improving nutrient retention, pH balance, and microbial activity. However, powdered biochar may be more challenging to handle and apply in large-scale agricultural settings due to issues caused by its consistency, which can lead to dust generation during transportation.

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.

The biochar market trends include the increasing adoption in wastewater management. The use of biochar in wastewater management is gaining traction as a sustainable and cost-effective solution for improving water quality, treating industrial wastewater, and managing contaminants. Biochar, a porous material created from organic biomass, has a unique ability to adsorb a wide range of pollutants. The adoption of biochar in wastewater treatment operations is driven by growing environmental concerns, rising need for more efficient water treatment solutions, and increased regulatory pressure on industries to reduce their environmental impact. The agriculture, mining, and manufacturing sectors, among others, are increasingly employing biochar in their wastewater management processes. The agricultural sector, in particular, benefits from biochar's ability to treat farm runoff, reducing nutrient pollution that can degrade nearby water bodies. Municipal wastewater treatment facilities also explore biochar substances for their use in reducing contaminants before water is returned to the environment or reuse reservoirs. Further, research institutions are actively exploring new ways to optimize the use of biochar for wastewater treatment, which are likely to drive technological advancements and enhance the efficiency of its use.

Asia Pacific dominated the biochar market share in 2024. 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.

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, and Olivketts Global Energy Ltd are among the prominent players profiled in the biochar market report. These market players are focusing on providing high-quality products to fulfill customer demand. They are also adopting strategies such as new product launches, capacity expansions, partnerships, and collaborations to stay competitive in the market.  

The biochar market is segmented on the basis of form, process, application, and geography. Based on form, the market is segmented into granular, powder, and pellets. In terms of process, the market is segmented into pyrolysis, gasification, torrefaction, and others. Based on application, the market is categorized into agriculture, animal feed, water treatment, electricity generation, construction, and others.

The geographic scope of the biochar market report focuses on North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America. The biochar market in North America is further segmented into the US, Canada, and Mexico. The market in Europe is subsegmented into Germany, France, the UK, Italy, Russia, and the Rest of Europe. The biochar market in the Asia Pacific is further segmented into China, India, Japan, Australia, South Korea, and the Rest of Asia Pacific. The biochar market in the Middle East & Africa is subsegmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The market in South & Central America is further segmented into Brazil, Argentina, and the Rest of South & Central America.

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