Charcoal Market Report 2026

The charcoal market size has grown strongly in recent years. It will grow from $5.86 billion in 2025 to $6.27 billion in 2026 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to traditional use in cooking and metallurgy, availability of biomass feedstock, growth of small-scale charcoal production, demand from restaurant and hospitality sectors, established distribution channels.

The charcoal market size is expected to see strong growth in the next few years. It will grow to $8.12 billion in 2030 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to increasing demand for eco-friendly fuel alternatives, rising use of activated charcoal in water and air filtration, expansion of outdoor recreational activities, growing industrial fuel applications, increasing focus on sustainable biomass utilization. Major trends in the forecast period include increasing demand for sustainable and natural fuels, rising adoption of charcoal in industrial applications, growing use of charcoal for filtration purposes, expansion of premium and specialty charcoal products, enhanced focus on cleaner combustion methods.

The expanding beauty and cosmetics industry is expected to drive the growth of the charcoal market going forward. The beauty and cosmetics sector is a broad and diverse industry that involves the development, manufacturing, marketing, and distribution of products aimed at enhancing physical appearance and personal hygiene. Charcoal is utilized in this industry for its capacity to absorb impurities and toxins, making it a sought-after ingredient in skincare products for cleansing and detoxification. For instance, in December 2024, according to the Bureau of Labor Statistics, a US-based government agency, in 2023, spending on personal care products and services increased by 9.7%, while expenditure on personal insurance and pensions rose by 9.3%. Therefore, the expanding beauty and cosmetics industry is fueling the growth of the charcoal market.

Major countries in the world are increasing their focus on introducing carbon trading programs to reduce carbon emissions. Carbon trading programs are market-based mechanisms designed to reduce greenhouse gas emissions. For instance, in February 2023, Indonesia launched the first phase of a mandatory carbon trading program for coal power plants. The initiative aims to promote the use of renewable energy and achieve net-zero emissions. It covers 99 power plants, which have a total installed capacity of 33.6 GW. These power plants account for 86% of the country's coal power plants. Based on their previous performance, power plants are allocated carbon allowances. If a power plant exceeds its carbon quota, it can offset the excess emissions by purchasing carbon credits from plants that emit less than their quota. The price for carbon credits is set by the market mechanism, and it may range between $2 and $18 per ton, according to an energy ministry study. In the future, the carbon trading program will be extended to cover smaller coal plants, other fossil-fueled power plants, and power plants that are not connected to the national grid.

In August 2024, Royal Oak Charcoal, a US-based, specializes in charcoal products such as natural lump charcoal, charcoal briquets, and charcoal pellets has teamed up with Whole Earth Brands to create a new consumer packaged goods (CPG) group called Sweet Oak. The merger aims to combine Royal Oak's expertise in charcoal and grilling products with Whole Earth's range of plant-based sweeteners and other food items. This strategic move is designed to create a more diverse and stronger CPG group that can better meet various consumer needs. Whole Earth Brands, a US-based focuses on enabling healthier lifestyles by providing high-quality, natural, and plant-based food alternatives.

Major companies operating in the charcoal market are Bricapar SA, Cooks International LLC, Royal Oak Enterprises LLC, Duraflame Inc., Kingsford Products Company, Ignite Products, Parker Charcoal Co., Fire & Flavor Grilling Company, Namchar Pty. Ltd., Mesjaya Abadi Sdn Bhd, Saint Louis Charcoal Company LLC, The Dorset Charcoal Co., Subur Tiasa Holdings Berhad, Rancher Charcoal, Plantar Group, Sagar Charcoal and Firewood Depot, Maurobera SA, NamCo Charcoal and Timber Products, The Oxford Charcoal Company, E & C Charcoal, Carbo Namibia (Pty) Ltd., Two Trees Products, Dancoal Sp. Z.o.o, Gryfskand sp. z o.o., Southern Fuelwood, Blackwood Charcoal, B & B Charcoal, Braai & BBQ International Pty. Ltd., Direct Charcoal Ltd., Fogo Charcoal Co., Linyi Fumin Charcoal Co. Ltd, Matsuri International Co. Ltd., PT Cavron Global, Tatapar Carvao Sao Manoel, The Original Charcoal Company, Timber Charcoal Co. LLC.

Asia-Pacific was the largest region in the charcoal market in 2025. North America was the second-largest region in the charcoal market. The regions covered in the charcoal market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the charcoal market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The charcoal market consists of sales of hardwood briquettes, binchotan and coconut shell charcoal. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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