Activated Carbon

Demand to rise 4.3% annually to 2008

US demand for activated carbon is forecast to rise 4.3 percent annually to 475 million pounds in 2008, valued at $315 million. Activated carbon is used primarily as an adsorbent to remove pollutants from liquid and gas streams, thus the market is heavily impacted by various environmental regulations, primarily the Clean Water and Clean Air Acts. Since ost pollution control systems stemming from the Clean Water and Clean Air Acts have been in place for several years, most activated carbon demand in these applications will be dedicated to replacement requirements. To a lesser extent, demand will benefit from municipalities upgrading antiquated water treatment systems.

Regulatory changes, product development to fuel demand

The implementation of proposed environmental regulations will provide opportunities for activated carbon through 2008. In particular, granular activated carbon will benefit from a larger number of motor vehicles requiring emission canisters, while powdered activated carbon is being investigated as a viable process for the removal of mercury from gas streams.

Growth will also depend on continuing product development, such as consumer end-uses (e.g., odor control agents in cat litter) and electrode production (e.g., ultracapacitors and fuel cells). In addition, greater consumer concerns over indoor air quality in motor vehicles and residential settings will promote use of activated carbon. Lastly, the continued penetration of consumer water purification systems, and the replacement requirements of existing systems, will provide favorable opportunities for activated carbon.

Emission canisters, air purification to offer fastest growth

Water treatment is, by far, the largest application for activated carbon and will continue to provide growth through 2008 due to ongoing concerns over water purity. Increased water recycling will promote demand for activated carbon since this water must undergo additional treatment. In addition, a greater number of residential water filtration units in use, most of which utilize activated carbon, will boost demand. Though offering below average gains, food and beverage processing, the second largest application for activated carbon, will accelerate from rates achieved during the 1998- 2003 period based on a rebound in product shipments. In this application, activated carbon is used as filtration media during the processing of various foods (e.g., fats and oils) and beverages (e.g., water and fruit juices).

Smaller gas phase applications -- particularly, air purification and emission canisters -- will offer more rapid gains than those found in liquid phase applications through 2008. Especially strong gains are forecast for automotive emission canisters based on the implementation of stricter EPA guidelines regarding evaporative losses.

Study coverage

Details on these and other key findings are available in the new Freedonia industry study, Activated Carbon. Demand is provided in pounds for the major types and applications of activated carbon, and in current US dollars for the major types. In addition, capacity and market share is provided for major suppliers, while profiles are presented for the leading producers of activated carbon, as well as companies involved in the regeneration of activated carbon.