BBQ Charcoal Market - Forecast(2024 - 2030)

BBQ Charcoal Market Overview

The BBQ charcoal market size is estimated to reach US$4.2 billion by 2027 after growing at a CAGR of 6.6% from 2022 to 2027. BBQ or barbeque charcoal is type of charcoal which is made from activated carbon and is majorly used for cooking food, mostly meat items over a grill. The charcoal is of various types like lump charcoal, charcoal briquettes and coconut shell charcoal. Hence, as The charcoal is majorly used in cooking, so it finds high applicability in residential cooking as well as commercial cooking where it is used by end users like restaurants, hotels and caterers. Factors like setting up of new barbeque restaurants, increase in purchase of barbeque grills and growing consumption of meat items are likely to drive BBQ charcoal market growth. However, availability of substitutes like gas grilling will limit the usage of charcoal in grilling food items, which can hamper the growth of BBQ charcoal industry.

COVID-19 Impact

COVID-19 had major effect on restaurant and food service industry due to global lockdown and restriction being imposed on public gathering. BBQ charcoal is majorly used in food service establishments like full-service restaurants and grill buffets, but restriction on public gathering decreased the business of food services on account of which many restaurants got shutdown. For instance, according to National Restaurant Association, in 2020, in US restaurant and foodservice industry sales fell by US$240 billion in 2020 from an expected level of US$899 billion. Also, more than 110,000 eating and drinking establishments in the United States closed for business—temporarily or permanently. BBQ charcoal like lump charcoal & charcoal briquettes made from activated carbon are majorly used in restaurants for cooking meat items like beef, pork and chicken. Hence the decrease in sale of food services and shutting down of restaurants, led to decrease in demand and usage of BBQ charcoal for grilling meat items. This had a negative impact on the growth of BBQ charcoal industry.

Report Coverage

The report: “BBQ Charcoal Market Report – Forecast (2022 – 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the BBQ charcoal industry.

By Charcoal Type – Lump Charcoal, Briquettes (Charcoal Briquettes, Hardwood Briquettes), Binchotan, and Others.
By Grill Type – Brazier, Pellet Grill, Square Charcoal Grill, Kettle Grill, and Others.
By End User – Residential, Commercial (Restaurants, Hotels, and Caterers, and Others).
By Geography - North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle East, Africa).

Key Takeaways

• North America dominates the BBQ charcoal industry as the region consist of major countries like US which is the hub to leading producers and consumers of BBQ grills.
• The increase in number of household grill ownership on account of growing outdoor cooking will provide growth opportunities to BBQ charcoal industry in residential segment.
• Charcoal like lump charcoal and charcoal briquettes is mostly used for recreational barbecuing in places like North America and Europe, but it’s the primary cooking fuel in most African nations.

Figure: North-America BBQ Charcoal Market Revenue, 2021-2027 (US$ Billion)

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BBQ Charcoal Market Segment Analysis – By Charcoal Type

Lump charcoal held a significant share in BBQ charcoal market in 2021, with a share of over 36%. Lump charcoal is a natural product with no additives, filters and the clean up of charcoal is simple. It lights faster, burn hotter and compared to charcoal briquettes leaves very little ash. Hence, with such unique properties, lump charcoal has high usage in food barbequing. The growing sale of charcoal barbeque grill has positively impacted the usage of lump charcoal. For instance, according to Hearth, Patio and Barbecue Association, in 2021, in US charcoal grill purchase increased to 65% compared to 49% in 2019. Such increase in purchase of charcoal grill will lead to more usage of lump charcoal made from activated carbon for grilling and barbequing food. This will positively impact the growth of BBQ charcoal industry.

BBQ Charcoal Market Segment Analysis – By End User

Commercial held a significant share of BBQ charcoal market in 2021, with a share of over 67%. Restaurants are the major users of barbeque grills, as it is used for cooking meat items like pork, beef, chicken, and lamb and for preparing fast food items like hotdogs & hamburgers. The expansion of barbeque restaurant chains has positively impacted the demand for BBQ charcoal. For instance, according to statement given by Dickey’s Barbecue Pit, in December 2021, the leading holder of barbeque franchises expanded its franchises in Middle-East by opening its first BBQ restaurant in Cairo, Egypt. Further, according to statements by Rodney Scott BBQ, in July 2021, the company opened its new BBQ restaurant in Atlanta, Georgia which has seating capacity of 150 people. Overseas establishment of BBQ restaurant will create more demand for BBQ charcoal like lump charcoal to be used in such restaurants in foreign countries. This will positively impact the growth of BBQ charcoal industry.

BBQ Charcoal Market Segment Analysis – By Geography

North-America held the largest share in BBQ charcoal market in 2021 with a share of over 37%. The region consists of major developed economies like US and Canada which consist of significant consumers of barbeque. The growing ownership of barbeque grill in these countries has positively impacted the usage of BBQ charcoal in them. For instance, according to Hearth, Patio and Barbecue Association’s Barbecue Industry Report, in 2021, 80% of all homeowners and 70% of all households in the U.S. owned at least a grill or smoker, showing an increase from 64% home ownership in 2019. Moreover, in Canada, 70% of households owned a grill. Such increase in ownership of grills will create more demand for charcoal like lump charcoals and charcoal briquettes to be used for barbequing food. This will positively impact the growth of BBQ charcoal industry.

BBQ Charcoal Market Drivers

Increase in Purchase of BBQ Grills

Grilling is a great way to cook healthy meal, enjoying the outdoor cooking, and also it helps to lower calorie intake and weight loss. Increase in outdoor cooking and activities like trekking & camping has led to increase in sales of barbeque grills, which has positively impacted the usage of BBQ charcoal like lump charcoal. For instance, according to statement given by BBQ grill maker Traeger, in 2020, the company on account of high sales of BBQ grills in US, reported a revenue of US$545.8 million compared to US$363.3 million in 2019, showing 50.2% increase. Hence, such increase in sale of BBQ grills on account of high demand will lead to more usage of BBQ charcoal such as lump charcoal and charcoal briquettes derived from active carbon. This will provide a positive impact on the growth of BBQ charcoal industry. 

Surge in number of New Barbeque Restaurants

Grilling food items like meat helps to retain more nutrients compared to other options like baking and frying. Hence, the growing demand for barbequed food in food and restaurant business has made major barbeque companies to establish new chain of barbeque restaurants. For instance, according to statement given by Dickey’s Barbeque Pit which has one of the largest barbeque chains in the world, in 2021, company opened six new barbeque franchises in major cities like Arizona, Arkansas, California, New Jersey, New Mexico and Texas. Hence, establishment of such new barbeque franchises will create more demand for BBQ charcoal like lump charcoal, to be used in them for grilling food. This will boost the growth of BBQ charcoal industry.

BBQ Charcoal Market Challenge

Availability of Substitutes

Charcoal cooking is done at a very high temperature which creates lot of smoke. Hence, high temperature cooking of certain meats can be carcinogenic, which can create risk of cancer like problems. In order to reduce such issues, other substitutes like gas is used in grilling, as it creates less smoke and polycyclic aromatic hydrocarbons which can cause cancer. The availability of such substitutes can limit the usage of charcoal grilling, resulting a decrease in usage of charcoal in residential and commercial cooking. This can hamper the growth of BBQ charcoal market.

BBQ Charcoal Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In BBQ charcoal market report, the BBQ charcoal top 10 companies are:

1. Plantar group
2. Paraguay Charcoal
3. Blackwood Charcoal
4. Carbon Roots International
5. Oxford Charcoal Company
6. Namco CC
7. Matsuri International
8. Cowboy Charcoal Company
9. Fogo Charcoal Company
10. Royal Oak Enterprise LLC

Recent Developments

• In 2021, Middleby Corporation acquired Masterbuilt Holdings LLC, an Atlanta based company which is known for its outdoor residential products designed for cooking with charcoal.
• In 2021, US based BBQ Holdings a multi-brand restaurant company acquired two family restaurant concepts, Village Inn and Bakers Square from VIBSQ for US$13.5 million.
• In 2020, Brand Velocity Partners acquired BBQGuys which is the largest e-commerce platform of higher-end barbeque grills, grilling accessories, and outdoor kitchen products.

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