Market Trends of Charcoal Industry
Increasing Usage in the Cooking Fuel Industry
- Charcoal is widely used in the cooking fuel industry as it offers various benefits, such as quick lighting, smokeless fire, and no ash and dust production. Higher calorific value, longer burning hours, and even heat distribution are other benefits of using charcoal in cooking fuel.
- Increasing urbanization coupled with easy accessibility of charcoal in urban areas and rapid technology improvements is expected to drive the charcoal industry. Besides, lower cost, lightweight, and accessible transportation will boost the demand for charcoal in the cooking industry.
- Charcoal is the primary source of cooking fuel for many developing countries. Charcoal is the leading source of energy for cooking in most of Uganda鈥檚 households. Charcoal contributed 77.8%, respectively, to the sources of energy for cooking in Uganda.
- The increasing consumption of barbecued food due to changing lifestyles and the adoption of new cooking styles is expected to drive the charcoal market. Rising awareness about healthy lifestyles has led to changes in people's food preferences. This has resulted in increased grilled or barbecued food consumption, driving the demand for charcoal as cooking fuel.
- Moreover, the growing demand for clean metallurgical fuel in the iron and steel industry is expected to fuel the charcoal market. High heating capacity and low carbon emission as compared to coal are the properties driving the charcoal market.
- Increasing usage of charcoal stoves in developing countries, as it provides durability, low carbon monoxide emission, and re-utilization of radiated heat, is expected to drive the charcoal market during the forecasted period.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market. In this region, China and India are the most prominent market-leading countries with high consumption of Charcoal in various end-segment industries and use cases.
- As per EPRA, International Journal of Research & Development 2022, Activated Charcoal's role in acute and chronic health-related problems is very effective, such as skin infections, diarrhea, kidney health, flatulence, and other medical uses.
- The detoxifying property of Charcoal is used for purifying blood and reducing indigestion, which has increased its demand in the healthcare industry. The rapidly aging population in China will increase the need for medicines in the country. Hence boosting the healthcare industry in the country.
- Additionally, China is the world鈥檚 largest crude steel producer, with 947 million tons of production in 2022. This will increase the demand for Charcoal as a metallurgical fuel in the steel industry.
- In India, increased spending in the healthcare sector post-pandemic is expected to benefit the charcoal market for new medicine development. As per the Indian Brand Equity Foundation (IBEF), the healthcare sector in India is expected to reach USD 372 billion in 2022.
- Growing demand for metallurgical fuel in India due to the increased industrial activity will boost the demand for the charcoal market in the country. Increased government spending, easy availability of low-cost labor, and the presence of abundant iron ore reserves in India are expected to drive the steel industry.
- The rising threat of recurrent COVID-19 waves and growing pollution levels in various cities of Asia-Pacific, such as China, Bangladesh, and India, will boost the demand for air purifiers in the region. As per the World Air Quality Report 2022, Bangladesh had an average PM 2.5 concentration of 76.9 micrograms per cubic meter of air, making it the most polluted country worldwide.
- Due to all such factors and implementing the growth of the charcoal market in various industries and countries in this region, the market for Charcoal in the region is expected to have steady growth during the forecast period.
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