Introduction
Furfural is a highly valuable chemical compound. It is colorless, motile, and clear liquid that has a distinct almond benzaldehyde odor.
Furfural and its derivatives have been widely applied as fungicides and nematicides, transportation fuels, gasoline additives, lubricants, resins, decolorizing agents, jet fuel blend stocks, drugs, insecticides, bio-plastics, flavor enhancers for food and drinks, amongst others.
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. However, ineffective production process yielding low product quality and utilization of expensive technologies may restrict the future market growth.
Table of Contents
Market Overview
The global furfural market is expected to have incremental growth of $244.10 million during 2020-2025.
Growth momentum is expected to accelerate during the forecast period with a 5.12% CAGR.
Increasing demand for furfuryl alcohol and rising usage of furfural for industrial chemical manufacturing are driving the growth of the market.
APAC is dominating the market as the production and consumption of furfural is majorly concentrated in China.
Key Trends
The rising importance of bio-based solvents as a consequence of increasing environmental concerns is anticipated to boost the market demand.
Emerging demand for furfural derivatives (apart from furfuryl alcohol) in various applications are expected to drive the market growth.
Emerging markets in growing economies is expected to drive the market demand in future
Key Market Players
Some of the key players in the market are Illovo Sugar Africa, Central Romana Corporation, TransFurans Chemicals, Pennakem, Hebeichem, Lenzing.
Furfural market is moderately fragmented with a large number of small- and medium-sized manufacturers, which account for a majority of the global share.
Major players focus on mergers & acquisitions, expansion of their manufacturing facilities, infrastructural development, investments in R&D facilities, and are seeking opportunities to vertically integrate across the value chain.
Growth Drivers and Challenges
Growing demand for furfuryl alcohol in various end-user industries is driving the market.
The major drivers for the furfural market are the tightening of regulations globally in regards to air pollution standards.
Availability of crude oil-based alternatives is hindering the market growth
Fluctuating prices of raw materials, such as corncob, along with lack of penetration of furfural in the developed countries of Europe and North America have hampered the growth