Wood Charcoal Market Will significantly Grow At CAGR of 7.5 % By Forecast Period (2022-2027)
Wood charcoal is a dark material that consists of black carbon residue formed by the removal of volatile constituents and moisture. Charcoal is formed due to the heating of wood in the absence of oxygen in a process called slow pyrolysis. It is this absence of water vapor that allows charcoal to burn at higher temperatures and emit less smoke compared to the burning of wood for the same purpose.
Clean drinking water is essential for the body to function optimally. Activated wood charcoal is used in a process called adsorption to help bind the impurities in water chemically as opposed to physically. Hence, it finds extensive use in the water purification market. As per UNICEF and the World Health Organization, one in eight people globally lack access to pure and safe drinking water.
In Europe, over 80% of the freshwater comes from groundwater and rivers, among other sources, which are highly vulnerable to pollution, overexploitation, and climate change. Additionally, water demand has increased across Europe owing to population growth and increasing socio-economic activities, such as tourism and industrialization, which has reduced the available per capita renewable water sources by 24%. As per the European Environment Agency, about 70% of the European population is connected to wastewater treatment plants. However, of the total water used in various economic activities in Europe, over 57% of the water containing various impurities is returned to the environment, which arises the need for further treatment of water.
Europe has been investing in improving its water services, which is expected to create opportunities for the regional water treatment market as water treatment plants make use of activated charcoal in their filtration systems. As per the Department for International Trade, U.K., nearly two-thirds of the world’s inhabitants will live in water-stressed conditions by 2025. The U.K.’s water industry invests USD 6.5 billion in assets and USD 5.65 billion in services each year in water resource management techniques and solutions. On the other hand, many developing countries have also started working toward better water management, which accelerates the use of wood charcoal.
Activated charcoal is deemed as a universal antidote. Attributing to its toxin clearing properties, activated wood charcoal finds widespread adoption in the pharmaceutical and nutraceutical industries. Activated charcoal finds use as an emergency poison treatment solution owing to its toxin binding properties and prevents the absorption of poison in the body. Further, it is used to treat drug overdoses. It is also used to prevent fish odor syndrome in people suffering from trimethylaminuria (TMAU), a genetic condition.
Nutraceuticals are derived from minerals rich in carbon, vitamins, and dietary fiber, among others, to exploit their physiological advantages and improve one’s immunity against diseases. The increasing geriatric population globally has spurred an upsurge in the nutraceutical industry. As per a report by the United Nations, the global population of those aged over 60 is expected to reach a value of 1.2 billion by the year 2050.
Geriatrics have weaker immunities and prone to various lifestyle diseases of kidneys, intestines, and higher cholesterol levels, among others. Activated charcoal is used in nutraceuticals to prevent such lifestyle disorders by absorbing undigested toxins in the body and prevent toxins from causing damage to the body in the long run. Growing awareness about the positive effects of activated wood charcoal on health has brought about a paradigm shift for the nutraceutical industry, boosting the demand for wood charcoal.
As per the Association of Packaging and Processing Technologies, the nutraceutical market is expected to reach a value of USD 98.6 billion by the year 2025. The growth of the nutraceutical sector will positively enhance the wood charcoal demand. However, the recent novel coronavirus pandemic has impacted the supply chain globally, which will adversely impact the wood charcoal market in the short term.
As per the International Monetary Fund World Economic, North America ranks first in the world in terms of nominal GDP and second in terms of purchasing power in the same year. Its nominal GDP was USD 19.39 trillion in 2017 and is expected to touch USD 24.53 trillion by 2023. There has been a huge resurgence in outdoor recreational activities amongst the millennial population. A key factor driving the wood charcoal market is the strong foothold of the hospitality sector, including the residential sector, hotels, and restaurants.
North America is one of the largest travel and tourism markets in the world. As per the International Trade Administration (ITA), the U.S. Department of Commerce, in 2017, foreign tourists spent more than USD 300 billion on hotel accommodation. North America records harsh winters, which accelerates the use of wood charcoal used in fireplaces in hotels, restaurants, and homes. Fireplaces in the hospitality sector add to the luxury element of hotel rooms and suites during the stay.
The hospitality sector, over the past few years, has seen a significant growth rate. As per data released by the International Hotel and Restaurant Association (IH&RA), the hospitality industry contributes USD 950 billion every year to the global economy. With an increase in the number of hotel chains, the use of wood charcoal is expected to see a rise in the coming years.
Chemical is a keystone industry for the Canadian economy and remains a fast-growing sector. As per the Chemistry Industry Association of Canada (CIAC), Canada’s chemical industry is valued at USD 52 billion and employs around 90,000 people. It employs the widespread use of wood charcoal for various applications, such as precious metal recovery, sludge purification, solvent recovery, and chemical purification, among others. Furthermore, it is also used in the manufacture of various chemicals, such as carbon disulfide, sodium cyanide, and carbon tetrachloride, among others. The growth in the chemical industry is a key factor in the growth of the wood charcoal market.
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