Granular Biochar Market Outlook and Strategic Insights by 2030

[Research Report] The granular biochar market size is expected to grow from US$ 68,789.87 thousand in 2022 to US$ 172,103.82 thousand by 2030; it is estimated to register a CAGR of 12.1% from 2022 to 2030.

MARKET ANALYSIS

The global granular biochar market has experienced notable growth in recent years, driven by increasing demand for sustainable products. Granular biochar is manufactured using raw materials such as sewage, yard waste, food waste, crop residues, and hardwood species. In granular biochar production, feedstock and processing conditions play an important role in the yield and properties of the final product. The application of biochar to the soil helps in the reduction of offsite pollution. It increases the retention of nutrients such as phosphorous and nitrogen in the soil. This decreases the leaching of nutrients from the soil into the groundwater and helps save nutrients from erosion due to the surface water flow.

The increasing use of granular biochar in agriculture due to its advanced benefits have further facilitated the expansion of the granular biochar market. Using various application rates and preparation techniques, granular biochar is applied to agricultural soils. The rate of application and preparation of the granular biochar mainly depends upon specific soil conditions and the materials used to make the granular biochar. Granular biochar helps to improve soil fertility, which stimulates plant growth. Due to granular biochar's ability to retain soil nutrients for long periods, it reduces the need for chemical fertilizers. Further, the global granular biochar market trends include the use of granular biochar in water and wastewater treatment.

GROWTH DRIVERS AND CHALLENGES

Agriculture is one of the major areas of application for granular biochar. The agriculture industry is proliferating and providing several opportunities for the granular biochar market growth. In recent years, the interest in using biochar in agriculture has been increasing due to the beneficial properties of this material. The application of granular biochar to temperate soil can improve a variety of soil health indicators. Soil health is the capacity of the soil to function as a living system to sustain biological productivity and maintain environmental quality. Granular biochar has the potential to retain soil nutrients such as ammonium, nitrate, and phosphorus, and this effect is most readily observed in light-textured soils. Granular biochar helps to improve soil fertility status and increase crop productivity.

Soil degradation is a major concern in agriculture globally. Biochar is applied to degraded soils to enhance their quality and address this burgeoning problem. Granular biochar helps to improve soil quality by enhancing soil structure, increasing water retention and aggregation, decreasing acidity, improving porosity, regulating nitrogen leaching, and improving microbial properties. It is also found to be beneficial for composting. It helps reduce greenhouse gas emissions and prevents the loss of nutrients in the compost material. It also helps to reduce the compost's ammonia losses, bulk density, and odor. These associated benefits of granular biochar are bolstering its demand from the agriculture industry.

In North America, various regional groups support the production and use of biochar in the agriculture industry. For instance, the Pacific Northwest Biochar Atlas is a resource for biochar users and producers. Pacific Northwest Biochar Atlas guides farmers, gardeners, and other end users on the potential benefits of biochar, including decision support tools to select biochar and amendment rates. The California Biochar Association seeks to build a strong and cohesive state-wide voice advocating for the production and use of biochar in agriculture and other industries. Further, the mission of the Sonoma Biochar Initiative is to engage stakeholders in the advantages of biochar as a tool for climate policy and agricultural benefit. Thus, the rising demand for granular biochar from the agriculture industry is driving the global granular biochar market growth.

According to the United Nations, the global population is expected to rise by ~2 billion people in the next 30 years; it is expected to surge from 8 billion in 2022 to 9.7 billion by 2050. The population would further peak at ~10.4 billion in the mid–2080s. These stats have been alarming the agricultural sector about the subsequently increasing food demand. As a result, agriculturists across the world are focusing on modifying farming practices to obtain high yields from smaller cultivation areas. Hence, the need for fertilizers in farming, including granular biochar, increases with a major focus on crop protection and yield enhancement in the agricultural sector. Thus, various advantages of granular biochar for crop protection and yield enhancement contribute to the global granular biochar market size. Granular biochar contains contaminants introduced by its feedstock or co-produced during pyrolysis. Granular biochar manufactured by pyrolysis at high temperatures under limited oxygen conditions can contain well-known contaminants such as polycyclic aromatic hydrocarbons (PAHs), potentially toxic elements (PTEs), dioxins, volatile organic compounds (VOCs), and emerging contaminants such as persistent free radicals and metal cyanide. Thus, contaminants in granular biochar are restraining the growth of the granular biochar market.

Granular Biochar Market: Strategic Insights

REPORT SEGMENTATION AND SCOPE

The "Global Granular Biochar Market to 2030" is a specialized and in-depth study with a significant focus on market trends and opportunities. The report aims to provide an overview of the market with detailed market segmentation on the basis of product type, application, and geography. The global granular biochar market has witnessed significant growth over the past few years and is expected to continue this trend during the forecast period. The report provides key statistics on the use of granular biochar worldwide, along with their demand in major regions and countries. It also provides a qualitative assessment of various factors affecting the market performance in major regions and countries. The report also includes a comprehensive analysis of the leading market players and their key strategic developments. Several analyses on the market dynamics are also included to help identify the key driving factors, market trends, and lucrative opportunities that would, in turn, aid in identifying the significant revenue pockets.

Ecosystem analysis and Porter’s five forces analysis also provide a 360-degree view of the global granular biochar market analysis, which helps understand the entire supply chain and various factors affecting the market growth.

SEGMENTAL ANALYSIS

The global granular biochar market is segmented on the basis of product type and application. In terms of product type, the market is segmented into wood source biochar, corn and wheat source biochar, and others. By application, the market is segmented into soil conditioners, fertilizers, and others.

Based on product type, the corn and wheat source biochar segment held a significant global granular biochar market share in 2022. Corn and wheat source biochar is derived from corn straw, and corn source biochar is mixed with all alkaline soil at 0%, 2.5%, 5%, and 10% loading levels and exposed to natural elements. Biochar is produced from corn sources in slow pyrolysis of corn straw at 450 degrees with a residence time of 2 hours under limited oxygen conditions. Based on application, the fertilizer segment led the market with a significant market share in 2022. Granular biochar, with its porous structure and high carbon content, has gained prominence as a versatile soil amendment, offering a range of benefits for plant growth and nutrient retention. As a fertilizer alternative, granular biochar improves soil fertility by enhancing nutrient availability and uptake for plants.

REGIONAL ANALYSIS

The granular biochar market report provides a detailed regional overview of the market. APAC accounted for a significant global granular biochar market share and was valued at ~US$ 55 million in 2022. China is a major contributor to the market growth in this region. North America is also expected to witness notable growth, reaching over US$ 25 million by 2030. Furthermore, in Europe, there has been a widespread use of granular biochar. The granular biochar market in Europe is expected to report a CAGR of ~12% from 2022 to 2030.

The regional trends and factors influencing the Granular Biochar Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Granular Biochar Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Granular Biochar Market Report Scope

Granular Biochar Market Players Density: Understanding Its Impact on Business Dynamics

The Granular Biochar Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

INDUSTRY DEVELOPMENTS AND FUTURE OPPORTUNITIES

Partnerships, acquisitions, and new product launches are a few prominent strategies adopted by the players operating in the global granular biochar market.

• In January 2024, Pyreg GmbH announced supplying a carbonization plant to Black Bull Biochar for an industrial site in the North of England. The UK's biochar market is fragmented and nascent. Collaborating with Black Bull Biochar has widened opportunities for Pyreg GmbH to stamp its footprint in a new market.
• In April 2022, Pyreg GmbH announced the establishment of a subsidiary company in the US. The newly established subsidiary is located in Portland, Maine. The decision to expand is a response to the growing demand for its CDR technology in the US. In FY 2023, the company aimed to initiate operations with two biomass plants with the aim of generating a carbon removal of 3,000 metric ton of CO2 from the atmosphere.

COMPETITIVE LANDSCAPE AND KEY COMPANIES

Cyclic Carbon Pty Ltd, Advanced Renewable Technology International Inc, CharGrow USA LLC, Airex Energy Inc, Carbonis GmbH & Co KG, Pyreg GmbH, Oregon Biochar Solutions, Arsta Eco Pvt Ltd, American BioChar Co, and BioChar6 are a few major players analyzed in the global granular biochar market report.