The global coal briquettes market is expected to hold a value worth USD 3,626.9 million in 2023. During the forecast period, the market is expected to experience a CAGR of 4.4%, garnering USD 3,626.9 million by 2033.
The industry's growth is attributed to the growing demand for coal briquettes in the manufacturing sector such as steel which demands high temperatures and heat.
Unlike lump charcoal, briquettes are manufactured wood by-products compressed with additives that help them light and burn consistently. They have a higher practical thermal value and produce much lower ash content (2 to 10% compared to 20 to 40% in coal). They are 40% more efficient, hotter, and longer lasting than firewood. This efficiency is attributed to their low moisture and density. Besides, they are environment-friendly, renewable, and easy to implement.
Briquettes replace the application of conventional types of fuels and have a good thermal calorific value. It requires agro-waste to produce briquette, therefore it is cheaper than other fuels. The other associated benefit of coal briquettes is that it has consistent combustion and ignition temperature. Also, due to compression, briquette helps in reducing waste by 90%. Attributed to such factors, the market is likely to progress significantly in the coming period.
| Attributes | Details |
|---|---|
| Coal Briquettes Market CAGR (2023 to 2033) | 4.4% |
| Coal Briquettes Market Size (2023) | USD 2,357.9 million |
| Coal Briquettes Market Size (2033) | USD 3,626.9 million |
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Increasing demand for energy and fuel resources owing to the growing energy crisis and pollution of the environment has resulted in the innovation of alternative energy fuels, which is expected to augment demand for coal briquettes and benefit the market in the forecast period.
The product is gaining significant traction in the metallurgy industry since the increasing application of coal coke in the sector has resulted in environmental degradation. Thus, coal briquettes are playing a notable role in the metallurgy sector and are becoming more popular.
The governments of various countries are taking several initiatives to encourage the application of coal briquettes, which is likely to benefit the market in the coming time. For instance, in 2018, Eta Zuma West Africa Group inaugurated a plant for the production and sale of coal briquettes as a substitute for home use. The plant is situated in the Kogi state of Nigeria and has the capacity to offer 2,000 tonnes of coal briquettes a month. Such factors are expected to augment the market growth in the coming time.
In Briquette manufacturing, the process of densification requires more energy, which makes the process complicated and hinders market growth. Further, the initial cost is very high for briquettes, which is another significant obstacle to market expansion.
Other factors hindering the market are that Briquette needs a large space for setting up the plant, and needs modern machines for shredding, crushing, and drying, and a large waterproof space for storage.
Also, Briquettes are easily affected by atmospheric conditions. Humidity in weather loosens the combustion characteristic. Such factors are expected to hinder market growth in the forecast period.
Principal Consultant
As per the International Energy Agency (IEA), the application of renewable energy increased by 3% in 2020. Also, the share of renewables in electricity generation reached 29% that year, up from 27% in 2019.
Growing demand for renewable energy across the globe, and increasing investments by many Asian and African nations in coal briquettes to meet the surging demand for energy are projected to offer ample growth opportunities to the market in the near future.
According to Future Market Insights, coal briquettes for food preparation are expected to experience widespread demand, likely to experience a CAGR worth 4% from 2023 to 2033. Rising consumption of barbecued food preparations is likely to be the chief sales accelerator.
In 2023, this segment is expected to hold a market share of 65.3%. In addition, benefits such as a higher practical thermal value, lower ash content, and enhanced calorific value are factors adding to the segment’s growth, thus, augmenting the industry size during the forecast period.
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| Country | Market Share (2023) |
|---|---|
| United States | 20.1% |
| Germany | 5.3% |
| Japan | 4.9% |
| Australia | 3.8% |
According to the analysis, Europe is expected to dominate the global coal briquettes industry during the forecast period. As of 2022, the region secured 21% of the global revenue.
Countries such as Germany, the United Kingdom, the Netherlands, and Sweden are encouraging renewable resources, which are used as a source of fuel for various purposes. This is likely to provide ample opportunities for coal briquettes in the coming future.
German Industrial engineering for using biomass briquettes in energy consumption has undergone various developments, making it highly reliable and offering solutions tailored to meet customer requirements in the best way possible.
However, the market faces regulatory pressure in the region, as many countries including Germany and the United Kingdom, and contemplating tightening the rules owing to significant opaqueness in the import source and trade of these types of charcoal products, particularly from illegal deforestation activities in other countries.
As per the analysis, the North American coal briquettes sector is expected to procure the second-leading market share during the forecast period. In 2022, the region garnered 18% of the global revenue.
The growth of the region is attributed to the growing consumption of coal briquettes in recreational cooking, especially for grilling and barbecuing. As per a survey conducted by the Hearth, Patio & Barbecue Association (HPBA) in 2020, almost two-thirds (64%) of USA adults own a grill or smoker. This has resulted in a high-volume consumption of coal briquettes in the country.
The high significance of charcoal in water treatment applications is likely to lead to a high-volume consumption of this product in the country in the coming years.
| Country | Market CAGR (2023 to 2033) |
|---|---|
| China | 3.9% |
| India | 4.7% |
According to the study, Asia Pacific is projected to be the significantly growing region during the forecast period. This is attributed to the presence of various developing countries like India, China, and Japan, among others.
In India, the presence of a large number of charcoal manufacturers and high-volume consumption of coal for food preparation in rural areas and in the metallurgical industry, for various heat-intensive processes, drive the growth of the market.
According to the Steel Association, steel production in China stood at 996.3 million metric tons in 2019, against 928.3 million metric tons in 2018; and India produced 111.2 million metric tons in 2019, against 109.3 million metric tons in 2018.
The growing production of steel, mainly in India and China, is resulting in high demand for fuels like coal briquettes, which offer a high amount of heat for the production process. Such factors are likely to propel regional market growth during the forecast period.
NewtFuel (Sweden), Carbonated (Germany), Arq (United Kingdom), New A.G.E (USA), Waterdrape (Canada), ArstaEco (India), BrightGreen (Charcoal), and BioFuels Junction (India), are some of the emerging names in the global coal briquettes industry.
The startup uses CO2-rich energy crops like elephant grass or different forms of abundant agricultural or biomass waste, like bagasse from sugar cane, low-quality wood, or wood waste, as raw material. It then dries and processes the crops in its patented reactor, producing a carbon-negative fuel in about 30 minutes.
This allows coal plants to directly replace some or all of their coal with clean NextFuel™ briquettes. Implementation of innovative methods and advanced technologies is likely to augment opportunities in the global coal briquettes sector.
Company Players in the market are adopting various strategies such as acquisition, partnerships, and launching new products, which make the industry more interactive and garner more opportunities in the forecast period.
The market is valued at USD 2.3 billion in 2023.
ITO Global Trading Company, and Snesmi Techno Pvt. Ltd. are key market players.
The market will reach USD 3.6 billion by 2033.
Increasing consumption of barbecued food will drive the market prospects.
Food preparation segment is likely to remain preferred through 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Appearance Type 5.1. Pillow Shaped 5.2. Hexagonal Shaped 5.3. Round Shaped 5.4. Square Shaped 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Composition Type 6.1. Wood Charcoal 6.2. Coal Dust Briquettes 6.3. Peat & Paper 6.4. Saw Dust 6.5. Wood Chips 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 7.1. Industrial Applications 7.2. Food Preparation 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. ITO Global Trading Company 18.2. Snesmi Techno Pvt. Ltd 18.3. Sun Company 18.4. Coal Hut 18.5. Milazzo Industries 18.6. Milward Alloys Inc. 18.7. Halogen Supply Co. Inc. 18.8. Bepex International LLC 18.9. Dauber Co. 18.10. Vale S.A. 19. Assumptions & Acronyms Used 20. Research Methodology
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Coal Briquettes Market
