Global Furfural Market - 2022-2029

Global Furfural Market - 2022-2029

Market Overview

The global furfural market reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period 2022-2029.

C4H3OCHO is the formula for furfural, a chemical molecule. Although commercial samples are frequently brown, it is a colorless liquid. The 2-position of furan has an aldehyde group linked to it and is made when sugars are dehydrated, which happens in several agricultural byproducts like corncobs, oats, wheat bran, sawdust, etc. The name furfural is derived from the Latin word furfur, which means bran, and refers to the product's usual source. Furfural can only be made from lignocellulosic biomass from non-food or non-coal/oil sources. Furfural is one of the earliest renewable compounds, alongside ethanol, acetic acid, and sugar and is also present in many processed meals and drinks.

Most polar organic solvents dissolve furfural efficiently, whereas water and alkanes are very mildly soluble. Furfural can be found in the same processes as other aldehydes and aromatic chemicals. Furfural has a lower aromatic nature than benzene, as seen by the ease it may be converted to tetrahydrofurfuryl alcohol. Furfural irreversibly polymerizes when heated in the presence of acids, behaving as a thermosetting polymer.

Market Dynamics

Increasing demand for bio-based fuels and furfuryl alcohol acts as a market driver that boosts the market growth. However, availability of alternatives in the market restricts the market’s growth.

Increasing demand for bio-based fuels and furfuryl alcohol

The majority of the world's energy demand has been provided by non-renewable carbon-based fossil fuels throughout the previous century, which is rapidly decreasing. As a result, severe environmental issues such as global warming have arisen and concerns about future supply security. As a result, major efforts have been made to find viable fossil fuel substitutes. Biofuels made from biomass are a long-term and environmentally friendly alternative to fossil fuels. Biofuels can be employed directly or as bio-additives in fossil fuels to improve cetane number, density, cloud point, flash point, and other fuel qualities.

Furfural has been identified as one of the most valuable value-added chemicals derived from biomass, and it may be used to manufacture a wide range of other chemicals. Furfural is currently a commodity chemical with an annual output of around 300 Kilo Tons and well-established manufacturing technology, bolstering the furfural market. Furfuryl alcohol is a substance produced from furfural. Because of its high reactivity, furfuryl alcohol is essential in manufacturing foundry sand binders, metal cores, and molds. Tetrahydrofurfuryl alcohol (THFA), which is frequently utilized in the pharmaceutical business, is also made from it. As a result, the growing demand for bio-based fuels and furfuryl alcohol is a major market driver for global furfuryl market.

Presence of alternatives in the market

The availability of cheaper crude oil-based alternative goods is smothering the furfural market. Furan resin is used in foundries to manufacture binders. Furan resin is more expensive than phenolic resin manufactured from crude oil. Butanediol (BDO) is also used in the textile industry to produce polytetramethylene ether glycol (PTMEG), used to manufacture spandex. THF, a furfural derivative, can be utilized in spandex production. However, because of the higher expense of making furfural, it is less favored than BDO. The cheaper alternative and the lack of modernity’s complete shift towards sustainability tend to act as a major market restraint.

COVID-19 Impact Analysis

The COVID-19 pandemic had a significant impact on the global furfural sector due to three key factors:

The availability of raw materials and final product sales were hampered by the COVID-19 pandemic's lockdowns and government controls.

Second, furfural production necessitates a number of manufacturing processes, which were greatly hampered by the pandemic's lockdowns and government controls.

The overall drop in end-user activities lowered market demand for furfural, causing demand-supply dynamics to shift.

Nonetheless, since furfural is a component of pharmacological building blocks and is employed as an intermediary in the manufacture of medicines and solvent application of the organic components used in petroleum refineries, the market for furfural is projected to revive the global pharmaceutical and petroleum industries.

Segment Analysis

The global furfural market is classified based on process, raw material, application, end-user, region

The paper straw dominates the product segment

The global furfural market is segmented into solvents, flavor enhancers, gasoline additives, decolorizing agents, resins, fungicides, and others based on application.

The solvents category dominates the furfural market’s application segment. Furfural is a solvent used to refine various activities and processes, including butadiene extraction, lubricating oils, and others. Furfuryl alcohol is made primarily from furfuryl alcohol and is made at a factory by catalytic hydrogenation of furfural at high pressures. It's a common ingredient in plastics and resins. The use of furfuryl alcohol is projected to boost the market for furfural, given the expanding research efforts in the field of rocketry fuel. Furfuryl alcohol is primarily used to make furan resin, which binds foundry sand.

The foundry business is likely to grow in the future years, according to the IKB Deutsche Industriebank, primarily due to growing markets. The demand for foundry resins is likely to rise as the foundry sector expands. As a result, global demand for furfuryl alcohol is expected to boost furfural demand.

Geographical Analysis

Asia-Pacific dominates the furfural market

Due to growing countries such as China, India, and Japan, Asia-Pacific is predicted to dominate the global furfural market over the forecast period. Thanks to expanding urbanization, industrial expansion, and greater investments in emerging economies like Japan, China, and India, Asia-Pacific is a fast-growing part of the foundry products market. China is a chemical processing center, producing a large portion of the world's chemicals. The country accounts for more than a third of worldwide chemical sales. China is home to many of the world's largest chemical firms.

Furthermore, Asia-Pacific is the largest market for furan foundry binder resins made from furfuryl alcohol. As a result, increasing demand for furfuryl alcohol in Asia-Pacific fuels the region's furfural industry's expansion. In Asia-Pacific, the market is driven by low production costs, rising consumer incomes, and the availability of raw resources.

Competitive Landscape

The global furfural market is active and dynamic in terms of the number and strength of global and local producers. Due to a large number of manufacturers, such as Transfuran Chemicals

Central Romana Corporation, Linzi Organic Chemical Inc. Ltd, Silvateam, Illovo Sugar, TransFurans Chemicals bvba, Lenzing, Tanin, Shandong Crownchem Industries, and Pennakem, LLC, the market is classified as fragmented. To achieve competitive advantages and recognition in their particular markets, significant market stakeholders use market techniques such as mergers, acquisitions, product launches, contributions, and collaborations.

Silvateam

Overview: Silvateam Food Ingredients is a food ingredient firm that makes pectin and other hydrocolloid solutions. The company has locations in Rende (Cosenza) and Bergamo and a sales and application lab and exports to major manufacturers in the fruit preparations and dairy industries in over 40 nations globally.

Silvateam is a world leader in manufacturing vegetable extracts that have been effectively employed in the tanning of high-quality leather, animal nutrition, food and drinks, and the chemical, textile, oil, and mining industries while being eco-friendly.

Product Portfolio:

Furfural: Silvateam's manufacturing unit in La Escondida, Argentina, produces furfural. Furfural is a transparent, yellowish liquid with an almond-like odor produced as a byproduct of the manufacture of quebracho extract. The pentosan-rich wood residue is acid hydrolyzed at a specified pressure and temperature to produce furfural, then distilled at 98.5 %.

Key Development:

On September 30, 2019, a joint venture between the Silvateam and JRS Group was closed to meet the growing need for label-friendly food components; the joint venture will spend heavily on developing and producing novel vegetable-based texturizing solutions with high consumer approval.

Why Purchase the Report?

To visualize the global furfural market segmentation based on process, raw material, application, end-user, region, as well as understand key commercial assets and players.

Identify commercial opportunities in the global furfural market by analyzing trends and co-development.

Excel data sheet with numerous data points of furfural market-level with four segments.

PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.

Product mapping available as excel consists of key products of all the major market players

The global furfural market report would provide approximately 69 tables, 72 figures and almost 198 pages.

Target Audience 2023

Manufacturers/ Buyers

Industry Investors/Investment Bankers

Research Professionals

Emerging Companies