Vinasse Market

Vinasse Market Outlook (2023-2033)

The market for vinasse can be expected to expand at a value based CAGR of 4.2% and show an increase in revenue from US$ 886.8 Mn to around US$ 1,335.8 Mn by 2033.

Vinasse Consumption Analysis (2018-2022) Vs. Market Estimations (2023-2033)

The global vinasse market has witnessed significant growth in the historical period registering a CAGR of 4.2% in the historical period and was valued at US$ 886.8 Mn in 2023. The market is expected to grow steadily with increasing awareness about applications of vinasse.

Sales for use in fertilizers accounted for more than 70%, with high usage in sugarcane fields. Vinasse is full of nutrients and beneficial minerals, including potassium, calcium, nitrogen, and phosphorus, which supports its use in the crop protection industry. High protein enrichment in vinasse enables it to be used as an animal feed additive and fodder. It also contains sulphate, magnesium, and micronutrients such as iron, zinc, and copper that provide high energy levels to livestock, thus increasing its usage in the animal feed industry.

Further, increased technological advancements related to using vinasse for energy production over the years has gained traction, by using vinasse being a renewable energy resource. Moreover, the trend of organic farming in developing countries such as India, China, Indonesia, and Thailand is anticipated to propel demand for vinasse from the fertilizer industry, with value expected to reach close to US$ 845 Mn by the end of 2033. The global market for vinasse is estimated to reach an approximate valuation of US$ 1,335.8 Mn in the forecast period.

What are the Key Trends in the Market for Vinasse?

“Convenience Offered by Liquid Fertilizers in Agriculture Sector”

Liquid fertilizers have gained traction in recent years due to their high functionality and ability to offer even distribution throughout the area of cultivation. Easy penetration through the soil and immediate effectiveness are factors that have triggered demand for liquid fertilizers across the globe. Manufacturers are increasingly offering vinasse as a liquid fertilizer to ensure quick root growth and uniform spread throughout the field. Vinasse, as a liquid fertilizer, helps evenly distribute nutrients among the plants. It can be taken up by plant foliage immediately with the presence of nitrogen in the protein form. Vinasse offers high convenience to farmers for ensuring uniform distribution across the field.

“Utilization of Vinasse in Production of Clean Energy”

Demand for energy is growing across the world, owing to increased technological advancements and major consumption of energy for electronic equipment and industrial processes, among others. High amount of energy is required for transportation, commercial, industrial, residential, and other purposes. This demand cannot be fulfilled by non-renewable energy resources alone; thus, demand for renewable energy sources such as biogas, hydropower, geothermal energy resources, and others has increased. Vinasse is produced as an ethanol by-product, and it can be used for energy production as a renewable energy resource, which is why it is gaining attention across industries.

“Increasing Demand for High Yielding Fertilizers”

Growing demand from the food industry has caused farmers to look for fertilizers that can increase their yield and crop cultivation to gain high profitability. This has also increased focus on maintaining the quality of crops and intensifying production on current croplands. Moreover, there is rising demand for fertilizers having adequate levels of nitrogen, phosphorous, and potassium, which are essential nutrients for plants and help increase crop yield. Vinasse is packed with essential nutrients such as potassium, calcium, nitrogen, and phosphorus, which are required for crop protection and increasing crop yield. Use of vinasse as a fertilizer helps restrain the breeding of soil pathogens and reduces plant diseases, thus promoting high yield.

• Gyor Distillery and Refinery Co. offers vinasse to be used as a fertilizer that has a large amount of nitrogen and potassium. It provides a good growing media for microorganisms, and promotes degradation that offers increased yield and crop quality.

“Application of Vinasse Increasing across Regions”

Disposal of vinasse without treatment has gained attention over the recent years, as it is generally considered as a waste product in many countries and its disposal raises environmental concerns. Increasing ethanol production has given rise to a rise in vinasse volume produced, with around 10 to 15 liters of vinasse produced for every liter of ethanol. Environmental concerns regarding the use of vinasse have given rise to regulatory frameworks in some countries. Direct discharge of vinasse in flowing waters is banned in many countries, owing to the possibility of contaminating the water bodies and groundwater.

However, many countries are also working to develop various programs for the sustainable management of vinasse. This is increasing its application across various industries such as fertilizers, animal feed, energy production, brick manufacturing, fermentation practices, and others. Increased application of vinasse has helped manufacturers achieve better disposal and management, thus creating opportunity for increased sales and expansion.

“Factors Restraining the Growth of Vinasse in Global Market”

Vinasse has a rich content of organic matter and potassium, which is needed for making plant fertilizers. In dominant ethanol producing countries such as Brazil and Argentina, it is widely used as a fertilizer and sprayed across sugarcane fields, owing to its low cost and easy availability. However, high volumes of vinasse may have some harmful effects, such as it can lead to increased composition of nitrogen and potassium in the soil, which are its main chemical components. Long-term use of vinasse on a particular land piece can also promote soil alterations such as improved aggregation, separation of mineral elements, and contamination of ground water reserves.

Country-wise insights

Why does Brazil Account for the Largest Market Share in Latin America?

Brazil is the second-largest ethanol producer in the world, and largest producer of sugarcane ethanol. Vinasse is a by-product of sugarcane and sugar beet ethanol production. Brazil also accounts for the largest sugarcane production, which contributes to large sugarcane vinasse output in the country. Manufacturers largely offer vinasse produced for application in the fertilizer industry. Presence of many players and large number ethanol production facilities in the country are contributing to the dominating market share of Brazil in Latin America.

Why is Thailand a Huge Market for Vinasse Stakeholders?

Thailand is developing at a faster rate at social and economic levels. The government aims to transform it from a low-income to an upper-income country. The country has also set a target for achieving 30% of its energy generation from renewable resources by the year 2036, as part of the country’s low-carbon transition plan. The country desires to use renewable biofuels, including solar, wind, and other sources.

Thailand is the third-largest sugarcane producer in the world, which is used for sugar as well as ethanol production. This is contributing to the country’s economic development and attracting major players toward the market in the country. Increasing production and cheap labor in the country are also among the reasons why leading manufacturers should focus on investing in Thailand. Increasing demand for fertilizers and animal feed products is expected to benefit vinasse manufacturers, with the market in Thailand expected to expand at a value CAGR of more than 8% over the next ten years.

Category-wise insights

How is Bioconversion of Sugarcane Vinasse into High-value Products Anticipated to Increase Demand?

Use of vinasse as a raw material in the production of bio surfactants before its treatment and disposal is one of the solutions that is gaining traction among manufacturers. It helps obtain a valuable product that has vast potential in industrial applications. High levels of carbohydrate and carbon in vinasse provide an optimum solution for biosurfactant production. Biosurfactants have wide applications in various industries such as petrochemicals, food, and cosmetics. Use of vinasse can reduce the production cost of biosurfactant products when compared to the cost incurred by using petrochemical products. Thus, production of value-added products from vinasse is expected to increase its demand over the forecast years.

Why is Use of Vinasse Increasing in Organic Farming?

There is a gradual shift toward organic farming with increased concern regarding the health impact of pesticides and chemical fertilizers. Increasing use of organic farming is also helping protect the environment and increasing sustainability. This has increased demand for high quality and affordable organic fertilizers in the market. Vinasse is a good source of organic matter, and can be used as an organic fertilizer. Vinasse includes numerous nutrients such as proteins, amino acids, fats, and others that are beneficial to crops. Increasing demand for organic fertilizers is expected to boost sales of vinasse for fertilizers, at a value CAGR of more than 4% over the forecast period.

• Dacam Fertilizers BV and Dacam Feed BV offers vinasse in the pure form in bulk orders, which can be used as an organic autumn fertilizer to increase the quality of crops.

Competitive Dashboard

Manufacturers operating in the market are expected to witness growth for application in the energy production segment, owing to growing need for sustainability. Vinasse used as a renewable energy resource to produce large amount of energy. The energy production segment under application is expected to expand at a value CAGR of 6.5%. Key players such as E D & F Man and Dacam Fertilizers BV, and Dacam Feed BV are also focusing on offering application-specific vinasse for the fertilizer and animal feed industry. Manufacturers are also involved in continuous technical upgrades to improve their production volumes and efficiency.

• In 2017, Tereos Group opened a new technical customer support facility in China to offer better products and services to its regional customers. The company will make use of its new research & development center in Singapore to deploy innovative solutions in the Asia Pacific region agriculture and food sector.
• In 2015, Chengdu Green Gold Hi-Tech Co., Ltd. signed a merger and acquisition agreement with Sichuan Province Wuliang Feed Co., Ltd., which was formally known as Sichuan Guoke Zhongnong Bio-Technology Co., Ltd. The company specializes in agricultural biotechnology research & development and commercialization of research findings. This merger and acquisition has helped Chengdu Green Gold Hi-Tech Co., Ltd. get a bi-directional breakthrough on the industrial operation and capital operation. The company owns 4 production base groups and 8 vinasse fodder processing production lines, and produces 400 tons daily output of dry vinasse powder, with over 100,000 tons of annual output.
• ED&F Man purchased Mercatura, a Netherlands-based company that trades animal feed industry products, in 2015. The business specialises in sugar byproducts. This will assist ED&F Man in strengthening its presence in the country and improving its distribution system for products in the animal feed industry.
• OSMO has partnered with various distributors and wholesalers to distribute its products and reach the target market. The company has partnered with a large number of distributors to ensure product availability. Some of the distributors are Miermans Garden Center, Mol Gardens BVBA, Robberechts Flowers, Vanderauwera Tree Farm, Van Roie Gebr. Garden Center and others.

Vinasse Industry Report Scope

Vinasse Industry Research by Category

By Source:

• Sugarcane
• Sugar beet

By Application:

• Fertilizers
• Fermentation
• Animal Feed
• Energy Production
• Others

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

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