Charcoal Market by End-user and Geography - Forecast and Analysis 2022-2026

The charcoal market share is expected to increase by USD 2.12 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 4.27%.

This charcoal market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers charcoal market segmentation by end-user (households, metallurgical industry, and others) and geography (North America, Europe, APAC, South America, and Middle East and Africa). The charcoal market report also offers information on several market vendors, including Bricapar SA, Dorset Charcoal Co. Ltd., Duraflame Inc., Fire and Flavor, Fogo Charcoal, Gryfskand sp zoo, Kamado Joe Co. Inc., Maurobera SA, Mesjaya Abadi Sdn Bhd, Namchar Pty. Ltd., Parker Charcoal Co., Rancher Charcoal, Royal Oak Enterprises LLC, Sagar Charcoal and Firewood Depot, The Clorox Co., The Saint Louis Charcoal Co. LLC, Timber Charcoal Co. LLC, and Two Trees Products among others.

What will the Charcoal Market Size be During the Forecast Period?

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Charcoal Market: Key Drivers, Trends, and Challenges

The regulations on reducing GHG emissions and the use of bioenergy in heating systems is notably driving the charcoal market growth, although factors such as increase in deforestation may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the charcoal industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Charcoal Market Driver

One of the key factors driving growth in the charcoal market is the regulations on reducing GHG emissions and the use of bioenergy in heating systems. The impact of climate change includes rising temperatures and changes in snow and rainfall patterns. The primary cause for these climatic changes is an increase in the amount of methane, CO2, and other GHGs (greenhouse gas) in the atmosphere. Burning fossil fuels to fulfill energy demand is the underlying cause of these emissions.  Some countries have imposed mandatory regulations and energy taxes and offer grants, subsidies, and incentives to increase the share of renewables in heat generation. To increase the share of renewables in the country, the government provides financial incentives to renewable technologies such as wood-fueled boilers. The incentive is paid through the Office of Gas and Electricity Markets (OFGEM) under the Domestic Renewable Heat Incentive (RHI) scheme. Regulatory initiatives, therefore, are aimed at preventing the release of GHGs into the atmosphere. The use of biomass, including wood fuels such as charcoal for heating purposes, is expected to rise during the forecast period, owing to the increasing inclination of governments for renewables. This is expected to drive the global charcoal market during the forecast period.

Key Charcoal Market Trend

The increase in deforestation will be a major challenge for the charcoal market during the forecast period. Charcoal is produced by burning wood until it gets charred. Trees are chopped for charcoal production. The widespread use of charcoal has intensified deforestation in many countries. Charcoal production is undertaken by developing countries. In many developing countries, with the improving standards of living, charcoal is increasingly being used as a source of energy. Charcoal is affordable, and charcoal production increases rural employment and generates income in developing countries. The abovementioned factors have increased the use of charcoal in these countries and led to unsustainable charcoal production. Deforestation has severe consequences such as the loss of animal and plant species, climate change, increase in GHG emissions, soil erosion, and other environmental effects. Many countries have enforced deforestation laws to curb deforestation. Increased deforestation, therefore, will adversely impact the global charcoal market.

Key Charcoal Market Challenge

The challenges in bringing investments to coal industry is a charcoal market trend that is expected to have a positive impact in the coming years. Coal has several advantages over wood fuels such as charcoal. Coal is compact, burns steadily, and produces larger amounts of heat than wood fuels. Coal and coke have replaced the use of charcoal in the metallurgical industry in many regions. In recent years, the global coal industry has undergone severe changes in terms of production as coal is a major pollutant of the environment. Moreover, the changing government policies on fuel sources and the consequent decline in global production are reducing investments in the coal industry. The coal industry faces a serious challenge in maintaining coal production levels because of erratic investments.

This charcoal market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global charcoal market as a part of the global coal and consumable fuels market within the global coal market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the charcoal market during the forecast period.

Who are the Major Charcoal Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Bricapar SA
• Dorset Charcoal Co. Ltd.
• Duraflame Inc.
• Fire and Flavor
• Fogo Charcoal
• Gryfskand sp zoo
• Kamado Joe Co. Inc.
• Maurobera SA
• Mesjaya Abadi Sdn Bhd
• Namchar Pty. Ltd.
• Parker Charcoal Co.
• Rancher Charcoal
• Royal Oak Enterprises LLC
• Sagar Charcoal and Firewood Depot
• The Clorox Co.
• The Saint Louis Charcoal Co. LLC
• Timber Charcoal Co. LLC
• Two Trees Products

This statistical study of the charcoal market encompasses successful business strategies deployed by the key vendors. The charcoal market is fragmented and the vendors are deploying growth strategies such as focusing on the variety of charcoal applications in multiple industries to compete in the market.

Product Insights and News

• bricapar.com ? The unified segment consists of production, conditioning, packaging of charcoal and the manufacture of charcoal briquettes for export, sawdust and biomass briquettes for the local market.

• bricapar.com ? The company offers products such as wood charcoal.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The charcoal market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Charcoal Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the charcoal market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Charcoal Market?

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45% of the market's growth will originate from North America during the forecast period. The US is the key market for charcoal in North America. Market growth in this region will be slower than the growth of the market in the European, APAC, and MEA regions.

Based on U.S. coal production in 2020, of about 0.535 billion short tons, the recoverable coal reserves would last about 470 years, and recoverable reserves at producing mines would last about 25 years. This will facilitate the charcoal market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2020, the outbreak of COVID-19 negatively impacted the demand for charcoal in North America. A rise in the number of COVID-19 cases led to the closure of all end-user industries, including metallurgical, which decreased the demand for charcoal in the region. However, lockdown restrictions were lifted in the first half of 2021 due to the initiation of vaccination drives in the region. This led to the reopening of end-user industries, including metallurgical, in the region, which helped increase the demand for charcoal. 

What are the Revenue-generating End-user Segments in the Charcoal Market?

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The charcoal market share growth by the household segment will be significant during the forecast period. Charcoal is a preferred cooking fuel for urban residents in many developing countries. Households spend more time on wood fuel collection, eat less nutritious food, reduce cooking times, and drink unsafe water when wood fuels are scarce. In the past few years, barbecuing has been gaining popularity in Asian countries such as India. This growing trend can be attributed to changes in lifestyle, human migration, and globalization. Charcoal is preferred to wood for barbecuing since it offers more heat and is a cleaner fuel. The abovementioned household applications of charcoal will significantly drive the global charcoal market during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the charcoal market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Charcoal Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive charcoal market growth during the next five years
• Precise estimation of the charcoal market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the charcoal industry across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of charcoal market vendors

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