Furfural Market by Raw Material (Sugarcane Bagasse, Corncob, Rice Husk), Application (Derivatives, Solvents), End-Use Industry (Agriculture, Paint & Coatings, Pharmaceuticals, Food & Beverages, Refineries), and Region - Global Forecast to 2028
Updated on : August 06, 2024
Furfural Market
The global furfural market was valued at USD 662 million in 2023 and is projected to reach USD 767 million by 2028, growing at 2.9% cagr from 2023 to 2028. Furfural is an organic intermediate obtained using renewable sources or raw materials like corncobs, sugarcane bagasse, oats, and rice husk etc. It finds use in various applications such as derivatives and solvents as it is a green chemical and is used in many end-use industries like refineries, paint & coatings, agriculture etc.
Attractive Opportunities in the Furfural Market
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Furfural Market Dynamics
Driver: Growing demand for furfuryl alcohol
The surging demand for furfuryl alcohol stands out as a primary driver propelling the furfural market forward. Furfuryl alcohol, a key derivative of furfural, is witnessing an increasing preference across various industries, contributing significantly to the market's growth trajectory. Its versatile applications, particularly in the production of furan resins used in foundry applications, have fueled its demand. As industries prioritize sustainable and eco-friendly solutions, the unique properties of furfuryl alcohol make it a sought-after component. The growing awareness and adoption of furfuryl alcohol as a bio-based and renewable resource in the manufacturing sector underscores its pivotal role in driving the overall expansion of the furfural market.
Restraint: Availability of crude oil-based alternatives in the market
The furfural market faces a notable restraint in the form of the availability of crude oil-based alternatives. The traditional dependence on crude oil-derived substances in various industries poses a challenge to the widespread adoption of furfural and its derivatives. As industries continue to rely on conventional sources, the shift towards embracing furfural-based products encounters resistance due to existing infrastructures and well-established supply chains associated with crude oil derivatives. The inertia in transitioning from crude oil-based alternatives to bio-based solutions limits the potential market share that furfural could otherwise capture. Overcoming this challenge requires not only technological innovations but also a shift in mindset within industries to prioritize the adoption of sustainable and eco-friendly alternatives, such as furfural, in their manufacturing processes.
Opportunity: Increased applications in textile industries
The emerging demand from the textile industry presents a significant market opportunity within the furfural sector. As the textile industry increasingly seeks sustainable and environmentally friendly alternatives, furfural has gained attention for its versatile applications. Furfural's potential use in the textile industry arises from its ability to serve as a bio-based component in the production of various textile-related chemicals and materials. As a result, the rising demand from the textile sector positions Furfural as a promising player in addressing the sustainability goals of the industry, thereby creating a valuable market opportunity.
Challenge: Raw material price fluctuations
Raw material price fluctuations pose a significant market challenge for the furfural industry. The production of furfural relies heavily on agricultural by-products such as corncobs, rice husks, and sugarcane bagasse. The prices of these raw materials are subject to various external factors, including weather conditions, agricultural policies, and global market trends. Fluctuations in raw material prices can impact production costs, subsequently affecting the overall economics of furfural manufacturing. Such uncertainties can pose challenges for industry participants in terms of maintaining stable pricing structures and profit margins. To navigate this challenge, players in the furfural market must implement strategic measures, including supply chain optimization, risk management, and exploring alternative and more stable sources of raw materials, to ensure resilience in the face of price volatility.
Furfural Market Ecosystem
By Raw Material sugarcane bagasse to have highest growth in the forecast period
Sugarcane bagasse is rapidly emerging as the swiftest-growing segment among materials like corn cob, rice husk, and others in the furfural market. Fueled by inherent advantages and versatile applications, sugarcane bagasse, an abundant by-product from the sugar industry, is gaining notable traction. Its high cellulose and hemicellulose content make it an exceptional raw material for furfural production, and the efficient conversion of these components enhances overall yield and productivity during synthesis. Furthermore, the utilization of sugarcane bagasse aligns seamlessly with sustainability initiatives, offering an eco-friendly alternative to conventional sources.
By application, the derivatives segment led the market in 2022.
In 2022, the derivatives segment stood out as the largest application of furfural, commanding the largest share of the market. Furfural serves as a crucial starting material to produce various furan derivatives. Notably, furfuryl alcohol, tetrahydrofuran (THF), maleic anhydride (MA), 2-methyltetrahydrofuran (MTHF), and 1,5-pentanediol are among the derivatives manufactured on a commercial scale. This dominance underscores the pivotal role of furfural in the synthesis of key industrial derivatives, contributing significantly to the overall market landscape.
By end-use industry, the paint & coatings segment was the second largest segment in 2022.
In the furfural market, the paint and coatings industry has emerged as the second-largest end-use sector. This notable trend can be attributed to the versatile applications and unique chemical properties of furfural. Derived from agricultural by-products, furfural has secured a significant niche in the paint and coatings sector due to its efficacy as both a resin and solvent. Its compatibility with diverse paint formulations and coatings, coupled with its ability to enhance adhesion and durability, has spurred its adoption in the industry. As the paint and coatings industry pursues innovative and environmentally conscious solutions, furfural's distinct attributes position it as a crucial player, driving its noteworthy presence within this end-use sector in the furfural market.
Asia Pacific to register highest CAGR during the forecast period.
Asia-Pacific (APAC) stands out as the fastest-growing region in the furfural market due to a combination of factors driving heightened demand and production. The region's rapid industrialization, particularly in emerging economies like China and India, fuels the need for furfural across various industries, including chemicals, pharmaceuticals, and agriculture. Additionally, APAC's commitment to sustainable practices aligns with furfural's eco-friendly attributes, further boosting its adoption. The robust agricultural activities in the region, providing ample biomass for furfural production, contribute to the market's expansion.
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Furfural Market Players
The Furfural market comprises key manufacturers such as Central Romana Corporation (Dominican Republic), Pennakem (US), Silvateam (Italy), Illovo Sugar (South Africa), Hongye Holding Group Corporation Limited (China), KRBL Limited (India), Lenzing AG(Austria), and Merck KGaA (Germany), and others. Expansions, mergers & acquisitions, and deals were some of the major strategies adopted by these key players to enhance their positions in the furfural market. A major focus was given to the expansions and deals.
Read More: Furfural Companies
Furfural Market Report Scope
|
Report Metric |
Details |
|
Market Size Value in 2023 |
USD 662 Million |
|
Revenue Forecast in 2028 |
USD 767 Million |
|
CAGR |
2.9% |
|
Market size available for years |
2021–2028 |
|
Base year considered |
2022 |
|
Forecast period |
2023–2028 |
|
Forecast units |
Value (USD thousands) and Volume (Tons) |
|
Segments Covered |
Raw material, Application, End-Use industry, and Region |
|
Geographies covered |
North America, Asia Pacific, Europe, South America, and Middle East & Africa. |
|
Companies covered |
Central Romana Corporation (Dominican Republic), Pennakem (US), Silvateam (Italy), Illovo Sugar (South Africa), Hongye Holding Group Corporation Limited (China), KRBL Limited (India), Lenzing AG(Austria), and Merck KGaA (Germany) are the top manufacturers covered in the furfural market. |
This research report categorizes the furfural market based on raw material, application, end-use industry, and region.
Furfural Market by Raw Material
- Sugarcane Bagasse
- Corncob
- Rice Husk
- Others
Furfural Market by Application
- Derivatives
- Solvents
- Others
Furfural Market by End-Use Industry
- Agriculture
- Paint & Coatings
- Pharmaceuticals
- Food & Beverages
- Refineries
- Others
Furfural Market by Region
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
Recent Developments
- Fortum announced a new biorefinery project in Assam, India. It is expected to start production in 2024. The biorefinery is a joint venture of the Indian oil refinery company Numaligarh Refinery Limited (NRL), Chempolis and Fortum.
- In June 2023, Origin Materials announced startup of origin 1, world’s first commercial CMF (chloromethyl furfural) plant.
- In May 2021, The Kilombero Sugar Company, in which Illovo Sugar Africa holds 75% of the share share announced a major expansion project. This new development will increase the company’s sugar production from 127 000 tons of sugar per annum, to 271 000 tons.
- In May 2019 Pennakem, LLC, obtained the approval of use of its renewable solvent Viridisol M as a raw material authorized for natural detergents and natural detergents made with organic raw materials.
- In May 2017, The U.S. Department of Agriculture granted its "biobased" certificate to Lenzing Group's acetic acid, furfural. This highlighted a significant strength in the company's commitment to sustainability.
Frequently Asked Questions (FAQ):
What are the major drivers driving the growth of the furfural market?
The major drivers influencing the growth of the furfural market are growing demand for furfuryl alcohol and shift towards renewable chemicals.
What are the major challenges in the furfural market?
The major challenge in the furfural market is fluctuations in raw material price.
What are the restraining factors in the furfural market?
The major restraining factor is the availability of crude oil-based alternatives.
What is the key opportunity in the furfural market?
Emerging demand from the textile and fashion industry is a major opportunity in the furfural market.
Who are the key players in the global furfural market?
The key players operating in the furfural market are Central Romana Corporation (Dominican Republic), Pennakem (US), Silvateam (Italy), Illovo Sugar (South Africa), Hongye Holding Group Corporation Limited (China), KRBL Limited (India), Lenzing AG(Austria), and Merck KGaA (Germany), amongst others. .
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The study involved four major activities for estimating the current size of the global furfural market. Exhaustive secondary research was carried out to collect information on the market, the peer product market, and the parent product group market. The next step was to validate these findings, assumptions, and sizes with the industry experts across the value chain of furfural through primary research. Both the top-down and bottom-up approaches were employed to estimate the overall size of the furfural market. After that, market breakdown and data triangulation procedures were used to determine the size of different segments and sub-segments of the market.
Secondary Research
In the secondary research process, various secondary sources such as Hoovers, Factiva, Bloomberg BusinessWeek, and Dun & Bradstreet were referred to, to identify and collect information for this study on the furfural market. These secondary sources included annual reports, press releases & investor presentations of companies; white papers; certified publications; articles by recognized authors; regulatory bodies, trade directories, and databases.
Primary Research
The furfural market comprises several stakeholders in the supply chain, which include suppliers, processors, and end-product manufacturers. Various primary sources from the supply and demand sides of the markets have been interviewed to obtain qualitative and quantitative information. The primary participants from the demand side include key opinion leaders, executives, vice presidents, and CEOs of companies in the furfural market. Primary sources from the supply side include associations and institutions involved in the furfural industry, key opinion leaders, and processing players.
Following is the breakdown of primary respondents
Notes: Other designations include product, sales, and marketing managers.
Tiers of the companies are classified based on their annual revenues as of 2022, Tier 1 = >USD 5 Billion, Tier 2 = USD 1 Billion to USD 5 Billion, and Tier 3= <USD 1 Billion.
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Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the size of the global furfural market. These approaches were also used extensively to estimate the size of various segments of the market. The research methodology used to estimate the market size included the following details:
- The key players in the industry were identified through extensive secondary research.
- The supply chain of the industry and market size, in terms of value, were determined through primary and secondary research.
- All percentage share splits and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of key industry players, along with extensive interviews with key officials, such as directors and marketing executives.
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Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and sub-segments. The data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments of the furfural market. The data was triangulated by studying various factors and trends from both the demand- and supply-side.
In addition, the market size was validated by using both the top-down and bottom-up approaches. Then, it was verified through primary interviews. Hence, for every data segment, there are three sources—top-down approach, bottom-up approach, and expert interviews. The data were assumed to be correct when the values arrived at from the three sources matched.
Market Definition
The furfural market encompasses the production, distribution, and consumption of furfural, a chemical compound derived from agricultural by-products such as corncobs, sugarcane bagasse etc. Furfural serves as a versatile platform chemical, finding applications in various industries, including pharmaceuticals, agriculture, paints & coatings etc. Key market components include furfural manufacturers, suppliers of raw materials, distributors, and end-users. Market dynamics are influenced by factors such as raw material availability, technological advancements, environmental regulations, and the demand for sustainable and renewable chemicals.
Key Stakeholders
- Raw material suppliers
- Furfural manufacturers
- Government & regulatory bodies
- Research organizations
- Associations and industry bodies
- End users
- Traders and distributors
Report Objectives
- To define, analyze, and project the size of the furfural market in terms of value and volume based on raw material, application, end-use industry and region.
- To project the size of the market and its segments with respect to the five main regions, namely, North America, Europe, Asia Pacific, Middle East & Africa, and South America
- To provide detailed information about the key factors, such as drivers, restraints, opportunities, and challenges, influencing the growth of the market
- To analyze the opportunities in the market for stakeholders and provide a detailed competitive landscape of the market leaders.
- To analyze the competitive developments, such as new product launches, expansions, and acquisitions, in the furfural market
- To strategically profile the key players operating in the market and comprehensively analyze their market shares and core competencies.
Available Customizations
Along with the given market data, MarketsandMarkets offers customizations as per the specific needs of the companies. The following customization options are available for the report:
Product Analysis:
- Product Matrix which gives a detailed comparison of the product portfolio of each company
Regional Analysis:
- Further breakdown of the Rest of APAC market
- Further breakdown of Rest of Europe market
Company Information:
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Furfural Market