Understanding the Current Charcoal Price Trends in India

The global charcoal market is an incredibly dynamic one; in 2023, the global charcoal market was estimated to be worth 6 billion dollars, and between 2024 and 2029, the market is expected to grow at a 5.8% compound annual growth rate (CAGR). Asia Pacific is one of the largest markets for charcoal in the world, and this region is going to be a major contributor to the growth of the charcoal market moving forward. Charcoal prices are considerably dynamic in the Indian market, and they are influenced by many factors. In this article, we are going to try to discuss the current charcoal price trends and the factors that influence charcoal prices in the Indian and global markets.

Charcoal

Charcoal has many uses in industrial and household applications around the world. It is made by heating carbon-rich organic materials such as wood and coconut shells at low oxygen levels to remove all the moisture content and volatile elements from the raw material. Since ancient times, charcoal has had many uses; it was a popular fuel and purification agent, but one of the major raw materials for traditional charcoal production was trees, which resulted in rapid deforestation in many areas around the globe. Since the introduction of fossil fuels, charcoal has taken a back seat, but today there are much more efficient methods to produce charcoal, and that too from renewable sources.

Today, charcoal is widely used across the world in industrial applications, cooking, barbecue, activated carbon production, water filtration, pharmaceuticals, metallurgy, environmental applications, medicine, and even cosmetics. The COVID-19 pandemic had a negative impact on the charcoal industry for the last few years, but the market is rebounding now, especially with barbecued food items gaining more and more popularity all over India and the world. So what are the factors influencing charcoal prices? Let’s discuss:

Factors influencing the charcoal market and price in India

As we know, Asia Pacific holds a substantial share of the global charcoal market, and it is recovering from the impact of the pandemic and war still going on in several parts of the world. But apart from these, what drives and dictates the charcoal price in India?

This is a list that shows charcoal price trends across India in the last few months of 2024.

Increase in demand

In many developing and underdeveloped countries, charcoal is used as one of the major cooking fuels. Much more efficient than other alternatives, charcoal’s demand as a cooking fuel is still rising, especially in rural India and other developing nations. In developed countries, too, it is one of the major fuels used for heating. The barbecue culture, which is spreading all over India, is another major cause of increased demand for charcoal in the last few years. Charcoal is an industrial product with a very diverse range of uses; for example, it is extensively used in activated carbon production, and with the need for efficient purification agents increasing in residential and industrial spaces, charcoal demand is also bound to increase. Part of many industries, charcoal prices fluctuate as the demand for charcoal in different domains and industries fluctuates.

Global market trends

The import and export dynamics and global market trends also influence the domestic market and pricing of charcoal in India. As of now, the global market is projected to grow in the coming years, and this dynamic is also reflected in India’s market.

Environmental regulations and governmental policies

One of the major raw materials for charcoal production is wood, and issues like deforestation and its effects on our nature are serious considerations today across the globe. So changing environmental regulations, government policies, and tax regimes are also reasons for the fluctuations in price in the Indian charcoal market, as well as all over the world.

Supply chain disruption

India is a very big country, and the quality of infrastructure and supply chain efficiency are varied in different parts of the country. Issues such as disruptions in production due to inefficient infrastructure and transportation costs can also influence the availability and price of charcoal.

Seasonal demand

Like we just discussed, India is a big country, with different parts of the country experiencing totally different seasons and weather. The charcoal prices can also vary regionally based on the seasonal demand in different areas.

Monsoon and raw material availability

Raw material availability and its price are major factors that can directly influence charcoal prices in India. Apart from wood and bamboo, coconut shell is a major raw material used in charcoal production. Unlike wood, coconut shell is renewable, but during monsoons, coconut harvest and charcoal production are negatively impacted, which will increase the demand and price of coconut shell charcoal. So seasonal changes are also a major influence in India’s charcoal market.

Conclusion

As we know now, many factors influence the charcoal market in India, and the prices can vary based on the quality of the product, raw materials used, season, current government policies, environmental regulations, overall demand for charcoal, and global trends. However, understanding current charcoal price trends in India will help you make informed decisions if you are a consumer. Southern Carbon is one of the major suppliers of granular activated carbon in Korea and in many other major Asian markets. As one of the major producers of customizable activated carbon products in India, we have over two decades of experience in the industry. Curious about the coconut shell activated carbon price in India? Connect with us to learn more about activated charcoal price trends in India!