India’s activated carbon industry is facing growing pressure in international markets as buyers in Europe, the CIS region and Russia increasingly shift towards lower-cost alternatives such as coal. At the same time, competitively priced Chinese activated carbon products are gaining market share.
Rising Logistics Costs Add to Export Pressure
According to Joshy Joseph, Vice-President of the Activated Carbon Manufacturers Association of India, geopolitical tensions, container shortages and higher freight rates have increased logistics costs for Indian exporters. As a result, Indian activated carbon has become more expensive in several international markets, adding to the competitive pressure faced by domestic manufacturers.
Strong Global Demand Across Key Markets
Activated carbon continues to see significant demand across the US, UK, Germany, Japan, South Korea and African markets. Water treatment remains a major application in the US and Europe, while manufacturers also supply activated carbon for gold extraction in Africa. However, proposed changes in US trade tariffs could further affect Indian exports. Industry representatives have raised concerns that a proposed 100% tariff could significantly impact shipments to the US, which currently accounts for about 18% of India’s activated carbon exports.
Chinese Products Intensify Price Competition
Industry representatives have also highlighted the growing presence of lower-priced Chinese activated carbon in global markets. According to Joseph, Chinese manufacturers procure whole coconuts in bulk from Indonesia and the Philippines and use them as feedstock for activated carbon production. This access to lower-cost raw materials enables Chinese producers to offer competitive prices in markets such as Europe and Africa, thereby increasing pressure on Indian manufacturers.
Lower Demand and Raw Material Prices Affect the Market
Meanwhile, weaker demand for water-treatment carbon, combined with higher production and logistics costs, has put additional pressure on market prices. According to industry estimates, coconut shell charcoal prices have fallen below ₹100 per kg, while coconut shell prices have declined to around ₹35 per kg.
India’s Activated Carbon Exports Remain Significant
Despite these challenges, India’s activated carbon industry recorded an export turnover of approximately ₹4,700 crore, with exports reaching around 1.80 lakh tonnes in the last financial year. The industry expects exports to exceed ₹5,000 crore in the current financial year. However, continuing global price competition and market uncertainties could influence the pace of growth.
Coconut Shell Charcoal Imports Increase
At the same time, industry sources have reported a sharp increase in coconut shell charcoal imports during April–July 2026–27. Imports from Sri Lanka through the Kochi, Chennai and Tuticorin ports have increased. However, the average import price of the material stands at around ₹80–90 per kg, compared with approximately ₹100–103 per kg for domestic material. As reported by thehindubusinessline.com, the combination of global price competition, changing trade conditions, higher logistics costs and raw material dynamics is therefore shaping the outlook for India’s activated carbon industry.
