The global furfural market is projected to grow at a CAGR of 7.0% during the forecast period of 2024 and 2032. In the near future, the expansion of the market is predicted to be fueled by the growing demand for furfuryl alcohol as a result of rising concerns over renewable products. Furfural is widely used as a solvent or intermediate in numerous end-use industries, such as foundries, pharmaceuticals, paints & coatings, agriculture, chemicals, refineries, automotive, and construction. Throughout the projected period, the demand for furfural in refractory materials such as bricks, fiberglass, and ceramic composites is anticipated to increase due to the expansion of the construction industry. In addition, the market is expected to be pushed by the increasing demand for environmental products resulting from the depletion of fossil fuel reserves.
Due to the widespread usage of furfuryl alcohol in polymers and resins, it is projected that the U.S. would experience significant growth. Plastics are utilized in numerous industries due to their lightweight, low cost, resistance to water, and durability. Therefore, the demand for furfural alcohol raises the market demand for furfural. In addition, growing research in the field of rocket fuel is expected to enhance demand for furfuryl alcohol in the coming years. Since 2020, the COVID-19 pandemic has had a negative impact on the market, as demonstrated by a price reduction. China is a major producer of furfural and furfuryl alcohol, accounting for more than 80.0% of global production. Until global conditions reverted to normal, the coronavirus epidemic had a severe influence on the global market, prompting producers to suffer supply issues. Given the stability of these industries, key end-use applications such as food & beverages and medicines are expected to boost product demand in the foreseeable future.
From furfural, the chemical furfuryl alcohol is formed. Due to its strong reactivity, furfuryl alcohol is indispensable to the production of foundry sand binders. This alcohol has been routinely used to produce metal cores and molds for decades. In addition, it is used in the manufacture of tetrahydrofurfuryl alcohol (THFA), a commonly used medicine. According to the World Foundry Organization, India's foundry industry is expected to grow by 13 to 14 percent by 2025, making it the second-largest foundry market in the world, after China. As a result, the rising foundry industry is increasing demand for furfuryl alcohol and boosting the furfural market.
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As a solvent or intermediate, furfural is utilized by numerous end-use sectors, including foundry, agriculture, paints & coatings, pharmaceuticals, refineries, chemicals, car, and construction. In the coming years, the rising construction sector is predicted to increase the need for Furfural in refractory materials such as ceramics, bricks, and fiberglass composites. Upon the depletion of fossil fuels, it is anticipated that the demand for Furfural will be driven by the growing demand for sustainable products.
China became the second-largest refining economy in 2019 according to the China Petrochemical Corporation due to its massive output capacity. The United States remains dominant in the refining industry. China's rise can be linked to a number of key factors, such as the country's expanding population and economy, which has increased its demand for oil. When products deteriorate as a result of excessive and frequent refining, it may result in monetary losses. Furfural is utilized in petrochemical refining to manufacturing anti-corrosion coatings and as a specialty solvent.
The U.S. refining industry is competitive, among other reasons, because crude oil prices are higher, refineries are more advanced and complex, personnel is highly skilled and adaptable, and operational expenses are low because Furfural is a chemical feedstock used to produce other industrial chemicals. It is projected that China, the EU-28, the United States, Japan, South Korea, India, Taiwan, Russia, Brazil, and Saudi Arabia would create more chemicals, which will increase the need for Furfural in these economies.
The metal casting industry is vital to the security and economic growth of many nations. At foundries, both nonferrous and ferrous alloys are melted and poured into molds so that they can harden into finished products. Furfural and its derivatives are used to manufacture metal-casting molds in the foundry sector. It is claimed that the increase in metal casting production drives both the expansion of the foundry industry and the demand for Furfural.
Over the past decade, the global metal casting industry has expanded significantly. Demand for lighter building materials has contributed to the rise of aluminum foundries. In particular, in Asia-Pacific, Europe, and North America, the growth of the metal casting industry has been aided by efficient management practices and innovative technologies, such as automation.
Furfural's demand is restrained by the availability of alternatives generated from crude oil that are relatively less expensive. Furan resin is utilized to create binders in the foundry sector. According to a number of primary sources, phenolic resin, which is generated from crude oil, is less expensive than furan resin. Butanediol (BDO) is also a component of polytetramethylene ether glycol (PTMEG), which is used in the textile industry to manufacture spandex. THF, a furfural derivative, can be used in the production of spandex, however, its greater cost due to furfural processing renders it less appealing than BDO.
Changes in the price of key raw materials, such as corn cob, might increase the cost of producing Furfural, which could impede future market growth. Feedstocks are used in the production of furfural. Examples include corncob, sugarcane bagasse, sunflower hull, and rice husk. Due to its high yield and higher pentosane concentration in comparison to other raw materials, corncob, also known as grain maize, is the major raw material used to create furfural.
When there are fluctuations in the amount of raw material available, the price of that raw material, specifically corncob, can fluctuate. As a result of climate change, the cost of raw materials has increased, causing a shift in the Furfural market price. The EU-28 produced 295.1 million tons of basic cereals in 2018, according to the EU-28 Report on Agricultural Commodities. About 23.4% of the output share of other cereals consisted of a mixture of grain maize and corn cobs. The proportion of grain maize and corn cobs increased by 1.6% by the end of 2018. Until 2017, the price of a blend of grain maize and corn cobs fluctuated. However, this price increase cannot compare to the greatest in 2012. Changes in the price of corncobs can increase the cost of making furfural, which could limit the expansion of the market in the near future.
Due to its high tensile strength and elasticity, spandex is experiencing an increase in demand in the textile and apparel industry. The growth of the spandex fibers market in recent years has been aided by the evolving textile industry and increased health awareness. It is believed that this will promote the market for PTMEG, an application of THF. One of the furan derivatives that can be derived from furfural is THF. Polyurethane (PU) is another substance generated from PTMEG. Numerous industries, including apparel, appliances, automotive, construction, flooring, furnishings, marine, and medical, make substantial use of polyurethane (PU). PU foam is frequently selected for automotive interiors and thermal insulation in construction due to its energy efficiency. China is the largest consumer and producer of polyurethane (PU), therefore a favorable market environment in APAC is expected to increase demand for PU over the forecast period, creating opportunities for furfural producers.
The chemical industry is transitioning toward the sustainable production of bio-based/green chemicals that comply with the 12 principles of green chemistry. Biotechnological processes such as fermentation, biocatalysis, and enzymatic processes, among others, have become practical as a result of modifications to the production of green chemicals. These factors have contributed to the expansion of the green chemical industry. To meet the growing demand for their products, green chemical producers are increasing their manufacturing capacity and developing new facilities. They have combined their production and distribution channels to facilitate product distribution. Strategic alliances and mergers and acquisitions are crucial components of this industry and help organizations strengthen their position in the market. The impact of end-user business activities on the finances and operations of both raw material suppliers and manufacturers is substantial. Among the factors contributing to the rise of the furfural market are the development of new bio-based value chains, the expansion of the green chemistry sector, and the creation of new company sustainability programs.
Furfural is a chemical generated from biomass and processed using the most well-known method, the Quaker Oats method, into numerous chemical compounds and fuels. Numerous processes have been developed to valorize agricultural feedstocks or wood residues for the synthesis of furfural. The Supra Yield technology yielded a yield of roughly 70% in pilot-scale testing. The commercial use of this technology, however, did not provide the same returns as the pilot studies. In addition, various studies have been undertaken to understand the chemical mechanisms underlying the formation of furfural from agricultural/wood residues. The current emphasis is on expanding these investigations to increase furfural production for commercial purposes.
In 2023, the Chinese batch process held the largest revenue share of 80.0% of the market. This is a result of the extensive use of the Chinese batch process in various small-scale manufacturing facilities, the bulk of which are located in China, which accounts for a substantial percentage of the market. China generates a huge amount of furfural, and it is claimed that the Chinese batch technique produces furfural on a larger scale. This technique often utilizes corncob as its feedstock. In contrast to the Quaker batch process, in this procedure, the digesters rotate. The digesters are gigantic cylinders in which steam is delivered at five bars over a static bed that is 8 m tall and 1.5 m in diameter. On a commercial scale in China, the process generates a furfural yield of between 30 and 40 percent.
The Quaker batch method is among the first methods for generating furfural. In its manufacturing facility in Cedar Rapids, Iowa, the Quaker Oats Company devised the first technique of production. With the exception of well-established and prominent manufacturing facilities such as Central Romana Corporation, the approach is no longer extensively used today. A Dominican sugar mill and Quaker Oats created Central Romana Corporation in order to market the Quaker batch technology for generating furfural. The Rosenlew continuous technique is the most efficient and requires the least maintenance. However, because to its high steam consumption, restricted manufacturing yield, and expensive production costs, this technique is rarely chosen by small and medium-sized firms. The Chinese batch technique is preferred by the majority of firms since it is less expensive.
In 2023, corn cobs held a 70% revenue share of the global market. This is because corncobs contain around 31.0% pentosane and are a raw material for the synthesis of furfural. In addition, the high yield of the corncob makes it a viable raw material, and it is used in approximately 70.0% of the world's furfural production. The synthesis of furfural from corncob involves hydrolysis, preliminary treatment, purification, and separation. Corncob is therefore the most desirable raw material for the production of furfural.
Bagasse is a frequently exploited agricultural byproduct derived from sugarcane. Multiple sugarcane-processing industrial facilities, such as sugar mills and separate distilleries, may obtain enormous volumes of sugarcane bagasse at a discount. In Brazil, China, India, and Thailand, significant quantities of sugarcane are farmed, making bagasse widely available in their respective economies. Sugar mills can increase the amount of bagasse available for use as a raw material by increasing bagasse production using a gas-fired boiler. Due to the expense and difficulty of bagasse storage, a furfural production must be located near a sugar mill.
With a 50% revenue share in 2023, the refinery end-use category led the market. This is because furfural is widely employed as a solvent in petroleum refining, specialty adhesives, and lubricants. Hydrogenation can transform it into 2-methyl tetrahydrofuran and 2-methyl furan, which are both used as additives in gasoline. In addition, the increased demand for lubricants in the industrial and automotive sectors is expected to enhance petroleum refining activities and significantly raise demand for furfural in the petroleum refining industry.
The agrochemical industry uses furfural extensively as a nematicide, pesticide, and fungicide. It is a component of several nematicides, such as crop protectors and guards. In horticulture, the chemical is also employed as a weed killer. Furfural is a contact nematicide that is transmitted or mechanically absorbed into the soil in relatively small amounts during irrigation. It is a relatively safe and simple-to-use agrochemical.
As a significant amount of stone oil products, such as dimethylbenzene and benzene, are used in the synthesis of paints, the paints and coatings sector is concerned about environmental pollution. Both the environment and the operator are seriously endangered by petroleum solvents. As an alternative to petroleum-based solvents, firms in the paints and coatings sector prefer bio-based furfural solvents. It is projected that the expansion of the paints and coatings industries, combined with stringent laws and prohibitions on the use of synthetic chemicals, will enhance product demand in these industries.
Ascorbic acid (vitamin C) is a significant component in fruit juices and wines, while furfural is a byproduct of ascorbic acid. It is also used as a flavoring agent in a vast array of alcoholic and non-alcoholic foods and beverages. During manufacture, excessive amounts of furfural are added to wine to increase its shelf life. The food and beverage industry has become one of Europe's most significant manufacturing sectors. This is due to the increasing consumption of alcohol, drinks, and convenience foods.
In 2023, furfuryl alcohol dominated the market with an 85 percent revenue share. Due to the predominance of foundries, furfuryl alcohol is frequently utilized as a binder in the sector. Furfuryl alcohol is widely employed in the synthesis of furan resin, a key chemical feedstock used in the production of paints, cement, adhesives, thermoset polymer matrix composites, and casting resins. Furfuryl alcohol is exploited by the petroleum and refining industries as a solvent. For a number of years, furfural has been exploited in the production of Nylon 6,6 and Nylon 6. In addition, furfural is used as a chemical intermediate in the synthesis of tetrahydrofuran and furan. Primarily, it is utilized as a precursor in the production of various furan derivatives, such as furoic acid and pesticides.
The increasing use of furfural as a selective solvent in the refinement of lubricating oils and rosin is anticipated to increase the solvent's demand. In addition, it is employed as a solvent in the extraction of mineral oils and as a wetting agent in the fabrication of brake linings, refractory materials, and abrasive wheels. In addition, it eliminates dienes from a variety of hydrocarbons present in plastic and nylon. Rising product demand for solvent-based processes, such as lubricating oil and butadiene extractions, is anticipated to spur solvent expansion in the near future. Furfural has been used for many years as a chemical raw material in the manufacturing of Nylon 6, 6, and Nylon 6. In addition, furfural is used as a chemical intermediate in the synthesis of tetrahydrofuran and furan. Primarily, it is utilized as a precursor in the production of various furan derivatives, such as furoic acid and pesticides.
In 2023, Asia-Pacific held a 75% revenue share of the global market. This is due to the massive furfural output, particularly in China, and the rise of different end-use sectors, including agriculture, food & drinks, medicines, and refineries, in China, India, and Japan. The Asia-Pacific market is also expected to experience significant growth due to the increased consumption of furfural from agriculture; according to the India Brand Equity Foundation, around 58.0% of India's population depends primarily on agriculture for their livelihood (IBEF). The demand for agricultural products is fueled by a large population and rising rural and urban incomes.
Emerging nations including China, India, and Japan are projected to propel Asia-Pacific to the top of the worldwide furfural market throughout the forecast period. China is a major producer of the world's chemicals and a center for chemical processing. The country's contribution to global sales of chemicals surpasses 35%. China is home to the chemical plants of major industry leaders. This industry's demand for furfural is anticipated to expand over the projected period as the global need for bio-based chemicals grows. The growing demand for chemicals and agrochemicals is predicted to underpin the robust expansion of India's chemical sector. The government projects that the chemical industry would reach USD 304 billion by 2025, based on an annual demand growth of around 9% over the next five years. With more than 168 investment possibilities and 29 projects under development, the chemical industry provides investment opportunities totaling around $701.97 million. Due to rising urbanization, industrial expansion, and increased investments in emerging economies like China, India, and Japan, the market for foundry goods in Asia-Pacific is expanding rapidly. By 2021, the Indian foundry industry is projected to reach 14-15 million metric tons, and by 2025, 20 million metric tons. As a consequence of the aforementioned factors, it is predicted that the furfural market in the area would increase steadily throughout the forecast period.
The North American industry has undergone tremendous growth over the past decade because of the presence of well-established chemical and fertilizer firms in the region. Furfural is now produced in the United States by Pennakem LLC. The majority of the commodity's imports originate in China, the Dominican Republic, and South Africa. In addition, North America is projected to have substantial expansion in the near future as a result of the developing pharmaceutical industry and the rising use of this product in drug synthesis.
Product quality, the number of producers and distributors, and their regional presence have a significant impact on competition. In addition to focusing on bio-based oil formulation and various strategic operations, such as acquisitions and mergers, the main manufacturers are increasing their research and development (R&D) efforts in order to create novel and inventive products and services. Several global industry stakeholders and participants are likewise seeking to increase their production capacities. Naturally, the furfural market is very concentrated. Leading market participants include Central Romana Corporation, Illovo Sugar Africa (Pty) Ltd, KRBL Limited, LENZING AG, and Pennakem LLC.
