July 21, 2024

Furfural Market driven by Increasing Demand from Renewable Chemical Industry is estimated to be valued at US$ 625.21 Mn in 2023

Furfural is a colorless liquid organic compound obtained by acid hydrolysis of lignocellulosic materials such as sugarcane bagasse, oat hulls, and corn cobs. It is used as a selective solvent and chemical intermediate in production of various chemicals including furan resins, tetrahydrofuran, pharmaceutical intermediates, agricultural chemicals, petroleum additives etc. The growing environmental concerns along with depleting crude oil reserves are driving research activities towards development of bio-based alternatives. Furfural serves as one of the key platform chemicals obtained from renewable resources and helps enable transition towards greener economies.

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 key trends:

One major market trend is the increasing demand for bio-based furfural from the renewable chemicals industry. Rise in environmental regulations along with depleting fossil fuel reserves have compelled industry players to focus on developing renewable and sustainable alternatives. Furfural being a key building block in production of various bio-based chemicals from renewable feedstocks has witnessed increased adoption. Also, advances in extraction technologies have improved furfural yields from lignocellulosic sources, thereby augmenting supply. This growing preference towards bio-based furfural over petroleum-derived equivalents is expected to significantly drive its demand over the forecast period.

Porter’s Analysis

  • Threat of new entrants: The threat is moderate as the furfural market requires high initial investments and established supply chains.
  • Bargaining power of buyers: Buyers have low bargaining power due to the specialized nature of furfural with few substitute products available.
  • Bargaining power of suppliers: Suppliers have moderate bargaining power as raw materials such as corncobs, bagasse, and birch are widely available from agricultural waste.
  • Threat of new substitutes: The threat of substitutes is low as furfural is uniquely suited for applications in resins, solvents, and other chemical intermediates.
  • Competitive rivalry: The market is competitive with a few large players holding major shares of the global market.

Key Takeaways

The global furfural market is expected to witness high growth over the forecast period of 2023-2030, registering a CAGR of 7%. The Asia Pacific region currently dominates the market, accounting for over 35% share in 2023.

The Asia Pacific region is expected to maintain its dominance in the global market over the forecast period. This can be attributed to large furfural production facilities, growing chemical industries, and availability of raw materials in countries like China and India. Europe and North America are other major markets supporting market growth.

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 leaders are focusing on capacity expansion plans and strategic partnerships to strengthen their market presence.

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