Furfural Market - Forecasts from 2023 to 2028

The furfural market was valued at US$583.498 million in 2021.

Furfural is a chemical element manufactured by the natural dehydration of pentose sugars arabinose and xylose, a five-carbon sugar frequently present in the hemicellulose component of lignocellulosic biomass in significant amounts. The hemicellulose fraction of biomass wastes, including cornstalks, sugarcane bagasse, rice husk, corncobs, peanut husks, oat hulls, and certain other biomass wastes, are the most frequently used sources of the pentose sugar raw materials used to produce furfural, a transparent, oily liquid with an almond fragrance that alters its color from yellow to dark brown on exposure to the atmosphere. It is dominantly applied in the manufacturing processes of different types of solvents, chemical intermediates, drug intermediates, pesticides, and other components to be used across a wide range of industries, including pharmaceuticals, food & beverage, agriculture, chemical, personal care, petrochemical, and others. The growing demand for bio-based and sustainable components and chemicals is resulting in the extensive adoption of chemicals like furfural in several industrial areas. Therefore, the vast consumption of furfural to manufacture solvents and derivatives is expected to stimulate the growth of the furfural market over the forecast period. However, the fluctuations in the price levels of its raw materials could restrict its growth.

Market Drivers:

The increase in government initiatives to promote organic fertilizers is encouraging the growth in organic fertilizer production activities, which is offering an opportunity for the expansion of the furfural market. For instance, the Indian government introduced a new scheme named PM- Promotion of Alternative Nutritious and Agriculture Management in September 2022 to lower the consumption of chemical fertilizers in the country. In addition, the agricultural department of Sri Lanka announced a subsidy of US$43.59 million for rice farmers adopting organic fertilizers in October 2022. Further, a study conducted by scientists at Lanzhou University revealed that adding furfural residue to soil and fertilizers might enhance the rhizosphere environment, improve plant growth, manage soil-borne illnesses, and establish beneficial soil bacteria.

Increasing consumption of furfuryl alcohol

The manufacturing process of furfuryl alcohol consumes the majority of furfural generated. The catalytic reduction of furfural produces furfuryl alcohol, and it is fundamentally used as a chemical intermediary in the manufacture of several chemical products, such as wetting agents, adhesives, plastics, and foundry resins. Further, it is anticipated that the market for furfuryl alcohol will expand due to the surge in demand for low volatile organic compounds (VOC) and non-toxic solvents in a variety of end-use industries, including paints and coatings, pharmaceuticals, petroleum refining, and agricultural formulations. The rising demand for foundry resins such as sand castings, adhesives, paints, and coatings from the worldwide expansion of the construction sector is expected to promote the consumption of furfuryl alcohol. For instance, the US Bureau of Economic Analysis revealed that the construction sector of the US reached approximately US$1.6 trillion in 2022. Therefore, the extensive use and rising demand for furfuryl alcohol, a furfural derivative, are expected to drive the demand for the furfural market over the forecast period.

Product Offerings:

Central Romana Corporation is a chemical company operating in the Dominican Republic that produces furfural at its Furfural Plant operating under the Roman By-Products division, and it further processes some of its furfural to produce furfuryl alcohol at its plant in Belgium as a result of its agreement with the government of Dominican Republic Country. 

Vigon Internation Inc. is a chemical company owned by Azelis Holding S.A., a company operating in the US that produces two furfural products, Furfural Natural, and Methyl-5 Furfural, in varying packaging, compliances, and packet sizes to meet the requirements of its customers from different industries.

Furfural by Behran Oil Co. - Behran Oil Co. is an Iranian company involved in the production of specialty chemicals and oil refineries that produces furfural chemical with 98.5% purity packaged in steel drums weighing 240 kgs to be used for creating chemical feedstock, wetting agents, decolorizing agents, and synthetic polymers. 

The agriculture segment will account for a significant market share in 2028. 

The expansion of agricultural production activities and the spread of awareness of the negative impact of chemical fertilizers, such as soil degradation and bioaccumulation, is growing the demand for organic fertilizers in several regions worldwide. The UN estimated that approximately 40% of the agricultural land in the world had been degraded due to chemical fertilizers. The rise in consumption of organic fertilizers will increase the demand for furfural as the furfural residue produced as industrial waste is extensively applied to have several beneficial agricultural products such as soil conditioners and organic fertilizers. For instance, Bio-Corn Products Limited, an African chemical company primarily involved in furfural production from maize cobs, announced its intention to manufacture fertilizers and pesticide chemicals from the furfural produced in August 2021. Therefore, the development in the consumption of organic fertilizers across different nations and the advancement of the agrochemical industry is expected to contribute to the growth of the furfural market over the forecast period.

Asia Pacific region holds a significant portion of the furfural market and is anticipated to grow over the forecast period.

The furfural market in the Asia Pacific region is promoted by the expansion of the agriculture, food & beverage, petrochemical, and pharmaceutical industries of major countries. In the food and beverage industry, furfural and its derivatives are applied to create flavor enhancers and additions. The growth in the consumption of processed food across Asian economies is resulting in the need for increased production and development of new flavors for food and beverages by leading companies in the region which is providing an opportunity for the rise in consumption of furfural in this industry.

Market Segmentation:

By Raw Material

• Corncobs
• Sugarcane Bagasse
• Rice Husk
• Oat Hulls
• Others

By Application

• Solvent
• Chemical Intermediate
• Drug Intermediate
• Pesticide
• Others

By End-User Industry

• Pharmaceuticals
• Food & Beverage
• Agriculture
• Chemical
• Personal Care
• Petrochemical
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others