Biochar can move into horticultural growing media as a reliable, well-characterized input

The 2025 United States Biochar Market Report, published today by the American Biochar Institute, represents the first national benchmark of a sector previously measured only at the global level. The survey behind the report drew 444 responses across 41 states, covering producers, equipment manufacturers, distributors, carbon market participants, and end users. According to the report, biochar production grew at a 32% compound annual growth rate between 2023 and 2025, reaching 151,000 metric tonnes, with industry economic value nearly tripling from $53.6 million to $157 million over the same period.

The report finds that 94% of U.S. biochar production is now tied to carbon credit revenue in some form. For horticultural buyers, that concentration might suggest price competition for the same material, but Tera Lewandowski, Director of Agricultural Markets at the American Biochar Institute (ABI), says the dynamic runs the other way. “Carbon credit revenue actually works in horticultural buyers’ favor by offsetting production costs. It allows producers to bring more biochar to market at more competitive prices.”

Growth that validates the work
“This report really highlights the growth of the biochar sector in the United States. It also validates much of the work we do at American Biochar Institute to increase general awareness of biochar, develop industry standards, and grow the use of biochar in agricultural, industrial, and built environment markets,” says Myles Gray, Executive Director of ABI.

Among survey respondents, horticulture accounts for 33% of current end-use markets, second only to crop agriculture at 66%, while horticultural growing media is named a priority development market by 16% of respondents. Market development overall is the top focus area for industry organizations, cited by 49% of respondents, ahead of standards, education, and policy.

Uptake already underway
Tera says commercial adoption is moving past the trial stage. “We are currently seeing uptake with indoor growers as they optimize its use in their particular systems to obtain value. Broader-scale adoption can be accelerated with the development of specifications for use in horticulture.” Biochar’s physical properties make it a practical fit in intensive growing environments. It is lightweight compared to conventional substrate components, with high water-holding capacity, good aeration characteristics, and compatibility with fertigation systems that can reduce nutrient runoff and improve input efficiency over time.

Availability is expanding, but matching that supply to horticultural demand requires producers to understand what growers actually need, such as specific particle sizes and application-ready product forms. That’s why market education and helping producers understand horticultural specifications is one of ABI’s highest-priority focus areas,” Tera says.

Building the standards growers need
ABI’s near-term focus is on converting the specifications gap into a solvable problem. Tera says the work over the next two to three years centers on building consensus across the supply chain rather than issuing top-down guidance.

“We will work with stakeholders to define the industry’s needs and build consensus around those specifications with growers, producers, and distributors. ABI is actively working with interested parties to develop those standards, so that biochar can move into horticultural growing media as a reliable, well-characterized input rather than a novel material buyers have to evaluate from scratch.”

What the certification gap means for CEA buyers
According to the report, 44% of U.S. biochar producers do not certify their products. For CEA operators running hydroponic or aeroponic systems, that means quality assessment falls to the buyer. Parameters that matter most in those environments include particle size distribution, carbon content, pH, and electrical conductivity, each of which affects substrate consistency and crop performance directly.

“Growers sourcing biochar for hydroponic or aeroponic systems should start by requesting a lab report and reviewing the parameters that matter most for their application. From there, the key is direct communication with the supplier to establish those specifications as a standing requirement, so every batch meets the same standard rather than leaving consistency to chance,” Tera says.

The 2025 United States Biochar Market Report is available here.

For more information:
American Biochar Institute
Elza Vucane, Marketing
[email protected]
www.biochar.org