| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2019 - 2023 |
| CAGR | 6.00% |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Latin America Biochar Market Analysis by Mordor Intelligence
The Latin America Biochar Market is expected to register a CAGR of greater than 6% during the forecast period.
- Over the short term, the increasing demand for biochar in a variety of applications, such as agriculture, organic farming for development in plant growth, and livestock in animal feed, is projected to fuel market growth throughout the forecast period.
- However, the risk of contamination and soil erosion, high prices of biochar, and lack of awareness are expected to hamper the market growth over the forecast period.
- Nevertheless, rapid urbanization and industrialization boost energy demand. In addition, the rising demand for renewable energy sources propels the opportunities for the Latin American biochar market over the forecast period.
Latin America Biochar Market Trends and Insights
Blooming Demand in the Metallurgy Industry
- Biochar has been increasingly used in ferrous metallurgy in recent years because it possesses metallurgical properties similar to coke and coal, indicating tremendous promise for lowering the cost of iron and steel manufacturing while enhancing the quality and protecting the environment.
- As environmental consciousness rises, biochar can be utilized in almost all disciplines of metallurgy in place of fossil coal or coke.
- In 2015, Argentina committed to reducing greenhouse gas (GHG) emissions by 15% below business-as-usual (BAU) levels by 2030. The goal includes the sectors of Land Use, Land Use Change, and Forestry (LULUCF). As a result, the cost rise in conjunction with CO2 certificate trading indicates that metallurgical process operators are increasingly investigating the use of alternate input materials, such as biomass carbonates.
- Biomass carbonates with high fixed carbon content and minimal volatile components are ideal for use as biochar in blast furnaces during the sintering process. As a result, biochar has the potential to completely replace the fossil fuels utilized in this process.
- Electric Steel Production Coal is utilized in electric arc furnaces for basic carburization, foam slag production, and chemical energy generation throughout the oxidation process. Several studies have shown that biomass carbonates derived from palm kernels can be utilized in the slag foaming process to replace fossil metallurgical coke.
- The growing demand for steel and ferrous metallurgy raises the need for alternate solutions such as biochar in areas where fossil fuels are frequently employed. For example, the World Steel Association (world steel) estimates that crude steel production in Latin America will reach 65.04 million metric tons in 2021. In comparison to the previous year, this indicates an increase of more than 16%.
- As a result, such applications in the enhanced metallurgical sector, together with the benefit of substituting fossil fuels from metal attraction, which accounts for roughly 20% of the raw material used, would be the key driving force for the market growth over the forecast period.
- According to Instituto Nacional de Estadística y Geografía (INEGI), the mining industry production value in Mexico was MXN 334.8 billion (USD 16.86 billion), compared to MXN 281.5 billion (USD 14.18 billion) in previous year.
- All the aforementioned factors are expected to drive the metallurgy industry, which may also impact the demand for biochar in Latin America during the forecast period.
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Mexico is Anticipated to Hold a Major Share of Latin America
- Mexico holds a prominent share of the Latin American biochar market in terms of revenue. The region is set to continue to flourish and continue to dominate over the forecast period.
- Mexico is becoming more interested in bio-based solutions for soil amendment and crop production enhancement. This is predicted to aid an increase in the biochar market penetration throughout the forecast period.
- Due to budgetary constraints, a considerable number of farmers use ancient technological methods for creating biochar, such as cooking stoves. The agricultural industry is likely to be the biochar market's driving force.
- Poultry, dairy, fish, and cattle are some of the country's key farming sectors. Rising biochar adoption in livestock farming is expected to drive market growth.
- According to Mexico's Ministry of Agriculture and Rural Development, it is estimated that Mexico utilizes more than 650 thousand tons of biochar per year, a commodity mostly used in food preparation. The cities with the highest consumption rates are Monterrey, Mexico City, and Guadalajara.
- In Mexico, a solid biofuel cluster is being established, and biochar will be a component of the standards effort. Quality characteristics, as well as a classification based on their outcomes, are being created. The goal is to standardize characteristics and increase access to national and international markets.
- Accoding to World Bank, value added by the agriculture, forestry, and fishing sector to the gross domestic product (GDP) in Mexico was USD 42.26 billion in 2021, compared to USD 41.08 billion in 2020.
- Thus, all the above mentioned factors are likely to boost the demand for the Latin American biochar market during the forecast period.
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Competitive Landscape
The Latin American Biochar market is consolidated in nature. Some of the major manufacturers in the market include ArcelorMittal BioFlorestas, Aperam BioEnergia, Biochar Industries, Nitto Bioware, and PACIFIC Biochar, among others (in no particular order).
Latin America Biochar Industry Leaders
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ArcelorMittal BioFlorestas
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Aperam BioEnergia
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Biochar Industries
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Bioware
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PACIFIC Biochar
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- December 2021: Brazilian miner Vale SA is replacing mineral coal with biochar created from vegetation. Tests with 100% biochar content are planned for next year. Vale now intends to investigate the feasibility of replacing all of the coal used in its iron ore pellet factories with biochar.
- April 2021: Under the flagship Verified Carbon Standard (VCS) program, Verra chose a team of experts to build a thorough biochar accounting system. The new methodology will recognize the climate potential of biochar. FORLIANCE, BiocharWorks, and the South Pole have collaborated to review the existing biochar production and certification documentation, draught the methodology with expert input, organize public consultations, and ensure that the methodology is audited and validated by a validation/verification body (VVB) in accordance with the VCS methodology approval process.
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Latin America Biochar Market Report Scope
Biochar is a lightweight black residue comprised of carbon and ashes that remains after biomass pyrolysis. The International Biochar Initiative defines biochar as "the solid substance formed from the thermochemical reduction of biomass in an oxygen-limited environment." Biochar is a stable solid that is high in pyrogenic carbon and can last for thousands of years in the soil.
The Latin American biochar market is segmented by technology, application, and geography. By technology, the market is segmented into pyrolysis, gasification systems, and other technologies. By application, the market is segmented into agriculture, animal farming, metallurgy, industrial uses, and other applications. By geography, the market is segmented into Brazil, Argentina, Mexico, and Rest of Latin America. The report covers the market size and forecast for the biochar market in 3 countries across the Latin American region. For each segment, the market sizing and forecasts have been provided based on value (USD million).
By Technology
| Pyrolysis |
| Gasification Systems |
| Other Technologies |
By Application
| Agriculture |
| Animal Farming |
| Metallurgy |
| Industrial Uses |
| Other Applications |
By Geography
| Brazil |
| Argentina |
| Mexico |
| Rest of Latin America |
| By Technology | Pyrolysis |
| Gasification Systems | |
| Other Technologies | |
| By Application | Agriculture |
| Animal Farming | |
| Metallurgy | |
| Industrial Uses | |
| Other Applications | |
| By Geography | Brazil |
| Argentina | |
| Mexico | |
| Rest of Latin America |
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Key Questions Answered in the Report
What is the current Latin America Biochar Market size?
The Latin America Biochar Market is projected to register a CAGR of greater than 6% during the forecast period (2025-2030)
Who are the key players in Latin America Biochar Market?
ArcelorMittal BioFlorestas, Aperam BioEnergia, Biochar Industries, Bioware and PACIFIC Biochar are the major companies operating in the Latin America Biochar Market.
What years does this Latin America Biochar Market cover?
The report covers the Latin America Biochar Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Latin America Biochar Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Latin America Biochar Market Report
Statistics for the 2025 Latin America Biochar market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Biochar analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
