Asia-Pacific’s energy and manufacturing sectors are increasingly exploring alternative fuels as industries seek to diversify energy sources, improve agricultural-waste utilization, and reduce dependence on conventional coal. Biomass briquettes, produced by compressing agricultural residues, forestry waste, sawdust, and other organic materials, offer a practical fuel option for industrial boilers, food-processing facilities, brick kilns, and power-generation plants. The region’s extensive agricultural base provides a substantial feedstock pool, while growing interest in biomass co-firing and cleaner industrial heat is creating new demand for densified solid biofuels. These developments are encouraging producers to expand processing capacity and build stronger supply networks between farmers, aggregators, manufacturers, and industrial fuel consumers.
According to Markntel Advisor the industry was valued at USD 3.65 billion in 2026 and is estimated to reach USD 3.94 billion in 2027. It is projected to expand to USD 6.21 billion by 2033, registering a CAGR of 7.9% during 2027–2033. Abundant agricultural residues, government support for biomass utilization, industrial fuel-switching initiatives, and demand from power-generation facilities are expected to support this expansion.
Agricultural Residues Turn into a Strategic Industrial Fuel Source
The availability of agricultural waste is one of the strongest foundations for biomass briquette production across Asia-Pacific. Rice husks, straw, bagasse, groundnut shells, cotton stalks, palm residues, and other crop by-products can be compressed into dense fuel blocks that are easier to store, transport, and use than loose biomass. This process creates commercial value from materials that might otherwise be discarded, while helping industrial consumers diversify their fuel procurement.
According to the report, agricultural residues accounted for approximately 48% of regional feedstock demand in 2026, making them the leading raw-material category. Their availability near farming and agro-processing clusters gives manufacturers access to a broad supply base. However, the seasonal nature of crop harvesting means producers need effective aggregation, storage, moisture control, and transportation systems to maintain consistent year-round operations. Companies able to secure reliable feedstock contracts and build relationships with farmers and local aggregators are better positioned to manage production costs and supply continuity.
India illustrates the scale of this opportunity. The Ministry of New and Renewable Energy has cited annual biomass availability of around 750 million metric tonnes nationally, including a substantial surplus suitable for energy applications. Its Biomass Programme has supported briquette and pellet manufacturing plants through Central Financial Assistance, while revisions announced in 2025 sought to simplify programme procedures and improve implementation. These measures demonstrate how agricultural-waste utilization is being linked with industrial energy supply and stubble-management objectives. (MNRE Biomass Programme; Press Information Bureau – Revised Biomass Programme Guidelines).
Industrial Fuel Switching and Biomass Co-Firing Expand Demand
Industrial boilers and power-generation facilities are important potential consumers of biomass briquettes because they require substantial quantities of solid fuel for heat and electricity production. Food and beverage processors, textile manufacturers, brick and ceramic producers, cement plants, pulp and paper companies, and chemical facilities can use biomass-based fuels in suitable combustion systems. For these users, briquettes provide a way to diversify fuel sources while making productive use of locally available organic residues.
Power generation is also creating opportunities through biomass co-firing, in which biomass is blended with coal in existing power plants. Indonesia's state-owned electricity company, PLN, has been implementing a co-firing programme across coal-fired power stations. Its climate-related disclosure report states that biomass consumption under the programme reached approximately 1.62 million tonnes in 2024, up from 0.99 million tonnes in 2023. This demonstrates the potential for utility-scale procurement to create more structured demand for biomass fuel suppliers. (PLN Climate-Related Disclosure Report 2024).
The broader regional energy outlook also supports the relevance of solid biofuels. The International Energy Agency reported that ASEAN's solid-biofuel power-generation capacity increased from approximately 6 GW in 2015 to nearly 10 GW in 2025, with Indonesia and Thailand accounting for almost 80% of the total. The IEA expects sustainable solid-biofuel capacity to increase by a further 20% by 2030. This expansion could create additional procurement opportunities for briquette and other densified biomass producers, provided they can meet utility requirements for fuel quality, consistency, and sustainability. (IEA – Coal and Solid Biofuels Security Review).
Product Innovation Improves Fuel Applications and Processing Efficiency
Biomass briquettes are not a uniform fuel category. Their characteristics vary according to the raw material, production process, moisture content, density, and whether the biomass has been carbonized or treated through torrefaction. These differences influence combustion behaviour, calorific value, smoke generation, handling requirements, and suitability for particular industrial applications. As a result, manufacturers are increasingly required to align product specifications with the operating conditions of their customers.
Non-carbonized biomass briquettes led the Asia-Pacific industry with an estimated 68% share in 2026, reflecting their relatively straightforward production process and suitability for industrial boiler applications. Carbonized briquettes serve users requiring a processed fuel with different combustion characteristics, while torrefied briquettes are positioned for more specialized applications, including certain utility co-firing requirements. This product diversity allows manufacturers to serve customers with varying fuel specifications rather than relying on a single briquette format.
Processing technology will remain important as producers seek to improve output quality and operational reliability. Mechanical densification, drying, screening, and quality-control systems can help reduce inconsistencies in finished fuel. At the same time, moisture management and feedstock preparation are critical because variations in agricultural residues can affect briquette durability and combustion performance. Manufacturers that invest in appropriate machinery and quality assurance can improve their ability to secure repeat orders from industrial buyers.
Country-Level Developments Create Different Growth Opportunities
China currently represents the largest national opportunity in the Asia-Pacific biomass briquette industry, accounting for approximately 68.5% of regional sales. Its large industrial base and extensive agricultural and forestry resources support demand for biomass-based solid fuels. The scale of its manufacturing and energy sectors also creates opportunities for producers supplying industrial heat and other applications.
India, meanwhile, is projected to be the fastest-growing country in the region, with an estimated 9.5% CAGR during 2027–2033, exceeding the overall regional growth rate of 7.9%. Agricultural residue availability, industrial boiler demand, and policy support for biomass processing are contributing to this outlook. Indonesia also offers significant potential, particularly because of its palm oil processing industry, which generates residues such as palm kernel shells and empty fruit bunches that can be used in biomass fuel production.
Vietnam's energy planning provides another relevant development for the sector. In April 2025, the Vietnamese government approved adjustments to its Eighth National Power Development Plan, setting out updated priorities for power supply and renewable energy development through 2030 and beyond. The plan supports a broader expansion of renewable energy in the country's power system, although the specific demand for briquettes will depend on project-level fuel choices, infrastructure, and procurement arrangements.
Fragmented Competition Makes Feedstock Networks a Key Advantage
The Asia-Pacific biomass briquette industry remains highly fragmented, with production spread across numerous regional manufacturers and smaller processing units. The report identifies Ecostan Biofuel Private Limited, KNB Green Energy Limited, Ankit Bio Fuels LLP, Sai Nirman Biocoal, Green Flames, Ecogroup Solutions, Alhan Bio Fuels, Gattuwala Energy Solutions Private Limited, J S M Bio Fuels, Cipta Briquettes Sdn. Bhd., MII Group Sdn. Bhd., and PT. Abra Bioenergi Nusantara among the industry participants. The five leading companies collectively account for approximately 12% of the regional industry, indicating that competition is distributed across a broad supplier base.
In this environment, proximity to feedstock sources and industrial customers can be more important than brand recognition alone. Briquette manufacturers typically need to coordinate residue collection, processing, storage, and delivery within commercially viable transport distances. Companies with established farmer-aggregation networks, reliable raw-material procurement, and direct relationships with industrial boiler operators can strengthen their competitive position. As larger industrial buyers increasingly require consistent fuel specifications and dependable delivery schedules, operational capabilities and supply-chain management are likely to become important differentiators.
Raw-Material Costs and Coal Competition Remain Key Industry Challenges
Despite the availability of agricultural residues, biomass briquette manufacturers face challenges associated with feedstock seasonality, collection costs, storage requirements, and transportation. Agricultural waste is often generated during specific harvesting periods, requiring producers to secure sufficient quantities and maintain inventories for continuous manufacturing. Moisture content and inconsistent raw-material quality can also increase drying and processing expenses, affecting production efficiency and the final fuel specification.
Competition from conventional coal is another significant restraint. Industrial users generally assess alternative fuels based on delivered cost, calorific value, combustion performance, and equipment compatibility. Where coal remains comparatively inexpensive, businesses may be reluctant to switch voluntarily to biomass briquettes, particularly if additional expenditure is required for fuel handling or boiler modifications. The International Energy Agency has highlighted the importance of affordability, reliable supply, and sustainable sourcing when evaluating the role of solid biofuels in regional energy systems. Consequently, briquette manufacturers will need to improve production efficiency, optimize transportation, and establish dependable procurement arrangements to compete effectively with conventional fuels.
Conclusion
Asia-Pacific's biomass briquette industry is gaining importance as governments, utilities, and industrial manufacturers explore ways to utilize agricultural residues and diversify solid-fuel supplies. Expanding biomass co-firing programmes, industrial fuel-switching initiatives, agricultural-waste availability, and improvements in processing technology are creating opportunities across the regional value chain. China currently leads regional sales, while India's faster projected growth highlights the potential of agricultural-resource-rich economies. Nevertheless, feedstock seasonality, logistics expenses, fuel-quality consistency, and competition from coal will influence commercial adoption. With the industry projected to reach USD 6.21 billion by 2033, manufacturers that strengthen sourcing networks, improve product quality, and develop long-term relationships with industrial and utility customers are positioned to participate in the region's evolving energy transition.
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