Furfural Market
Global Furfural Market: High Demand for Furfuryl Alcohol to Drive Market Growth at 7% CAGR
The global furfural market is estimated to be valued at US$ 625.21 Mn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030.
Furfural is an organic compound produced by the hydrolysis of lignocellulosic biomass such as corncobs, oat hulls, and bagasse. It is employed in the production of several industrial chemicals. Furfural is colorless to pale yellow liquid with a distinctive almond-like aroma. It is primarily utilized in the production of furfuryl alcohol which finds application as a solvent, cleaning agent, and food additive. Other uses of furfural include refining petroleum, production of flavoring agents and tetrahydrofurfuryl alcohol.
The Global furfural market is driven by the increasing demand for furfuryl alcohol from foundry resins and construction industries. Furfural is a critical intermediate in the production of furfuryl alcohol which has emerged as a potential substitute for resorcinol in foundry binders and molding sands. Additionally, growing application of furfuryl alcohol in the production of food flavoring and corrosion inhibitors is expected to boost the global furfural market revenue during the forecast period.
Key Takeaways
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.; LENZING AG.
The global furfural market is projected to grow significantly due to the increasing demand for furfuryl alcohol from foundry, construction and food industries. The growing application of furfuryl alcohol as a foundry binder and curing agent for resins is expected to fuel market growth over the forecast period.
Technological advancements in furfural extraction methods such as utilization of dilute acid and alkaline hydrolysis technology has improved furfural yield from lignocellulosic biomass. This is positively influencing the market by reducing production costs and improving efficiency.
Market Trends
The rising popularity of bio-based chemicals and increasing use of furfural as a sustainable intermediate are key market trends in the global furfural market. Manufacturers are increasingly investing in the development of cost-effective furfural extraction processes from agricultural residues to meet the growing demand.
Market Opportunities
High demand for furan resins as a sustainable substitute for resorcinol and growing application of furfuryl alcohol in construction chemicals are expected to create lucrative growth opportunities for players in the furfural market. Additionally, development of technologies for production of furfural from novel feedstocks such as agricultural and forestry waste offer opportunities for expansion.
Impact of COVID-19 on Furfural Market Growth
The COVID-19 pandemic has significantly impacted the global furfural market. During the initial outbreak, strict lockdowns and restrictions imposed across major countries led to supply chain disruptions. There was a shortage of raw materials like sugarcane bagasse, corn cobs as the supply chain was disrupted.This affected the production of furfural. Furthermore, closure of end use industries like petrochemicals, pharmaceuticals also impacted the demand for furfural.
However, as restrictions eased in 2021, the furfural market started recovering gradually. Production and supply chains were restored as lockdowns lifted. Furthermore, increased demand from end use sectors like pharmaceuticals propelled the furfural market growth during the pandemic. As furfural is used in manufacturing pharmaceutical intermediates and API, demand increased due to rising pharmaceutical production during the crisis. Moreover, recovery of end use industries like petrochemicals in late 2021 further supported market rebound.
Going forward, the market is expected to grow steadily, approaching pre-pandemic levels by 2024. However, future waves of COVID-19 or emergence of new variants remains a challenge. Continuous supply chain disruptions may hamper production levels. Thus, building resilient supply chains is the key strategy to ensure steady growth post pandemic.
Geographical Regions with Highest Furfural Market Value
In terms of value, North America accounts for the largest share in the global furfural market. Countries like the US and Canada have established petrochemical industries which utilize furfural on a large scale. Furfural derivatives like furan resins find wide applications as adhesives and coatings in these countries. Availability of raw materials like corn cobs and easy access to end use markets further promotes furfural production.
Asia Pacific is the fastest growing region for the furfural market. Countries like China, India have witnessed rapid industrialization providing a boost to end use sectors. China led the regional growth due to large petrochemical production. A well developed chemical industry has increased furfural consumption for chemicals manufacturing. Moreover, countries have established sugarcane and sugar industries facilitating raw material availability for furfural production. The market is expected to grow steadily in Asia Pacific attributed to ongoing industrial growth.
Comments
0 comment