What Is The Overview Of The Global Furfural Derivatives Market?
Furfural derivatives are organic compounds that are derived from furfural, an aldehyde typically produced from biomass materials such as corncobs, oat hulls, or sugarcane bagasse. Furfural itself is a colorless liquid with a distinct almond-like odor, and it serves as a precursor for various useful chemicals.
Furfural Derivatives Global Market Report 2024 provides data on the global furfural derivatives market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The Furfural Derivatives market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
What Are The Estimated Market Size And Expected Annual Growth Rates For Global Furfural Derivatives?
The furfural derivatives market size has grown strongly in recent years. It will expand from $11.6 billion in 2023 to $12.54 billion in 2024, with a compound annual growth rate (CAGR) of 8%. This historic growth is driven by increased demand for furfural derivatives in agrochemicals, their rising applications in food and beverages, greater utilization in pharmaceuticals, and their growing use in industrial chemicals and the textile and fashion industries. Looking ahead, the furfural derivatives market size is expected to see continued strong growth, reaching $17.15 billion by 2028 at a CAGR of 8.2%. This anticipated growth is attributed to higher consumption from the food industry, expanded application areas for furfural alcohol and derivatives, government support for bio-based products, increased demand for furfuryl alcohol, and the rising use of furfural derivatives in plastics. Major trends in the forecast period will include a demand for renewable and biodegradable products, integration in biorefineries, a shift towards renewable chemicals, use as solvents, and their role as chemical intermediates.
What Are The Leading Drivers Of Growth In The Furfural Derivatives Market?
The growth in the agriculture sector is projected to drive the furfural derivatives market's expansion. The agriculture sector, involving the production, processing, and distribution of crops, livestock, and other products, is evolving due to shifts in dietary patterns, increased environmental awareness, and greater investment in agricultural R&D and infrastructure. Furfural derivatives enhance agricultural practices by improving pest management, soil fertility, seed quality, and crop productivity, while also supporting sustainable farming through their biodegradability and environmental compatibility. For instance, in February 2024, the Department for Environment Food & Rural Affairs reported that the average farm business income in the UK surged from USD 50,461 (£46,500) in 2020/21 to USD 78,133 (£72,000) in 2021/22. Moreover, the UK total income from farming reached $6.61 billion (£7.9 billion) in 2022, marking a 17% increase from 2021. Thus, growth in the agriculture sector is driving the furfural derivatives market.
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How Are The Segments Defined Within The Global Furfural Derivatives Market?
The furfural derivatives market covered in this report is segmented –
1) By Product Type: Furfuryl Alcohol, Furoic Acid, Tetrahydrofurfuryl Alcohol (THFA), Methyl Tetrahydrofuran, 2-5-Furandicarboxylic Acid, 1, 2 Pentanediol, Other Products
2) By Raw Material Type: Sugarcane Bagasse, Corncob, Rice Husk, Other Raw Material Types
3) By Application: Derivatives, Solvents, Other Applications
4) By End-User Industry: Agriculture, Paints And Coatings, Pharmaceuticals, Food And Beverage, Refineries, Chemical, Other End User Industries
How Are New Trends Expected To Influence The Growth Of The Furfural Derivatives Market?
Companies in the furfural derivatives market are investing in downstream projects to broaden their product ranges. Downstream projects involve refining raw materials into finished products, while midstream projects handle the transportation and distribution of these materials. For example, in September 2022, Numaligarh Refinery (NRL), an Indian oil company, invested INR 35,000 crore (approximately $4.4 billion) in various downstream and midstream projects over the next five years. This investment includes a facility that processes 300,000 tonnes of bamboo annually to produce 50,000 tonnes of fuel-grade bioethanol and 30,000 tonnes of biochemicals such as acetic acid, furfural, and furfuryl alcohol.
Which Region Drives The Highest Growth In The Furfural Derivatives Market?
Asia-Pacific was the largest region in the furfural derivatives market in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the furfural derivatives market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
