PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1916533
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1916533
The global activated carbon market was valued at USD 5.62 billion in 2025 and is projected to grow from USD 6.04 billion in 2026 to USD 11.9 billion by 2034, registering a CAGR of 8.8% during the forecast period (2026-2034). Market growth is strongly supported by rising environmental concerns, stringent emission regulations, and increasing demand for water and air purification solutions across industrial and municipal sectors. Asia Pacific dominated the global activated carbon market in 2025 with a 43.95% market share, supported by rapid industrialization and strict environmental compliance requirements.
Activated carbon, also referred to as activated charcoal, is widely used for its exceptional adsorption capabilities. Its highly porous structure allows effective removal of contaminants, pollutants, odors, and toxins from liquids and gases. The product is extensively utilized in drinking water purification, wastewater treatment, air & gas purification, food & beverage processing, pharmaceuticals, and industrial emission control systems.
Market Trends
A prominent trend shaping the activated carbon market is the growing focus on reactivated carbon. Due to limited raw material availability and rising sustainability concerns, manufacturers are increasingly investing in reactivation technologies. Reactivated carbon restores adsorption capacity through thermal treatment, reduces landfill waste, and lowers greenhouse gas emissions associated with fresh carbon production. This trend is gaining traction across water treatment and industrial filtration applications, supporting circular economy practices and cost optimization for end users.
Market Dynamics
Market Drivers
The increasing demand for air purification systems is a major driver for market growth. Rising air pollution levels, industrial emissions, and stricter air quality standards have increased the adoption of activated carbon filters in power plants, manufacturing units, and indoor air purification systems. Activated carbon efficiently removes volatile organic compounds (VOCs), sulfur oxides (SOx), nitrogen oxides (NOx), and hazardous gases.
Another key driver is the growing use of activated charcoal in personal care products. Activated carbon is increasingly used in skincare, haircare, oral care, and cosmetic products due to its detoxifying, antibacterial, and purifying properties. Rising consumer awareness, higher disposable incomes, and preference for natural and effective personal care ingredients are accelerating demand in this segment.
Market Restraints
The market faces restraints related to raw material shortages and high production costs. Coconut shell charcoal, one of the primary raw materials, faces supply volatility due to agricultural dependence and regional limitations. Additionally, coal-based activated carbon production is affected by rising energy costs and competition from other coal-consuming industries. These factors contribute to price volatility and can limit adoption in cost-sensitive applications.
Trade Protectionism
Trade protectionist measures, including tariffs and environmental levies, are influencing the activated carbon supply chain. Policies such as the EU Carbon Border Adjustment Mechanism (CBAM), while not directly targeting activated carbon, reflect a broader regulatory shift that can increase production costs and impact global trade dynamics. Such regulations encourage regional production but may restrict cross-border supply flows.
Impact of COVID-19
The COVID-19 pandemic temporarily disrupted global manufacturing and supply chains, reducing activated carbon production and consumption in industrial wastewater treatment and air filtration applications. However, increased awareness of water safety and air quality supported market recovery post-2021, particularly in municipal water treatment and healthcare-related applications.
By Type
Based on type, the market is segmented into powdered activated carbon (PAC), granular activated carbon (GAC), and others. The granular segment holds the largest market share, driven by its reusability, ease of regeneration, and effectiveness in air and water purification systems. GAC is widely used in food & beverage processing, wastewater treatment, and industrial gas purification.
PAC is projected to witness strong growth due to its high adsorption efficiency and suitability for water treatment applications. In 2024, PAC accounted for 46% market share, supported by its large surface area and effectiveness in removing organic contaminants.
By Application
By application, the market is categorized into water treatment, air & gas purification, food & beverage, pharmaceutical & healthcare, and others. The water treatment segment dominated the market, projected to account for 40.23% share in 2026, driven by increasing demand for safe drinking water and strict wastewater discharge regulations.
Air & gas purification represents another significant segment due to rising concerns over industrial emissions and indoor air quality. The food & beverage segment is expanding due to its role in decolorization, deodorization, and purification of food products, while pharmaceutical applications are growing in hemodialysis and drug manufacturing processes.
Asia Pacific leads the global market, valued at USD 2.69 billion in 2026, supported by strong demand from China, India, and Japan. China alone is projected to reach USD 1.62 billion in 2026, driven by industrial wastewater treatment and air pollution control initiatives. Europe is expected to reach USD 1.72 billion in 2026, supported by environmental regulations, while North America is projected to attain USD 1.33 billion in 2026, driven by stringent emission norms and healthcare demand.
Competitive Landscape
The activated carbon market is moderately fragmented, with key players including Osaka Gas Chemicals Co., Ltd., Cabot Corporation, Kuraray Co., Ltd., Donau Carbon GmbH, and CARBOTECH AC GMBH. Market participants are focusing on capacity expansion, sustainability initiatives, reactivated carbon solutions, and technological advancements to strengthen their global presence and meet evolving environmental requirements.
Report Coverage
The report provides an in-depth analysis of the activated carbon market, covering market size and value for 2025, 2026, and 2034, along with segmentation by type, application, and region. It includes insights into market trends, growth drivers, restraints, competitive strategies, and recent industry developments shaping the global market.
Conclusion
The global activated carbon market is positioned for strong and sustained growth through 2034, driven by rising environmental awareness, tightening emission norms, and increasing demand for water treatment and air purification solutions across industrial and municipal sectors. The market's expansion from USD 5.62 billion in 2025 to USD 6.04 billion in 2026, and further to USD 11.9 billion by 2034, highlights the critical role of activated carbon in addressing global challenges related to clean water access, air quality management, and industrial pollution control.
Segmentation By Type
By Application
By Region