The Indian activated carbon industry is experiencing significant pressure in international markets as water treatment companies in Europe, the CIS region, and Russia increasingly turn to cheaper alternatives such as coal. According to The Hindu BusinessLine, the industry is also grappling with higher logistics costs due to geopolitical tensions, container shortages, and increased freight rates, which have made Indian activated carbon more expensive in international markets. The industry faces concerns about the proposed 100 per cent tariff by the Trump administration, which could significantly affect Indian exports to the US, where about 18 per cent of India's activated carbon exports are currently directed. However, recent market analysis shows Asia-Pacific accounted for 37.72% of global revenue in 2025 and is expected to register a 6.44% CAGR through 2031, supported by China's integrated coal-to-carbon production, India's municipal water infrastructure development, and Southeast Asia's coconut-shell charcoal industry.
China's growing penetration of lower-value activated carbon products presents another major concern for Indian manufacturers. As reported by The Hindu BusinessLine, China is procuring whole coconuts in bulk from Indonesia and the Philippines to manufacture activated carbon, which is then exported to Europe and Africa at competitive prices. Lower raw material costs in these countries give Chinese manufacturers a significant price advantage over Indian producers. The lower demand for water carbon and higher costs have pushed down prices in the market, with coconut shell charcoal prices falling below ₹100 a kg and coconut shell prices declining to around ₹35 a kg. Recent market developments show that Indian exporters increased shipments of coconut-shell activated carbon in 2024, including deliveries to the United States, Sri Lanka and Belgium, indicating resilience despite competitive pressures.
The Indian activated carbon industry recorded a turnover of about ₹4,700 crore from exports of 1.80 lakh tonnes in the last fiscal year. According to The Hindu BusinessLine, the industry expects exports to cross ₹5,000 crore in the current financial year, although global market uncertainties are raising concerns over growth prospects. Activated carbon has significant demand in the US, UK, Germany, Japan, South Korea, and African countries, with water treatment being a major application in the US and Europe, while the product is widely used for gold extraction in African markets. Recent market analysis indicates that North American market growth is being shaped by PFAS compliance and investment in domestic granular activated carbon capacity, with new production and reactivation assets improving regional availability and shortening delivery times.
Industry sources have pointed out that imports of coconut shell charcoal have increased sharply during April-July 2026-27, with imports from Sri Lanka through ports of Kochi, Chennai and Tuticorin rising. As reported by The Hindu BusinessLine, the average import price is around ₹80-90 a kg, compared with ₹100-103 a kg for domestic material. This pricing differential continues to pressure domestic manufacturers despite their efforts to maintain quality standards in the competitive global market. The supply-chain disruption for coconut shell charcoal, combined with coal-price volatility squeezing margins and high cap-ex for regional reactivation hubs, presents ongoing challenges for Indian manufacturers.
