The global furandicarboxylic acid market involves the production of furan-2,5-dicarboxylic acid (FDCA), which is a organic compound that can be used as a building block for the manufacture of polymers and plastics. FDCA is an attractive building block for bio-based and biodegradable polyesters as it can be used to produce polymers with properties comparable to petroleum-based PET. It is a potential replacement for terephthalic acid in the production of PET bottles, textiles and films. The increasing demand for sustainable and eco-friendly substitutes to petroleum-based plastics from various end use industries such as packaging, textiles, automotive is driving the demand for bioplastics produced using FDCA.
The Global Furandicarboxylic Acid Market is estimated to be valued at US$ 8.61 BN in 2024 and is expected to exhibit a CAGR of 34% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the global furandicarboxylic acid market are Tokyo Chemical Industry Co. Ltd., Chemsky (shanghai) International Co. Ltd, Avantium, Synbias Pharma, V & V Pharma Industries, and Carbone Scientific.
The rising environmental concerns coupled with stringent government regulations regarding the use of single use plastic are expected to drive the demand for bio-based and biodegradable polymers. This is expected to present lucrative growth opportunities for manufacturers of furandicarboxylic acid.
Technological advancements for large-scale and cost effective production of Furandicarboxylic Acid Market Demand through yeast fermentation and catalytic processes are further expected to support the market growth over the forecast period. Advancements are also being made to develop polymers with mechanical and thermal properties comparable to PET using FDCA.
Market Drivers
The increasing government initiatives towards the adoption of bioplastics along with bans on single-use plastics in several countries are majorly fueling the demand for FDCA based bioplastics. Furthermore, the rising environmental awareness among consumers regarding plastic waste is also propelling the need for sustainable bio-based alternatives to conventional plastics. The stringent regulations regarding carbon emissions from petrochemical industries along with volatility in crude oil prices are further anticipated to drive the furandicarboxylic acid market growth.
Current challenges in the Global Furandicarboxylic Acid Market:
– There is lack of experienced workforce and technical expertise available for manufacturing FDCA on an industrial scale which hinders the growth of the market. Many companies are focusing on research and developments to overcome this challenge.
– Regulatory framework related to the production of Furandicarboxylic Acid Market using GMO is still evolving. Different countries have different sets of rules regarding genetically modified organisms which creates uncertainty. The comprehensive regulatory approvals are required to produce FDCA through fermentation which poses another challenge.
SWOT Analysis
Strength: Presence of strong R&D capabilities among key players to develop advanced production technologies. FDCA can be used as a building block for the production of various polymers and resins for diverse applications.
Weakness: High production costs involved due to novel production technologies and lack of economies of scale. Limited availability of raw materials required for the chemical synthesis of FDCA.
Opportunity: Increasing polymer industry worldwide where FDCA can replace petroleum-based polymers provides growth opportunities. Growing demand for eco-friendly bio-based chemicals also favors market growth over the forecast period.
Threats: Stiff competition from established petroleum-based chemical industries hampers the demand and market penetration of FDCA based products. Concerns over intellectual property rights limits collaborations in the industry.
Geographical regions where market in terms of value is concentrated: Currently, North America dominates the global FDCA market owing to robust research and development activities on bio-based polymers carried out in the region. The European Union and China also hold significant shares of the global market.
The fastest growing region for the Global Furandicarboxylic Acid Market: Asia Pacific region is expected to witness the highest CAGR over the forecast period. This is mainly attributed to the growing polymer and chemical industries along with ongoing government support for boosting bio-based chemicals production in countries like India and China.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it