U.S. Biochar Market – Industry Analysis and Outlook Report, 2027

The U.S. biochar market size was valued at USD 97.8 million in 2019 and is anticipated to witness a revenue-based CAGR of 18.6% from 2020 to 2027.

The U.S. Biochar Market size is projected to reach USD 382.8 million by 2027, registering a revenue-based CAGR of 18.6% over the forecast period, according to a new report by Grand View Research, Inc. The increasing demand for organic food in the country is anticipated to drive the growth over the forecast period.

Biochar is a carbon-rich, stable form of charcoal, derived from natural resources. It is thus a suitable choice in organic farming practices as it helps in increasing carbon content of the soil and is responsible for enhancing microbial activity, which further results in augmenting crop productivity. Nitrogen is one of the vital elements required for crop growth. Organic farming products, especially fertilizers often have a low nitrogen content, which can be overcome by adding biochar to the soil.

In addition, increasing demand for organic dairy, eggs, and other livestock-based products is expected to boost the consumption of biochar in animal feed. Organic dairy farming is gaining popularity in U.S. with focus on producing animal (cattle, poultry, etc.) feed without the use of pesticides and other harmful chemicals.

Increased population density and human activities such as rise in infrastructure and industrial development have led to the degradation of soil. Some of the major causes of declined soil quality are deforestation, overgrazing, industrialization, increased agricultural activities, and natural calamities. These factors have generated the need for soil remediation, especially for agricultural purposes as crop production requires appropriate amount of water content and nutrients.

Biochar is considered as one of the most effective and safe products for soil remediation. The product improves nutrient absorption of plants and water retaining capacity of the soil. The presence of carbon holds the water, thereby preventing the crops during draught situations. On the contrary, it strengthens the roots by promoting its growth deep in the soil, hence, preventing the farms from washing off in extreme flood situations. In addition, it helps remove toxic elements and sand pollutants from the soil.

The two commonly used technologies for the production of biochar are pyrolysis and gasification. The gasification process involves high investment costs, which generates financial barriers and technological constraints, thereby hindering the U.S. biochar market growth. Thus, manufacturers are increasingly focusing on developing new technologies to lower the production expenditure, improve the purity, and boost the production capacity of the product.

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Further key findings from the report suggest:

• The U.S. biochar market is anticipated to grow at a CAGR of 11.2% in terms of volume, from 2020 to 2027 due to rising demand for organic cultivation practices prevalent in the country
• The pyrolysis segment held a market share of 73.82% in 2019 due to easy availability of equipment and increasing adoption of the technology by all key players
• The agriculture application segment held a share of 82.4% in 2019, in terms of volume, due to depleting soil conditions in the country
• California is projected to be the largest market for biochar expanding at a volume-based CAGR of 11.8% due to interventions of multiple companies such as Advanced Biofuels USA and Sonoma Compost Company
• Companies such as Oregon Biochar Solutions and New England Biochar have integrated operations across the value chain in U.S.