Furfural Market Size, Share & Trends Analysis Report By Process (Quaker Batch Process, Chinese Batch Process), By Raw Material (Corncob, Sugarcane Bagasse), By Application, By End Use, And Segment Forecasts, 2022 - 2030

Furfural Market Growth & Trends

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.

Furfural Market Report Highlights

• The Chinese batch process segment dominated the market in 2021. This process is majorly used in China, which is the largest manufacturer across the globe
• The global market is fragmented as the number of companies within furfural business operating in China is relatively high
• A rise in the consumption of solvents from several end-use industries including refining, agriculture, chemical manufacturing, and pharmaceuticals is driving the market toward high yield production and the expansion of this application segment
• Increasing demand for furfuryl alcohol from the foundry industries of Europe and North America has increased the focus of the companies on producing furfuryl alcohol using furfural manufactured in their facilities, thus integrating forward and lowering operational costs
• In 2021, refineries emerged as the dominant end-use segment due to high product demand as a solvent in petroleum refining, specialist adhesives, and lubricants
• Companies in this industry are focusing on sustainability. For instance, Lenzing uses a biorefinery process that ensures full utilization of natural wood
• The production of biorefinery products like furfural helps increase the total yield from wood, thus, creating additional environmental and economic value