Latin America Biochar Market is expected to touch USD 260 million by 2021

The Latin America Biochar Market was worth USD 140 million in 2016 and estimated to be growing at a CAGR of 13.7%, to reach USD 260 million by 2021. Biochar is a type of charcoal, fine-grained and is rich in carbon. It is obtained when biomass is heated in the absence of oxygen. Used as a soil additive, it increases the quality of soil leading to rich crop growth. The growth is high in this market since excessive chemical fertilisers are used and increasing food demand.

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Biochar enhances the soil quality by the addition of rich minerals and nutrients. It also offers other advantages like retaining carbon from the atmosphere. It can be used as a solution for absorbing the greenhouse gas CO2 responsible for global warming. It can retain nutrients from percolating water into soil. While biochar is produced, it creates energy which can be utilized for other purposes. It also water–absorbing in nature and prevents erosion of soil.

The Latin America Biochar market is driven by factors such as agricultural sector needing more Biochar, usage of biochar increasing as livestock is used as animal feed, demand rising for organic farming, rigorous environmental regulations from the government and its usefulness in waste management among others. The restraints that this market is facing are its high prices and lack of awareness. However, the awareness about it seems to be increasing rapidly.

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The Latin America Biochar market is segmented by application into agriculture, gardening, households and others. Agriculture dominates the market having the largest market share of around 45% and is also the fastest growing segment. By technology, the market is divided into microwave pyrolysis, continuous pyrolysis, batch pyrolysis kiln, gasifier, hydrothermal, cook stove and others. By manufacturing the market is segmented into gasification, pyrolysis and others. Biochar is mostly produced by pyrolysis, hence it has the largest market share in this segment. By feedstock  the market is divided into agricultural waste, forestry waste, animal manure and biomass plantations.

The Latin America market for Biochar is geographically segmented into Brazil, Argentina and rest of Latin America. This market is still in its nascent stages in this region, hence it has only around 12 per cent of market share. Since the market has high potential as food demand is increasing and soil quality is degrading due to use of bio-chemicals, the market is expected to grow steadily.

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Some of the major companies dominating the Latin America Biochar market are Biochar Products Inc., Diacarbon Energy Inc., Agri-Tech Producers LLC, Genesis Industries, Green Charcoal International, Vega Biofuels Inc., The Biochar Company, Cool Planet Energy Systems Inc., Full Circle Biochar, and Pacific Pyrolysis Pty Ltd.

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