Furfural Market– Statistics And Analysis & Forecast To 2030
Posted by Mrudula Anil Karmarkar on October 12th, 2022
The global furfural market size is expected to reach USD 923.89 million by 2030, according to a new report by Grand View Research, Inc., registering a CAGR of 6.5% over the forecast period. Market growth can be attributed to the developments of novel derivatives, such as THF, by key manufacturers, resulting in the expansion of the application segment. In addition, favorable regulations concerning the inclusion of bio-based products in several end-use industries are penetrating the demand for organic chemicals across several industries, thus triggering market growth. Technological advancements in the manufacturing process of furfural are estimated to considerably surge the production yield from key raw materials, thus achieving economies of scale.
Key manufacturers in the market are using novel cost-effective processes to increase product yield along with more efficient utilization of key resources. The COVID-19 pandemic impacted the market growth. Disruption in the supply chain and logistic facility impacted the furfural production. Fluctuating prices of raw materials, such as corncob, along with the lack of penetration of furfural in the developed countries of Europe and North America have hampered the growth. However, the usage of furfural as a raw material for biofuel can be viewed as a growth opportunity.
In addition, rising demand from the manufacturers of industrial chemicals and metal casting is projected to fuel market growth.The market is moderately fragmented with small-scale Chinese manufacturers acquiring the majority share. The market is stable, with the majority of the production and consumption taking place in China. Key players across the globe source raw materials that are available in the domestic area as a strategy to reduce operational costs. The inclination of manufacturers towards increasing their production capacity and expansion of manufacturing units is estimated to boost the market growth over the forecast period.
The rising importance of bio-based solvents as a consequence of increasing environmental concerns is anticipated to boost the product demand in solvent applications over the forecast period. The market observed a dip in 2020 owing to the outbreak of the COVID-19 pandemic. There was a change in production volume due to social distancing norms and lockdowns. Disruption in the supply chain and the logistic facility also impacted the furfural production.
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Furfural is broadly used as a solvent or intermediate in several end-use industries, including foundry, agriculture, paints & coatings, pharmaceuticals, refineries, chemicals, automotive, and construction. The growing construction sector is projected to supplement the product demand in several refractory materials including ceramics, bricks, and fiberglass composites over the forecast period. In addition, the rising demand for sustainable products due to the depletion of fossil fuel resources is estimated to drive the demand.
Furfural Market Report Highlights
At present, furfural production is characterized by outdated manufacturing technologies, high steam usage, and high acid consumption, which lead to considerably low product yield or output. As a result, many companies are focusing on the development of new processes to decrease the overall energy consumption and increase the product yield during the purification step. Manufacturers are inclined toward using a combination of the most effective biomass to chemical techniques occasioning a significant decline in operational costs.
On the basis of processes, the global market has been further divided into the Quacker batch process, Chinese batch process, Rosenlew continuous process, and others. In 2021, the Chinese batch process was the dominant process segment and accounted for the maximum share of 82% of the global revenue. This process is majorly used in China, which is the largest manufacturer across the globe. The Quaker batch process is one of the oldest manufacturing processes, while others are modified versions of the former processes.
The market is moderately fragmented with the presence of a large number of small- and medium-scale manufacturers, which account for a majority of the global share. Manufacturers involved in the market are integrated across the value chain. The leading companies are well-equipped with large manufacturing facilities and are engaged in several research & development activities. Illovo Sugar Africa (Pty.) Ltd. is integrated across the value chain. The company uses its sugarcane bagasse for production and also manufactures furfuryl alcohol. In January 2021, the company took initiative and planted 3,000 hectares of sugarcane on communal land through the ‘Illovo small-scale growers project’.
Some of the prominent players in the global furfural market include:
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About the AuthorMrudula Anil Karmarkar
Joined: July 2nd, 2020
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