The wood vinegar market is evaluated at US$5.314 million for the year 2019 and is projected to grow at a CAGR of 7.02% to reach a market size of US$8.545 million by the year 2026.
Wood vinegar, also known as wood acid or pyroligneous acid, refers to an organic product obtained from wood and other plant materials by a destructive distillation process and is used as pesticide and fertilizer. It makes the crops and plants stronger, leaves greener, and resists harmful pests and insects from the crops. The increase in demand for organic food across the world and the rise in organic farming are anticipated to drive the wood vinegar market during the forecast period. Also, the support from governments of various countries for the use of bio-fertilizers and bio-pesticides is anticipated to further propel the business growth opportunities for the market players over the forecast period.
The outbreak of the novel coronavirus disease affected the Wood Vinegar industry negatively due to the lockdown and trade restrictions. The pandemic led to supply chain disruptions which led to losses in the wood vinegar market. But after the lifting of lockdown and the ease of trade and production, the industry is anticipated to recover and come to its normal flow. However, the Covid-19 pandemic brought in rising health consciousness among people. Due to the increased focus on health among people, there is an increased demand for organic food, which is considered to have a positive impact on an individual’s health. Hence, the Covid-19 pandemic led to a long-term change in the preferences of individuals which led to a boost in organic food preference which is expected to positively impact the wood vinegar market and lead to its fast recovery.
The Wood Vinegar Market has been classified on the basis of pyrolysis method, application, and geography. By Pyrolysis Method, the market has been classified on the basis of Slow Pyrolysis, Intermediate Pyrolysis, and Fast Pyrolysis. On the basis of Application, the segmentation has been done into Agriculture, Animal-Feed, Food, Medicinal, and Consumer Products, and others. Geographically, the market for Wood Vinegar has been distributed into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.
The rise in organic farming
One of the key factors supplementing the Wood Vinegar Market growth includes the rapid growth of organic farming around the world. Wood vinegar is used as an organic pesticide and fertilizer and hence the market is anticipated to grow with the growth in organic farming and the rise in demand for organic products. According to EU Agricultural Markets Briefs, the total organic land in Europe is 7% of the total EU agricultural land.
The European Commission has published a new action plan on March 2021 to elevate the production and consumption of organic products in the region and has set a goal to reach 25% of agricultural land under organic farming by 2030. The EU Agricultural Markets Briefs also states that organic farming land has been increasing rapidly in recent years and has seen a growth of 70% in the last ten years. According to USDA NASS, 2019 Organic Survey (2017 Census of Agriculture), the sales of organic products in the United States have increased over the years and the country has seen a huge growth of 31% from 2016 to 2019. Also, the number of operations and land used for certified organic production was increased by 17% and 9% respectively.
There is an increase in the demand for organic products owing to the increased awareness of its benefits. A meta-analysis published in the British Journal of Nutrition in 2014 showed that the organically grown crops had significantly higher levels of antioxidants compared to the conventionally grown crops, with 19% higher levels of phenolic acids, 69% higher levels of flavanones, 28% higher levels of stilbenes, 26% higher levels of flavones, 50% higher levels of flavonols, and 51% higher levels of anthocyanins. The increased awareness of such advantages among people has led to rising in organic farming and increased demand for organic products, which in turn, is anticipated to bolster the wood vinegar market during the forecast period.
Government initiatives to increase organic fertilizer and pesticide use and reduce chemical fertilizer/pesticide use
The governments of various countries across the world have been promoting organic fertilizers and pesticides, which is anticipated to be one of the prominent factors bolstering the growth of the wood vinegar market during the forecast period. Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India provides subsidies under Capital Investment Subsidy Scheme for setting up of agro-waste compost and bio-fertilizer and bio-pesticide production units, in order to promote the use of organic fertilizers and pesticides like wood vinegar. Also, the Indian Government under Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) launched in January 2016 provides assistance of Rs 25,000 per hectare for three years for organic inputs including bio-fertilizers and bio-pesticides like wood vinegar.
The Government of Bali, Indonesia stopped subsidizing chemical fertilizers in 2012 and gradually increased the subsidies for organic fertilizers. In April 2019, the Agriculture Ministry of Indonesia has allocated subsidies for 948,000 tons of organic fertilizers in the country. Due to these initiatives among numerous others implemented in various parts of the world to support the use of bio-fertilizers and bio-pesticides, there is a boost in the wood vinegar market, which is anticipated to grow further in the coming years.
The Asia Pacific to hold a prominent share in the market
Geographically, the Asia Pacific region is anticipated to hold a significant market share in the Wood Vinegar Market owing to the practice of organic farming widely prevalent in the region. According to the World of Organic Agriculture 2019 report, India has the highest number of total organic producers in the world, with nearly 835 thousand organic producers. Also, Australia has the largest organic farmland in the world with 35.6 million hectares of organic agricultural land. China comes at number 3 in the list with 3 million hectares of organic agricultural land. Due to this, the region has a high utility of wood vinegar and is anticipated to dominate the wood vinegar market during the forecast period.
Prominent/major key market players in the Wood Vinegar Market include Applied Gaia Corporation, Tagrow Co., Ltd., and Sane Shell Carbon, among others. The players in the Wood Vinegar Market are implementing various growth strategies to gain a competitive advantage over its competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the Wood Vinegar Market.
|Market size value in 2019||US$5.314 million|
|Market size value in 2026||US$8.545 million|
|Growth Rate||CAGR of 7.02% from 2019 to 2026|
|Forecast Unit (Value)||USD Million|
|Segments covered||Pyrolysis Method, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Applied Gaia Corporation, Tagrow Co., Ltd., Sane Shell Carbon, VerdiLife LLC, Nettenergy B.V., Dongying Runyi Biological Technology Co., Ltd., DOI & CO., LTD., Taiko Pharmaceutical Co., Byron Biochar, New Life Agro|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of global wood vinegar market?
A1. Wood Vinegar Market was valued at US$5.314 million in the year 2019.
Q2. What will be the wood vinegar market size by 2026?
A2. The global wood vinegar market is projected to reach a market size of US$8.545 million by 2026.
Q3. What are the growth prospects for the wood vinegar market?
A3. The wood vinegar market is projected to grow at a CAGR of 7.02% over the forecast period.
Q4. Which region holds the maximum market share of the wood vinegar market?
A4. Geographically, the Asia Pacific region is anticipated to hold a significant share in the wood vinegar market owing to the practice of organic farming widely prevalent in the region.
Q5. What factors are anticipated to drive the wood vinegar market growth?
A5. The increase in demand for organic food across the world and the rise in organic farming are anticipated to drive the wood vinegar market during the forecast period.