The global wood vinegar market generated revenue of $3.2 million in 2015 and is expected to register a 7.1% CAGR during the forecast period (2016–2023). The major factors driving the market are the growth of end-user industries, improved crop yield, increased government initiatives for bio-based products, and high waste management potential of wood vinegar.
Wood Vinegar or pyroligneous acid is a derivative of charcoal. It is a dark liquid, which is obtained by carbonization, by heating biomass in a closed container. The smoke liberated from the production of charcoal is cooled into a liquid, and is further separated into tar, wood vinegar, and bio-oil. Wood vinegar contains around 80%–90% water and more than 200 organic compounds, including phenol, esters, acetic acid, ketones, methanol, and formic acid.
Based on manufacturing process, the wood vinegar market is categorized into slow pyrolysis, fast and intermediate pyrolysis, and others. Among these, slow pyrolysis is expected to hold the largest share in the market during the period 2016–2023. This can be attributed to the longer vapor resistance time and slow heating rate offered by this manufacturing process. Further, slow pyrolysis offers a better yield of char, wood vinegar, and other products as compared to the intermediate and fast pyrolysis methods. On account of this, the demand for wood vinegar produced through slow pyrolysis is expected to increase in the forecast period.
Based on application, the wood vinegar market is categorized into food, agriculture, waste water treatment, animal husbandry, wood tar, and others. Among these, agriculture held the largest share in the market during the 2013–2015 period. Due to the heavy use of fertilizers, and pesticides for the prevention of insect attack on crops, the market for wood vinegar in the agriculture application is growing across the globe.
Technological advancements are a key trend being observed in the wood vinegar market. With the rapid advancements in technology, advanced and better pyrolysis kiln methods have been developed for the production of char, wood vinegar, or biochar. The advanced and better pyrolysis methods help to increase the efficiency of the production process of wood vinegar and also lower the total cost of production.
Some of the key players operating in the global wood vinegar market are TAGROW CO. LTD., Ace (Singapore) Pte Ltd., Byron Biochar, Nettenergy BV, Canada Renewable Bioenergy Corporation, and Nakashima Trading Co. Ltd.
Key questions answered in this report
What is the current scenario of the global wood vinegar market?
What are the historical and present size of the categories within the market segments and their comparative future potential?
What are the major catalysts for the wood vinegar market and their impact during the short, medium, and long terms?
What are the evolving opportunities for the players in the wood vinegar market?
Which are the key regions from the investment perspective?
What are the key strategies being adopted by the major players to expand their market share?