The furfural solvent market is expected to register a CAGR of about 5% during the forecast period. The major factor driving the market studied is the non-toxicity and low volatile organic compound (VOC) content of the furfural solvent. On the flip side, the limited availability of raw material and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
- The development of various new furfural derivatives is expected to offer various opportunities for the growth of the market.
- The agrochemicals sector is expected to dominate the furfural solvent market over the forecast period.
- Asia-Pacific represents the largest market, and it is also expected to be the fastest-growing market over the forecast period, owing to the increasing consumption from China, India, and Japan.
Key Market Trends
Increasing Demand from Agrochemicals Segment
- Furfural solvent is used in formulating various agrochemicals, like pesticides, fungicides, and herbicides. Furfural solvent has replaced harmful components present in the above-mentioned agrochemicals.
- As of 2019, there was approximately 2.7 billion ha of land with potential for crop production in the world, concentrated in Asia-Pacific, South and Central American, and Sub-Saharan Africa.
- In order to meet the growing food demand for the ever-increasing global population, demand for agrochemicals is also increasing, with the market anticipated to register a CAGR of approximately 4% during the forecast period.
- Therefore, the growing demand from the agrochemicals segment is expected to boost the demand for the furfural solvent market during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to be the largest market for furfural solvent, during the forecast period, as the region dominates the market for the end-user industries, such as petroleum refining, agrochemicals, paints and coatings, and pharmaceuticals.
- The Asian chemical processing market is anticipated to reach USD 1,300 billion in 2020, with China, Japan, and India dominating the market, globally. Furfural as a chemical intermediate is used to produce many important industrial chemicals.
- The paints and coatings industry in Asia-Pacific is expected to register a healthy CAGR of approximately 6%. This is because, in Asia-Pacific, China is expected to witness the highest growth in construction activities, followed by India. In China, government spending on constructing affordable housing facilities has been increased to cater to the housing demand. In addition, the public-private partnership (PPP) projects have been increasing in the domestic construction sector. Furfural is used as a solvent in paints and coatings.
- Some of the major companies operating in the Asia-Pacific region are Shandong Crownchem Industries Co. Ltd and Xing Tai Chunlei Furfural Alcohol Ltd.
The furfural solvent market is fragmented with the presence of both international and domestic players. The major companies include Pennakem LLC, Xing Tai Chunlei Furfural Alcohol Ltd, Silvateam SpA, ILLOVO SUGAR AFRICA (PTY) LTD, and Shandong Crownchem Industries Co. Ltd.
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