Furfural is an organic compound obtained as a by-product of paper pulping process from the hydrolysis of pentosan-rich biomass. It is widely used in the production of furan resins, solvents extraction agents, and aldehyde resins. Furfural finds major applications in petrochemicals, pesticides, pharmaceuticals, and chemical intermediates. It is an important chemical building block that provides numerous possibilities for the development of novel products. The growing production of furandicarboxylic acid (FDCA) from furfural has expanded its application scope in the polymer industry.
The global Furfural Market is estimated to be valued at US$ 625.21 Mn in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The demand for furandicarboxylic acid (FDCA) has been increasing significantly owing to its extensive applications in the production of polyesters. FDCA synthesized from furfural can be used as a feedstock for the production of various biodegradable polymers and PET analogs. It provides properties similar to PET but with improved heat and chemical resistance. FDCA-based polymers are seen as viable alternatives to petroleum-based plastics. The growth of the bioplastics industry is expected to fuel the demand for furfural in the production of FDCA over the forecast period.
SWOT Analysis
- Strength: Furfural is a versatile chemical building block that can be used to produce a variety of downstream products like industrial chemicals which provides opportunity for application diversification.
- Weakness: The furfural manufacturing process uses corrosive acids and produces hazardous by-products, which demands expensive wastewater treatment and other safety measures that increases production costs.
- Opportunity: Growing end-use industries like agricultural chemicals, petrochemicals provide increased demand for furfural and its derivatives. Developing applications in pharmaceuticals and food additives sector also offers new growth prospects.
- Threats: Stringent environmental regulations around the production and disposal of chemicals pose threats. Moreover, fluctuations in raw material prices directly impact furfural production costs.
Key Takeaways
The global furfural market is expected to witness high growth over the forecast period of 2023 to 2030. The global Furfural Market is estimated to be valued at US$ 625.21 Mn in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030.
The Asia Pacific region currently dominate the global market with China holding the biggest share. Rapid industrialization and infrastructure development particularly in China and other Association of Southeast Asian Nations countries has created huge demand for various end-use products of furfural which is driving the market growth.
Key players operating in the furfural market are focusing on capacity expansions to better serve the growing demand. Illovo Sugar Africa (Pty.) Ltd recently started commercial production from its new furfural plant in South Africa. LENZING AG acquired a furfural production plant from Central Romana Corporation to expand its product portfolio. KRBL Ltd commissioned a new furfural unit at its existing distillery in India.
The furfural market is consolidated with top players occupying major share. Strategic collaborations and partnerships between raw material suppliers and end-use industries are expected to provide new opportunities for furfural producers to enhance production capabilities and market position over the forecast period. Continued demand rise from industrial applications will ensure steady market growth in coming years.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
