Furfural is a natural aromatic aldehyde obtained as a by-product of paper pulp processing. It is an intermediate in production of various chemicals. It finds usage in refining petroleum, making resin molding compounds, extractives. furfural also used to produce other bio-based chemicals.
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% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing preference towards bio-based chemicals across industries over their petroleum-based counterparts has been propelling the demand for furfural. Furfural can be produced from agro-residues like sugarcane bagasse and corn cobs in an environment-friendly manner. It is a key building block in the production of various bio-based chemicals like biofuels, solvents, and plasticizers. The growing focus of chemical industry on developing sustainable processes has been favoring the uptake of furfural in diverse applications.
SWOT Analysis
- Strengths: Furfural has a wide range of applications as a solvent and in the production of other compounds. It is derived from agricultural residues such as corncobs and sugarcane bagasse, making it more sustainable than petroleum-based alternatives.
- Weaknesses: The furfural production process from biomass requires high temperatures and pressures which increases manufacturing costs. Ongoing innovation is needed to improve yields and efficiency.
- Opportunities: Growing demand for bioplastics, pharmaceuticals, and other bio-based chemicals is opening new opportunities for furfural producers. Asia Pacific is emerging as a new manufacturing hub due to increasing biorefineries.
- Threats: Volatility in raw material supply and prices can impact furfural production economics. Stringent safety and environmental regulations around chemical production need to be complied with.
Key Takeaways
The global furfural market is expected to witness high growth over the forecast period supported by increasing adoption in resins, solvents, and other chemical applications.
Regionally, Asia Pacific dominates the market currently and is predicted to grow at the fastest rate due to rising biorefinery investments in emerging economies like China and India.
The global furfural market is dominated by Asia Pacific currently due to presence of large producers and consumer base in China. Countries like China, India, Thailand, and Malaysia are focusing on developing biorefineries near sugarcane fields which will drive regional furfural production. Fuels and bioplastics are witnessing highest demand creating pull for furfural as an intermediate.
Key players operating in the furfural market are focusing on capacity expansions and new plant builds using latest technologies. For example, Central Romana Corporation commissioned a new 60,000 TPA furfural production plant in Dominican Republic. KRBL Ltd is expanding furfural production capacities in India. Quality consistency, application development, and collaborations with end-use industries are prime strategies by leading companies. Collaboration with biorefineries ensures raw material security while partnerships with chemical companies helps penetrate end markets. The global furfural market is expected to be highly competitive with emerging industries investing inAsian countries.
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