Charcoal Market Size, Share, Growth, Trends, and Global Industry Analysis: By Source (Bamboo, Coconut Shells, Hardwood, Softwood & Others), By Product Type (Charcoal Briquettes, Lump Charcoal, Extruded Charcoal, Sugar Charcoal & Others), By Distribution Channel (Online, Offline), By End User (Residential, Commercial, Industrial), and Region

The global charcoal market size was value US$ 5,604.3 million in 2023 and is projected to reach value of US$ 6,939.6 million by 2030, at a CAGR of 3.1% from 2024-2030. Charcoal is a lightweight, black carbon residue produced by heating wood or other organic materials in the absence of oxygen. Charcoal has been used for thousands of years as a fuel, in metalworking (as a reducing agent), for drawing, and even for medicinal purposes. Rise in consumption of barbecued food, increase in urbanization and rapid industrialization have created an increase in the growth of market. Stringent government regulations for charcoal production, deforestation and environmental impact are the factors which are restricting the growth of market.

The opportunities of the market are shifting towards improved stoves and higher efficiencies, sustainable and eco-friendly charcoal production. Technological innovation in the production of charcoal, and the use of biochar in agriculture is gaining momentum as biochar helps improve soil fertility and store carbon, making it a valuable tool for sustainable farming practices and climate change mitigation these provide the key trends for market.

Key Players

The Charcoal Market share is inclusive of several companies such as Jumbo Charcoal (Pty) Ltd, Ignite International, Ltd, Sichuan Shuangli Yonghui Tanye, The Clorox Company, COAL SAO MANOEL, Paraguay Charcoal, Vina Global Imex Co., LTD, Namco charcoal, Crunchbase Inc, Duraflame, Inc, Royal Oak Enterprises, LLC., and Others.

Key Takeaways

• Asia pacific market accounted for the largest share in 2023.
• The North America market is expected to expand at highest from 2024 to 2030.
• By source, the coconut shells segment is having dominant market share in 2023.
• By product type, the charcoal briquettes segment has captured a significant market share in 2023
• By distribution channel, the offline segment accounted for the largest share of the market in 2023.
• By end user, the industrial segment has anticipated to grow at significant CAGR over the forecast years 2024 - 2030.

Facts & Figures

• Africa is the largest regional market for charcoal in terms of global charcoal production.
• Kingsford is a dominant player in the U.S. barbecue charcoal market, controlling majority of the market share in 2023. The company’s revenue growth aligns with the overall market trend, with expected revenue increases of about 2-3% annually through 2030.
• In 2022, according to EPRA, International Journal of Research & Development, activated charcoal is particularly helpful in treating both acute and chronic health issues, including skin infections, diarrhoea, kidney health, flatulence, and other medical conditions.

Key Developments

• In March 2022, A new product line of distinctively flavoured charcoals and hardwood pellets was introduced by Kingsford Products Company, a division of The Clorox Company. This product's primary goal is to enhance grilling by adding different flavours and aromas.

Charcoal Market Segmentation

By Source: The coconut shells segment captured dominant market share in 2023. Coconut shells are emerging as a sustainable and eco-friendly raw material in the market. The greater carbon content of coconut shell charcoal allows it to burn hotter and longer than regular wood charcoal. Because of this, coconut shell charcoal is very effective for usage in both industrial and domestic settings (such as heating and grilling).?

By Product Type: Charcoal briquettes dominated the market in 2023 due to charcoal briquettes are a widely used product type in the market, particularly for cooking and heating purposes. They are made by compressing charcoal dust or fines, often with binding agents like starch or clay, into uniform, dense blocks. This manufacturing process creates a consistent, easy-to-use fuel source with specific advantages for both consumers and industries.

By Distribution Channel: The distribution channel segment has accounted for a dominant market share in 2023.  Charcoal is predominantly sold through offline distribution channels rather than online for several key reasons related to consumer behaviour, logistics, and product characteristics.

By End User: The industrial segment has contributed the largest share segment is the dominant due to several key factors that make charcoal an essential resource in various industries like particularly in metallurgical industry in which the production of steel and iron is done.