What is the Biochar Market Size?
The global biochar market size is calculated at USD 995.57 million in 2025 and is predicted to increase from USD 1,129.97 million in 2026 to approximately USD 3,452.76 million by 2035, expanding at a CAGR of 13.24% from 2026 to 2035.The rising importance of biochar to increase soil porosity and reduce soil water loss is considered to boost the demand for biochar in the global market.
Biochar Market Key Takeaways
- Asia Pacific led the global market with the highest market share of 71% in 2025.
- The pyrolysis technology segment dominates the market and is expected to sustain growth between 2026 and 2035.
- The agricultural waste feedstock segment leads the market.
- The agriculture application segment gains the largest revenue share in the market.
Market Overview
Biochar is a carbon-rich product made from biomass. Biochar is a porous form of charcoal that is widely used to improve the quality of the soil. Considered a future of sustainable agriculture, biochar carries enormous benefits for soil and the ecosystem. Biochar is a natural fertilizer used as a soil amendment. Biochar has been helping the earth by increasing its physical, chemical, and biological properties.
The biochar is made with pyrolysis technology by heating the biomass to form a charcoal-like substance. Later, this biochar is mixed with compost or vermicompost before it enters the soil. The world is facing multiple challenges, be it climate change, rapidly increasing population, or rising pollution. Biochar is believed to slow down the release of hazardous greenhouse gases from the soil. Which apparently helps in reducing CO2 from the atmosphere.
The utilization of biochar is considered to ease farming by reducing the use of chemicals and welcoming organic products into the market. Along with the reduced emissions of carbon, biochar also offers carbon sequestration, reduced soil acidity and increased water retention for soil.
Artificial Intelligence: The Next Growth Catalyst in Biochar
Artificial intelligence (AI) is transforming the biochar industry by moving it from an artisanal practice to a scalable, high-impact climate technology. AI is proving indispensable in optimizing biochar production processes, ensuring stringent quality control, and maximizing its environmental and agricultural benefits. Machine learning models optimize production parameters like feedstock type and pyrolysis temperature in real-time to maximize biochar yield and stability, which increases efficiency and lowers operational costs.
Furthermore, AI-powered predictive analytics are used to recommend site-specific biochar formulations for precision agriculture, which enhances soil health and crop yields by 20-35% compared to conventional methods.
Market Outlook
- Market Growth Overview: The biochar market is expected to grow significantly between 2026 and 2035, driven by sustainable agriculture and soil health, waste management solutions, and expanding industrial applications.
- Sustainability Trends: Sustainability trends involve carbon sequencing as a core value proposition, soil health and water conservation, and renewable energy integration.
- Major Investors:Major investors in the market include Venture Capital Firms, TO VC, Corporate Venture Capital, and S2G Ventures.
- Startup Economy: The startup economy is focused on the expansion of private investment, carbon credits as primary revenue, technological innovation, and dual-use and diversified products.
Market Scope
| Report Coverage | Details |
| Market Size in 2025 | USD 995.57 Million |
| Market Size in 2026 | USD 1,129.97 Million |
| Market Size by 2035 | USD 3,452.76 Million |
| Growth Rate from 2026 to 2035 | CAGR of 13.24% |
| Largest Market | Asia Pacific |
| Second Largest Market | North America |
| Base Year | 2025 |
| Forecast Period | 2026 to 2035 |
| Segments Covered | By Technology, By Feedstock and By Application |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
Market Dynamics
The global biochar market is anticipated to witness a significant increase during the estimated period of 2024-2034. Rising investment in the agricultural sector by governments is considered the primary driver for the growth of the biochar market. Increasing awareness for global organic yet environmentally friendly products due to rising environmental concerns is another driver for the market's growth.
The rising importance of renewable energy has boosted the utilization of biochar in energy production industries; the demand is expected to grow in the coming years. Biochar is also considered a sustainable source to manage food security, energy security and climate change. Many governments are focused on implementing regulatory policies to reduce carbon emissions through agricultural activities; this factor will fuel the growth of the biochar market.
Other factors such as rising research and development (R&D) activities, new product launches, rising international trading of agricultural bio-products, and easy availability of feedstock are considered drivers for the growth of the global biochar market.
However, the high production cost of biochar acts as a restraining factor for the market's growth. Biochar production takes longer to be prepared than chemical fertilizers; this factor is seen as another restraining factor for the market. Lack of awareness about biochar in the market is another factor hindering the growth of the global biochar market. Easy availability of chemical fertilizers in the market, quality control, lack of investment, and side effects caused by the overuse of biochar are a few other factors that hamper the market's growth.
Segment Insights
Technology Insights
The pyrolysis segment dominates the global biochar market and is expected to maintain growth during the forecast period. Pyrolysis is the process of converting biomass to form biochar at a particular temperature range. Pyrolysis is the most effective and widely used process for creating biochar under oxygen-deprived conditions, as it can potentially convert any biomass into biochar.
The pyrolysis technology is preferred for forming biochar as it offers multiple economic and environmental benefits. The pyrolysis process is further segmented into slow, moderate, and fast pyrolysis. However, fast pyrolysis at the elevated temperature of 500°C is considered the ideal state for biochar formation.
However, the gasification segment is estimated to witness a significant increase in the upcoming year owing to the continuous advancement in gasification technology. The gasification process partially combusts biomass/biowaste to produce high-quality biochar. This thermal conversion process was initially developed for converting coal. In recent years, agriculture started using this technology for biochar production.
Feedstock Insights
The agricultural waste segment dominates the global biochar market. The agricultural waste segment comprises corncob, oil palm shells, coconut shells, palm fronds, palm leaves, bamboo, rice straw, cassava rhizomes, and rice husk for biochar production. This method is primarily used in underdeveloped or economically weaker countries due to its easy availability and affordability. Later, the efficiency of these agricultural wastes is induced by the pyrolysis process.
On the other hand, the animal manure segment is predicted to dominate the market in the upcoming years. Sheep, cow, or chicken manure are considered to be the best animal manure for the production of biochar. Animal excrement carries high nutritional value and acts as a soil conditioner. Rising demand for environmentally friendly products has boosted the animal manure segment recently.
The utilization of cattle manure in biochar reduces the need for fertilizers at the time of cultivation, it is also considered a natural fertilizer. The rising demand for animal manure is attributed to the fact that it can retain nutrients in the soil for years by maintaining the quality of the soil.
Application Insights
The agriculture segment acquires the largest revenue share in the global biochar market. Biochar is considered a natural fertilizer for enhancing the quality of the soil. Rising awareness about the side effects of chemical fertilizers and pesticides on the environment and crops is boosting the importance of biochar for agricultural activities.
Utilization of biochar offers enhanced crop productivity, bulk density, biological nitration fixation, maintained soil moisture and multiple other benefits. Considering these potential benefits provided by biochar to the soil, the agriculture segment is predicted to grow during the estimated period. In the agricultural sector, plant-based biochar is also preferred as an excellent supplement for animals (cattle). It offers proper nutritional value to improve blood levels, and digestion and remove toxins from the body.
Another segment, electricity generation, is expected to grow at a significant rate. Biochar is seen as a renewable resource for electricity generation. Rising awareness for green energy due to rising environmental concerns is expected to boost the electricity generation segment in the global biochar market. Rising carbon emissions are prone to increase the utilization of biochar in forestry.
The soil in forests tends to lose its prosperity due to wildfires, deforestation and many other reasons. The utilization of biochar as a soil amendment can restore soil quality by improving the fertility of the soil. However, the cost and efforts for implementing biochar as a soil amendment in forests are likely to hinder the growth of the forestry segment.
Regional Insights
Asia Pacific Biochar Market Size and Growth 2026 to 2035
The Asia Pacific biochar market size is exhibited at USD 706.85 million in 2025 and is projected to be worth around USD 2,472.20 million by 2035, growing at a CAGR of 13.34% from 2026 to 2035.
Asia Pacific dominates the global biochar market, and it is projected to grow at a significant rate during the estimated period. The rapid increase in the agricultural sector in countries such as India and China has boosted the growth of the biochar market in the region. Rising research and development activities in the region to produce biochar products in order to boost crop yield are seen as major drivers for the development of the biochar market.
China Biochar Market Trend
China's national push for carbon neutrality by 2060 and strong policy support. The abundant availability of agricultural residues, combined with stricter burning regulations, ensures a stable feedstock supply. This biochar is primarily used for soil remediation and enhancing agricultural fertility. Furthermore, technological advancements and the integration of biochar projects into carbon markets are making production more efficient and economically viable.
North America is the second-largest market for biochar products. Rising awareness for organic food products acts as a driver for the growth of the biochar market in North America. Europe is expected to witness a shift during the forecast period. Strict environmental standards for agricultural activities have boosted the demand for biochar in the region.
U.S. Biochar Market Trend
The U.S. market is driven by rising demand for agricultural applications, strong government and policy support, focus on carbon sequestration, and woody biomass as the primary feedstock. Beyond agriculture, biochar is finding new, high-growth applications in industrial uses, such as water treatment (as an alternative to activated carbon), odor control, and as an additive in construction materials like concrete and asphalt.
Moreover, large-scale companies in major European countries have propelled the market's growth. Furthermore, factors such as rising investments in research and development (R&D) activities and new product launches are anticipated to boost the growth of the European biochar market.
Brazil and Mexico are the most significant contributors to the expansion of the biochar market in Latin America. Several governments in Latin America are focused on implementing standards to reduce greenhouse carbon emissions; this is projected to boost the demand for biochar from various industries. However, the pace of market growth is steady in the Middle East and Africa.
Value Chain Analysis of the Biochar Market
Feedstock Sourcing and Pre-processing:This initial stage involves identifying and acquiring organic biomass waste, such as agricultural residues, forest wood chips, or manure.
Biochar Production/Conversion: This central stage is where the feedstock is converted into biochar using thermochemical processes, primarily pyrolysis or gasification.
- Key Players: Advanced Pyrolysis, Carbo Culture, PYROPOWER
Quality Control and Certification:After production, biochar is analyzed and processed to meet specific quality standards required for different applications (e.g., agricultural vs. industrial use) and for carbon market certification.
- Key Players: biochar-international.org, european-biochar.org, Verra, Gold Standard
Distribution and Marketing:This stage involves packaging, storing, and transporting the biochar to end-users such as farms, gardening suppliers, or industrial sites.
Application and End-Use:This is the final stage where the biochar is applied to soil, used in water filtration systems, or integrated into building materials.
- Key Players: Farms and agricultural enterprises, water treatment facilities, industrial manufacturers (e.g., construction companies using biochar as an additive), and research institutions.
Monitoring, Reporting, and Verification (MRV) for Carbon Credits:This stage involves digitally tracking and verifying the amount of carbon sequestered in the biochar for the purpose of generating marketable carbon removal credits.
- Key Players: Puro.Earth, CarbonFuture, MRV company
Top Companies in the Biochar Market & Their Offerings
- Airex Energy Inc.: Airex Energy specializes in advanced biomass torrefaction technology to produce high-quality biochar and biocarbon products from various residues. Their patented process transforms difficult feedstocks efficiently, positioning them as a leader in industrial-scale, low-carbon solutions.
- Biochar Supreme:This company is a key U.S. producer of certified biochar products, focusing heavily on agricultural applications for soil health and fertility enhancement. They offer a range of products designed to improve soil characteristics in farming, gardening, and restoration projects.
- Farm2Energy Pvt Ltd: An India-based company, Farm2Energy focuses on converting agricultural waste into valuable energy and biochar products using sustainable conversion technologies. They contribute to rural economic development by utilizing local biomass waste and addressing waste management issues.
- Pacific Biochar Corporation: Pacific Biochar is a U.S. producer and supplier of biochar, primarily focusing on its application as a soil amendment and a method for long-term carbon sequestration. They play a major role in the carbon credit market, selling verified carbon removal credits to large corporate buyers.
- ProActive Agriculture:This company integrates biochar into holistic agricultural practices, focusing on improving soil biology and reducing chemical fertilizer use. They provide consultation services and products aimed at enhancing farm sustainability and crop yield through the use of biochar blends.
- Phoenix Energy:Phoenix Energy specializes in developing facilities that use sustainable biomass, often forest residues from wildfire prevention efforts, to produce renewable energy and biochar. Their contribution addresses both energy needs and waste management challenges in the biomass-to-biochar value chain.
Recent Developments in the Biochar Industry
- In January 2025, Google signed major agreements with Indian startup Varaha and U.S. firm Charm Industrial. The agreement is signed to purchase substantial amounts of biochar-based carbon removal credits, the largest deals of their kind to date. (Source: techcrunch.com)
- In December 2022,EVOIA announced its first product ‘AmpliFyr' manufactured from biochar. The product is launched for soybean, corn and wheat. AmpliFyr increases the seedling root by inducing the growth of crops.
- In December 2022, an agricultural technology unit of LG Chem, Farm Hannong, launched a joint project to accelerate the popularization of biochar.
- In December 2022, Crystal Courtney from Cincinnati Parks Division invested $1.1 million in a carbon-negative biochar project. The investment aims to launch a small pilot project for biochar production.
- In December 2022, SWVA Biochar LLC, a Floyd-based biochar company, announced an investment of $2.6 million to expand its business operations by creating multiple job opportunities. The company is focused on producing products that will benefit multiple industries and the environment.
- In December 2022, a company focused on the well-being of people, Malachite Innovations Inc., announced the launch of Terra Preta. Terra Preta is a new business that produces proprietary forms of biochar for agricultural purposes. Biochar products by Terra Preta will promote the growth of the crops.
- In August 2022, a specialized carbon reduction and offsetting company, Invert Inc, published a Verra biochar methodology. The company's head of carbon forestry, Matt Delaney, contributed to the development of this biochar methodology which states the natural ways to utilize biochar in soil and other applications.
- In May 2022, Carbon Streaming Corporation announced the signing of a strategic agreement with a subsidiary of Restoration Bioproducts LLC. This agreement supports the construction of a biochar production facility in Virginia.
Segments Covered in the Report
By Technology
- Pyrolysis
- Gasification
- Others
By Feedstock
- Woody Biomass
- Agricultural Waste
- Animal Manure
- Others
By Application
- Agriculture
- Forestry
- Electricity Generation
- Others
By Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- The Middle East and Africa
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