Briquettes Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Saw Dust Briquettes, Agro Waste Briquettes, Wood Briquettes & Others), By Application (Power Generation, Thermal Energy & Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 874.12 Million
CAGR (2026-2031)	7.41%
Fastest Growing Segment	Thermal Energy
Largest Market	Asia Pacific
Market Size (2031)	USD 1342.27 Million

Market Overview

The Global Briquettes Market will grow from USD 874.12 Million in 2025 to USD 1342.27 Million by 2031 at a 7.41% CAGR. Briquettes are densified biofuel blocks manufactured by compressing combustible biomass materials, such as sawdust, charcoal, or agricultural residues, into solid geometric forms for use in industrial boilers and residential heating. The market is primarily propelled by the escalating global demand for cost-effective renewable energy alternatives that reduce reliance on volatile fossil fuels while simultaneously addressing urgent waste management requirements. Furthermore, the high thermal efficiency and lower emission profile of these compressed fuels compared to traditional coal significantly bolster their adoption in power generation and heavy industries seeking carbon neutrality.

However, the sector faces a substantial impediment regarding the logistical complexity and supply chain reliability associated with procuring raw materials. The seasonal availability of agricultural residues often results in feedstock shortages and price volatility, which disrupts continuous production cycles for manufacturers. According to the World Bioenergy Association, in 2024, solid biomass constituted 83% of the total global biomass supply. This heavy reliance on specific solid organic resources underscores the vulnerability of the market to fluctuations in raw material availability, potentially stalling industrial expansion efforts.

Key Market Drivers

Supportive Government Regulations and Incentives for Clean Fuel Adoption are acting as a primary catalyst for the Global Briquettes Market. Governments worldwide are implementing stringent mandates and financial schemes to accelerate the transition from fossil fuels to densified biomass, aiming to meet net-zero targets. For instance, in India, the government has actively revised subsidy structures to boost production capacities under its National Bioenergy Programme. According to the Ministry of New and Renewable Energy, in July 2024, the Central Financial Assistance (CFA) for non-torrefied biomass pellet manufacturing plants was increased to ₹21 lakh per ton of production capacity, significantly encouraging new facility installations. These regulatory frameworks not only subsidize capital costs but also ensure guaranteed offtake through co-firing mandates in thermal power plants, thereby securing long-term demand stability for manufacturers.

The Cost-Competitiveness of Briquettes Against Traditional Fossil Fuels further cements their position as a preferred industrial energy source. As volatility in global oil and coal markets persists, industries are increasingly pivoting to biomass briquettes, which offer a stable and economically viable price point per unit of energy. According to BiofuelCircle, in September 2024, the weighted average price of biomass briquettes in the Indian spot market stood at ₹2.02 per kcal-kg, maintaining a competitive edge over imported coal in specific calorific bands. This economic advantage is driving widespread adoption in energy-intensive sectors such as textiles and food processing. To meet this growing requirement, global supply chains are expanding, and according to Bioenergy Europe, in 2024, global wood pellet production remained robust at approximately 48.3 million tonnes, reflecting the sustained scale of the densified biomass sector.

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Key Market Challenges

The Global Briquettes Market is significantly hindered by the logistical complexities and supply chain inconsistencies inherent in procuring biomass feedstock. Unlike fossil fuels, which benefit from established, year-round extraction infrastructure, agricultural residues and forestry byproducts are subject to strict seasonal availability and geographical dispersion. This seasonality creates inevitable gaps in raw material flow, forcing manufacturers to frequently halt production or incur exorbitant storage costs to maintain inventory during off-seasons. Consequently, the inability to guarantee a steady stream of inputs prevents producers from scaling operations efficiently to meet the continuous, year-round baseload requirements of heavy industries.

This supply chain fragility directly impacts market stability and erodes investor confidence in briquettes as a reliable long-term energy solution. When feedstock becomes scarce due to harvest cycles or adverse weather, procurement costs spike, often negating the price advantage that briquettes hold over traditional fuels. This volatility is particularly damaging given the sector's growing role in critical energy infrastructure. According to the World Bioenergy Association, in 2024, bioenergy electricity generation peaked at 698 TWh globally. Such a substantial contribution to the global power grid necessitates a level of reliability that the current fragmented biomass supply chain struggles to provide, thereby limiting the market’s ability to fully capitalize on the transition toward carbon-neutral energy sources.

Key Market Trends

The Proliferation of Agricultural Residue and Municipal Waste Feedstocks is reshaping the sector, driven by aggressive mandates to decarbonize thermal power generation. Unlike traditional reliance on forestry wood, manufacturers are increasingly utilizing diverse agri-residues like paddy straw and mustard husk to meet co-firing obligations, substituting coal with densified pellets. This shift is particularly visible in regions with stringent air quality compliance measures, where power utilities are procuring massive volumes of biomass to reduce emissions. According to Argus Media, December 2025, biomass consumption in India's thermal power plants surged to 1.62 million tonnes in the fiscal year ending March 2025, a fourfold increase from 375,000 tonnes in the previous period. This rapid diversification mitigates seasonal shortages and integrates the industry into national waste management strategies.

Simultaneously, the Development of Carbon-Negative and Credit-Linked Product Models is transforming briquettes and biochar into tradable financial assets beyond their caloric value. Producers are leveraging carbon dioxide removal (CDR) certificates to create dual revenue streams, effectively subsidizing the production costs of high-quality solid biofuels. This model is gaining traction among corporations seeking high-permanence offsets to meet net-zero pledges, positioning biochar-based products as a premium category. According to Carbon Herald, August 2025, a report by Puro.earth indicated that biochar projects accounted for 43% of the total durable carbon dioxide removal volumes delivered globally by June 2025, underscoring the dominance of this segment in the voluntary carbon market. This financialization attracts significant capital investment, encouraging capacity expansion independent of traditional fuel price fluctuations.

Segmental Insights

The Thermal Energy segment is recognized as the fastest-growing category within the Global Briquettes Market due to the accelerating industrial shift away from fossil fuels. Manufacturing facilities and processing plants are increasingly adopting biomass briquettes for use in boilers and heaters to comply with strict carbon emission mandates enforced by environmental regulatory bodies. This transition is further supported by the high calorific value and cost efficiency of briquettes relative to coal or furnace oil. Consequently, the demand for cleaner combustion solutions in energy-intensive industries continues to drive the rapid expansion of this segment globally.

Regional Insights

Asia Pacific stands as the dominant region in the Global Briquettes Market, supported by the widespread availability of agricultural residues and forestry by-products. The region's leadership is reinforced by rising industrial energy demand in key economies like China and India, where manufacturers seek cost-effective alternatives to fossil fuels. Furthermore, government mandates aim to curb carbon emissions, with institutions such as India’s Ministry of New and Renewable Energy actively promoting biomass adoption. These factors create a strong ecosystem for market expansion, driven effectively by material accessibility and regulatory incentives.

Recent Developments

• In May 2025, Kingsford and Miller Lite announced the nationwide release of their collaborative product, Kingsford x Miller Lite Beercoal. Originally introduced as a limited-edition item in previous years, the beer-infused charcoal briquettes were made available to retailers across the country in response to high consumer demand. The product was engineered to impart a distinct savory and smoky flavor to grilled foods, combining the reliable performance of standard briquettes with the aroma of the partner brewery's lager. This expansion marked a significant development in the company's product portfolio, catering to grilling enthusiasts seeking unique flavor profiles and innovative fuel options for their outdoor cooking experiences.
• In March 2024, The Good Charcoal Company launched its new "Super Briquettes" product line at select Lowe's locations throughout the United States. These briquettes, manufactured from sustainably harvested Acacia wood, were introduced as a cleaner-burning, chemical-free alternative to traditional charcoal products. The launch was part of the company's dual mission to provide a premium grilling experience while combating bush encroachment in Namibia, which threatens local grassland habitats. The Chief Executive Officer of The Good Charcoal Company noted that the denser Acacia wood allowed the briquettes to burn hotter and more evenly, offering consumers a more efficient and environmentally responsible option for the barbecue season.
• In February 2024, EKI Energy Services established a new biomass briquettes manufacturing facility in Dindori, Nashik, Maharashtra, through its subsidiary, GHG Reduction Technologies. The plant was inaugurated with an initial production capacity of 800 metric tonnes per month, with strategic plans to expand output to 1,200 metric tonnes. This development aligned with the company's mission to promote cleaner energy solutions by utilizing agricultural residues, such as sugarcane trash and corn cob, to create a sustainable substitute for traditional coal in industrial boilers. The Chairman of EKI Energy Services stated that this initiative would significantly contribute to reducing greenhouse gas emissions and supporting environmental conservation.
• In February 2024, ProcMart, a business-to-business procurement marketplace, entered into a strategic collaboration with local vendors in the biomass briquettes and pellets manufacturing sector across multiple regions in India. This partnership was designed to strengthen the supply chain by assisting vendors in upgrading their machinery to meet rigorous industry standards and ensuring consistent product quality. The initiative also included financial support for infrastructure development and facilitated the sourcing of high-quality raw materials. The Founder and CEO of ProcMart emphasized that this move underscored the company's commitment to sustainable business practices and backward integration into the biomass supply network to ensure reliable procurement for its clients.

Key Market Players

• Biomass Secure Power Inc.
• Drax Group plc
• Enviva Inc.
• Geetha Biotech Ltd.
• German Pellets GmbH
• Lignetics Group
• Om Greentech Industries
• Pacific BioEnergy Corp.
• Pfeifer Group
• Pinnacle Renewable Energy Inc.

By Type	By Application	By Region
Saw Dust Briquettes Agro Waste Briquettes Wood Briquettes & Others	Power Generation Thermal Energy & Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Briquettes Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Briquettes Market, By Type:

• Saw Dust Briquettes
• Agro Waste Briquettes
• Wood Briquettes & Others

• Briquettes Market, By Application:

• Power Generation
• Thermal Energy & Others

• Briquettes Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE