Biochar Market Finds New Opportunities in Renewable Energy Production -

The global biochar market was valued at USD 541.8 million in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 13.9% from 2024 to 2030. Key drivers of this growth include the increasing use of biochar in organic farming and its proven benefits in enhancing soil fertility and promoting plant growth. The European Biochar Certificate has authorized its direct use in soil across several European countries, such as Austria and Switzerland. Biochar is a form of charcoal produced through the controlled heating of organic waste materials, including agricultural residues, wood and forest waste, and animal manure. Among various applications, its most prominent use is as a soil amendment, where it helps reduce pollutants, retain moisture, limit soil leaching, and minimize fertilizer runoff.

Growing environmental awareness, the availability of low-cost raw materials, and supportive government policies for waste management are expected to further accelerate market growth. The industry includes both organized and unorganized sectors, with a few major manufacturers and a rising number of small and medium-sized producers, particularly in North America and Europe. In contrast, regions like Asia Pacific and the Middle East are anticipated to experience slower growth due to limited awareness of the product and its long-term benefits. High capital requirements for producing premium-quality biochar have also led to the market exit of several companies in recent years.

In rural regions of countries such as China, Japan, Brazil, and Mexico, significant quantities of biochar are produced through partnerships with research institutions. As demand for organic food continues to rise, the number of organized manufacturers delivering high-quality biochar is expected to grow. Beyond agriculture, biochar is also used in the textile industry as a fabric additive, in building material production, and in electronics as a shield against electromagnetic radiation.

The food sector’s increasing demand for biochar is expected to be a significant factor propelling market expansion. Additionally, its application in water treatment is anticipated to gain traction, especially in emerging economies where demand for water treatment infrastructure is rising. The production of biochar from biogas and crop residues is also poised to support market growth. Key raw materials—wood waste, forest residues, agricultural by-products, and animal manure—are primarily sourced from suppliers in the wood and forest products industry.

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Regional Insights
North America led the global market in 2023, accounting for more than 58.5% of total revenue. This dominance is driven by the rising popularity of organic food and high levels of meat consumption, coupled with strong awareness of biochar’s benefits among farmers. Lower livestock feed costs are another contributing factor to its uptake. The United States generates the highest global revenue in this sector due to widespread product awareness and participation by both small and large-scale manufacturers. Although some companies have exited the market due to capital constraints, the outlook for the sector remains highly optimistic.

Asia Pacific is expected to witness robust growth, fueled by the expanding agricultural sectors in countries such as China and India. Government initiatives and active R&D efforts are projected to improve awareness and drive adoption among farmers. China, the world’s third-largest producer of organic food, has experienced declines in soil health due to genetically modified crops. Collaborative research and the integration of biochar in agricultural practices are expected to enhance product awareness and drive demand.

Key Companies & Market Share Insights
Major players in the biochar industry are pursuing both organic and inorganic strategies, including capacity expansions, mergers, acquisitions, and joint ventures, to strengthen their market positions.

In July 2023, a consortium involving Canadian and French companies—Airex Energy, Groupe Rémabec, and SUEZ—announced an investment of C$80 million to build North America’s largest biochar production facility.
Also in July 2023, Eco Allies, a subsidiary of Stereovision, revealed that its joint venture with Biochar Now, LLC would be expanded to include a second plant in Mexico. The number of kilns per plant will increase from 120 to 180, totaling 360 kilns.

Leading Biochar Companies