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The furfural market size is forecast to increase by USD 228.2 million, at a CAGR of 6.78% between 2023 and 2028. Derived from agricultural by-products, furfural finds applications in a range of products, including refractory materials, bricks, fiberglass, and ceramic matix composites. The market's expansion hinges on diverse factors, notably its versatile applications across various industries, catering to a broad spectrum of needs. Strategic mergers and acquisitions play a pivotal role in propelling market growth, fostering innovation and market consolidation. Moreover, the escalating preference for eco-friendly products acts as a significant driver, reflecting the growing environmental consciousness among consumers and businesses alike. This trend toward sustainability fuels the demand for products that minimize ecological footprints and promote responsible consumption practices. As industries increasingly prioritize environmental stewardship, the market stands to benefit from the rising adoption of sustainable solutions, paving the way for continued growth and development across sectors.
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The market is witnessing significant growth driven by the rising demand for renewable sources such as corncobs, sugarcane bagasse, oats, and rice husk. Green chemicals derived from these agricultural by-products find widespread adoption, particularly in industries like paint and coatings, textiles, and construction. However, challenges persist, including competition from crude oil-derived substances and the limited availability of furfural sources. Overcoming these challenges requires innovations in refining processes and increased focus on environmental products. Despite hurdles, the market continues to expand, driven by its eco-friendly properties and diverse industrial applications. In the market, renewable sources like corncobs, sugarcane bagasse, oats, and rice husk are driving the growth of the market. With a focus on green chemicals, refineries are increasingly turning to furfural as an alternative to crude oil-derived substances. Its widespread adoption across industries such as paint and coatings, textile, and construction underscores its versatility and eco-friendly nature. As demand for environmental products rises and industries seek alternatives to fossil fuel resources, furfural emerges as a sustainable solution, poised for continued growth in the global market.
The wide range of applications in various industries is notably driving market growth. Furfural is primarily used as a solvent in the manufacture of plastics, resins, and lubricants. Additionally, it serves as a raw material in the production of a number of chemicals, including tetrahydrofuran, furan, and furfural. Furfural can also be added to food as an additive to improve flavors and aromas. The demand for furfural in various industries is also being driven by its environmentally friendly character. Furfural has become more well-liked as a replacement for chemicals and solvents based on petroleum because it is a renewable resource.
Moreover, its production also produces little waste and emits little harmful pollution, making it a sustainable and environmentally friendly option. Hence, owing to its adaptability, environmental friendliness, and capacity to replace conventional petroleum-based products in a variety of industries, furfural is in high demand, which will spur the market's expansion during the forecast period.
The growing demand for bio-based additives in the agricultural industry is an emerging trend in the market growth. In fertilizers, herbicides, insecticides, and other agricultural products, furfural is used as a bio-based additive. Both crop production and pest infestations can be improved by furfural. The increasing demand for bio-based products, including biofertilizers, in the global agriculture industry, is predicted to increase demand for furfural and its derivatives in the near future.
Furthermore, herbicides, fungicides, insecticides, and other substances that help manage and get rid of unwanted pests can all benefit from the use of furfural as adjuvants. Due to the extensive use of chemical fertilizers and pesticides in the agriculture sector, soil quality has significantly declined in recent years. The agriculture sector is therefore focused on reducing the use of chemical pesticides and composts and replacing them with organic and bio-based products like furfural. Thus, owing to such factors, the market is expected to witness high growth during the forecast period.
The cost of raw materials is a major challenge impeding the market growth. The main sources of furfural are corn cobs and sugar cane bagasse, and the availability of these resources is influenced by factors like weather and crop yields. Hence, the price of furfural is highly volatile. Regulations governing safety, environmental impact, and product quality apply to the production of furfural. The cost of production may increase, and market opportunities may be constrained due to compliance with these regulations.
Furthermore, as a type of renewable chemical, furfural's demand is influenced by its high production costs and sophisticated production technology. Thus, the high price of furfural is likely to hamper the growth of the global market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the furfuryl alcohol segment will be significant during the forecast period. To create furfuryl alcohol, which is primarily used as a chemical intermediate in the production of various chemical products like wetting agents, adhesives, paints and coatings, and foundry resins, furfural, which is derived from sugar cane bagasse and corn cobs, undergoes catalytic reduction. Additionally, furfuryl alcohol finds applications in the food and beverages industry, contributing to specialized flavorings and additives.
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The furfuryl alcohol segment was valued at USD 307.90 million in 2018. In applications involving resin and plastic, furfuryl alcohol is frequently used. It is predicted that increased R&D activities will increase demand for furfuryl alcohol. When making molds for metal casting, this product is crucial to foundry manufacturing. Additionally, ranitidine, which is a chemical component used in the creation of anti-ulcer medications, is synthesized using furfuryl alcohol as a building block. In addition to being used as a fungicide and herbicide, furfural is also used as a solvent in the refinement of lubricating oils, paint strippers, and detergents. Hence, the increasing demand for furfuryl alcohol from various end-use industries is estimated to boost the growth of the global market during the forecast period.
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APAC is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in APAC is anticipated to expand significantly as a result of rising agricultural furfural consumption. The regional market is anticipated to be driven by a rise in demand for furfural from sectors like pharmaceutical, agriculture, and food and beverage. The major contributors to the market expansion in this region are China, Japan, India, South Korea, Indonesia, and the Philippines. The market is also anticipated to grow due to the rising demand used to make bio-based fertilizers. Additionally, it is anticipated that there will be an increase in demand for fertilizers, herbicides, and insecticides during the forecast period in the region.
Further, the demand for food is being driven by population growth in nations like China and India. These nations make extensive use of fertilizers, pesticides, herbicides, and other agricultural products to enrich the soil and plants with nutrients and boost crop production. The region's growing need for agricultural pest control chemicals and pesticides will have a positive impact on the expansion of the regional market. Hence, all such factors will boost the regional market growth during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is witnessing significant growth driven by the shift away from crude oil-derived substances. Agricultural by-products like corncobs, sugarcane bagasse, and oats serve as renewable sources for furfural production. This versatile compound finds applications across various industries, including textile industries, pharmaceuticals, and food products. Its role in the synthesis of furan resin, nylon 6, and furoic acid underscores its importance in manufacturing processes. Moreover, furfural's use in the rocketry fuel and agrochemical sector, as well as its applications as a nematicide and insecticide, highlights its diverse range of uses. As industries seek bio based alternatives and weather conditions affect agricultural policies, furfural's yield and productivity remain crucial factors in its market growth.
Further, the market is experiencing robust growth fueled by the demand for green chemicals and the need to reduce dependence on crude oil-derived substances. With a wide array of applications, furfural is utilized across diverse industries, such as the textile sector, where it contributes to adhesion and durability in fabric production. Derived from agricultural by-products like cellulose and hemicellulose, furfural finds applications in pharmaceuticals, particularly in the synthesis of compounds like ascorbic acid (Vitamin C). Furthermore, it serves as a key ingredient in both non-alcoholic and alcoholic beverages, contributing to their flavor profiles. As industries prioritize sustainability, the demand sourced from bio-based oils continues to rise, driving innovation and growth in the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
Market growth 2024-2028 |
USD 228.2 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.23 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 45% |
Key countries |
China, US, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Behran Oil Co., Central Romana Corp., DalinYebo Trading and Development (Pty) Ltd., Furnova Polymers Ltd., GoodRich Sugar, Hebei Furan International Co. Ltd., Henan Huilong Chemical Co. Ltd., Hongye Holding Group Corp. Ltd., Illovo Sugar Africa Pty Ltd., KRBL Ltd., Lenzing AG, PENNAKEM LLC, Shandong Crownchem Industries Co. Ltd., Silvateam Spa, Tanin DD Sevnica, Tokyo Chemical Industry Co. Ltd., TransFurans Chemicals bvba, Xingtai Chunlei Furfuryl Alcohol Co. Ltd., Zhucheng Taisheng Chemical Co. Ltd., and Zibo Huaao Chemical Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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