In 2025, the global market for coconut shell-based activated carbon entered a phase of adjustment, as total import volumes declined significantly to 909,676 metric tons from 1,019,804 metric tons in 2024. This contraction reversed the recovery observed in the previous year and suggests a moderation in global demand, potentially driven by inventory corrections following the strong import levels in 2024. Over the longer term, the market had demonstrated steady growth from 2015 to 2019, followed by a pandemic-related dip in 2020 and a strong rebound to a peak in 2022. However, the period from 2023 to 2025 has been marked by increased volatility, indicating a more uncertain global demand environment and evolving trade dynamics.

Despite the global decline in import volumes, the United States market exhibited a contrasting trend in 2025, with a substantial increase in import value alongside relatively stable volumes. Import value rose sharply to USD 134.9 million, compared to USD 104.4 million in 2024 and USD 99.7 million in 2023, while volumes increased only marginally to 48,826 metric tons. This disparity indicates that higher prices, rather than increased physical demand, were the primary driver of market growth, reflecting tightening global supply conditions and sustained demand from key end-use sectors such as water treatment and air purification.

On the supply side, major exporting countries experienced similar price-driven dynamics. Sri Lanka recorded a notable surge in export earnings in 2025, reaching USD 199.1 million despite a slight decline in export volume to 55,404 metric tons. Compared to 2023 and 2024, where volume and value grew more proportionately, the 2025 performance highlights a shift toward higher unit prices driven by constrained raw material availability and increased production costs. Similarly, Indonesia’s exports reflected a recovery in value to USD 28.1 million, even as export volumes continued to decline to 15,596 metric tons. This trend further reinforces the dominance of pricing factors in shaping market outcomes during the year.

These developments were closely linked to movements in upstream raw material prices, particularly coconut shell charcoal. In 2025, charcoal prices in Sri Lanka, Indonesia, and India rose sharply, reaching historically high levels after relatively moderate trends in 2023 and a gradual recovery in 2024. The escalation was especially pronounced in the first half of 2025, with prices in Indonesia surpassing USD 1,000 per metric ton and similar strong increases observed in Sri Lanka and India. Although some stabilization occurred toward the end of the year and into early 2026, prices remained elevated, indicating persistent supply constraints and strong demand for raw materials.

Consequently, export prices of activated carbon also increased significantly in 2025. In Sri Lanka, prices rose steadily throughout the year, reaching a peak of USD 4,575 per metric ton in December, while Indonesia experienced a similar upward trajectory, with prices climbing to above USD 2,500 per metric ton. Compared to the relatively stable price ranges observed in 2023 and the gradual strengthening in 2024, the sharp escalation in 2025 reflects intensified market pressures and robust demand recovery. Overall, the activated carbon market in 2025 was characterized by a pronounced shift toward a high-price environment, where supply constraints and cost pressures played a central role in shaping global trade patterns.