Market Scenario 

Global furfural market is projected to reach US$ 981.23 Mn by 2031 from US$ 508.4 Mn in 2022 at a CAGR of 8.7% during the forecast period 2023–2031. In terms of volume, the market was valued at 463.1 kilo tons in 2022 and is expected to grow at CAGR of 8.5% over the forecast period. 

Furfural, an organic compound derived from agricultural residues such as sugarcane bagasse, corncob, rice husk, and sunflower hull, has a wide range of applications. It is primarily used as a raw material in the production of furfuryl alcohol, which is used to produce furan resins. These resins find extensive applications in various industries such as aerospace, automotive, and construction.

The demand for furfuryl alcohol is growing across various industries due to its excellent thermal stability, mechanical strength, and resistance to corrosion. The report also states that the increasing demand for furfural as a feedstock for producing solvents, plastics, and other chemicals is expected to drive the market growth.

The Asia-Pacific region is the largest consumer and manufacturer of furfuryl alcohol, accounting for around 50% of the global consumption. The high population density and concerns for renewable materials in the region are driving the demand for furfural. The rapid growth of the construction industry in this region is expected to further boost the demand for furfural for use in various refractory materials such as fiberglass composites, ceramics, and bricks. Additionally, the increasing demand for sustainable products due to the depletion of fossil fuel resources is driving the growth of the furfural market worldwide.

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Market Dynamics 

Drivers:

Growing Demand for Furfuryl Alcohol in Global Furfural Market

Furfuryl alcohol (FA) is a versatile chemical with a wide range of applications, including as a feedstock for furan resins. Furan resins find applications in thermoset polymer matrix composites, cements, adhesives, casting resins, and coatings. The increasing demand for FA across various industries due to its excellent thermal stability, mechanical strength, and resistance to corrosion is driving the growth of the global furfural market. As the demand for these applications continues to increase, so does the demand for furfural, which is the key raw material in the production of furfuryl alcohol.

Increasing Use of Sustainable Products

The increasing demand for sustainable products is driving the growth of the furfural market worldwide. Furfural is obtained from a variety of agricultural residues, such as sugarcane bagasse, corncob, rice husk, sunflower hull, and others, which makes it a renewable feedstock for various applications. As concerns over the depletion of fossil fuel resources and the impact of non-renewable materials on the environment continue to grow, there is an increasing need for sustainable products. This is driving the adoption of furfural as a renewable and eco-friendly feedstock for various applications.

Restraints:

Obsolete Manufacturing Technology

Furfural production is currently characterized by obsolete manufacturing technology, high steam consumption, and high acid consumption, which result in a low product yield or output. This presents a challenge for the furfural market, as the low product yield makes it difficult to meet the increasing demand for furfuryl alcohol and other furfural derivatives. However, many companies are concentrating their efforts on developing new processes that will reduce overall energy usage while increasing product yield throughout the purifying process.

Growing Environmental Concerns

Furfural production can have a negative impact on the environment due to the release of various pollutants, such as sulfur dioxide, particulate matter, and volatile organic compounds. As environmental regulations become stricter, the furfural market may face challenges in meeting these requirements and ensuring sustainability. However, many companies are investing in new technologies and processes that reduce the environmental impact of furfural production, such as using cleaner fuels, recycling wastewater, and developing new catalysts that are less toxic. These efforts will help to mitigate the environmental impact of furfural production and ensure the sustainability of the industry.

Segmental Analysis of Global Furfural Market 

By Raw Materials:

The corncob segment of the furfural market is expected to continue to grow due to the increasing demand for bio-based products and renewable sources of energy. Moreover, the use of corncobs as a raw material for furfural production is eco-friendly as they are easily available and do not require additional land usage. Apart from corncobs, other agricultural residues such as sugarcane bagasse, rice husk, and sunflower hull are also used as raw materials for furfural production. The availability of these raw materials in large quantities and at low cost is expected to drive the growth of the furfural market.

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By Application:

The furfuryl alcohol segment dominates the furfural market due to its extensive use in the production of furan resins. Furan resins find applications in the manufacturing of various products such as foundry sand binders, thermoset polymer matrix composites, cements, adhesives, casting resins, and coatings. The growing demand for these products in various industries such as automotive, aerospace, construction, and electronics is expected to drive the demand for furfural. The resins application segment is expected to grow at a high CAGR due to the increasing demand for sustainable products and growing environmental concerns.

By End Users:

Petroleum refineries are the major end-users of furfural due to its use as a selective solvent in the refining of lubricating oils. The growth of the lubricant industry is expected to increase the demand for furfural. Apart from the petroleum industry, the construction industry is also a major end-user of furfural due to its use in the production of refractory materials such as fiberglass composites, ceramics, and bricks. The increasing demand for sustainable and renewable materials in the construction industry is expected to drive the growth of the furfural market. Additionally, the growing use of furfural in the production of solvents, polymers, and other useful chemicals is expected to increase its demand in other end-user industries such as pharmaceuticals, food, and agriculture.

Regional Analysis 

The Asia-Pacific furfural market is expected to continue to dominate the global market over the forecast period due to several factors. China is the largest producer and consumer of furfural in the region, accounting for a significant share of the global furfural production. The growth in China's furfural industry is driven by its abundant availability of agricultural raw materials, such as corncobs, rice husks, and sugarcane bagasse, which are used as feedstock for furfural production.

In addition, the increasing demand for furfural in the agriculture industry as a soil fumigant and plant growth stimulant is expected to drive the growth of the furfural market in the Asia-Pacific region. Furfural is also used in the food and beverage industry as a flavoring agent and preservative, and in the pharmaceutical industry as a precursor to various drugs. Furthermore, the increasing demand for furfural in the petroleum industry as a solvent in the refining of lubricating oils is also expected to contribute to the growth of the furfural market in the region. The Asia-Pacific region has a significant presence of petroleum refineries, which are among the highest end-users of furfural.

In addition to the high production of furfural and growth in end-use industries, the Asia Pacific region is also witnessing an increase in government initiatives and investments towards the development of bio-based chemicals, including furfural. For instance, the Indian government has launched the National Biofuel Policy, which aims to promote the use of biofuels and other bio-based chemicals in the country. Such initiatives are expected to drive the demand for furfural as a renewable and sustainable feedstock in the region.

Furthermore, the Asia Pacific furfural market is also witnessing a rise in environmental concerns and demand for eco-friendly products, which is driving the adoption of furfural-based products. The use of furfural in the production of bio-based solvents and resins is gaining traction in the region due to its low toxicity, biodegradability, and low VOC emissions.

Competitive Landscape

Global furfural market is dominated by major players such as Hebeichem, Hongye Holding Group Corporation Limited, Transfuran Chemicals, Tieling North Furfural (Group) Co. Ltd., Shanghai Huiyingtong International Trading Co., Ltd., and KRBL among others. 

These companies have implemented competitive strategies, including mergers and acquisitions, to gain a foothold in the stable market. Additionally, they are expanding their presence in the market by acquiring small brands and domestic companies and expanding their geographic reach. 

The increasing trend of mergers and acquisitions in the furfural market is driven by the need to increase market share, gain access to new technologies, and enhance their product portfolio.

List of Key Companies Profiled:

• Shandong Zibo Baofeng I&E Co.,Ltd.
• Zhongkang Furfural Co., Ltd.
• Shanghai Huiyingtong International Trading Co.,Ltd.
• Arcoy Industries Pvt. Ltd
• Hongye Holding Group Corporation Limited
• Hebeichem
• International Furan Chemicals B.V.
• KRBL
• Lenzing AG
• NC-Nature Chemicals Dr. Kruppa GmbH
• Pennakem
• Silvateam S.p.a.
• Transfuran Chemicals
• Tieling North Furfural (Group) Co. Ltd.
• Zhucheng Taisheng Chemical Co., Ltd.
• Zibo Xinye Chemical Co., Ltd.
• Other Prominent Players

Segmentation Overview

By Raw Material:

• Sugarcane Bagasse
• Corncob
• Rice Husk
• Sunflower Hull
• Others

 By Application:

• Furfuryl Alcohol
• Solvent
• Resins
• Gasoline Additives
• Fungicides
• Flavor Enhancers
• Decolorizing Agents
• Agricultural Raw Materials
• Others

By End User:

• Petroleum Refineries
• Agricultural Formulations
• Pharmaceuticals
• Paints & Coatings
• Lubricants Industry
• Cement Industry
• Energy Sector
• Adhesives
• Food and Beverages Industry
• Others

By Region:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
• Western Europe
  • The UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Western Europe
• Eastern Europe
  • Poland
  • Russia
  • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Rest of the World
  • Argentina
  • Brazil
  • Rest of South America
  • GCC
  • South Africa
  • Rest of MEA