February 24, 2024

Furfural Market is expected to be Flourished by High Demand from Furfuryl Alcohol Production

Furfural is an organic compound made from plant biomass through thermo-chemical conversion processes. It is a principal industrial chemical produced globally from agricultural residues such as corncobs, oat hulls, and other agricultural by-products. Furfural finds a wide range of applications in the production of furfuryl alcohol, pharmaceuticals, natural food additives, solvents, and potential fuels. Some key uses of furfural include production of furfuryl alcohol which is used as a resin modifier, foundry sand binder, and in epoxy formulations.

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 Dynamics:

High demand from furfuryl alcohol production is expected to drive the growth of furfural market over the forecast period. Furfuryl alcohol is a major derivative of furfural that finds extensive applications in resin formulations and as a bonding agent. Around 70-75% of commercially produced furfural is processed further to make furfuryl alcohol. Rising applications of furfuryl alcohol in structural adhesives, foundry binders, coatings, and other chemical intermediates has augmented the demand for furfural from this segment. Additionally, growing applications of furfural itself as a solvent and an herbicidal chemical will further support market growth over the next few years. However, availability and pricing volatility of raw materials used in furfural production can hamper the steadiness of supply and demand, thereby restricting the market growth.

Segment Analysis

The global furfural market is dominated by the furfuryl alcohol segment. It accounts for over 30% of the overall market share. Furfuryl alcohol finds extensive application in resin production, especially furan resins that are thermosetting. It acts as a thermally reactive cross-linking agent in resin formulations. Furan resin possesses properties such as high heat resistance, good electrical insulation, and excellent adhesion. thus, they are replacing traditional phenol formaldehyde resins in applications such as foundry cores and molds. The growing use of furan resins in industrial applications is driving the demand for furfuryl alcohol and hence the furfural market.

PEST Analysis

  • Political: The furfural market is positively impacted by government policies and regulations supporting bio-based chemical industries. For instance, the European Union has set promoting bio-based materials as one of its key priorities.
  • Economic: The furfural market is witnessing high growth owing to rising demand from end-use industries such as pharmaceuticals and agricultural chemicals. Additionally, the stable raw material supply from agricultural waste and low production cost are supporting the economic growth of the market.
  • Social: The rising consumer awareness about sustainability and eco-friendly products is fueling the adoption of bio-based materials including furan resins produced from furfural. This is augmenting social factors for the furfural market growth.
  • Technological: Manufacturers are investing in technologically advanced production processes to increase furfural yields and reduce production costs. Continuous innovations to commercialize promising applications of furfural derivatives are also boosting the technological environment.

Key Takeaways

The global furfural market is expected to witness high growth during the forecast period owing to the rising demand for bio-based chemicals and materials. 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.

Regionally, Asia Pacific accounts for over 40% of the global market share and is expected to remain the major revenue generating region supported by the sizeable production capacities in China and India. North America is projected to exhibit the fastest growth led by the growing industrial activities in the US and Canada. Various industries including construction, automotive, and painting & coatings are fueling furfural consumption for applications such as resins, solvents, and pharmacological products.

Key players operating in the furfural market are Illovo Sugar Africa (Pty.) Ltd, Linzi Organic Chemical Inc. Ltd., Trans Furans Chemicals bvba, Central Romana Corporation, DalinYebo, Hebeichem, KRBL Ltd., Silva team S.p.a., and LENZING AG. These companies are focusing on strategic collaborations and new product launches to strengthen their market positions. For instance, Central Romana Corporation has partnered with various research institutions to develop new applications of furfural and its derivatives.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it