Asia Pacific Biochar Market Size, Share & Trends Analysis Report By Technology (Gasification, Pyrolysis), By Application (Agriculture (Animal Farming, Industrial Uses), Others), By Country (India, China, Japan), And Segment Forecasts, 2024 - 2030

Asia Pacific Biochar Market Size & Trends

The Asia Pacific biochar market size was estimated at USD 46.2 million in 2023 and is expected to grow at a CAGR of 16.1% from 2024 to 2030. Increasing demand for organic products like organic pulses in the market is driving the market growth. Biochar helps improve soil health and crop yields without using synthetic fertilizers. As soil degradation severely threatens agricultural productivity; biochar improves soil health by enhancing water retention, promoting beneficial microbial activity, and reducing nutrient leaching. Ongoing research and development on biochar production methods and optimizing its applications for different soil types propel the market forward. Biochar production utilizes organic waste materials such as crop residues and manure and helps in waste management.

Biochar is used to remove pollutants like heavy metals, organic toxins, and pharmaceuticals from wastewater, industrial effluents, and even drinking water sources. In March 2023, PepsiCo India extended its biochar initiative to help farmers in Punjab, through its pilot crop program the company found a potential solution to address the issue of stubble burning of crops. Through this initiative, the company will help farmers to better manage their harvest residue using a process called pyrolysis which will give biochar fertilizer.

The regulatory bodies in the region are taking initiative to promote the use of biochar. In December 2023, the Indian government announced a task force to explore the use of biochar in steel industry to reduce carbon emissions. In addition, the India Biochar and Bioresources Network (IBBN) initiated a project in Byrkuru, Kolar, to promote the use of bioresources & biochar in India.

Market Concentration & Characteristics

The industry growth stage is high and pace of the growth stage is accelerating. The rising demand for biochar in the market is due to its benefits in agriculture, such as soil enhancement, increased crop yield, and as a means of carbon sequestration. The degree of innovation is high in the industry and biochar manufacturers are collaborating with research institutes to study and find alternative applications.

In September 2023, Cement and Concrete Composites conducted a study to find the application of biochar as a sustainable construction raw material. Biochar, due to its carbon rich properties, can be used as additive in asphalt in construction of roads. The industry is slightly fragmented with a mix of large multinational companies and small to medium enterprises (SMEs) participating in biochar manufacturing.

Technology Insights

Based on technology, the pyrolysis segment dominated the market with the largest revenue share of 30.60% in 2023 and is expected to retain its dominance over the forecast period. The rise in demand for renewable energy and increased environmental awareness is driving segment growth. Pyrolysis uses thermal decomposition of organic waste and offers biochar with higher content of carbon.

The ‘others’ segment is expected to grow at the fastest growing CAGR over the forecast year. New technologies emerging in the production of biochar such as hydrothermal carbonization offer greater control over properties of final biochar product. Hydrothermal carbonization can handle wet biomass feedstocks efficiently which allows efficient use of food waste, sewage sludge, and other high moisture organic materials for biochar production.

Application Insights

The agriculture segment dominated the market with the largest revenue share in 2023. The market is driven by biochar's ability to improve soil health, reduce the need for fertilizers, and sequester carbon, which helps combat climate change. Additionally, converting agricultural waste into biochar offers a sustainable waste management solution. Technological advancements and growing awareness among farmers contribute to its popularity in sustainable farming practices.

The ‘others’ segment is expected to grow at the fastest growing CAGR over the forecast period. Biochar has applications beyond agriculture, and it is used in water treatment plants for removal of heavy metals due to its ability to absorb contaminants. Biochar is used in waste management of organic waste and helps lower carbon emissions, and therefore the others segment is expected to grow rapidly in the coming years.

Country Insights

Australia Biochar Market Trends

Australia biochar market held the largest revenue share in the region in 2023. Growing demand for biochar is rising due to its agricultural benefits, climate change mitigation potential, waste conversion capabilities, and support from government policies. Increasing awareness about environmental sustainability, financial incentives like carbon credits, and ongoing research and innovation further fuel its popularity across various sectors. In August 2020, researchers from the University of Western Australia’s Institute of Agriculture found that mixed application of zinc and biochar could help mitigate stress in wheat caused by heavy metal cadmium. The study showed that adding mixed zinc and biochar to cadmium contaminated soil improved both soil yield and zinc grain concentration.

Malaysia Biochar Market Trends

Malaysia is anticipated to grow at the fastest CAGR during the forecast period. The growth of biochar is driven by its properties in improving agriculture, managing palm oil industry waste, aligning with environmental policies, combating climate change, handling forestry residues, and supporting urban sustainability efforts. In October 2022, Patriot Hydrogen announced expansion in Southeast Asia. The company announced a project in Malaysia for production of renewable energy, biochar and H2 across the country. The project will focus on biochar production through gasification methods to address the shortage of biochar in the country.

Key Companies & Market Share Insights

Some of the key players operating in the market include Pacific Biochar; Biochar Products LLC; Arsta Eco

• Pacific Biochar is a company that specializes in production and sale of biochar, they offer products which have applications in agriculture, landscaping, and environmental remediation. They are known for their commitment towards sustainability and environmental responsibility by sourcing their raw materials from waste biomass.

Recent Developments

• In April 2023, Scientists at Junagadh Agriculture University found a solution to burning problem of agriculture residue by creating a machine which can produce biochar from agriculture waste.

• In February 2024, Singapore based Biochar Developer Alcom Carbon Markets (ACM)

  closed Pre-Series A funding round securing total investment of USD 5 million.Capital Code, Singapore-based climate-focused and agri-food investment firm, led the funding round. ACM will use the funding to roll out new projects in Philippines, India and other countries to develop other climate change technologies from syngas produced during the pyrolysis process.

Asia Pacific Biochar Market Report Scope

Asia Pacific Biochar Market Report Segmentation

This report forecasts volume and revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this report, Grand View Research has segmented the Asia Pacific biochar market report based on technology, application, and country:

• Technology Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Pyrolysis

  • Gasification

  • Others

• Asia Pacific Biochar Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Agriculture

  • Animal Farming

  • Industrial Uses

  • Others 

  • Others

• Asia Pacific Biochar Country Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • China

  • India

  • Japan

  • Malaysia

  • Australia