Global Charcoal Briquette Market Grows Steadily at a CAGR of 5.06%

Introduction

A charcoal briquette is a small, dense block created from flammable materials like charcoal dust, sawdust, wood chips, and various types of biomass. These components are bound together using a binder such as starch and shaped into consistent forms. Commonly used for cooking, heating, and grilling, charcoal briquettes provide a longer and more uniform burn compared to regular wood. When made from renewable resources, they are considered environmentally friendly and serve as a cleaner, more efficient alternative to conventional fuels like coal and firewood.

Market Dynamics

Expansion of the hospitality and tourism sectors drives the global market

The growth of the hospitality and tourism industries is a major factor propelling the global charcoal briquette market. As travel and leisure activities continue to rise, there is an increasing demand for outdoor cooking and heating solutions in hotels, resorts, and restaurants. Charcoal briquettes are increasingly preferred due to their user-friendliness, consistent heat output, and cleaner burn compared to conventional fuels. This trend is especially notable in regions that encourage outdoor dining and eco-tourism.

• According to the UN Tourism Data Dashboard, the global tourism sector made a strong comeback in 2024, reaching pre-pandemic levels. Approximately 1.4 billion international tourists traveled globally, reflecting a 99% recovery from 2019 figures and an 11% rise compared to 2023, with 140 million more international arrivals.

This significant increase in tourism is contributing to the growing demand for charcoal briquettes within the hospitality sector for outdoor cooking and heating purposes.

Government subsidies and incentives create tremendous opportunities

Government subsidies and incentives are significantly contributing to the expansion of the global charcoal briquette market. Numerous national initiatives aimed at reducing carbon emissions and fostering the adoption of renewable energy sources have fostered a supportive environment for briquette manufacturers. These financial support measures lower capital investment requirements and enhance the overall economic feasibility of briquette production.

• For example, in India, the Ministry of New and Renewable Energy (MNRE) is implementing the National Bioenergy Programme, which provides generous Central Financial Assistance (CFA) to briquette producers. As of July 2024, non-torrefied pellet plants are eligible for financial aid of ₹21 lakh per metric ton per hour (MTPH) of production capacity, with a maximum of ₹105 lakh per project. Torrefied pellet plants can receive ₹42 lakh per MTPH, up to ₹210 lakh or 30% of the total capital cost.

These supportive policies are expected to encourage new market entrants, drive capacity expansion, and promote innovation within the charcoal briquette sector.

Regional Analysis

The Asia-Pacific region holds a dominant position in the global charcoal briquette market, driven by abundant biomass resources and growing demand for sustainable fuel alternatives. Countries like India, Indonesia, Vietnam, and the Philippines are key producers and exporters, leveraging agricultural residues like coconut shells and rice husks. For instance, Indonesia has emerged as a major supplier of coconut shell briquettes to Middle Eastern and European markets, fueled by rising global interest in clean-burning hookah and BBQ fuel.

In India, initiatives like “Unnat Chulha Abhiyan” promote the use of clean cooking fuels, boosting domestic demand. Additionally, the rise of eco-tourism and outdoor recreational activities across Southeast Asia has spurred the consumption of briquettes in camping and grilling applications. The region also benefits from supportive policies for renewable energy adoption, positioning Asia-Pacific as both a production hub and a rapidly expanding consumer market.

Key Highlights

• The global charcoal briquette market size was valued at USD 2.65 billion in 2024 and is estimated to grow from USD 2.78 billion in 2025 to reach USD 4.13 billion by 2033, growing at a CAGR of 5.06% during the forecast period (2025–2033).
• By type, the global charcoal briquette market is segmented into wood charcoal briquettes, coconut shell charcoal briquettes, and others. The wood charcoal briquettes segment dominated the market.
• By raw material, the segmentation includes hardwood, softwood, agricultural waste, coconut shell, bamboo, and others.
• By shape/form, it includes pillow-shaped briquettes, hexagonal briquettes, round briquettes, square briquettes, and custom/extruded shapes.
• By application, the market is divided into household, commercial, and industrial segment.
• By distribution channel, the market comprises online and offline channels.
• Asia-Pacific is the highest shareholder in the global market.

Competitive Players

1. Kingsford Products Company
2. Royal Oak Enterprises LLC
3. Duraflame Inc.
4. Weber-Stephen Products LLC
5. Gryfskand Sp. z o.o.
6. Dancoal Sp. z o.o.
7. The Clorox Company
8. Timber Charcoal Company LLC
9. Namchar Pty Ltd.
10. BRICAPAR SA

Recent Developments

• In November 2024 – The Kwara State Government, in collaboration with the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) and the Abral Development Initiative (ADI), has introduced an eco-friendly briquette made entirely from organic materials. This new product offers a sustainable and cleaner substitute for traditional charcoal, which is usually produced through deforestation.

Segmentation

1. By Type
   1. Wood Charcoal Briquettes
   2. Coconut Shell Charcoal Briquettes
   3. Others 
2. By Raw Material
   1. Hardwood
   2. Softwood
   3. Agricultural Waste
   4. Coconut Shell
   5. Bamboo
   6. Others
3. By Shape
   1. Pillow-shaped Briquettes
   2. Hexagonal Briquettes
   3. Round Briquettes
   4. Square Briquettes
   5. Custom/Extruded Shapes
4. By Application
   1. Household
   2. Cooking (indoor/outdoor)
   3. Heating
   4. Commercial
   5. Restaurants and Hotels
   6. BBQ/Catering Services
   7. Industrial
   8. Metallurgy
   9. Smelting and Foundries
   10. Power Generation
5. By Distribution Channel
   1. Online
   2. Offline
6. By Regions
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa