Furfural Derivatives Market Size, Share & Growth Report 2031

Report Description

Furfural Derivatives Market Outlook

The Global Furfural Derivatives Market was estimated at USD 2,152.4 Million in 2022 and is anticipated to reach USD 3,340.5 Million by 2031, expanding at a CAGR of 5.2% during the forecast period.

Furfural derivatives are widely used in the pharmaceutical, plastics, and agrochemical industries. Furfural derivatives in agrochemicals are used as fungicides and nematicides. Furthermore, these are used for transportation fuels, resins, lubricants, food & beverage flavor enhancers, gasoline additives, fuel mixtures, bleaching agents, pharmaceuticals, bioplastics, pesticides, and bombs.

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Furfural derivatives include Furfuryl Alcohol, Furoic Acid, Tetrahydrofurfuryl Alcohol (THFA), 2-5-Furandicarboxylic Acid (FDCA), 2-Methyl Tetrahydrofuran, 1,2 Pentanediol and others.

Macro-economic Factors

Economic Growth

Economic growth is a major macroeconomic factor impacting the furfural derivatives market. Furfural derivatives have various industrial applications in end-use industries such as paints & coating, pharmaceuticals, chemicals, food & beverages, and others. Economic growth is resulting fueling these industries, which in turn, is driving the demand for chemicals such as furfural derivatives.

Countries in Asia Pacific and Middle East & Africa are experiencing economic growth in the past few years. For instance, the cumulative GDP of Asia Pacific increased from USD 9 Trillion in 2000 to USD 35 Trillion in 2021. Economic growth in these regions is fueling industrial growth, which is driving the demand for furfural derivatives.

Raw Material Prices

Stable and cost-effective supply of raw materials are key parameters for manufacturing of chemicals. Furfural derivatives are commercially synthesized from furfural, which are made from the lignocellulosic biomass.

The commercial process for synthesis of furfural is optimized with global production of furfural has reached above 400 kilo tons in 2022. Stable and cost effective availability of furfural has enabled the development and optimization of commercial synthesis pathways for the derivatives.

Furfural Derivatives Market Dynamics

Market Driver- Increasing Preference for Bio-based Chemicals

Sustainable alternatives to petroleum products are in increasing demand, as companies seek environmentally friendly compounds for use in key industrial applications. Bio-based chemicals are a sustainable and renewable means of sourcing, manufacturing, and developing chemical compounds.

Bio-based products are derived from plants and other renewable agricultural, marine, and forest materials. These bio-based products replace petroleum-derived synthetic products. Bio-based products address the negative economic and environmental impacts of using traditional petroleum-based chemicals and compounds. Furfural is the major source of furfural derivatives.

Furfural is recognized as one of the leading bio-based platform chemicals used in industrial organic synthesis as a starting reagent to produce other high-value products. Furfural derivatives are one of the most efficient bio-based molecules. They have great potential as renewable platforms for the sustainable production of fine chemicals and biofuels.

The global trend towards bio-based products is stimulating the demand for furfural derivatives. Traditional uses of the product ensure stable demand; however, innovative uses are driving up the prices of the product. Using bio-based chemicals instead of petroleum-based chemical derivatives help in reducing many harmful side effects of petroleum consumption.

Market Driver- Increasing Demand from End-use Industries

Furfural derivatives are widely utilized in end-use industries such as paints & coatings, pharmaceuticals, food & beverage, chemicals, and others. The rapid expansion of these end-use industries is driving the demand for furfural derivatives across the globe. For example, furfuryl alcohol is used as an intermediate in the polymer industry for fine chemical synthesis, lysine, & levulinic acid and as a lubricant & dispersant.

The wide range of application of furfuryl alcohol makes it an suitable choice to be used in the chemical industry. Industrialization with the growth and expansion of various end-use industries such as the pharmaceutical and food & beverage industries, especially in developing countries, directly and positively impacts the market growth.

Growth in building and construction activities and increasing technological advancements in industrial chemical manufacturing processes are expected to drive the market during the forecast period. Furfural derivatives play an important role in the development of environmentally friendly rubbers and paints.

Additionally, increasing the use of synthetic flavors, colors, and furfural derivatives for food packaging in the food & beverage industry is expected to boost the market in the coming years. The pharmaceutical industry's use of furfural derivatives as solvents or monomers is also projected to boost the market during the forecast period. Numerous applications of furfural in various industries are expected to drive the furfural derivatives demand in the coming years. 

Market Restraint- Raw Material Price Fluctuation

Raw material prices are rising, and manufacturers are facing various issues throughout the supply chains. Manufacturers are still dealing with the two supply chain obstacles that hampered industries during the pandemic, which are slow supply deliveries and unavailability of labor.

Insufficient source of raw materials is one of the reasons for the fluctuation of raw material prices. For example, various sources are used in the manufacturing of furfural derivatives such as bio-based sources. The cost associated with these materials fluctuates, due to which prices fluctuation and supply disruption of furfural derivates are directly affecting the manufacture of furfural derivatives. This factor is impeding the market expansion.        

Scope of Furfural Derivatives Market Report            

The report on the Global Furfural Derivatives Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Furfural Derivatives Market Segmental Outlook

Based on product type, the global Furfural Derivatives market is segmented into Furfuryl Alcohol, Furoic Acid, Tetrahydrofurfuryl Alcohol (THFA), Methyl Tetrahydrofuran, 2-5-Furandicarboxylic Acid, 1, 2 Pentanediol, Others.

The furfuryl alcohol segment held a major share of the market and is expected to expand at a CAGR of XX%. The growth of the segment is attributed to the application of furfuryl alcohol is as a monomer for the synthesis of furan resins for bounding foundry sands. These resins are used for the production of cores and molds for foundry.

2-Furoic acid is commonly known as furoic acid is a chemical compound having furan ring and a carboxylic acid group. It is manufactured commercially from oxidation of furfural in the presence of oxidation catalysts.

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Based on function, the global Furfural Derivatives market is segmented into solvent, intermediate, monomer, others. Monomer is a building block of any polymer. Monomer is a chemical compound with two or more active binding sites through which it forms a linkage with other molecules to form a macromolecule such as polymers. The properties of the polymer vary depending upon the monomers used for the polymerization process.

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Based on the end-use industry, the market is categorized as agriculture, paints & coatings, pharmaceuticals, food & beverage, refineries, chemical, and others. The chemicals industry is expected to hold a major share of the market, Furfural derivatives are used in chemical industries as a solvent or as a chemical intermediate.

For example, furfuryl alcohol is used as a solvent, but it is commonly used as a component in the manufacture of various chemical products. Furfuryl alcohol is used to make furan resin, especially foundry resin, which is used as a binder for sand cores, and used to make organic raw material. 

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Regional Outlook

On the basis of regions, the global Furfural Derivatives market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Asia Pacific held XX% of the market share in 2022, due to the increasing demand for various flavors in food products, aromas, and others. For example, various furfural derivatives are used in the synthesis of spices. India is a prominent spice producer across the globe. It is also a large exporter and consumer of spices. In recent years, the production of various spices has increased rapidly.

Spice production in 2021-2022 was XX million tons. From 2020 to 2021, spice exports in the region reached record highs in both value and volume, recording increases of XX% in value and XX% in volume. The agriculture sector is also well established in the regions and it is expected to drive the demand for furfural derivatives in the future.

Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Furfural Derivatives Market

• Historical, Current, and Projected Market Size in terms of Value

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Axial Fans Market Performance