Wood Vinegar Market Size, Share & Trends Analysis Report By Application (Agriculture, Animal Feed, Food, Medicinal, Consumer Products), By Method (Slow Pyrolysis, Fast Pyrolysis, Intermediate Pyrolysis), By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global wood vinegar market size was estimated at USD 3.7 million in 2016. The demand for free from chemicals pesticides that enhance the soil fertility and natural animal feed that are resistant to infection is increasing globally. It is produced through sustainable methods, can be used as an organic pesticide as well as animal fodder. It is proving to be an attractive replacement for synthetic chemicals.

Wood vinegar also known as pyroligneous acid, mokusaku, and liquid smoke is produced using traditional methods in some of the countries in Asia. The liquid extracted from biomass through carbonization, contains more than 200 natural compounds primarily acetic acid, formaldehyde.

Acetic acid is used as a soil disinfectant, and methanol is known to increase crop yield utilizing less water, whereas phenols are known as a natural source for antioxidants. Such attributes of its ingredients make it a better choice for sustainable farming thereby increasing the crop yield.

Majority of the countries in Asia have set their renewable energy targets. Accordingly, they have policies in place to promote the production and use of energy from biomass. Pyroligneous acid is the bi-product formed during the pyrolysis method of biomass and of late the companies have started commercial sale of pyroligneous acid, owing to its broad applications in various industries such as agriculture, animal husbandry, pharmaceutical, and cosmetic industries. Increasing demand from various industries is expected to boost the wood vinegar market growth over the forecast period.

The U.S. market is anticipated to grow at a CAGR of 5.9% from 2017 to 2025 to reach USD 1.05 million by 2025. The sales of organic food are increasing with increasing interest from the millennial generation. Lack of equivalent organic farmland that produces organic food to meet the increasing demand is leading to the rise in organic food imports by food processors and marketers. To encourage organic farming, “National Organic Program” was framed by the U.S. Department of Agriculture to provide guidance, financial and technical assistance for organic agricultural products producers.

Organic farming has economic stimulus on rural areas and poverty alleviation, as farmers learning principles of sustainable agricultural practices can increase the yield and income from the available farm size and conditions. Owing to the economic value added to farmers, majority of the governments in Asian countries are spearheading the organic farming movement at national, regional, and local levels.

EU sustainability certification is encouraging the use of non-wood biomass in producing biofuels. This might restrain the anticipated growth of the market if manufacturers shift towards non-wood biomass-based production.

Application Insights

Agriculture emerged as the largest application industry and accounted for 43.7% of the global revenue share in 2016. It was followed by animal feed as the second-largest segment, in terms of revenue. Wood vinegar, when applied to soil and mixed in high concentrations, inhibits soil diseases and eelworms. When pyroligneous acid is mixed with agricultural chemicals, it increases the overall efficacy. It enhances the development of stronger roots for plants, and crop yield.

Feed ingredients may originate from various sources exposing livestock to various biological and chemical hazards. The presence of dioxin and aflatoxin in animal feeds can in turn expose humans to various health hazards due to food consumption from animal origin. This has become a concern for the livestock industry. Wood vinegar as an animal feed is proposed to enhance the resistance in livestock and reduce the risks on human health associated with the consumption of meat from animal origins.

Regional Insights

Asia Pacific leads the global market in terms of revenue in 2016, and this trend is expected to continue over the forecast period. It was estimated at USD 1,352.4 thousand in 2016 and is projected to grow at a CAGR of 7.8% from 2017 to 2025.

The market in Asia Pacific region is dominated by the concentration of large number of organic producers in Australia, China, and India. As of 2015, Australia has the largest organic agricultural area, whereas India has the largest number of organic producers, however holding small farms. China is the fifth largest country in terms of organic agricultural land. The majority of the countries producing organic products are export-oriented.

Asia Pacific was followed by North America in terms of revenue and is expected to grow at a rate of 5.8% over the forecast period. The application segment is dominated by the use of the wood vinegar as a food additive and in animal feed. Genetically modified organisms are used to increase the yield in the poultry, which poses several health risks. The demand for non-genetically modified organism (non-GMO) animal feed is increasing in this region.

Method Insights

In terms of revenue, slow pyrolysis method is estimated as the most preferred method by manufacturers. Its value is estimated to reach USD 4.4 million by 2025 growing at a CAGR growth of 6.3% over the forecast period. It accounted for 68.6% of the global revenue share in 2016.

Slow pyrolysis is traditionally used in charcoal and biochar production. The benefits of slow pyrolysis method are the flexibility in the use of feedstock in agricultural and biorefinery residues. The yield of pyrolysis depends on the type biomass used. Slow pyrolysis is used for better yield of biochar and solid residues. Slow pyrolysis is preferred by large number of countries that aim to produce biochar such as Earth Energy systems and Vinegar Australia.

Wood Vinegar Market Share Insight

The key players in the global market include Vinegar Australia, Sort Of Coal, VerdiLife LLC, Taiko Pharmaceutical Co., Ltd, Nettenergy B.V. Applied Gaia Corporation dominated the global market.  The competitive rivalry among manufacturers is medium as the leading manufacturers hold less than 30% share in the global market. The market is characterized by the presence of few domestic as well as global players, which offer favorable scope of growth for the new entrants.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global wood vinegar market on the basis of application, method, and region:

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Agriculture

  • Animal-Feed

  • Food, Medicinal, and Consumer Products

  • Others

• Method Outlook (Revenue, USD Million, 2014 - 2025)

  • Slow Pyrolysis

  • Intermediate Pyrolysis

  • Fast Pyrolysis

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa