North America Charcoal Market Size, Share & COVID-19 Impact Analysis, By Type (Charcoal Briquettes, Lump Charcoal, Others), By Application (Fuel Feedstock, Filtration Agent, Medicines, and Others), By End-user (Residential, Water Treatment, Pharmaceutical, and Others), Regional Forecast, 2022-2029

The North America charcoal market size was valued at USD 1.05 billion in 2021. The market is projected to grow from USD 1.07 billion in 2022 to USD 1.22 billion by 2029, exhibiting a CAGR of 1.9% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with charcoal experiencing lower-than-anticipated demand across all countries in North America compared to pre-pandemic levels. Based on our analysis, this market exhibited a decline of -0.4% in 2020 as compared to 2019.

Charcoal is an artificial soot residue made by intensely heating plant matter or wood. This process is conducted with little oxygen to remove volatile and water components. It replaces coal and is widely used in the food industry and industrial filters for grilling and water purification. Growing demand for charcoal in grilling is expected to drive the North America charcoal market growth.

COVID-19 IMPACT

COVID-19 Impacted Market Growth Due to Shutdown of Manufacturing Facilities

COVID-19 spread rapidly everywhere in the world in 2020. Almost every country reported infected cases. From 2020 to 2021, every country was at different stages of the pandemic. The industrial participants witnessed challenges due to lockdowns.

COVID-19 significantly impacted the market as many players opted to shut down manufacturing facilities, as workforce management was the problem during COVID-19, which led to lower production and increased import of charcoal as demand for charcoal-based grilling increased in the residential sector. However, the demand declined from commercial barbeque shops and metal & metallurgy.

The temporary shutdown of production facilities has reduced the use of the product in industrial wastewater treatment. To overcome the drop in product sales and rising awareness of how to protect against the virus, governments in major industrialized countries such as the U.S., Canada, and Mexico have invested enormous sums in building more efficient water and wastewater treatment plants. In addition, increasing air pollution due to various factors such as vehicles and CO₂ emissions has led to the introduction of air purification processes that are slowly contributing to the growth of the market.

LATEST TRENDS

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Rising Demand for Charcoal in Cosmetic Applications Owing to its Characteristics

Activated charcoal is actively used in cosmetic products. Due to its adsorbing properties, it is used in all beauty products, from face masks to cleansers to soaps. In the past, activated charcoal was used to treat poisoning, but now that cosmetic companies are claiming that activated charcoal is suitable for treating blemishes, it has regained popularity. Although its use as an antidote for poisoning is obvious, studies to confirm its effectiveness in treating skin conditions such as acne, dark spots, and dermatitis need to be prioritized to make it safe for cosmetic products.

Charcoal facewash is also making waves in the toner and cleanser market. This is attributed to the fact that using activated charcoal facial wash can solve various skin care problems such as winter sallow skin and other issues. Activated charcoal helps eliminate impurities and gives one’s skin a fresh, clean, and healthy look, thereby surging the demand.

For example, activated charcoal toner is recognized to eliminate impurities from one’s skin and has skin-lightening properties. L'Oréal Paris Activated Charcoal Toner, for example, is formulated with three pure clays and enriched with charcoal that leaves your skin radiant and clear. The activated charcoal toner treats five main skin problems such as stickiness, oily skin, dullness, dirt, and clogged pores.

DRIVING FACTORS

Rising Demand for Healthy Food Supports the Usage of Charcoal in Recreational Cooking

Charcoal is an artificial soot residue made by intensely heating plant matter or wood. This process is conducted with little oxygen to remove volatile and water components. Charcoal replaces coal and is widely used in the food industry and industrial filters for grilling, water purification, etc. The use of this application will propel the North America charcoal market share during the forecast period.

The large volume use of charcoal throughout North America for grilling and grilling is the primary driver of demand for this product. The increasing acceptance of a healthy lifestyle and changing consumer food preferences drive significant demand for charcoal for grilling. Grilled food is low in fat and holds much of its nutritional content. Therefore, the increasing awareness of healthy eating, complemented by the growing culture of throwing parties outdoors, contributes to the rising popularity of grilled food, which supports the demand for charcoal throughout North America.

In context, according to the Hearth, Patio & Barbeque Association's (HPBA) Biennial State of the Barbeque Industry Report, 80% of all homeowners and 70% of all households in the U.S. own at least one grill or smoker, which is the highest percentage in the history of the study, up from 64% household ownership in 2019. In Canada, 70% of households own a grill. According to the report, much growth has come from charcoal grill purchases. In 2019, they accounted for 49% of ownership. In 2021, they rose to 65%. Gas has maintained its high position for many years at 63%.

Growing Usage of Activated Charcoal in Water Treatment Plants Promotes the Demand for Charcoal

Activated charcoal is widely used for various water treatment needs. Water plays a significant role in the processing industry. The water used in the manufacturing industry can become contaminated during the process and must be treated before it is released into the environment. Likewise, water needs to be treated in some industries before it can be used for manufacturing. Environmental problems that lead to air and water pollution can be treated with activated charcoal. Activated charcoal for water treatment is used for different industries and purposes today. Activated charcoal is one of the most effective water treatment methods for various safety, purity, environmental protection, compliance, and quality requirements. Therefore, the market is growing over the forecast period.

Water pollution is the contamination of water sources by substances that make the water unsuitable for drinking, cooking, cleaning, swimming, and other activities. Pollutants include chemicals, garbage, bacteria, and parasites. All forms of pollution end up in the water.

Rising water pollution has forced North American governments to enforce strict water and waste treatment laws. The U.S. Environmental Protection Agency (EPA) and other government agencies recommend activated carbon as a cost-effective means of removing harmful chemical contaminants. Activated charcoal removes impurities from water through surface adsorption. This factor supports the demand for charcoal for water treatment applications across the North America region. 

RESTRAINING FACTORS

Stringent Government Regulation for Charcoal Production is Hampering the Market Growth

The market continues to face several challenges, including restrictions on tree felling and focus on sustainable development, which are expected to have little impact on the market expansion in the coming years. However, the exploitation of wood fuel alone does not provide a cohesive explanation for ongoing deforestation at the national level. Problems related to wood fuel have increased due to unstructured baseline information about various charcoal production policies, resulting in further charcoal demand and supply gaps across the region.

Several guidelines and standards have been put in place for charcoal production to ensure the quality and safe handling of the product. For example, the Canada Consumer Product Safety Act (S.C. 2010, c. 21) prevents human health or safety from consumer products in Canada, including those circulating within Canada and those imported. 

SEGMENTATION

By Type Analysis

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Lump Charcoal’s Striking Properties to Boost its Adoption in the Coming Years

Based on type, the market is segmented into charcoal briquettes, lump charcoal, and others.

Lump charcoal segment is expected to dominate the market as it has the advantage over other types of charcoal such that it burns quickly and achieves a higher temperature rate with relatively low carbon emissions and a high calorific value. Also, lump charcoal reacts well to oxygen to regulate the heat with vents and chimneys. Lump charcoal is the most natural fuel for BBQ. This factor is expected to maintain the dominance of lump charcoal.

Charcoal briquettes segment is also one of the major segments as it is chemical-free, burns for a long time, flavorless, and smokeless. The products prepared from an extruder are smoke-free, flammable, and have no floating dust during the burning process.

By Application Analysis

Fuel Feedstock Segment Holds Major Share due to its Wide Use in Cooking and Heating

The market is segmented into fuel feedstock, filtration agent, medicine, and others based on application.

Fuel feedstock is the dominant segment during the forecast period. It is used as a fuel for cooking and heating in North America. It is the most popular barbeque fuel in North America. The trend of grilled food propels the market growth. The rapid growth of the hospitality sector is anticipated to drive the market's growth in the coming years.

Others segment includes decolorizing agents, sketches and paints, reducing agents, soil conditioning, soaps, toothpaste, face masks, and scrubs. It is one of the fastest growing segments due to increased activated charcoal demand owing to its properties, such as adsorbing chemicals, and may bind to toxins. Ultra-fine powder offers a much more refined feel, eliminating the gritty texture experienced with all other types of charcoal. Due to these advantages, the market is expected to be growing during the forecast period.

By End-user Analysis

Residential Segment is one of the Major Segments due to Increasing Popularity of Barbeque Cooking

Based on end-user, the market is segmented into residential, water treatment, pharmaceutical, and others.

Residential segment dominated the market during the forecast period owing to the increasing popularity of barbeque cooking due to lifestyle changes and new cooking methods are a prominent trend in this market. A lively environment, extensive buffet, and great music reinforced the increased consumption of grilled food in a live cooking scenario. It will boost the demand for charcoal in North America.

The pharmaceutical industry is growing in North America, and activated charcoal is in high demand in the pharmaceutical and healthcare industries. The substance could be used to rid the human body of harmful substances and activated charcoal powder could be used in case of drug overdose or poisoning. The wide adoption of charcoal in the pharmaceutical industry is driving the product demand.

REGIONAL INSIGHTS

The U.S. dominates the market share due to the widespread adoption of barbeque in mainstream American culinary ideologies, rooted in the cooking technique over an open flame that was popular with Native Americans. For consumers in the U.S., the main part of any holiday celebration often consists of delicious meals and great food. Grilled food is an important part of their culture, and barbecues are often featured at most celebrations. This factor is propelling the market growth. However, increasing awareness of the harmful effects of charcoal use might hamper the market in the coming years.

In addition, Canada witnessed a significant share of the market in 2021 due to the country having the largest consumption rate in barbeque grilling. This is attributed to restaurant owners improving food themes and incorporating barbeque into their menus to attract more customers.

KEY INDUSTRY PLAYERS

The Clorox Company is Concentrating on Enhancing its Product Portfolio

The Clorox Company offers charcoal via its subsidiary Kingsford Products Company. Kingsford is an established brand name in the market. As it aims to develop or launch new charcoal-based products, for instance, in March 2022, it launched charcoal briquettes or pellets and 100% real spices for unmatched flavor. These Kingsford Signature Flavors are available at retailers nationwide in various sizes from 2-17 pounds. These products are made with 100% natural spices.

LIST OF KEY COMPANIES PROFILED:

• Royal Oak Enterprises LLC (U.S.)


• Duraflame Inc (U.S.)


• FOGO Charcoal (U.S.)


• Basques Hardwood Charcoal (Canada)


• Parker Charcoal (U.S.)


• Rancher Charcoal (U.S.)


• Timber Charcoal Company LLC (U.S.)


• The Saint Louis Charcoal Company, LLC (U.S.)


• The Clorox Company (U.S.)


• Jurassic Carbon (Canada)

KEY INDUSTRY DEVELOPMENTS:

• May 2022 - The Government of India lifted the ‘export prohibition’ on bamboo charcoal. This decision would facilitate the optimum utilization of raw bamboo and higher profitability in the Indian bamboo industry.


• April 2022 - Supporting innovation and growth contribute to economic development in Quebec's regions. The Honorable Pascale St-Onge, Minister for Sports and Minister for IBD announced a refundable donation of USD 150,236 to Basque's Hardwood Charcoal. This Canada Economic Development (CED) support will allow the company to increase productivity by purchasing optimized steel furnaces.


• February 2022: Royal Oak Charcoal is building one of the largest charcoal plants in the world. It is the private producer of Royal Oak brand charcoal, and is expanding its Salem, MO, charcoal facility to one of the largest in the world. Expanding the more than half-century-old factory will increase production by at least 50%. The new facility will use new technologies, such as dust collection, which will develop the skills of more than 150 employees.


• April 2021: - Kingsford presented 100% Hardwood Pellets. Increasing beyond charcoal, Kingsford has included Hardwood Pellets in its roster of superior-quality, wood-fired fuel. Kingsford pellets are prepared with all-natural ingredients and absolutely no fillers, preservatives, or binders to provide more hickory, cherry, and maple wood flavor. The brand is so confident in the 100% flavor produced when grilling or smoking with new Kingsford pellets they are offering a money-back guarantee if one is not convinced.


• April 2021 - Namibia exported its first 350 tons of Charcoal to the U.S. The U.S. Ambassador joined the Deputy Secretary of State for Industrialization and Trade, sending this 350-ton of shipment from Namibian charcoal to the U.S. The export agreement between King Charcoal, Africa Burns Charcoal, and their U.S. trading partner, the Good Charcoal Company, is supported by the U.S. Government through the U.S. Agency for International Development (USAID).

REPORT COVERAGE

An Infographic Representation of North America Charcoal Market

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