Competitive Briquette Market

The findings strongly suggest that for urban and peri-urban consumers to demand briquettes there must be a clear advantage on price over the main competing fuel, charcoal. This can be based upon either a lower cost per unit of energy or lower cost per hour of burn time. In the areas studied the price of briquettes was not always cheaper; a fact that goes a long way to explaining success or failure of the briquettes enterprises encountered. When existing cooking practices with charcoal are so ingrained it is difficult for an unconventional fuel to compete unless the price is lower. The concept of a fuel being cheaper than charcoal per hour of burn time, is difficult for consumers to comprehend. It is important therefore, that the advantages of long-burn duration are promoted by briquette producers to differentiate briquettes from charcoal.21 Compatibility of briquettes with existing cooking equipment was also a crucial factor. Briquettes can be burned in a traditional or improved jiko, however this assumes that consumers own such a stove. Requiring consumers to first buy a specially designed stove hugely restricts demand and makes little commercial sense when fuels can be easily designed to work in conventional equipment. As discussed above, briquettes are unlikely to ever take a full share of the fuel market. For certain applications, like making tea in the morning, many want a quick source of heat. Briquettes – as they are conventionally made - do not provide this; not only do they produce less intense heat, they tend to be more difficult to light and almost impossible to extinguish and relight. Two more factors emerged which although barriers are temporary in nature. Firstly, in order to generate demand, awareness must first be built, requiring active marketing. Successful examples include giving selected users free product samples and offering demonstrations on how to use them. In Ranen, where this form of promotion has taken place, awareness of briquettes was high amongst local people. In a random sample of 36 people interviewed, 27 had heard of briquettes (75%) and 13 had tried using briquettes (36%) – uptake mostly limited by supply. Secondly, a related factor is that in most urban areas there is an established and widespread network of charcoal sellers and distributors. A new fuel product must overcome (or harness) the inertia of consumer loyalty, habits and convenience, possibly by utilising existing networks of fuel suppliers.
 

Exisiting Practices and Space for Briquettes 
The majority of rural householders with a low income use three-stone fireplaces or firewood jikos. Firewood is collected for free in the surrounding areas or bought cheaply in the nearest town or village. A number of householders also use a charcoal jiko occasionally if no firewood is available. Kerosene use is less common in rural areas. For example, a likely scenario is that demand for briquettes in rural areas of Kenya will remain relatively low for some time to come. They could provide an alternative to purchasing charcoal when firewood is unavailable but only if compatible equipment is owned. A more optimistic scenario would see some consumers changing towards briquettes - if priced attractively - for the increased convenience over collecting and storing firewood and the increased burn duration. The situation is dynamic and forces such as deforestation and government regulation could lead to more active promotion of alternative fuels.
 

Demand for briquettes in the rural areas that have been assessed was generally low. Firewood or agricultural residues were often available for free or at a very low cost. In isolated areas the smoke from burning firewood can be dispersed and does not present a significant issue for householders. Furthermore a large proportion of rural householders do not own alternative cooking equipment (e.g. a charcoal jiko, or kerosene stove), presumably owing to lower levels of income - a further barrier to changing fuels. There appeared to be few immediate incentives to move away from this practice towards briquettes or other fuels, despite possible long-term or society-wide benefits. Although demand from rural areas is generally low, one interesting case of a rural producer selling ‘hand-made’ briquettes from sawdust and charcoal dust bucked the trend.

Most restaurants are located in urban or peri-urban areas and drivers and barriers to briquette uptake were found to be similar to that of urban and peri-urban households. It was particularly evident from interviews held with a number of establishments that they will need a mix of fuels – not just briquettes - for example, kerosene or other quicker burning fuel are needed for certain

applications. Those establishments that were given a sample of briquettes to try out were impressed with its performance on the whole. Many indicated a strong interest in using briquettes if they were available locally at a price competitive with charcoal. Briquettes would primarily be used for keeping food warm, or for food with a predictable demand that requires longer time to cook.