The furfural derivatives market size is expected to reach US$ 21.84 Bn by 2031 , from US$ 13.15 Bn in 2024 at a CAGR of 7.5% during the forecast period. Furfural derivatives are organic compounds derived from furfural. Furfural is a flavorless and colorless aldehyde produced by the hydrolysis of pentosan-type polysaccharides, such as hemicellulose, which is found mainly in oat hulls, corn cobs, and sugarcane bagasse. The main furfural derivatives are furfuryl alcohol, tetrahydrofurfuryl alcohol, and furoic acid.
Furfural alcohol is the primary furfural derivative which is produced on an industrial scale by the hydrogenation of furfural. It is a colorless viscous liquid with low toxicity. Furfuryl alcohol is used to produce various resins and as a solvent. It has advantages such as high reactivity, renewable source, and low volatility. However, it also has disadvantages like strong odor and flammability. Tetrahydrofurfuryl alcohol is another major derivative which is produced from furfuryl alcohol. It is a crystalline solid and is used as a chemical intermediate, additive and solvent. Furoic acid is produced from the oxidation of furfural. It is a white powder and is used to produce dyes, pigments, furan resins, and other chemical intermediates.
Furfural Derivatives Market Regional Insights:
Figure 1. Furfural Derivatives Market Share (%), by Region, 2024
To learn more about this report, Request sample copy
Analyst’s Viewpoint:
The furfural derivatives market is poised to see steady growth over the next decade driven by the increasing demand from several end-use industries such as pharmaceuticals, chemicals, and refineries. Furfural diethyl acetal is extensively used as a solvent in the pharmaceutical industry and its demand is expected to see an uptick with rising pharmaceutical R&D activities globally. Regulations supporting bio-based chemicals and sustainability goals of leading companies will also support the use of furfural derivatives in industrial applications.
However, price volatility of raw materials like corn cob and sugarcane bagasse which are used to produce furfural can challenge cost efficiency of manufacturers. Substitute products may also limit the scope of certain furfural derivatives. High capital investment for commercial production plants poses significant risk especially for new and small players.
Asia Pacific especially China currently dominates the global production and consumption landscape due to the presence of major furfural producers and large chemical industry. However, North America is likely to experience faster growth owing to growing research on bio-based chemicals. Europe will remain a key market driven by the region's stringent environmental norms favoring bio-based products.
Furfural Derivatives Market Drivers:
Furfural derivatives as a substitute to petroleum-based chemicals: Furfural can act as a sustainable replacement for many petroleum-based chemical intermediates, solvents, and additives that are currently used across diverse industries. As awareness about reducing dependence on non-renewable fossil fuels and curbing carbon emissions increases, the demand for bio-based and eco-friendly alternatives is rising. Furfural derivatives offer a promising renewable substitute for products derived from petrochemicals. For example, furfuryl alcohol is used in foundry applications as a binder instead of phenol-formaldehyde resins with its curing process emitting fewer volatile organic compounds. Similarly, furoic acid and tetrahydrofurfuryl alcohol are finding growing applications as environment-friendly solvents and chemical intermediates in place of their petroleum-sourced equivalents. For instance, in 2021, the U.S. Department of Energy granted US $5 million to Virent to continue scaling-up its BioForming process for economically converting plant biomass into drop-in biofuels and bio-based chemicals including furfural.
Virent is an energy technology company that enables the renewable replacement of fossil fuels. Founded in 2002, Virent operates its BioForming platform technology to produce transportation fuels, fuel gases, and various chemicals from fossil fuels. The company's technology converts bio-based sugar feedstocks into products molecularly identical to those made from petroleum-based feedstocks.
Rising demand from end-use industries like pharmaceuticals and agrochemicals: The demand for furfural derivatives is experiencing significant growth driven mainly by the pharmaceutical and agrochemical industries. Furfural derivatives find wide application in these sectors as selective solvents for extraction and purification. They are also used as intermediates in manufacturing various active pharmaceutical ingredients and agrochemical formulations. With the increasing world population and need for stronger medicines and high-quality crop protection, the demand from these end-use industries has been rising steadily over the past few years. For instance, according to the United Nations Department of Economic and Social Affairs, the world population is projected to reach 9.70 Bn by 2050 and 10.41 Bn by 2100. This demographic trend indicates that demand for healthcare and food production will continue rising in the coming decades. As a result, industries that manufacture medicines and crop protection solutions will require more advanced extraction processes and specialized intermediates like furfural derivatives to boost yields and develop new, high-quality products.
Furfural Derivatives Market Opportunities:
Furfural Derivatives Market Report Coverage
Report Coverage | Details | ||
---|---|---|---|
Base Year: | 2023 | Market Size in 2024: | US$ 13.15 Bn |
Historical Data for: | 2019 to 2023 | Forecast Period: | 2024 - 2031 |
Forecast Period 2024 to 2031 CAGR: | 7.5% | 2031 Value Projection: | US$ 21.84 Bn |
Geographies covered: |
|
||
Segments covered: |
|
||
Companies covered: |
Pyran, Pennakem, LLC, TransFurans Chemicals bvba, BASF SE, UBE Corp., Yuanli Chemical Group, Hefei Home Sunshine Pharmaceutical Technology Co., Ltd., AB Enterprises, Hefei TNJ Chemical Industry Co. Ltd., and International Furan Chemicals B.V. |
||
Growth Drivers: |
|
||
Restraints & Challenges: |
|
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
Furfural Derivatives Market Trends:
Furfural Derivatives Market Restraints:
Technological challenges in upgrading biomass to fuels: Technological challenges in efficiently upgrading biomass into fuels is a major roadblock for the growth of the furfural derivatives market. Biomass refers to plant-based material that can be used as a renewable substitute for fossil fuels. However, the chemical and physical properties of lignocellulosic biomass like agricultural residues and wood make it highly resistant to biological and chemical breakdown processes. Converting the complex polysaccharides in biomass like cellulose and hemicellulose into simpler forms that can be further processed into biofuels or biochemicals requires a combination of pre-treatment, hydrolysis and fermentation steps. Each of these steps adds to the production costs while also producing inferior yields when compared to processes using easily degradable feedstocks like sugar or starch-based crops. For instance, according to data from the International Renewable Energy Agency (IRENA), the commercial production of cellulosic biofuels required capital subsidies of $3–6 per gallon of gasoline equivalent produced between 2011 and 2019, indicating the high costs involved until technologies mature.
Counter balance: Forming strategic partnerships can provide access to new technologies, markets, and expertise, which can be pivotal in developing a competitive edge and fostering the market growth.
Volatility in raw material prices: The volatility in prices of raw materials used for producing furfural derivatives is proving to be a major restraining factor for the growth of this market. Furfural is mainly extracted from agricultural byproducts like corn cobs, oat hulls, and bagasse which are plantation crops. The prices of these raw materials fluctuate significantly depending on factors like changing weather conditions, production volumes of main crops, export-import regulations, and global supply-demand dynamics. For example, due to drought conditions in major corn and sugarcane producing regions of the U.S., Brazil, and China in the years from 2020 to 2022, the availability of raw materials for furfural extraction reduced substantially. This led to a sharp increase in prices of these materials in the international markets. Similarly, the conflict between Russia and Ukraine also impacted the trade and availability of sugarcane and grain crops in early 2022. As per data published by the Food and Agriculture Organization (FAO) of the United Nations, the global price indices of vegetable oils, cereals and sugar increased by 23%, 17%, and 13% respectively from February to March 2022 as the Black Sea region is a major exporter of these commodities.
Counter balance: Implementing cost-saving initiatives such as process optimization, waste reduction, and energy efficiency can help maintain competitiveness when faced with market pressures.
Recent Development
Figure 2. Furfural Derivatives Market Share (%), by Application, 2023
To learn more about this report, Request sample copy
Top Key Players:
Pyran, Pennakem, LLC, TransFurans Chemicals bvba, BASF SE, UBE Corp., Yuanli Chemical Group, Hefei Home Sunshine Pharmaceutical Technology Co., Ltd., AB Enterprises, Hefei TNJ Chemical Industry Co. Ltd., and International Furan Chemicals B.V
Definition:
Furfural derivatives are a group of chemicals that are derived from furfural, a naturally occurring furan aldehyde. Furfural is obtained from the acid hydrolysis of sugar cane bagasse, maize cob, and other lignocellulosic biomass. Furfural derivatives have many commercial uses, including industrial manufacturing, food flavoring, fragrance in perfumes, and the production of biofuels, solvents for paints and coatings, wood preservatives, and various other applications. Furfural derivatives are versatile and can be further converted into other chemicals, such as furfuryl alcohol, which is used in the plastics industry for the production of corrosion-resistant materials.
Share
About Author
Yash Doshi is a Senior Management Consultant. He has 12+ years of experience in conducting research and handling consulting projects across verticals in APAC, EMEA, and the Americas.
He brings strong acumen in helping chemical companies navigate complex challenges and identify growth opportunities. He has deep expertise across the chemicals value chain, including commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals. Yash is a sought-after speaker at industry conferences and contributes to various publications on topics related commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals.
Missing comfort of reading report in your local language? Find your preferred language :
Transform your Strategy with Exclusive Trending Reports :
Frequently Asked Questions
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients