Europe Biochar Market

Europe Biochar Market Size (2024 to 2029)

The European biochar market size is expected to reach USD 0.86 billion in 2023 from USD 0.98 billion in 2024 and reach USD 1.89 billion by 2029, growing at a CAGR of 13.6% from 2024 to 2029.

Biochar is fine-grained charcoal rich in carbon, prepared by heating biomass in oxygen-free air. It is added to soil to enhance the physical and chemical properties of several crops produced. The market has a high growth rate due to increasing food demand and decreasing soil quality due to excessive use of chemical fertilizers. Apart from increasing soil quality as it has a lot of nutrients, biochar has other advantages, such as retaining carbon from the atmosphere in the soil. It can be used for capturing the greenhouse gas CO2, which is responsible for global warming. It can retain nutrients from flowing soil water. Producing biochar results in additional energy, which can be used again for the same process. It also increases the quality of soil by absorption of water.

The growing popularity of organic food production is enhancing the growth rate of the European biochar market.

Biochar has huge benefits in enhancing soil fertility and plant growth, which enhances the market growth rate. In 2020, around 17 million hectares of agricultural land were managed to produce only organic food, and the total area is going to increase in the coming years. According to Farm the Fork strategy, the Common Agricultural Policy (CAP) is taking measures to convert at least 25% of agricultural land for organic farming by 2030. These measures are attributed to significantly leveling up the size of the European biochar market. The European Biochar market is primarily driven by factors like increasing demand for organic farming, rising demand from the agricultural sector, stringent environmental regulations, rising usage of biochar in livestock as animal feed, and its waste management applications, among others.

Drastic changes in the climate due to growing industrialization are a new concern for the government authorities to reduce carbon emissions. The production of biochar does not involve releasing high levels of carbon dioxide like other productions. Hence, recycling the waste materials without harming the environment is surging the regional market growth. Agricultural waste should be treated properly so as not to have a negative impact on the environment. According to a recent report, the agricultural waste in Europe is around 24.6%. The demand for the production of energy using biomass is growing significantly, elevating the growth rate of the European biochar market. Biomass is available easily, and the cost required to produce energy using these materials is very low comparatively, which is greatly influencing the European market growth. 

Increasing support from both private and public organizations to reduce the substantially growing temperatures, along with the growing need to adopt climate-friendly agricultural procedures, is setting up growth opportunities for the market. The increasing need for wastewater treatment procedures is leveling up the market value. Biochar has distinctive characteristics in wastewater treatment procedures, which is prompting the market share. 

Poor awareness of waste treatment procedures in remote areas is slowly degrading the growth of the European biochar market.

Less prevalence of the latest technology in rural areas in the production of the emission char is a major factor restraining the growth rate of the market. The agricultural land may not have the efficacy of the pesticides due to the biochar application, which is a challenging factor for the market key players. Also, the production time for the biochar takes so long, which is another factor limiting the market growth rate. 

REPORT COVERAGE

This research report on the European biochar market is segmented and sub-segmented based on Application, Technology, Manufacturing, feedstock, and Country.

Europe Biochar Market Analysis By Application

• Agriculture
• Gardening
• Households
• Others

The agriculture segment accounted for around 47.8% of the European biochar market share in 2023 and is also predicted to be the fastest-growing segment among all during the forecast period. Biochar is considered a natural fertilizer that enhances the quality of the soil, and the rising awareness regarding the negative effects of chemical fertilizers and pesticides on the environment is driving the segment's growth. The utilization of biochar offers various benefits like enhanced crop productivity, bulk density, biological nitration fixation, and maintained soil moisture, which is fueling the adoption rate of biochar in the agriculture sector, leading to regional market growth. The plant-based biochar is considered an excellent nutritional supplement for animals. Electricity generation is expected to grow prominently during the forecast period. Biochar is considered a renewable source of electricity. The accelerating awareness regarding green energy is estimated to boost the biochar market value across Europe.

Europe Biochar Market Analysis By Technology

• Microwave Pyrolysis
• Continuous Pyrolysis
• Batch Pyrolysis Kiln
• Gasifier
• Hydrothermal
• Cookstove
• Others

The microwave pyrolysis segment held significant share in the European market as it uses higher energy efficiency. It uses rapid volumetric heating which has several advantages compared to conventional pyrolysis process.

Europe Biochar Market Analysis By Manufacturing

• Gasification
• Pyrolysis
• Others

The pyrolysis segment dominated the biochar market in Europe and is predicted to account for the leading share of the European market in the coming years. Pyrolysis is the process of converting biomass to form biochar at certain temperature. It is the most effective and widely used process which potentially converts biomass into biochar. The presence of multiple economic and environmental benefits of pyrolysis process is majorly contributing to the substantial growth of the regional market.

The gasification segment is expected to witness prominent growth during the forecast period due to growing advancements in gasification technology. The gasification process produces high-quality biochar by combusting the biomass. The agriculture sector has started using this technology in the production of biochar, which is estimated to accelerate the market growth opportunities.

Europe Biochar Market Analysis By Feedstock

• Agricultural Waste
• Forestry Waste
• Animal Manure
• Biomass Plantations

The agricultural waste segment dominated the regional market revenue as the agricultural waste consisted of corncob, oil palm shells, coconut shells, palm fronds, bamboo, rice straw, and rice husk for the production of biochar. This method is highly used in economically weaker and underdeveloped countries due to its easy availability and affordability.

The animal manure segment is estimated to have significant growth during the forecast period. The manure of sheep, cow and chicken manure is considered to best animal manure in production of biochar. As the animal excrement consist of high nutritional value which acts as soil conditioner which is boosting the segment growth.

COUNTRY ANALYSIS

• UK
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Turkey
• Czech Republic
• Rest of Europe

The Europe biochar market did well in 2023 and accounted for a substantial share. From 2024 to 2029, the regional industry is predicted to witness a substantial growth rate. According to a study, the rising importance of biochar, especially in district or zone and industrial heating systems, expanding charcoal production plants and capacity and those under the metallurgical sector, emphasizing carbon-preserving applications. Moreover, the increased influx of investments in food production is also majorly propelling the market size in Europe. Government support towards research and development activities through financial grants and initiatives is another factor attributed to bolstering the growth rate of the regional market. Also, a higher approval rate for new product launches in the agricultural sector by authorities is boosting the market share.

The German biochar market is ruling with the dominant share of the market. Growing prominence for organic farming is significantly fuelling the growth rate. For instance, in 2023, approximately 1.94 million hectares of agricultural land were used for the cultivation of organic farming. Also, the land used to cultivate organic vegetables is approximately 1.83 million hectares. These statistics greatly influence the demand for biochar products. Besides this, at the end of 2023, it has the second-largest biochar production capacity at 26%, followed by Austria at second and Switzerland at third, with a combined 16%. The first position is occupied by Nordics, i.e., 28 %, with Denmark, Finland, and Sweden rising to become the most significant area concerning Biochar Carbon Removal (BCR). Additionally, it is also extensively utilized as animal feed in livestock farming in the country. According to the German Feed Association (DVT), in Germany, animal feed manufacturing attained the level of 16.1 million tons in 2023. Furthermore, experts from the German Institute of Textile and Fibre Research developed a substitute for reinforced concrete, which is a composite building material made of biochar, natural stone, and carbon fiber.

The United Kingdom biochar market holds a notable portion and is moving forward with the rising demand to meet the European Biochar certificate standards. The growing disposable income and shifting trends towards healthy eating habits are boosting the size of the market. Also, the country’s market size expands by efforts or measures launched by independent players. For instance, in June 2023, Restord, a unique project started by Tom Previte in collaboration with a UK-based biochar company, CapChar, announced that it raised 30000 pounds via crowdfunding to address the problem of climatic changes and global warming with biochar. Lastly, several public institutions, establishments, and universities, independently or in partnership with private players, are developing new applications and capacities to reduce environmental damage.

France's biochar market share is strongly believed to grow at a higher CAGR during the forecast period. The industry in the country is driven by a progressive approach towards carbon removal, increasing demand for organic farming, complying with European standards, etc. For instance, the European Commission authorized in April 2023 a 900-million-euro French initiative to help players invest in the application of renewable hydrogen and biomass in fuel and energy production to encourage the shift to a net-zero country in accordance with the Green Deal Industrial Plan.

Spain is steadily moving forward owing to the rising acceptance of biochar to enhance soil productivity in olive groves. Moreover, the increasing production capacity by the biochar companies for surging local and export demand also contributed to the expansion of the market size. For example, in July 2023, Prezero announced it won the contracts for waste and biogas services in the Murcia area and Formentera island. In addition, it began a project to make biomethane situated close to the Can Manta landfill.

Italy despite being a smaller industry, it continues to grow forward in recent years. The country’s market share is increasing efforts to look for new use cases in landscaping and urban greening and ever more accepting biochar to enhance soil health for wine producers and the viticulture industry.

KEY PLAYERS IN THE EUROPE BIOCHAR MARKET

Some of the major companies dominating the European biochar market are Biochar Products Inc., Dia carbon Energy Inc., Agri-Tech Producers LLC, Genesis Industries, Green Charcoal International, Vega Biofuels Inc., The Biochar Company, Cool Planet Energy Systems Inc., Full Circle Biochar, and Pacific Pyrolysis Pty Ltd. 

RECENT HAPPENINGS IN THE EUROPE BIOCHAR MARKET

• In June 2024, the latest trials by Black Bull Biochar (BBB), Scotland's Rural College, and the UK Centre for Ecology & Hydrology (UKCEH) revealed that minimal doses of biochar to soil can considerably surge the number of nutrients important for yield growth and harvest output.
• In April 2024, PYROCORE SAS and INOE SAS reported the commencement of a partnership with a memorandum of understanding for achieving a major milestone in a common vision of territorial and industrial ecology. The objective is to exhibit a land-based industrial environmental approach and at the same time sustainably prevent carbon via biochar manufacturing for soil revival in France.
• In March 2024, the work started on an advanced carbon-capture factory at Lingley Mere business park which also looks to be the first in the United Kingdom to enable low-carbon heating to local buildings. It is important for the UK’s strategy to achieve net zero by 2050 and the Mersey Biochar pilot will assist in accelerating UK proficiency in this field.