How Is Expanding Steel Industry Driving Charcoal Briquette Consumption in Asia?

The World Steel Association estimates that 563.3 million tons (Mt), 57.9 Mt, 35.2 Mt, and 15.0 Mt of steel was manufactured in China, India, South Korea, and Iran, respectively, during January 2021–June 2021. The high-volume steel production in these Asian countries creates a huge requirement for charcoal briquettes, as they can provide a high amount of heat during the manufacturing process. In recent years, charcoal briquettes have become an ideal substitute for conventional fuels due to their low production cost and environment-friendly property.

Moreover, the soaring popularity of barbecued food in Asian countries will drive the Asian charcoal briquettes market at a CAGR of 6.2% during the forecast period (2020–2024). The market revenue stood at $952.5 million in 2019, and it is projected to reach $1,158.4 million by 2024. Globalization has increased the popularity of the barbecue culture in Asian countries, owing to which restaurants, hotels, and households are preparing it in abundance. The usage of charcoal briquettes gives a caramelized exterior and smoky flavor to the food.

The type segment of the Asian charcoal briquettes market is classified into round, octagonal, hexagonal, coconut shell, and others, such as pillow-shaped, shisha, and hookah. Among these, the hexagonal category generated the highest revenue in 2019 due to the increasing preference for such variants among hotels and restaurants for the preparation of barbecued food, as this shape offers uniform heating during grilling. Additionally, the abundant availability of these charcoal briquettes, owing to the easy conversion of non-uniformly shaped charcoal to the hexagonal shape, supports the growth of this category.

Whereas, Japan is expected to register the fastest growth in the Asian charcoal briquettes market during the forecast period. This can be primarily credited to the burgeoning demand for barbecue food in the country. Besides, the presence of a large manufacturing base and extensive steel production will facilitate the market growth in Japan. According to the World Steel Association, Japan is one of the leading steel manufacturers in the world, producing 48.1 Mt between January 2021 and June 2021.

Therefore, the surging steel production and rising preference for barbecued food will augment the consumption of charcoal briquettes in Asian countries.