The global furfural market is expected to reach USD 1,200.9 million by 2020. Industry shift towards minimizing dependence on conventional petrochemicals on account of growing environmental concerns and volatile prices is expected to remain a key driving factor for the global furfural market. Furfural has been identified as one of the major platform chemicals which are used to derive other industrial chemicals.
Emergence of novel furfural application to manufacture THF, furfuryl alcohol resins and furanics is also expected to have a positive influence on the market growth. Obsolete production technologies affect the yield and increases the overall cost of production which is expected to remain a key challenge for market participants over the next six years.
Furfuryl alcohol was the largest application segment for furfural market and accounted for more than 86.3% of the total market in 2013. Increasing furan resins demand in foundry applications such as sand binders is expected to remain a key driving factor for this segment. Global furfural demand for solvents is expected to grow at an estimated CAGR of 13.3% from 2014 to 2020.
Further key findings from the study suggest:
Global furfural market demand was 300 kilo tons in 2013 and is expected to reach 652.5 kilo tons by 2020, growing at a CAGR of 11.9% from 2014 to 2020.
China emerged as the leading regional market for furfural and accounted for 72.6% of total market volume in 2013. China along with being the largest consumer is also the largest producer of furfural which has been a major factor for the growth of domestic market.
Low production cost of furfural in China is expected to remain a key driving factor for the domestic market. However, the furfural industry has been facing an issue of availability of corn cob, basic raw material to manufacture furfural. The prices of corn cob have been witnessing an upward trend in the recent past which has prompted the government agencies to stockpile corn cob.
Increasing furfural demand in markets such as Thailand, Indonesia, Malaysia and India is expected to augment the global market growth. Growth of major end-use industries such as chemicals, pharmaceuticals and foundry industries particularly in emerging markets of Asia Pacific is expected to be a major factor contributing to the market growth. Western European furfural market is expected to grow at an estimated CAGR of 10.3% from 2014 to 2020.
Global furfural market is fragmented with a presence of large number of small scale manufacturers in China. Major companies are integrated along the value chain and are involved in the production of furfural derivatives such as furfuryl alcohol. Some of the major companies operating in the global market include Teiling, Central Romana Corp., International Furan Chemicals, TransFurans Chemicals, Penn A Kem LLC and Sugar Illovo Ltd.
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