The global furfural market is estimated to witness a healthy growth, at an estimated CAGR of over 5%, over the forecast period. The major factor driving the growth of the market studied is increasing demand for furfuryl alcohol.
- Fluctuating prices of raw materials are likely to hinder the markets growth.
- Increasing demand from industrial chemicals manufacturing is also likely to augment the market growth in the coming years.
- Asia-Pacific region is expected to dominate the market and is also likely to witness highest CAGR during the forecast period.
Key Market Trends
Increasing Demand for Furfuryl Alcohol
- Furfural is majorly used in the manufacturing of furfuryl alcohol. It is industrially produced by the catalytic hydrogenation of furfural under high pressures.
- It is widely used in the plastic and resins. With the growing research activities in the field of rocketry fuel, the consumption of furfuryl alcohol is likely to boost the market for furfural.
- Asia-Pacific region is holding a major share of the market in the consumption and production of furfuryl alcohol with the increasing population and the concern for renewable materials.
- Plastics are being used in different end user industries owing to the advantages such as low cost, less weight, durable, water resistant, etc. Some of the major end-user industries include automotive & transportation, construction, electrical & electronics, etc.
- Owing to all these factors, the market for furfural is likely to grow across the world during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific construction sector is the largest in the world, and is growing at a healthy rate, owing to the rising population, increase in middle-class incomes, and urbanization.
- Increasing infrastructure construction activities and the entry of major players from the European Union into the lucrative market of China have further fueled the industry’s expansion.
- China’s 13th Five Year Plan started in 2016, as it was an important year for the country’s engineering, procurement, and construction (EPC) industry. In addition, the country ventured into new business models domestically and internationally, during the year. Although the construction sector slowed down after 2013, it is still a major contributor to the GDP of the country. The China’s construction industry developed rapidly in the recent past, due to the central government’s push for infrastructure investment, as a mean to sustain economic growth.
- China, one of the largest pharmaceutical markets in the world, is not yet mature. The combined forces of economic and demographic development, government stimulus, enhanced health awareness among the public, market consolidation, and improved R&D capabilities may help the country in maturing into a sophisticated market within the next decade.
- Due to all such factors, the market for furfural in the region is expected to have a steady growth during the forecast period.
The furfural market is partially consolidated in nature. Some of the major players in the market include Central Romana Corporation, ILLOVO SUGAR AFRICA (PTY) LTD, KRBL Ltd., LENZING AG, and Pennakem, LLC, among others.
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