Wood Vinegar Market - Forecast(2023 - 2028)

Wood Vinegar Market Overview

Wood vinegar market size is forecast to reach US$6.1 billion by 2027, after growing at a CAGR of 7.3% during 2022-2027. Wood vinegar or Pyroligneous acid is a natural, biological product that has various applications in agriculture, animal husbandry, the food industry, and medicine. Raw wood vinegar is an aqueous liquid with a reddish-brown color. It is also known as wood acid as it contains acetic acid. The major market for wood vinegar is agriculture as the properties of wood vinegar make it suitable to be used as a biopesticide, plant growth promoter, among others. Apart from agriculture, wood vinegar also has medical, animal husbandry, and food processing applications. In medical applications, it is used for the preparation of detoxification pads whereas in animal husbandry, wood vinegar in animal feed aids in promoting acidity in the digestive tract that inhibits the growth of enteropathogenic microbes. In food processing, wood vinegar has a peculiar smoke flavor and also has microbial growth inhibition properties. Thereby, all the applications fuel the growth of the wood vinegar market during the forecast period.

COVID-19 Impact

The COVID-19 pandemic has left a lasting mark on every sphere of life. All industries including the agricultural industry were impacted. Due to lockdowns and social distancing norms, hotels and restaurants had to shut leaving farmers with no buyers for their produce. Despite many countries designating the agriculture and food sector as essential and exempt from business closure and restrictions on movement, global exports were also hit hard with stringent customs regulations, transport and logistic issues and lockdowns at the global, national and regional level. Many parts of the world also experienced labor shortages as workers chose to wait out the lockdowns in their homes. According to the European Fresh Fruit and Vegetables Association, the implemented travel bans within the European Union, as well as the closure of the Schengen Area, have significantly reduced the available workforce for the fruit and vegetable sector in a number of European countries. All these factors affected the agricultural industry and subsequently the wood vinegar market.

Report Coverage

The report: “Wood Vinegar Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Wood Vinegar Industry.

By Production Method: Slow Pyrolysis, Fast Pyrolysis, and Intermediate Pyrolysis.
By Application: Agriculture (Fertilizer, Pesticide, Growth Promote, and Others), Animal Husbandry, Food and Consumer Products, Waste Water Treatment and Others.
By Grade: Bio-Tech Grade, Industrial Grade, and Food and Others.
By Purity: 90%, 100%, and Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa).

Key Takeaways

• Asia-Pacific dominates the wood vinegar market, owing to the predominantly agrarian economy in the region. According to Invest India, India’s agriculture technology to attain $24.1 billion by 2025.
• Wood vinegar is a natural product, has various beneficial applications in various fields including agriculture, pharmacy and medicine, veterinary and animal husbandry, and food processing among others.
• Wood vinegar works as an excellent biopesticide and fertilizer. It is also a plant growth promoter.
• The major opportunity for this market is high research spending and growing awareness in society.

Figure: Asia-Pacific Wood Vinegar Market Revenue, 2021-2027 (US$ Billion)

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Wood Vinegar Market Segment Analysis – By Production Method

The slow pyrolysis segment held the largest share of about 38% in the wood vinegar market in 2021. Wood Vinegar is a byproduct of charcoal production and is an aqueous liquid generated from the gas and combustion of fresh wood burning in the absence of air. When the gas is cooled, it condenses into liquid. Pyrolysis is the process used to produce wood vinegar by the thermal degradation of biomass (wood). Hence, the name wood acid. In general, the pyrolysis types were classified based on heating rate as fast, intermediate, and slow pyrolysis. Slow pyrolysis is a simple technology that originated in ancient China. It is also known as carbonization. The reaction is a thermal conversion process where wood or other biomass material is slowly heated in the absence of air/oxygen up to 500°C. In slow pyrolysis, hemicelluloses are degraded in the temperature range from 200 to 260°C, cellulose at 240–350°C, and lignin at 280–500°C. Previously using this process wood vinegar was made from charcoal, but due to environmental concerns of burning charcoal, now thinned wood, hardwood chips, sawdust from sawmills, dead wood, waste wood from agriculture and demolished buildings, bamboo, straw, and rice husk are also used to produce wood vinegar. Hence, slow pyrolysis is set to dominate the wood vinegar market during the forecast period.

Wood Vinegar Market Segment Analysis – By Application

The agriculture segment held the largest share of about 41% in the wood vinegar market in 2021. Wood vinegar has several agricultural purposes. It works as an excellent pesticide and fertilizer. It improves soil fertility, eliminates pests, and accelerates plant growth. Wood vinegar contains Acetic Acid, Hydrazine, Furfural, Propanoic acid, Phenol, and over 200 organic substances. Wood vinegar can be directly sprayed on the leaves as it promotes photosynthesis, accelerates leaf growth, delays leaf senescence, helps in the prevention and control of plant diseases, and eliminates pests. Research studies show that wood vinegar can potentially prevent downy mildew, leaf mold, target leaf spot, and inhibits pests such as whitefly, aphids, nematodes, etc. from attacking vegetable and crop plants. Wood vinegar is also used in orchards to promote the healthy growth of fruit trees. As a result of these applications, the agriculture sector is set to dominate the wood vinegar market.

Wood Vinegar Market Segment Analysis – By Grade

The industrial-grade held the largest share and is expected to grow at a CAGR of 6.7% during the forecast period from 2022-2027. The industrial-grade is mainly used for agricultural purposes and for fruit trees and vegetable crops. Wood vinegar is an excellent biopesticide and natural fertilizer. It improves soil quality, eliminates pests, and works as a plant growth promoter by accelerating the development of plants. It is also used to increase the amounts of fruits produced in orchards. It prevents bacterial, viral, and fungal infections in plants. It also increases the content of chlorophyll when applied as a foliar spray. Wood vinegar also improves absorption through the roots. Research studies also show that wood vinegar can increase crop resistance thereby enabling growth even in adverse conditions. Thus, the industrial segment holds the largest share in the wood vinegar market.

Wood Vinegar Market Segment Analysis – By Purity

The 90% purity segment held the largest share up to 62% in the wood vinegar market in 2021. 90% pure wood vinegar is used for agriculture, animal husbandry, wastewater treatment, and other applications whereas 100% pure wood vinegar is used in medical or pharmaceutical applications and in scientific studies. As the major component of wood vinegar is acetic acid, 100% purity also translates into a lower pH value (highly acidic ranging from 2.5 to 2.7 pH) that might end up causing more harm than good. So, 90% purity is most widely used. Hence the 90% purity segment holds the largest share in the wood vinegar market during the forecast period.

Wood Vinegar Market Segment Analysis – By Geography

Asia-Pacific region held the largest share in the wood vinegar market in 2021 up to 38%, owing to the predominantly agrarian economy in the region. The Asia Pacific region is notably the food bowl of the world. According to the Food and Agriculture Organization of the United States (FAO), China is the largest producer of various crops, including rice, wheat, onions, lettuce, potatoes, spinach, green beans, peas, sweet potatoes, carrots, pears, grapes, peaches, apples, plums, tomatoes, kiwis, watermelons and other fruits and vegetables. India is the leading producer of millets, pulses, ginger, okra, bananas, papayas, mangoes, lemons, guavas, and spices (except cinnamon). Indonesia is the largest producer of cinnamon and Vietnam is the largest producer of cashew nuts and the second-largest producer of coffee in the world. Therefore, the APAC region provides food for most of the world. According to the FAO, around 660 million people may still face hunger in 2030, in part due to the lasting effects of the COVID-19 pandemic on global food security, 30 million more people than in a scenario in which the pandemic had not occurred. So, in order to get on a better track, food security is one of the most critical issues at hand. One way of achieving this could be protecting crops from pests and increasing yield and promoting healthy plant growth. As wood vinegar ticks all the over boxes, it is highly beneficial in the agriculture sector.

Wood Vinegar Market Drivers

Increasing Demand for Biopesticides

Wood Vinegar is a by-product created in the carbonization of biomass. Wood vinegar contains approximately 200 natural compounds. These natural compounds make it an excellent biopesticide. Its works against a wide variety of pests including insects, aphids, nematodes, fungi, bacteria, and certain viruses. It can also be applied as a spray. As people are more and more becoming aware of human consequences on the environment, they are trying to mitigate this impact. Along with other natural resources, like bio stimulators and biofertilizers, biopesticide application in farming creates a balance between high yield and environmental protection which is considered essential to sustainable agriculture. Biopesticides tend to pose fewer risks than their chemical counterparts. Very small quantities are effective and they decompose more quickly, which means less soil pollution. In the European Union, a greater emphasis is laid on Integrated Pest Management (IPM). In Europe, IPM based around biological control is used on more than 90% of greenhouse tomato, cucumber, and sweet pepper produced in The Netherlands. Hence, the increasing usage of biopesticides acts as a driver for the wood vinegar market.

Wood Vinegar is Highly Suitable for Organic Farming

Organic farming is a practice that uses eco-friendly pest controls and biofertilizers derived from animal and plant wastes and nitrogen-fixing crops. Organic farming was developed to try and reverse the environmental damage caused by the use of chemical fertilizers and pesticides. Using wood vinegar in organic farming has several ecological benefits- increases vitality and quality of crops (by spraying diluted wood vinegar on plant leaves), protection from the harmful insects and pests, control of the biological activity of the soil by influencing the growth of useful microbes, developing stronger roots, reducing odors from the produced manure and facilitating composting – wood vinegar as a compost activator helps to accelerate the conversion of the materials into organic compost. Hence, the use of wood vinegar in organic farming acts as a driver for the wood vinegar market.

Wood Vinegar Market Challenges

Low Awareness about Wood Vinegar

Biopesticides do not cause environmental harm yet the world heavily relies on chemical pesticides due to their availability. Chemical fertilizers apart from pollution may also enter the food chain and pose serious health issues. Overuse of chemical fertilizers can deteriorate soil quality ultimately resulting in uncultivable land Awareness regarding biopesticides and biofertilizers is crucial. China and Brazil are the world’s top users of chemical pesticides. According to the Directorate of Plant Protection Quarantine & Storage, the usage of chemical fertilizers in India during 2020-2021 stood at 62193 MT and biopesticide usage during the same period stood at 8645 MT. From the above is evident that while the usage of biopesticides has gone up the gap between biopesticides and chemical pesticides is still large. Therefore, awareness about products such as wood vinegar is needed. Low awareness about wood vinegar poses a challenge.

Wood Vinegar Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the wood vinegar market. Wood vinegar market top companies are

1. Nettenergy B.V.
2. Canada Renewable Bioenergy Corp.
3. ETIA Ecotechnologies
4. TAGROW Co., Ltd.
5. Byron BioChar
6. Dongying Runyi Biotechnology Co. Ltd.
7. Verdi Life LLC
8. Merck KGaA
9. Applied Gaia Corporation
10. CAC H2 Pte. Ltd

Acquisitions/Technology Launches

• In October 2021, CAC-H2, a biomass-focused Singaporean technology company, and clean-energy developer, Port Anthony Renewables, entered into a new international joint venture to build a $100million-plus project in Australia that will produce carbon-negative green hydrogen and ammonia from woody waste biomass using a unique gasification process. The by-products will be useful for the agricultural sector and construction industries that can use the biochar & wood vinegar for environmental purposes, or blend the biochar with cement for a green building product.

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