A component that was used in the ancient period for fuel has turned into a multi-billion-dollar element for industry. It is an international market where the products are used regardless of geographical borders. As we look towards 2025–2026, the global charcoal market will be defined by a critical tension between persistent, intensifying supply-side challenges and remarkably resilient, yet rapidly evolving, demand. The charcoal market in India is currently experiencing a period of high volatility but strong resilience in spite of upward price pressure. There are various factors that lead to these challenges, demands, and future opportunities.
To bring you the most accurate forecast, we’ve grounded this article based on the 2024-2025 Southern Carbon Report. Our goal is to translate their complex data into the crucial points you need to know.
Activated carbon: More Than Just a Supply Crunch
If you’re in the business of needing high-quality activated carbon, you don’t need a report to tell you things are tight. You’re living it. The frantic calls to secure supply, the escalating quotes, the nervous anticipation of each new shipment, it’s the new normal. But what’s driving this volatility, and more importantly, how can your business not just survive but thrive within it?
The story of the current charcoal market isn’t just about numbers on a spreadsheet; it’s a complex tale of climate, geopolitics, and global demand creating a perfect storm. For industries reliant on Granular Activated Carbon (GAC), the unsung hero in everything from purifying our water to enabling advanced manufacturing, the rules of the game have changed.
What are the Deep-seated supply challenges and constraints?
The charcoal industry is facing a crisis. The conditions leading to challenges are environmental, economic, and geographical factors that are fundamentally reshaping the industry across the boundaries. Let’s look in depth at how this is affecting the charcoal market.
Environmental degradation and deforestation are affecting the industry. These measures directly restrict the raw material base, shutting down formerly existing supply chains and eliminating a significant volume of charcoal from the legal market.
What are the known trends for the charcoal market in the year 2025?
Reduced production and raw material shortage: One of the common activated carbons is coconut shell activated carbon. Due to a lack of raw materials, coconut production volumes in 2024 have been restricted. Coconut is a plantation crop that needs 2000 hours of sunlight annually, well-distributed rainfall, and a temperature between 27 and 29°C. The expansion of granulated activated carbon is affected by the production facilities in Sri Lanka and India. The issue arose mainly because coconut-producing regions have been faced with drought.
Strong domestic demand: The demand for coconut products and granulated activated carbon has increased in the domestic market. Industries like chemical companies, pharmaceuticals, and metal extraction have been using it widely. Ripe coconut shells could be collected from the desiccated coconut and coconut oil industries.
Exports of coconut granular activated carbon (GAC) decreased in June 2024 as a result of shortages and price increases. However, the increasing demand for air and water purification solutions, as well as strict environmental regulations, are expected to propel the global and Indian activated carbon markets to significant growth, with a compound annual growth rate (CAGR) of 8.5% from 2024 to 2033.
Advance Ordering and Increasing Competition: In order to protect against expected shortages and secure future supply quantities, current customers are placing advance open orders, which is escalating competition for available volumes.
Due to a lack of raw materials, coconut production volumes in 2024 have been restricted. Coconut is a plantation crop that needs 2000 hours of sunlight annually, well-distributed rainfall, and a temperature between 27 and 29°C.
How is the pricing affected by Supply Challenges and Demand?
Pricing and volatility are other significant factors in the charcoal market:
- Prices of charcoal have doubled over the past 6 to 7 months.
- The demand for activated carbon has increased irrespective of the grades, which is high, indicating the scarcity of coconut shell-based activated carbon.
- Short-term freight rates have risen by 30%, especially for shipments to Europe and the West and East Coasts.
What are the coherent features of activated carbon from Southern Carbon?
Beyond air purification, activated carbon is a dynamic material that helps in applications across various sectors. It is a multipurpose product from Southern Carbon, prioritizing to deliver the best quality, safety, and efficiency. The other sectors where activated carbon is involved are:
1. Water treatment
For removing chlorine, pesticides, and organic compounds present in all liquid elements, activated carbon is used. It enhances the quality of water, making it fit for human consumption. Not only is water purification widely used for wastewater treatment to absorb heavy metals such as lead, mercury, dyes, and industrial chemicals, but it also ensures eco-friendly discharge.
2. Food & Beverage
The product features the application for decolourization. It is used in refining sugar, oils, sweeteners, and juices. It helps to enhance the taste and aroma (odour) of food products. It enhances the quality of oil used in cooking as well.
3. Medical pharmaceutical sector
In making medicines, it is used as an antidote given for poisoning and overdose of treatments. Antidotes are something that is given to act against the poison.
4. Industrial Processes
Activated carbon is used more often in gold recovery because of its properties, featuring an ultra-porous structure, which helps the gold to absorb from the combined solution of cyanide. The product from Southern Carbon also helps to remove catalysts and solvents for ultra-pure chemical production.
5. Air Purification
Activated carbon is a sponge-like structure with tiny pores that have access to gases and odors, enabling effective adsorption.
5. Personal and home care:
This product is used actively for a cleaner environment and atmosphere at home, as it enhances the quality of air in the home.
Your search for leading activated carbon manufacturers in the USA ends here. Among all activated carbon companies in the USA, Southern Carbon is your definitive choice for purity, innovation, and results. Southern Carbon offers the best kinds and types of activated carbon. Please visit the website for more details and updates.