Activated Carbon Market Intelligence

Activated Carbon Market Description

The future demand for Activated Carbon (AC) has been associated with the gas phase end-use industries that account for approximately 30 percent of the total consumption share. The AC industry is projected to grow at a CAGR of 8.2 percent reaching 2.5-5 MMT by 2021. The liquid phase end-use industry, on the other hand, is expected to grow at a CAGR of about 8-20 percent. The factors that have fuelled a rise in the AC market growth are regulatory actions across the major economies, increasing emphasis on water treatment and the strong global economic growth across all sectors. Though AC in water treatment is expected to dominate the demand, AC in industrial air purification can also be expected to witness rapid growth in the next two years. AC’s use in relatively smaller markets, such as pharmaceutical processing, could also witness accelerated gains. China is the largest exporter for AC while the U.S. is the biggest importer.

Coconut shell-based AC is most prevalent in APAC regions. It is expected to grow at a CAGR of 12 percent by 2020. The report also examines the cost model for Coconut Shell Activated Carbon (CSAC) and its key price drivers. An extensive global supplier analysis of activated carbon manufacturers such as Kuraray, Oxbow, HeyCarb etc. has also been shared in the report.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Competitor Landscape
Global Trade Outlook
Historical Pricing Trends
Cost Model for CSAC

Activated Carbon Market Trend, Analysis & Forecast

Category Intelligence on Activated Carbon covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

1. Activated Carbon Global Market Summary

1.1 Activated Carbon Global Market Outlook

2. Activated Carbon Market Analysis

2.1 Activated Carbon Trade Outlook
2.2 Activated Carbon - End Use

3. Activated Carbon Cost & Pricing Analysis

3.1 Activated Carbon Cost Structure
3.2 Activated Carbon Historical Pricing

4. Activated Carbon Industry Analysis

4.1 Porters Analysis - Activated Carbon
4.2 Activated Carbon Market - Drivers and Constraints
4.3 Competitor Landscape

5. Activated Carbon Supply Analysis

5.1 Key Activated Carbon Supplier Profiles

Activated Carbon Global Market Outlook:

Market Growth: The global AC market was valued at approx. 1.65 MMT in 2017, and it is set to grow at a CAGR of 8.4 percent to reach 2.5–3 MMT by 2021

Growth Drivers: Regulatory actions across the major economies, increasing emphasis on water treatment, fuelled by the strong global economic growth across all sectors, are escalating the demand for AC

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Cost Break Up
Cost Model for CSAC - Cost Per MMT

Raw material cost accounts for 75 percent of the total production cost of CSC. The cost of the raw materials depend on the supply and availability of coconuts
The high cost of raw materials, stemming from a current coconut supply crunch, supports the high price trend. However, the recovery of coconut supply could temper the raw material costs in the long term

Price Drivers

The availability of raw material plays a major factor in the production cost of CSAC
Coconut shells are seasonal and dependent upon weather conditions for the yield
Weather patterns, like El-Nino, causes drop in production of coconuts, which leads to surge in production cost
Labor costs constitute to about 12–16 percent of production costs and in labor intensive regions, such as India and China, the cost of production will be comparatively lesser than regions with labor scarcity
Currently seasonal increase in coconut supply has marginally increased coconut shell availability
However, the supplies are not sufficient to cater to the strong demand

Porter’s Analysis on AC

Supplier Power

The availability of coconut shells is seasonal and dependent upon weather conditions for the yield, which increases the supplier power significantly
Quality-specific demand from buyers on type of wood leads to relatively higher supplier power in the industry

Barriers to New Entrants

Capital cost, access to advanced technology, and limited raw material availability, especially coconut shells are hindering the entry of new players

Intensity of Rivalry

AC is used in multiple industry applications, which facilitates the need of different types of quality in AC
Suppliers compete in the market with quality grades as point of differentiation

Threat of Substitutes

Substances, like granulated rubber and coke breeze, have been tested as substitutes for AC, especially in water purification applications, but these materials have not been used on a large- scale basis

Buyer Power

End-user applications, like industrial water purification, edible oil refining, and waste water treatment demands higher volume, and hence players in these segments have higher bargaining power
Buyers with custom specifications, like pore size and other value-added specifications, have less room for negotiation

Global MArket Outlook on Activated Carbon

Market Growth: The global AC market was valued at approx. 1.65 MMT in 2017, and it is set to grow at a CAGR of 8.4 percent to reach 2.5–3 MMT by 2021

In developing regions, growth in AC demand will be promoted by a combination of regulatory changes, such as revisions in environmental protection law in China, and rising output from key manufacturing industries
Industrial air treatment is gaining importance, as many industrializing countries struggle with significant air pollution issues. This, in turn, boosts AC demand from the major industrial economies in the long run to control the mercury levels
Demand for AC in mercury removal applications in the US will be more than double by 2020 in response to the full implementation of the US Environmental Protection Agency’s Mercury and Air Toxics Standards
Owing to raw material supply challenges with coconut shell-based AC and environmental issues concerning wood-based AC, the market is facing a challenge for a stable supply of AC
The trend is anticipated to incline toward coconut shell-based AC, given its advantages in addressing the environmental concerns unlike wood-based AC. There are strategic investments in major producing regions to develop coconut plantation and processing