Activated Carbon Market Size & Growth Report to 2030

Key Findings:

• The market size was valued at ~ US$ 5 Bn in 2023 and experiencing a significant CAGR of over 5.5% by 2030
• By form, the powdered activated carbon segment dominated the market in the benchmark year 2023
• Geographically, the Asia Pacific is accounted to hold the largest market share of around 1/2 of the market in the benchmark year 2023

The global activated carbon market size was valued at around USD 5 billion in 2023 and anticipated to register a significant CAGR of over 5.5% during the forecast period from 2024 to 2030. The market is driven by its widespread application in industries such as water treatment, air purification, and industrial processes. Activated carbon’s ability to adsorb impurities, toxins, and contaminants makes it essential in removing pollutants from drinking water, wastewater, and air. The market has seen significant demand growth due to increasing environmental concerns, regulatory pressures on industrial emissions, and rising consumer awareness of clean water and air. The Asia-Pacific region dominates the global market due to high industrial activity and growing urbanization, with countries like China and India leading in the adoption of activated carbon solutions.

In addition to environmental applications, activated carbon is also used in the automotive, chemical, food and beverage, and pharmaceutical industries. The demand for activated carbon in industrial applications, such as solvent recovery, odor control, and gold extraction, is expanding. Innovations in production methods, such as the development of more efficient and sustainable activated carbon products, are further enhancing market growth. The market faces challenges related to raw material sourcing, especially from coconut shells and coal, but the trend towards recycling and reactivating carbon offers sustainable solutions, fostering market development.

Market Snapshot:

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Market Drivers:

The global activated carbon market is primarily driven by growing concerns about environmental pollution and the need for clean water and air. Increasing industrialization and urbanization, particularly in developing regions like Asia-Pacific, have led to a rise in air and water pollution, creating a significant demand for activated carbon in water treatment, air purification, and industrial applications. Stringent environmental regulations and government mandates aimed at reducing emissions and improving water quality are also fueling market growth. As industries seek solutions to meet these regulatory standards, activated carbon serves as an effective and widely used tool for pollution control and environmental remediation.

In addition to environmental factors, the rising demand from diverse industries is another key driver of the global activated carbon market. Sectors such as automotive, food and beverage, pharmaceuticals, and chemicals increasingly rely on activated carbon for various applications, including odor removal, solvent recovery, and filtration. The growing consumer awareness of health and wellness, along with the rise in sustainable practices, has also contributed to the market’s expansion. Moreover, advancements in technology, including innovations in production methods and the recycling of activated carbon, offer cost-effective and eco-friendly solutions, further supporting market growth.

Market Trends:

Sustainability Focus: As environmental awareness grows, there is an increasing demand for activated carbon derived from renewable and sustainable sources. Coconut shells, for example, are gaining popularity as a raw material for activated carbon due to their renewable nature and lower environmental impact compared to coal-based alternatives. This shift toward renewable sources aligns with global sustainability goals and helps reduce the carbon footprint of activated carbon production, meeting the growing consumer and industry demand for greener solutions.

Recycling and Reactivation: Another important trend in the activated carbon market is the growing emphasis on recycling and reactivating used activated carbon. Instead of discarding used carbon, industries are increasingly turning to reactivation processes, where the spent carbon is cleaned and restored to its original adsorption capacity. This trend not only helps in reducing waste but also lowers the demand for raw materials, offering a more cost-effective and environmentally friendly solution for industries that rely on activated carbon for filtration, purification, and other processes.

Emerging Applications: The scope of activated carbon use is expanding into new industries and applications. In healthcare, activated carbon is being explored for drug delivery systems, wound care products, and detoxification treatments due to its adsorptive properties. Additionally, in the automotive industry, activated carbon is increasingly being used in cabin air filters to improve indoor air quality by removing pollutants, as well as in fuel systems to enhance fuel efficiency. These new applications are driving the market forward as industries discover the versatile uses of activated carbon in diverse sectors.

Technological Advancements: Ongoing advancements in the production processes of activated carbon are another key trend in the market. Improvements in activation techniques, such as the development of more efficient physical and chemical methods, are enhancing the material’s performance and expanding its range of uses. Furthermore, the development of advanced adsorption materials is enabling the production of activated carbon with higher adsorption capacities, making it more effective in applications like air purification, water treatment, and industrial filtration.

Regulatory Compliance: Stricter environmental regulations and government mandates aimed at reducing pollution and improving air and water quality are pushing industries to adopt activated carbon solutions. In sectors like water treatment, air purification, and industrial processes, activated carbon plays a critical role in meeting regulatory standards for pollutant removal. These regulations, combined with growing public concern over environmental issues, are fueling demand for activated carbon as a reliable and effective solution for controlling emissions, removing toxins, and ensuring compliance with environmental laws.

Market Opportunities:

The global activated carbon market presents significant opportunities driven by the growing demand for environmental protection and sustainability. With increasing concerns over air and water pollution, there is a rising need for activated carbon in water treatment, air purification, and industrial applications. As governments around the world impose stricter environmental regulations, industries are required to adopt solutions for reducing emissions and ensuring cleaner water. This regulatory push creates a promising opportunity for the activated carbon market to expand as industries seek reliable and cost-effective filtration solutions to meet environmental compliance. Furthermore, the trend toward sustainable practices, such as the use of renewable raw materials and the recycling of activated carbon, offers additional opportunities for companies to innovate and meet the growing demand for eco-friendly products.

In addition to environmental applications, the activated carbon market has opportunities in emerging sectors such as healthcare, automotive, and food and beverage. In healthcare, activated carbon’s growing use in drug delivery systems, detoxification treatments, and wound care presents new avenues for market expansion. Similarly, the automotive industry is increasingly adopting activated carbon in cabin air filters and fuel systems to improve air quality and enhance fuel efficiency. Moreover, activated carbon’s applications in food and beverage for odor removal and in the pharmaceutical industry for purification further diversify the market. As industries across these sectors continue to recognize the versatility of activated carbon, the market is poised for expansion through both innovation and increased demand for high-performance, sustainable solutions.

Market Restraints:

The global activated carbon market faces several restraining factors, with the primary challenge being the high cost of production, especially when sourced from renewable raw materials like coconut shells. The limited availability and fluctuations in the price of raw materials can affect the overall cost structure, making activated carbon expensive for industries that rely on it for filtration and purification processes. Additionally, the energy-intensive production process required for activating carbon contributes to higher operational costs and environmental concerns. Another restraint is the competition from alternative filtration technologies, such as ceramic filters and synthetic absorbents, which can offer lower cost and energy-efficient solutions. These factors, combined with the challenges of raw material sourcing and the need for constant innovation, pose significant hurdles to the market’s growth.

Market Insights:

The global activated carbon market is bifurcated into form, raw-material, application, end-use industry, and geography. On the basis of form, the powdered activated carbon (PAC) currently dominates the global market due to its high efficiency in removing contaminants from air, water, and liquids. PAC’s fine particle size provides a larger surface area, which enables it to rapidly adsorb a wide range of pollutants, including organic compounds, chlorine, heavy metals, and other toxic substances. It is widely used in water treatment applications, especially for municipal water purification and in industries that require the removal of dissolved contaminants. PAC’s fast adsorption capacity makes it ideal for short-term or emergency filtration needs, where quick results are essential, such as in sewage treatment, wastewater management, and chemical processing.

The widespread use of PAC can also be attributed to its cost-effectiveness in certain applications, particularly where the activated carbon is used in smaller quantities or in batch processes. PAC is also favored for its versatility in treating both water and air, especially in situations where high adsorption power is required. However, despite its initial cost advantage and high performance, PAC typically requires frequent replacement due to its lower regeneration potential compared to granular activated carbon (GAC). This limitation is offset in applications where the high turnover rate is manageable and for companies seeking an immediate solution for high-efficiency filtration, thus solidifying PAC’s dominance in the market.

Market Trends for Powdered Activated Carbon (PAC) Sub-category:

• Growing Demand for Water and Air Purification: The demand for PAC continues to rise, driven by increasing concerns about water and air pollution. PAC is widely used in municipal water treatment plants and industrial applications to remove chlorine, organic contaminants, and other impurities. As urbanization increases, along with a rising awareness of environmental issues, the demand for high-efficiency filtration solutions like PAC is growing, especially for ensuring clean drinking water and reducing industrial emissions.
• Advancements in PAC Production Technology: New production technologies and the development of more efficient activation processes have improved the performance of PAC. These innovations have led to enhanced adsorption capacities, making PAC even more effective in treating contaminants in various industrial processes. These technological advancements are expected to further boost the adoption of PAC, as industries seek more effective and sustainable filtration options.

Market Opportunities for Powdered Activated Carbon (PAC) Sub-category:

• Emerging Markets: There are significant growth opportunities in emerging markets, especially in regions like Asia-Pacific, Latin America, and the Middle East, where industrialization and urbanization are rapidly increasing. These regions are facing growing concerns about water pollution and air quality, which creates a strong demand for PAC. The expansion of wastewater treatment facilities, industrial filtration systems, and clean air initiatives offers ample opportunities for PAC suppliers to expand their market share.
• Healthcare Applications: PAC has potential applications in the healthcare sector, including in drug delivery systems, wound care products, and detoxification treatments. Its adsorptive properties make it useful in medical applications for removing toxins and poisons from the body. This opens up new opportunities for PAC beyond traditional industrial uses, particularly as healthcare industries seek natural and effective detox solutions.

The activated carbon market research report presents the analysis of each segment from 2020 to 2030 considering 2023 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2024 to 2030.

Historical & Forecast Period

• 2020-22 – Historical Year
• 2023 – Base Year
• 2024-2030 – Forecast Period

Market Segmentation:

By Form:

• Powdered
• Granular
• Others

By Raw Material:

• Coal
• Coconut
• Wood
• Peat
• Others

By Application:

• Liquid Phase Application
• Gas Phase Application

By End-Use Industry:

• Water Treatment
• Food & Beverages
• Pharmaceutical & Medical
• Automotive
• Industrial
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, the Asia-Pacific region dominated the global activated carbon market in 2023 with the largest revenue share of around 1/2 of the market, primarily due to its large industrial base, rapid urbanization, and increasing environmental concerns. Countries like China, India, Japan, and South Korea are significant contributors to the demand for activated carbon, driven by their growing water and air purification needs. China, in particular, holds a substantial share of the market due to its extensive industrial activities, high pollution levels, and stringent government regulations on air and water quality. As a result, industries in the region are increasingly adopting activated carbon in water treatment, air purification, and industrial processes, leading to sustained market growth. Furthermore, the region is also a major producer of activated carbon, which gives it an added advantage in terms of supply chain control and cost-effectiveness.

In addition to industrial growth, the Asia-Pacific region benefits from its large population and expanding middle class, leading to rising demand for clean water and better air quality. Rapid urbanization and increased awareness of environmental issues further fuel the demand for effective filtration solutions. The regulatory push for environmental sustainability and pollution control is encouraging industries to adopt activated carbon as a key solution for reducing contaminants in water, air, and industrial emissions. As the region continues to focus on improving infrastructure and adhering to global environmental standards, the Asia-Pacific market is expected to maintain its dominance in the activated carbon market for the foreseeable future.

Competitive Landscape:

Some of the leading market players operating in the global activated carbon market are Kuraray Co. Ltd., Osaka Gas Chemicals Co., Ltd., Jacobi Carbons Group, and Kureha Corporation. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Recent Developments:

• In January 2024, Germany-based chemical manufacturer Nordmann acquired Italy’s SD Chemicals S.r.l., a distributor of raw materials serving the cosmetics industry, with a focus on skin care, hair care, and makeup applications. This acquisition will allow Nordmann to broaden its market presence and improve customer outreach.
• In January 2023, Ningbo Juhua Chemical & Science Co., Ltd. awarded a contract to Technip Energies for the construction of an Activated Carbon plant in Ningbo, Zhejiang, China, with an annual capacity of 72,000 tons. This move is part of the company’s strategy to expand its petrochemical and new material business.
• In March 2023, Evoqua Water Technologies LLC enhanced its North American footprint by acquiring the industrial water treatment service business of Texas-based Kemco Systems.

Key Companies:

• Kuraray Co. Ltd.
• Osaka Gas Chemicals Co., Ltd.
• Jacobi Carbons Group
• Kureha Corporation
• CarbPure Technologies
• Boyce Carbon
• Cabot Corporation
• CarboTech AC GmbH
• Donau Chemie AG
• Haycarb (Pvt) Ltd.
• Evoqua Water Technologies LLC

Key Questions Answered by Activated Carbon Market Report

• Global activated carbon market forecasts from 2024-2030
• Regional market forecasts from 2024-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2024-2030 covering 15 major countries from the regions as mentioned above
• Activated carbon submarket forecasts from 2024-2030 covering the market by form, raw material, application, end-use industry, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level activated carbon markets from 2024-2030
• Competitive Landscape and market positioning of top 10 players operating in the market