Worldwide demand for activated carbon is slated to undergo a significant geographic shift from developed to developing countries. Rising population and higher enforcement of environmental standards would drive growth in developing nations, particularly China, India, South Korea and Taiwan. Significant growth is also expected from Eastern Europe, Latin America, and Middle East, albeit at a relatively lower pace. Manufacturers and industrial customers are increasingly looking towards moving production base to low cost regions including China and India, which proffer production benefits such as cheap raw materials, energy and labor costs. End-use applications of activated carbon including water treatment, air purification and food & beverage processing are considered conventional market leaders. Additional growth is however expected to stem from rigid environment regulations across all the regions worldwide. Government legislations such as Clean Water Act and the Safe Drinking Water Act are important factors influencing expansion in the market. China and US constitute two of the largest producers of activated carbon worldwide. Asian countries including Sri Lanka, Indonesia, Thailand and the Philippines are among significant producers and exporters of coconut husks-derived activated carbon.

Future growth for activated carbon would be largely powered by increased applications in the medical & pharmaceuticals industry, fueled by innovations in vitamins, pharmaceuticals, and nutraceuticals production.. Activated carbon is also likely to experience increased demand in motor vehicle emission canisters as a result of new environmental norms. Some of the potential areas representing high growth in the future include removal of cancer-developing agents from chlorine in drinking water; carbon clothes for protection of military personnel during radiological, biological and chemical warfare; carbon reactivation/ recycling; removal of mercury from coal-based power