The global wood vinegar market is expected to reach USD 6.6 million by 2025, growing at a CAGR of 6.7%, according to a new report by Grand View Research, Inc. Increasing support from various governments for adoption of organic farming methods by small-farm holders for improved crop yield is the key factor driving the market growth. In addition, rapid expansion of organic farming in Asia Pacific is expected to boost the market demand further.
Wood vinegar, a natural extract from woods, makes it a better choice in agriculture pesticides category, as compared to animal feed and natural pesticides. The market is mainly driven by its varied uses in agriculture and animal husbandry industry, as it is accepted as a nutrient supplement by farmers and livestock producers, who seek to improve their crop yield by using bio pesticides.
In terms of revenue, agriculture segment accounted as the major application industry in 2016 and is estimated to continue its dominance with a share of 42.6% by 2025, as it is preferred as an organic pesticide and soil fertility enhancer. Globally, various governments and institutions are promoting the use of bio-degradable and non-toxic chemicals in farming. Such initiatives are boosting the growth of its applications in agriculture sector.
The demand for wood vinegar market is expected to surge owing to its increased acceptance from consumers globally. Abundant resources of wood biomass in Asia Pacific region are helping the farmers to produce wood vinegar domestically. In addition, it adds economic value to those farmers who cannot afford premium synthetic chemicals.
Further key findings from the report suggest:
• Fast pyrolysis method is estimated to experience the fastest growth in terms of value at a CAGR of 6.5% from 2017 to 2025 on account of its ability to increase bio-oil yield, upon increase in temperature. Furthermore, growing innovation from producers of pyrolizers such as mobile pyrolysis plant and large pyrolizers that enhance the production capability is leading to the increased adoption of this method.
• Agriculture industry emerged as the largest application segment in terms of revenue in 2016 and is estimated to reach USD 2.8 million by 2025. Increase in organic arable land in Asia Pacific and South & Central America region is expected to boost the growth over the years ahead.
• The U.S. market in terms of revenue is estimated to reach USD 1.05 million by 2025. The market in Asia Pacific is projected to witness substantial growth over the next eight years particularly due to the dominance of established organic farming in Australia and expansion in China and India.
• Key players including Wood Vinegar Australia, Sort of Coal ApS, VerdiLife LLC, Taiko Pharmaceutical Co., Ltd, Nettenergy B.V. and Applied Gaia Corporation dominated the global market.
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