Furfural Market

Furfural Market Overview

The global Furfural Market size was valued at USD 595.8 million in 2023 and is predicted to reach USD 860.8 million by 2030 with a CAGR of 5.4% from 2024-2030. The furfural also known as furaldehyde market includes the global industry that is involved in the production, distribution, and utilization of furaldehyde. Furaldehyde is an organic compound derived from agricultural byproducts such as corn cobs, oat hulls, and sugarcane bagasse. It is extensively used in various industrial sectors for the production of furan resins, solvents, pharmaceuticals and agricultural chemicals.

The versatile nature of the product enhances its utility in manufacturing of foundry resins, lubricants and flavouring agents in the food industry. The key advantage of furaldehyde includes its eco-friendly characteristic as it is sourced from renewable agricultural resources that aligns with the rising emphasis on sustainability and minimizing carbon footprint at global level. The presence of excellent solvent properties, high chemical stability, and low toxicity makes it a preferred choice for various industrial sectors that prioritize sustainability and eco friendliness.

Market Dynamics and Trends

The expansion of the pharmaceutical industry fuels the demand for furaldehyde due to its versatile application in drug formulation and synthesis. The report of the European Industrialists Pharmacists Group states that European pharmaceutical market generated around USD 276.8 million and is expected to grow at 5.4% CAGR by 2025. The solubility and compatibility properties of furfural increase its use in drugs formation that makes it useful for formulation of oral, topical, and parental dosage forms. This surge in pharmaceutical industry propels the demand for furaldehyde as a versatile compound for drug synthesis, formulation and stabilising agent.

Additionally, the growth of the agricultural industry provides ample feedstock from agricultural byproducts that propels the furfural market growth. Furaldehyde is derived from agricultural byproducts such as corn cobs, sugarcane bagasse, and rice husks that relies heavily on the availability of agricultural processes.  As per the report published by the Food and Agriculture Organizations of United Nations report, the global production of primary crop commodities reached around 9.5 million tonnes in 2022, that reflects a 54% growth from 2000. The expanding agricultural industry accelerates the market growth by abundant supply of agricultural residues.

Moreover, the growth of the global paint and coating industry further propels the demand for furfural as it is used as a solvent and resin precursor in the production of high-performance coatings. According to the report of the World Paints and Coatings Industry Association 2023, the global paint and coating market witnessed a growth of around USD 179.7 billion growing at annual rate of 3.1% in 2022. Furaldehyde-based resins offers superior chemical resistance, durability and environmental benefits in comparison to traditional petrochemical based alternatives. This surge in the global paints and coatings necessities the adoption of furaldehyde to produce eco-friendly coatings.

However, the presence of stringent regulations and safety standards enhance the complexity and expenses associated with furfural production. Consequently, it prevents small and medium sized producers from entering the market due to financial burden and regulatory hurdles that hinders the overall market growth.

On the other hand, innovation in conversion technologies such as enzymatic or microbial conversions for the development of new process of furfural production from alternative feedstocks is expected to create ample opportunities for growth of the market.

Market Segmentation and Scope of the Study

The furfural market report is segmented on the basis of raw material, process, application, end users and region. On the basis of raw material source, the market is divided into corn cob, sugarcane bagasse, rice husk, and wood pulp, and others. On the basis of process, the market is divided into quaker batch process, Chinese batch process, and rosenlew continuous process. On the basis of application, the market is divided into furfuryl alcohol, solvent, intermediate, and other. On the basis of end users, the market is divided into agriculture, paints & coatings, pharmaceuticals, food & beverage, refineries, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW. 

Geographical Analysis

Asia Pacific dominates the furfural market share and is projected to maintain its dominance throughout the forecast period. This is due to the presence of large agriculture industry in the countries such as China, and India where rising agricultural production generates ample feedstock for furaldehyde production. The report of the India Brand Equity states that India is an agrarian economy with around 330.5 million tonnes production of food grain in 2022-23. The rising crop production surge the availability of agriculture residues, accelerating the production and growth of furfural market demand.

Furthermore, the propelling growth of the food and beverage industry boosts the adoption of furfural due to its capability to enhance the taste profile in food items. As per the report published by the Government of Canada, the Chinese food and beverage industry witnessed a growth of around 679.3 million in 2022 that indicates a growth of 18% from its previous year sales. Furaldehyde is known for its sweet and caramel flavour aroma serves as a flavouring agent in diverse category of foods and beverage products. The expansion of this industrial sector necessities the manufacturers to use furaldehyde to develop innovative and appealing products to satisfy the customer taste.

On the other hand, North America is expected to show a steady rise in the furfural market trends. This is due to the growth of the pharmaceutical industry in the region that propels the need for adoption of soluble component for synthesis of drug. The report of the European Federation of Pharmaceutical Industries and Association reveals that the U.S. accounts for 52.3% share of the global pharmaceutical sales that accounts for around USD 1287.7 billion in 2022. The versatility property of furaldehyde makes it indispensable component in the production of various pharmaceutical drugs. Thus, the surge in the manufacturing and sales of pharmaceutical industry boosts the adoption of furaldehyde as a key intermediate in drug formulation.

Moreover, the growth of the refinery industry in the region further boosts the market growth due to increasing adoption of sustainable processing aids by refineries. The Statisque Canada report states that Canadian refining of finished petroleum products rose for the third consecutive year by 3.9% that is around 120.7 million cubic metres in 2023. Furaldehyde helps in the purification of lubricants and extraction of diesel and kerosene from crude oil that propels its market growth as it is used as an effective solvent in refining process.

Competitive Landscape

The furfural industry comprises of various market players such as Lenzing AG, KRBL Ltd., Transfuran Chemicals, RX Chemicals, Kanto Chemical, Central Romana, Sappi Ltd, Hebeichem, Pennakem, and Illovo Sugar. These market players are adopting various strategies such as business expansion to stay competitive and maintain their market positions.

For instance, in February, 2021, Sappi, announced construction of pilot plant for furaldehyde production in line with its strategic plans to accelerate biorefinery expansion capacity. This strategic expansion highlights about Sappi's dedication to explore innovative avenues within the chemical industry while leveraging its expertise in sustainable manufacturing processes.

Key Benefits

• The report provides quantitative analysis and estimations of the furfural market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of the current and future furfural market trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the furaldehyde market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders

Furfural Market Key Segments

By Raw Material Source

• Corn Cob

• Sugarcane Bagasse

• Rice Husk

• Wood Pulp

• Others 

By Process

• Quaker Batch Process

• Chinese Batch Process

• Rosenlew Continuous Process

By Application

• Furfuryl Alcohol

• Solvent

• Intermediate

• Others 

By End Users

• Agriculture

• Paints & Coatings

• Pharmaceuticals

• Food & Beverage

• Refineries

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 595.8 million
Revenue Forecast in 2030	USD 860.8 million
Growth Rate	CAGR of 5.4% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Million (USD)
Growth Factors	Rapid growth of the pharmaceutical industry is boosting the market. Significant growth of agriculture industry is driving the market. Growth of the global paint and coating industry boosts the market.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• Lenzing AG

• KRBL Ltd.

• Transfuran Chemicals

• RX Chemicals

• Kanto Chemical

• Central Romana

• Sappi Ltd 

• Hebeichem

• Pennakem

• Illovo Sugar