Furfural Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Furfural Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The global furfural market is projected to register a CAGR of more than 5% during the forecast period (2021-2026).

Furfural and its derivatives are widely applied as fungicides and nematicides, transportation fuels, gasoline additives, lubricants, resins, decolorizing agents, jet fuel blendstocks, drugs, insecticides, bio-plastics, and flavor enhancers for food and drinks. Overall, they are used as an intermediate in diversified chemical production. With the chemical industry badly impacted due to the COVID-19 pandemic, the demand for furfural went down in 2020. Furthermore, the overdependence on China for raw materials adversely affected the industry. Globally, chemical production declined significantly in 2020, with major chemical producers registering losses in 2020. However, the industry is expected to recover in the medium to long run.

Key Highlights

• Over the mid-term, the major factors driving the growth of the market studied are the increasing demand for furfuryl alcohol and rising usage of furfural for industrial chemical manufacturing.
• However, unfavorable conditions due to COVID-19 are likely to hinder the market growth.
• Asia-Pacific is expected to dominate the market and witness the highest CAGR during the forecast period.

Key Market TrendsIncreasing Demand for Furfuryl Alcohol

• Furfural is majorly used in the manufacturing of furfuryl alcohol. It is industrially produced by the catalytic hydrogenation of furfural under high pressures.
• Furfural is a hemicellulose-derived platform molecule. Furfuryl alcohol is one of the most well-studied drugs that can be made from furfural. It is manufactured on a wide scale in the presence of a CuCr catalyst, but the process has a negative environmental effect.
• Furfuryl alcohol is widely used in plastic and resins. With the growing research activities in the field of rocketry fuel, the consumption of furfuryl alcohol is likely to boost the furfural market in the coming years.
• Furfuryl alcohol is further widely used in adhesive and foundry resin production.
• Plastics are being used in different end-user industries due to the advantages of low cost, less weight, durability, and water resistance. Some of the major end-user industries include automotive and transportation, construction, and electrical and electronics.
• Asia-Pacific holds the major share of the market in the consumption and production of furfuryl alcohol with the increasing population and the concern for renewable materials.
• Thus, the market for furfural is likely to grow globally during the forecast period.

Asia-Pacific to Dominate the Market

• Asia-Pacific is expected to dominate the global furfural market during the forecast period, owing to emerging countries such as China, India, and Japan.
• China is a hub for chemical processing, accounting for a major chunk of chemicals produced globally. The country contributes more than 35% to global chemical sales. Many major companies in the market have their chemical plants in China. With the growing demand for various bio-based chemicals globally, the demand for furfural from this sector is projected to grow during the forecast period.
• India is expected to witness robust growth in its chemical industry, fueled by the growing demand for chemicals and agrochemicals. The government predicts the chemical industry to reach USD 304 billion by 2025, with opportunities offered by the anticipated increase in demand by about 9% per annum over the next five years. The chemical industry holds an investment opportunity worth about USD 701.97 million, with about 168 investment prospects and 29 projects under development.
• Due to rising urbanization, industrial expansion, and increased investments in emerging economies such as Japan, China, and India, Asia-Pacific is a rapidly increasing area of the foundry products sector.
• The foundry industry in India is expected to grow over 13% to reach 14-15 million metric ton by 2021 and 20 million metric ton by 2025.
• Therefore, owing to the above-mentioned factors, the market for furfural in the region is expected to experience steady growth during the forecast period.

Competitive Landscape

The furfural market is partially consolidated in nature. Some of the major players in the market include Central Romana Corporation, Illovo Sugar Africa (Pty) Ltd, KRBL Limited, LENZING AG, and Pennakem LLC.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Central Romana Corporation
Hongye Holding Group Corporation Limited
Illovo Sugar Africa (Pty) Ltd
KRBL Limited
LENZING AG
Pennakem LLC
Silvateam SpA
Tanin d.d.
TransFurans Chemicals bvba
Xingtai Chunlei Furfuryl Alcohol Co. Ltd (hebeichem)
Zibo Xinye Chemical Co. Ltd

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