Activated Carbon Market Size, Share & Industry Analysis, By Type (Powdered, Granular, and Others), By Application (Water Treatment, Air & Gas Purification, Food & Beverage, Pharmaceutical & Healthcare Treatment, and Others), and Regional Forecast, 2024-2032

The global activated carbon market size was valued at USD 5.21 billion in 2023 and is projected to grow from USD 5.50 billion in 2024 to USD 8.54 billion in 2032, exhibiting a CAGR of 5.7% during the forecast period.

Activated carbon, also known as activated charcoal, is used in various industrial applications, such as gas and air cleaning, involving reusable recovery. Growing environmental concerns and awareness have led to strict emissions guidelines. This, in turn, has encouraged several manufacturers to invest in developed technologies and advanced concepts for the use of the product in applications such as cleaning and air treatment. It is increasingly used for water treatment, such as drinking water, service water, groundwater, and wastewater.

The primary role of the product is for the adsorption of dissolved organic impurities and the elimination of substances that affect the odor and taste. The adoption of the product in the Injection (ACI) technology has provided cost-effective methods for the purification process. These methods are used mainly in cement kilns and power plants to reduce mercury emissions. Growing pollution due to emissions caused during product manufacturing has been a significant factor driving the market growth.

The recent coronavirus outbreak has resulted in a decrease in global productivity and affected several economies across the world. The stagnant nature of manufacturing units has led to a reduction in the production rate. This has led to reduced availability of activated charcoal globally. Temporary shutdown of production facilities in various industries has reduced the usage of the product in industrial wastewater treatment and air filtration. However, the increasing awareness towards water treatment and air purification from consumers and normalization of industrial activities in 2021 has supported the market recovery from the COVID-19 impact.

Activated Carbon Market Trends

Increasing Focus of Key Players On Re-activated Carbon is the Prominent Trend in the Market

The rise in product consumption has drastically increased over the past few years. This has increased the demand to recycle or reactivate the product due to the limited presence of raw materials.

The activated carbon can be returned to its primary activation stage by the thermal process in which organic and inorganic contaminants are removed, enhancing the adsorption capacity. These used carbons are exposed at 800 degrees Celsius to reactivate in the blast furnace. The adsorbed organic or inorganic compounds are volatilized and pyrolyzed to a carbonaceous carbon at this temperature and pressure.    

This carbon reduces the polluting manufacturing waste and the amount of toxic gases such as CO2 and carbon monoxide. Additionally, the re-activation of the carbon prevents the landfills from being taken up by the granular activated carbon. Therefore, the benefits of re-activation have increased the space for the product manufacturer to recycle the product.

On the other side, reactivating carbon reduces the cost of replacing the product and offers a similar rate of adsorption compared to virgin activated carbon. Additionally, the re-activation of carbon provides easy handling and disposal practices that reduce production costs. Therefore, the consumption of this type of carbon has gradually increased over time.

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Activated Carbon Market Growth Factors

Increased Product Demand in Air Purification Systems to Boost Market Growth

The rising air pollution across the globe has surged the demand for air purification systems in factories and generators. Over the past years, the rise in industrialization and the increasing number of coal-based electricity-generating power plants have increased air pollution. As a result, different countries' governments have issued new policies to control the emission of pollution.

Therefore, product consumption for end products, such as carbon filters, has increased. These filters extract the micro impurities from the air when they pass through it owing to their bed structure made of powdered or granular carbon. Additionally, such carbon filters deliver remarkable filtration against volatile organic compounds (VOCs), chemicals, and hazardous gases, such as SOX and NOX.

On the other side, the number of dyspnea patients (breathing illness) has drastically increased in the past few years due to the micro-pollutants in the air. This has created a massive product demand for air filtration from residential applications. According to the World Health Organization (WHO), more than 90% of the global population breathes polluted air, and more than 4.1 million people die from air pollution yearly.

As a result, the manufacturing units and coal-based power plants started to adopt the air filtration system to limit mercury emissions. Countries, such as the U.S., have imposed strict regulations on limiting mercury and other hazardous elements to clean the air.

Therefore, all these consumption factors and the imposed regulations increase the product demand from the end-use industries such as air & gas purification.

Increasing Demand for Activated Charcoal for Personal Care Application to Fuel Market Growth

The activated carbon market is growing rapidly due to the rising adoption of activated charcoal in the personal care industry. The increasing skin consciousness amongst consumers, advancement in personal care products, and growing consumer disposable income are significant factors anticipated to boost the personal care industry globally. 

This leads to the consumption of activated charcoal in the personal care industry. The ability of the product to eliminate bacteria, poison, dirt, and chemicals from the skin's surface helps to reduce acne, making it a preferred choice in personal care products.

Also, activated charcoal has excellent purifying abilities, which makes it a popular ingredient in the beauty industry. Its major consumption can be seen in hair care products to soothe itchy, face masks to draw out unwanted gunk, and toothpaste to brighten teeth and flaky scalps.

Moreover, activated charcoal helps to unclog the pores by leaving them free from any impurities, which further makes it beneficial for oily skin. Such characteristics of product led several manufacturers to produce activated charcoal-based products specifically for the personal care industry.

For instance, in May 2022, Yardley expanded its product portfolio and launched activated charcoal-based body washes. With this launch, the company focuses on eliminating heightened hygiene concerns. Also, the product is ideal for cleansing dirt and germ protection.

The rapid growth in the personal care industry, growing consumer preference to purchase activated charcoal-based products, and increasing awareness of the benefits of activated charcoal amongst the people are anticipated to flourish product adoption. Hence, this is anticipated to drive the activated carbon market growth during the forecast period.  

RESTRAINING FACTORS

Hike in Prices Due to Raw Material Shortage to Impede Market Growth

The scarcity of various raw materials, such as coconut shell charcoal, used for production is a risk factor in the market growth. As a result, the prices of the raw materials have risen mainly from coconut shell charcoal. Coal-based product prices have increased due to higher energy needs. Coal is widely used in key application areas such as electricity, cement, and iron & steel plants in China. This has resulted in a shortage of coal grades that are used to manufacture the product. However, the decline in coconut demand has affected the operational output of producers, which has encouraged manufacturers to increase production capacities by 50% to 60%, resulting in product price hikes.

Activated Carbon Market Segmentation Analysis

By Type Analysis

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Granular Type to Exhibit Fastest-growth owing to Increasing Preference from End-Use Industries

On the basis of type, the global market is segmented into powdered, granular, and others.

Among these, the granular segment is the fastest-growing in the market due to the high demand for the product from several end-use industries, such as water treatment and air & gas purification. GAC has a comparatively larger particle size than powdered form, thereby making it suitable for removing contaminants from liquids, air, and gases. GAC is used in the food & beverage industry to remove impurities, odor, and color from sweeteners, syrups, beverages, amino acids, and organic acids. It is also used in wastewater treatment to remove oil, industrial pollutants, heavy metals, and pesticides. Additionally, the growing demand for granular form can be attributable to its easy regeneration and reusability, which leads to overall market growth.

PAC segment is anticipated to grow significantly owing to its rising demand from water treatment industry. This type has a particle size smaller than 0.177mm as defined by ASTM; thus, it has a larger surface-area-to-volume ratio. PAC is used to remove a wide range of organic contaminants that impart color, odor, and taste from wastewater, potable water, and water required in industrial processes. It is also used in processes with high flow rates of liquids to minimize capital expenditure. Hence, the major application of PAC is for water treatment.

By Application Analysis

Water Treatment Segment to Dominate Owing to Increasing Industrial Activities

Based on application, the market is categorized into water treatment, air & gas purification, food & beverage, pharmaceutical & healthcare treatment, and others.

The water treatment segment held the largest activated carbon market share in 2023 and is expected to remain the largest throughout the forecast period. The product is commonly used in water treatment to adsorb organic compounds, odor, and taste compounds, toxic substances, and oils. It is widely used due to its high porosity and offers a larger surface area for adsorption. The rising need to treat water globally due to depleting natural resources and increasing pollutants is responsible for the market growth. Besides, strict norms implemented to treat industrial wastewater are expected to support the segment growth.  

The food & beverage segment is growing at a significant rate due to the increasing product preference for minimizing food and beverage contamination. In the food & beverage industry, the product is used to remove contaminants, such as odor and color imparting substances, heavy metals, toxic components, amino acids, and refining edible oil. Consumers' Increasing attention toward food safety and quality is expected to support market growth. Furthermore, the product has applications in industries to recover various solvents and purification of CO₂, waste gases, and control mercury vapor emissions, especially from fossil fuel-based power plants.

The pharmaceutical & healthcare treatment applications of activated charcoal involve the treatment of overdoses, poisoning, indigestion, and flatulence. The segment will showcase significant demand for the product owing to its adsorption characteristics.

Charcoal is used in other applications such as rare metal recovery, energy storage, and specialty chemicals manufacturing. The current rising demand for energy has led to growth in the manufacturing of energy storage devices, thereby increasing the product consumption in batteries.

REGIONAL INSIGHTS

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Asia Pacific dominated the market with a value of USD 2.20 billion in 2023. It is expected to remain dominant throughout the forecast period, as China and India are two major consuming countries, mainly for water treatment applications. The exponential rise in population in Asia Pacific has led to an increased need for pure and safe potable water, thereby increasing demand for activated charcoal. Additionally, the ease of availability of raw materials and their low costs are expected to support the market's growth.

The market in North America is anticipated to grow moderately due to the rising demand for products from various industrial companies. In North America, the U.S. led the market due to increased demand for water and air purification applications. Regulations imposed by the government on the disposal of industrial wastewater and gas emissions have led to the growth in the use of the product for removing contaminants such as CO₂, mercury vapors, and other toxic gases.

In Europe, stringent standards and guidelines, and government initiatives to safeguard the environment have resulted in a surge in product demand from applications, including water treatment, mercury absorption, and air purification. This rising product adoption is expected to drive the Europe market significantly. In addition, regulations have also influenced automotive manufacturers to use activated charcoal to minimize emissions from the vehicle. This is expected to create several growth opportunities for the market in Europe.

The market in Latin America is expected to observe significant growth in the coming years. Mexico is the major country in this region. Increasing product consumption in the water purification and pharmaceutical industries for deodorization and decolonization is projected to drive the market.

In the Middle East & Africa, low water availability, increasing oil exploration, and industrial activities are the key factors influencing the demand for purification applications are driving the activated charcoal market growth.  

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List of Key Companies in Activated Carbon Market

Key Market Players to Strengthen their Position by Providing Sustainability Solutions to Various Industries

Major producers, such as Kuraray Co., Ltd. and Cabot Corporation, have a widespread presence globally. They offer various types of activated charcoal products. Kuraray Co., Ltd. and Cabot Corporation used acquisition and new product developments as their key strategies to increase their global presence and serve the customer demand in the market. These companies serve various end-use industries such as water treatment, pharmaceutical, oil & gas, and food & beverage.

Osaka Gas Chemicals Co., Ltd. develops and uses technologies to supply various products to meet consumer requirements. These include products with higher performance for special industrial applications, such as air environment, water purification, food, and beverages.

LIST OF KEY COMPANIES PROFILED

• Osaka Gas Chemicals Co., Ltd. (Japan)


• Donau Carbon GmbH (Germany)


• Cabot Corporation (U.S.)


• PURAGEN ACTIVATED CARBONS (U.S.)


• CARBOTECH AC GMBH (Germany)


• Kuraray Co., Ltd. (Japan)


• KUREHA CORPORATION (Japan)


• Activated Carbon Technologies (Australia)


• Silcarbon Aktivkohle GmbH (Germany)


• Ingevity (U.S.)


• Iluka Resources (Australia)


• James Cumming & Sons (Australia)


• Universal Carbons (India)


• Carbon Activated Corporation (U.S.)


• Tronox (U.S.)


• Active Char Products (India)


• Genuine Shell Carb (India)

KEY INDUSTRY DEVELOPMENTS

• March 2023 – Cabot Corporation recently launched the EVOLVE technology program that is involved in advancing sustainable reinforcing carbons. The purpose of the new technology launch is to recover the carbon product from the end-life tiers to renew the waste and reduce the carbon content.


• January 2023 – Cabot Corporation announced that it would invest USD 200 million in the U.S. to add conductive carbons capacity at their existing Pampa, Texas, U.S. facility. The purpose of the investment is aimed at product expansion in the country for the next five years.


• October 2022- Kuraray Co., Ltd announced that it would finish the running test operation of the reactivated carbon production facility on its Feluy plant in Germany.


• August 2022- Ingevity announced an investment of USD 60 Mn in lithium-ion anode materials to secure a future activated carbon supply relationship with Nexeon. This investment aims to maximize the revenue from the activated carbon product segment.

REPORT COVERAGE

The market report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, applications, and types. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market in recent years.

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Report Scope & Segmentation