Coal Briquettes Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Composition (Wood Charcoal, Coat Dust, Peat & Paper, Saw Dust, Wood Chips), By Application (Metallurgy, Food Processing), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 37.89 Billion
CAGR (2026-2031)	5.12%
Fastest Growing Segment	Wood Charcoal
Largest Market	North America
Market Size (2031)	USD 51.13 Billion

Market Overview

The Global Coal Briquettes Market is projected to grow from USD 37.89 Billion in 2025 to USD 51.13 Billion by 2031 at a 5.12% CAGR. Coal briquettes are solid fuel blocks manufactured by compressing coal dust, fines, or chips with a binding agent into uniform geometries, serving as an efficient energy source for residential heating and industrial boilers. The primary drivers propelling the market include the economic necessity to utilize coal waste generated during mining, which briquetting effectively converts into value-added fuel, and the demand for affordable energy in developing regions where alternative fuels remain cost-prohibitive. Furthermore, the enhanced thermal efficiency and consistent combustion profile of briquettes compared to raw coal drive their adoption in sectors seeking to optimize fuel consumption without expensive infrastructure overhauls.

Despite these growth factors, the market faces a significant challenge in the form of stringent global environmental regulations aimed at phasing down fossil fuel usage to meet carbon neutrality targets. This regulatory pressure is intensifying the scrutiny on all coal-based products, potentially limiting long-term expansion. However, the sector currently benefits from a robust consumption environment; according to the International Energy Agency (IEA), in 2024, global coal demand was projected to rise by 1% to reach an all-time high of 8.77 billion tonnes. This sustained high demand for the commodity ensures a continuous availability of raw materials and underscores the enduring reliance on coal-derived energy in key markets.

Key Market Drivers

The growing consumption in metallurgical and steel manufacturing industries serves as a primary catalyst for market expansion, as coal briquettes provide a cost-effective and calorifically consistent alternative to expensive coking coal. Steel producers increasingly rely on these densified fuels to maintain high furnace temperatures and optimize carbon content during smelting, particularly in cost-sensitive emerging markets where operational efficiency is paramount. The consistent shape and density of briquettes allow for better airflow in blast furnaces compared to raw coal, enhancing combustion rates. According to the World Steel Association, April 2024, in the 'Short Range Outlook April 2024', global steel demand was forecast to rebound by 1.7% to reach 1,793 million tonnes in 2024. This positive trajectory in steel production directly correlates with heightened procurement of solid fuel inputs, necessitating a steady supply of high-grade coal briquettes to support blast furnace operations and sintering processes.

Concurrently, the efficient utilization of coal fines and mining residues is driving adoption, as mining companies seek to monetize waste by-products that were previously discarded. The briquetting process transforms combustible dust and slack generated during extraction into transportable fuel blocks, thereby addressing storage challenges and reducing material loss during transit. This efficiency is critical for major producers scaling up output, as the management of resultant fines from massive extraction volumes makes briquetting an operational necessity. According to Coal India Limited, April 2024, in the 'Provisional Production and Off-take Performance' release, the company achieved a record production of 773.6 million tonnes in the fiscal year ending March 2024. Furthermore, the broader industrial ecosystem supports this trend; according to the National Bureau of Statistics of China, in 2024, raw coal output in the country reached 1.11 billion tonnes during the first quarter alone, indicating a sustained industrial environment where converting extraction residue into usable briquettes remains a vital economic activity.

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Key Market Challenges

Stringent global environmental regulations designed to achieve carbon neutrality represent a formidable obstacle to the expansion of the Global Coal Briquettes Market. Governments worldwide are increasingly implementing rigorous emission standards, carbon taxation mechanisms, and mandatory coal phase-out policies which directly undermine the commercial viability of coal-based fuels. These regulatory interventions force industrial and residential consumers to transition toward cleaner energy alternatives, thereby steadily eroding the primary customer base for briquettes. Consequently, producers face shrinking export opportunities and heightened compliance costs that reduce profit margins and discourage capital investment in new briquetting facilities.

The tangible impact of these restrictive policies is evident in recent trade volume contractions. According to the International Energy Agency (IEA), in 2025, global coal imports were projected to fall by approximately 5% as advanced economies accelerated their structural shift away from solid fossil fuels. This decline in international trade highlights how policy-driven market barriers are effectively limiting the cross-border distribution of coal products. As regulatory frameworks continue to tighten, the addressable market for coal briquettes faces sustained pressure, particularly in regions aggressively pursuing decarbonization mandates.

Key Market Trends

The adoption of hybrid bio-coal briquetting technologies is gaining traction as power utilities seek to lower carbon intensity without decommissioning existing coal infrastructure. This trend involves co-processing coal fines with torrefied biomass or agricultural residues to create composite fuel blocks that meet stricter emission mandates while retaining the high calorific value required for baseload generation. This method effectively bridges the gap between fossil fuel reliance and renewable targets, allowing operators to utilize existing boilers with minimal retrofitting. According to Argus Media, December 2025, in the 'Indian coal plants raise biomass co-firing in FY2024-25' report, thermal power plants in India consumed 1.62 million tonnes of biomass for co-firing during the 2024-25 fiscal period, reflecting the accelerating integration of hybrid fuels in the energy mix.

Concurrently, there is a distinct rise in the popularity of honeycomb-shaped briquettes, particularly in East Asian markets where residential and commercial users require fuels with consistent airflow and automated handling properties. Unlike conventional pillow-shaped options, the honeycomb geometry creates defined air channels that ensure uniform combustion and higher thermal efficiency in specialized stoves and heaters, sustaining significant cross-border trade flows. This preference drives manufacturing specifications toward high-pressure extrusion techniques that preserve the structural integrity of these intricate shapes during transport. According to The Observatory of Economic Complexity, December 2025, in the 'Coal Briquettes in China Trade' data release, Chinese exports of coal briquettes reached USD 996 million for the period ending October 2025, highlighting the substantial international demand for these specialized solid fuels.

Segmental Insights

In the Global Coal Briquettes Market, the Wood Charcoal segment is emerging as the fastest-growing category due to a shifting preference for sustainable heating and cooking solutions. This expansion is largely driven by the low sulfur content and cleaner combustion profile of wood charcoal compared to conventional mineral coal. Additionally, rising environmental awareness and supportive policies favoring biomass-derived fuels over fossil-based alternatives reinforce this trend. Consequently, the segment is experiencing accelerated adoption across residential and commercial sectors seeking efficient and eco-friendly energy sources.

Regional Insights

North America commands a leading position in the Global Coal Briquettes Market, primarily fueled by robust demand across the industrial and metallurgical sectors. The region utilizes densified coal products to enhance combustion efficiency and reduce particulate emissions in steel manufacturing and power generation. This dominance is reinforced by stringent environmental frameworks, such as the Clean Air Act enforced by the U.S. Environmental Protection Agency, which incentivize the adoption of processed coal over raw feedstocks. Consequently, the combination of advanced processing technologies and regulatory compliance ensures North America remains a central hub for market expansion.

Recent Developments

• In December 2024, Tavan Tolgoi Fuel Company, the state-owned manufacturer of refined coal briquettes in Mongolia, revealed that its production facilities were generating 75,000 tons of fuel per month to meet winter heating demands. During an inspection by a parliamentary working group, the company disclosed that its central and eastern factories were operating at high capacity to supply the capital city of Ulaanbaatar. The firm also reported strict adherence to updated national standards for solid fuel composition and binders to mitigate air pollution and ensure the safety of the smokeless briquettes used by households.
• In July 2024, NLC India Limited reported a significant 22 percent increase in lignite production for the first quarter of the fiscal year 2024-25, reaching 6.17 million tonnes. The state-owned enterprise, which operates a major briquetting and carbonisation plant in Neyveli, highlighted that this surge in raw material extraction would support its downstream value-added products, including its popular "Leco" brand of smokeless briquettes. The company emphasized that the enhanced mining output was critical for ensuring a steady supply of solid fuel to both industrial and domestic sectors amidst growing energy demand.
• In July 2024, Sunrise Machinery showcased its latest advancements in coal and charcoal briquetting technology at a major industry exhibition in Indonesia. The manufacturing solutions provider displayed a new range of automated briquette machines designed to process various raw materials, including coal fines and biomass, into high-density fuel products. The company engaged with regional producers to demonstrate how the new equipment could improve production efficiency and briquette quality, reflecting the growing demand for modern processing infrastructure in the Southeast Asian market.
• In February 2024, CPL Industries announced the successful commercial deployment of its "Ecoke 100" product, a solid fuel briquette containing 100% renewable biomass materials. The UK-based manufacturer confirmed that it had commenced supplying this fully renewable briquette to Liberty Steel’s Rotherham facility to replace anthracite charge carbon in electric arc furnaces. This development followed a series of successful trials aimed at decarbonising steel production, demonstrating that high-quality briquettes could effectively substitute fossil carbon in heavy industrial applications while maintaining performance standards.

Key Market Players

• Shandong Coal Science & Technology Group Co., Ltd.
• Rheinbraun Brennstoff GmbH
• Zhengzhou Sinolion Machinery Co., Ltd.
• Jay Khodiyar Machine Tools
• Sichuan Zhixin New Energy Technology Co., Ltd.
• Khurana Engineering Ltd.
• Santec Exim Private Limited
• Mackissock Power Systems, Inc.
• Lianyungang Weite Machinery Co., Ltd.
• Briquetting Solutions LLC

By Composition	By Application	By Region
Wood Charcoal Coat Dust Peat & Paper Saw Dust Wood Chips	Metallurgy Food Processing	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Coal Briquettes Market, By Composition:

• Wood Charcoal
• Coat Dust
• Peat & Paper
• Saw Dust
• Wood Chips

• Coal Briquettes Market, By Application:

• Metallurgy
• Food Processing

• Coal 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