Furfural is an organic compound that is produced as a byproduct of the sugarcane processing industry. It is an agricultural-based aldehyde that is widely used as a selective solvent in petroleum refining and other industrial applications. Furfural is majorly used as a refining solvent in petroleum refineries for removing impurities. It selectively dissolves resins and asphaltenes to upgrade heavy petroleum fractions into lighter products. Furfural also finds applications as a solvent in pharmaceutical industry, production of fragrances and agricultural chemicals. The global furfural market generates demand from various industries including petroleum, chemical, pharmaceutical and others.
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 Dynamics:
The furfural market is expected to flourish with increasing application in petroleum industry as mentioned in the heading. Furfural is widely used as a selective solvent in petroleum refineries for upgrading heavy petroleum fractions into more valuable lighter products like gasoline. With rising oil consumption globally, petroleum refineries are processing more volumes of heavy crude oils which create large demand for refining solvents like furfural. Additionally, furfural is also gaining importance as a sustainable bio-based refining solvent as against petroleum derived solvents. This growing focus on renewable sources will further drive the adoption of furfural in petroleum refining sector during the forecast period. Another driver for furfural market is its use as a precursor to various furan derivatives which have applications as fuel additives and other petrochemical products. Expansion of end use industries will positively influence the furfural market between 2023 and 2030.
Segment Analysis
The global furfural market is dominated by the furfural solvents segment due to its widespread applications in extractions and separation processes across industries. It holds around 60% share of the overall market owing to the increasing use of furfural solvents in petroleum refining, pharmaceuticals and food additives manufacturing. The increasing demand for eco-friendly furfural alternatives to conventional solvents has further spurred the growth of this segment in recent years.
PEST Analysis
- Political: The government regulations regarding solvent-based extractions and VOC emissions have led furfural producers to develop more sustainable extraction techniques. This has positively impacted the market growth.
- Economic: Rising capital investment in renewable chemical and fuel industries has augmented the demand for furfural as it finds extensive applications. Lower crude oil prices have also relatively increased the demand.
- Social: Growing awareness about environment protection and sustainability has boosted the replacement of petroleum-derived compounds with plant-based chemicals like furfural.
- Technological: Advancements in separation technologies and continuous developments of new extraction techniques utilizing furfural solvents have widened its application scope. New production methods lowering costs have attracted more manufacturers.
Key Takeaways
The global furfural market is expected to witness high growth over the forecast period due to increasing furfural applications across industries. 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.
The Asia Pacific region currently dominates the market due to large production bases and growing industrial activities in major economies like China and India. In 2021, the APAC market accounted for over 40% share of the global furfural sales. The rapid establishment of renewable chemicals sector and petrochemical industry in China and India has augmented the demand for furfural extraction solvent considerably. Both countries collectively produce around 60% of the global furfural supply.
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 leading manufacturers are focusing on expanding their production capacities and sales networks across high growth markets.
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