Rising demand for chemical feedstock that is compatible with pharmaceutical applications and other industries has fueled the growth of the market for bio-based chemicals. BCC Research reveals in its new report that similar factors such as growing environmental concerns, the push to decrease dependency on crude oil-based chemicals and increasing penetration of furfural derivatives in various industry level application markets are driving solid growth.
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Furfural is an organic compound derived from agricultural byproducts such as sawdust, wheat bran, oat, and corn cobs. From a texture perspective, furfural is a colorless, oily liquid with an almond-like aroma. In terms of end-use industries where furfural is actually consumed, the report only examines furfural used in the chemicals (including metal foundries) sector, the pharmaceuticals industry, the food and beverage sector, foundries (except metal foundries) and others (cosmetics, household products and perfume industry).
The global furfural market was valued at $582 million in 2015. In 2021, it is expected to increase to nearly $1.1 billion, reflecting a five-year compound annual growth rate of 11.7% from 2016-2021. In terms of volume, the global furfural market was valued at 306.3 kilotons in 2015, and should increase to 488.3 kilotons in 2021, reflecting a five-year CAGR of 7.7%.
In the last few years, the volatility of the commodity market and decreased profitability for selling commodity-based chemicals has motivated producers to look for lucrative alternatives. In such context, furfural and its derivatives have the potential to become that lucrative alternative.
Growing global demand for environmentally sustainable biomass-based chemicals has fueled the overall growth of the furfural market, along with the growing application of furfural and its derivatives in the pharmaceutical industry. These factors have triggered demand-side growth of the furfural market. Furfural derivatives such as 5-hydroxymethylfurfural (HMF), polytetrahydrofuran (poly-THF) and furan-2, 5-dicarboxylic acid (FDCA) are increasingly being used as important secondary fuel sources globally.
During the period of 2007 to 2013, the Free on Board (FOB) price for furfural increased due to an increase in corn prices, the drying up of the low-cost furfural supply in China, and growing demands from different industries. In the past two years, market growth has been negatively affected due to a decrease in global furfural exports, the poor performance of the agriculture commodity market, and the change in government policies in China. During the forecast period, it is expected that the impact of these restraining factors will decrease with the increase in furfural demand from the biofuel, chemical, automotive, semiconductor and electronics industries.
“As of March 2016, volatility in crude oil prices, rising demand for non-toxic ‘furfurylation’ of woods and increased awareness of the benefits of furfural are driving a significant portion of growth of overall furfural industry,” says BCC Research analyst Sinha G. Guarav. “For the next two to three years, it is expected that the price of commercial furfural will decrease due to a decline in raw material prices. With the predicted recovery of the agriculture sector, the price for commercial furfural is expected to increase after 2018. The popularity of furfural is forecast to significantly increase in the Commonwealth of Independent States (CIS) region.”
Furfural Market on the Move
Furfural: Global Markets (AVM134A) analyzes the current and future market for furfural, discusses market trends, assesses capacity utilization, and provides raw materials analysis. Analyses of global market drivers and trends, with data from 2015, estimates for 2016, and projections of CAGRs through 2021 also are provided.
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WELLESLEY, MA –(Marketwired – June 29, 2016)
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. Founded in 1971, BCC Research is a unit of Eli Global, LLC. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.