Industrial and Bar-b-que Charcoal Market
Industrial and Bar-b-que Charcoal Market (Product - Lump Charcoal, Japanese Charcoal (Black Charcoal and White Charcoal), Extruded Charcoal, Charcoal Briquette, and Sugar Charcoal; Application - Industrial (Metal Industry, Chemical Industry, and Cement Industry) and Bar-b-que (Excluding Primary Cooking Fuel)) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 - 2025
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Global Industrial and Bar-b-que Charcoal Market: Snapshot
The global industrial and bar-b-que charcoal market is prognosticated to gain a whole lot of significance in the coming years due to the need to find alternative sources of energy to replace fuel oil and mineral coal. Since the past few years, the volatile prices of common energy sources, limited availability of resources, and technological changes have augmented the requirement of new energy sources. As a result, wood pellets, charcoal, and other types of forest biomass have gained the limelight as some of the most suitable replacements on account of economic, environmental, and social reasons.
Prophesied to rise at a 2.4% CAGR between 2017 and 2025, the global industrial and bar-b-que charcoal market could be worth a US$5.4 bn by the completion of 2025 after attaining a US$4.5 bn valuation in 2017.
Lump Charcoal to Rank Higher with Advantage of Less Ash Production
The world industrial and bar-b-que charcoal market is foreseen to be divided as per product and application, where each segmentation category could recognize one particular segment accounting for a larger share. By product, the market could see a classification into sugar charcoal, charcoal briquette, extruded charcoal, Japanese charcoal, and lump charcoal. The researchers foresee the Japanese charcoal market to be further segmented into white charcoal and black charcoal. Prepared from direct hardwood material, lump charcoal could secure a king’s share of the market in the near future. It is found to produce less ash in comparison with charcoal briquette.
With respect to a segmentation by application, the world industrial and bar-b-que charcoal market could be segregated into bar-b-que excluding primary cooking fuel and industrial segments. Under the industrial application, there could be three segments, viz. cement industry, chemical industry, and metal industry, important for market study. Amongst the two, the industrial segment is projected to bag a colossal share of the market. Players may want to focus more on the metal industry expected to attract a major share amongst the three sub-segments.
Charcoal provides greater advantages compared to other commodities in the industrial sector. This could be because of its stable pore structure, high carbon to ash ratio, and comparatively unreactive and few inorganic impurities.
Latin America to Collect Dominating Share with Higher Consumption in Steel Industry
The international industrial and bar-b-que charcoal market is projected to be segmented into the Middle East and Africa (MEA), Asia Pacific (APAC), Latin America, Europe, and North America. Out of these regions, Latin America could garner a massive revenue in the coming years in terms of both volume and value. In 2016, it accounted for a nearly 45.0% of the total share. The steel industry is envisaged to offer well-paid prospects in the coming years due to its larger consumption of charcoal to reduce greenhouse gas emissions and enhance the quality of steel. Brazil is researched to produce charcoal by harvesting eucalyptus trees in large areas to utilize in blast furnaces.
North America is foretold to register a higher CAGR of 2.8% due to the growing demand in the bar-b-que sector. Moreover, charcoal briquette could record a greater share in the region. Asia Pacific could be another region witnessing a significant demand for charcoal briquette in industrial and chemical applications. Followed by India, China is envisioned to account for a broader share in Asia Pacific on the basis of production. Southeast Asia could, however, expect an increased demand for charcoal because of the rising consumption of household energy.
The worldwide industrial and bar-b-que charcoal market could testify the presence of leading players such as Maurobera SA, Namchar, and Gryfskand Sp. z o.o.
Need for New Alternative Source of Energy Boosts Prospects in Industrial and Bar-b-que Charcoal Market
Barbeque grills and accessories have been increasingly gathering steam among home users and first-time buyers. The use of charcoal has been a prominent choice for them. The industrial and bar-b-que charcoal market is witnessing growth in revenues on the back of the rise in sales of these in metal, chemical, and cement manufacturers worldwide, where charcoal is an alternative source of energy. Various types of charcoal have hit the market, notably Japanese charcoal. The choice of the charcoal is shaped by the energy characteristics of the type of charcoal. For example, charcoal that emits less ash has gained preferences among some end-user cohorts. Consequently, over the past few years, the applications areas in the industrial and bar-b-que charcoal market have been also expanding. Demand for new energy sources with less volatility is a key trend among users in the market. Rising demand for industrial charcoal in the steel industry is expected to boost the valuation of the market. Further, strides being made in steel industry and metal industry are spurring the demand for different types of charcoal.
The COVID-19 outbreaks in recent months have caused massive disruptions in both macro- and micro-economic dynamics that shape the evolution of the industrial and bar-b-que charcoal market. The pandemic-led lockdowns brought many manufacturing industries to a screeching halt. Further, stakeholders were facing substantial pressure in retaining a steady supply of raw materials, which also adversely impacted the dynamics of the industrial and bar-b-que charcoal market. In the recent years, players are keen on adopting strategic frameworks and engage in new vendor partnerships in order to boost their bottom-line. This will pave way to new digital technologies for connecting with potential business buyers in industrial and bar-b-que charcoal market. Further, they are reformulating their strategic moves in relation to manufacturing investments to economies that are still emerging in the pandemic. This will expand the avenue for new entrants in the market.
Global Industrial and Bar-b-que Charcoal Market: Overview
Charcoal has been used as an industry fuel since decades; however, it being replaced by mineral coal such as coke. The shortcomings of coke as a fuel which has high CO2 emissions made to look back for charcoal again. Charcoal is gaining importance as a new sustainable industrial fuel. The application of modern technology and development of new kilns can efficiently increase the conversion ratio of wood to charcoal, this has made charcoal as popular as other fuels. During steel manufacturing charcoal as a fuel emits less greenhouse gases and also improves the quality of steel. Hence the steel produced by burning charcoal as fuel is termed as “Green steel”.
Latin America dominated the industrial & bar-b-que charcoal market both in terms of volume and value and is likely to remain dominant during the forecast period with a significant CAGR compare to other regions. Brazil is largest consumer of industrial charcoal. Lump charcoal is mostly consumed in Asia Pacific, Latin America, and Middle East & Africa regions. Charcoal briquettes are mostly popular for bar-b-ques across North America and Europe.
Global Industrial and Bar-b-que Charcoal Market: Key Trends and Opportunities
Increase in demand for charcoal briquettes by bar-b-que sector and improved modern kilns efficiency for converting wood to charcoal are the major factors which are anticipated to drive the charcoal market during the forecast period. In recent times, there is a steep development in kiln designs where the efficiency of the kiln is as high as 50%. Modern kilns require less amount of wood to convert the same amount of charcoal that is produced by traditional kilns. Some of the improved and modern kilns are Casamance Kiln, Brick Kiln, Steel Kiln, Adam Retort, and Mobile Adam-retort.
Global Industrial and Bar-b-que Charcoal Market: Scope of the Study
This report analyzes and forecasts the market for industrial & bar-b-que charcoal market at the global and regional level. The market has been forecast based on volume (in Kilo tons) and revenue (US$ Mn) from 2016 to 2025, considering 2016 as the base year. The study includes drivers and restraints of the global charcoal market. It also covers impact of these drivers and restraints on demand for charcoal market during the forecast period. The report also highlights opportunities in the charcoal market at the global and regional level.
The report includes detailed value chain analysis, which provides a comprehensive view of the global charcoal market. Porter’s Five Forces model for the charcoal market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, where in product, and application are benchmarked based on their market size, growth rate, and general attractiveness. The study also includes regional level price trend analysis and the U.S. charcoal manufacturing pre-feasibility study.
The study provides a decisive view of the global charcoal market by segmenting it in terms of product, and application. In terms of product, charcoal are classified as Lump Charcoal, Japanese Charcoal (Black Charcoal, White Charcoal) Extruded Charcoal, Charcoal Briquettes, Sugar Charcoal. In terms of application, it is segmented into Industrial (Metal Industry, Chemical Industry, Cement Industry), Bar-b-ques (excluding primary cooking fuel). The primary cooking application segment is not considered for the scope of the study. These segments have been analyzed based on present and future trends. Regional segmentation includes current and forecast demand for charcoal in North America, Europe, Latin America, Asia Pacific, and Middle East & Africa.
The report provides the actual market size of charcoal for 2016 and estimated market size for 2017 with forecast for the next eight years. The global market of charcoal has been provided in terms of volume and revenue. Market volume has been defined in Kilo tons and revenue in US$ Mn. Market numbers have been estimated based on product, and application of charcoal. Market volume and size have been provided in terms of global, regional and country level markets.
Global Industrial and Bar-b-que Charcoal Market: Research Methodology
In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represented the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players’ product literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research includes a search of recent trade, technical writing, Internet sources, magazines and statistical data from government websites, trade associations, and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.
Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, SEC filings, and external proprietary databases, and relevant patent and regulatory databases such as ICIS, Hoover’s, oneSOURCE, Factiva and Bloomberg, national government documents, statistical databases, trade journals, market reports, news articles, press releases, and webcasts specific to companies operating in the market.
We conduct primary interviews on an ongoing basis with industry participants and commentators to validate data and analysis. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.
Companies Mentioned in Report
The report comprises profiles of major companies operating in the global industrial & bar-b-que charcoal market. The global Charcoal market is fragmented with many local and global players operating in the market. Some of the key players include Gryfskand sp. z o.o, Namchar, Maurobera SA, PT Dharma Hutani Makmur, Duraflame, BRICAPAR SAE Charcoal Briquettes, The Saint Louis Charcoal Company LLC, Royal Oak Enterprises LLC, Timber Charcoal Co., Mesjaya Abadi Sdn Bhd, Parker Charcoal Company, and Kingsford.