The furfural derivatives market is not yet fully commercialized and as result, players are likely to find several opportunities to capitalize on in the coming years. The increased demand for products made from renewable and biodegradable sources as well as the growing consumption of furfural derivatives in the food industry have led to a significant demand for the same. The global furfural derivatives markets stood at 947.58 kilo tons in 2016 and is expected to expand at a CAGR of 2.69% to reach 1,172.17 kilo tons by 2024.
Transparency Market Research finds that the declining cost of is likely to facilitate their penetration in various application industries such as pharmaceuticals, chemical intermediaries, and plastics.
Growing Applications of FDCA Make it Highly Lucrative Product Segment
The furfural derivatives market has been segmented on the basis of product type into furoic acid, tetrahydrofurfuryl alcohol (THFA), 2,5- furandicarboxylic acid (FDCA), and others. The others segment, which includes tetrahydrofuran (THF), methyl tetrahydrofuran (MeTHF) and poly tetrahydrofuran (Poly THF), is one of the highly attractive product types. These, when combined together, have a variety of applications and therefore hold a larger share in the total market revenue. The segment accounted for a share of over 48.64% in terms of revenue in 2015.
In terms of CAGR, the FDCA segment of the furfural derivatives market is extremely lucrative and is expected to register a 2.85% CAGR from 2016 to 2024. The least revenue is generated by the furoic acid segment. Furoic acid is used as an intermediate chemical for the production of furyl chloride, which is used to make agriculture insecticide or pesticide formulations.
Asia Pacific Emerges as Leading Consumer and Producer of Furfuryl Alcohol
On the basis of geography, the global furfural derivatives market is segmented into North America, Europe, Asia Pacific, the Middle East and Africa (MEA), and South and Central America.
Asia Pacific is the chief producer and consumer of furfuryl alcohol and, as a result, held the leading share in the global furfural derivatives market in 2015. China and India are the dominant consumer markets for furfuryl alcohol. The growth of various end-use industries, including chemicals, agriculture, pharmaceuticals, paints and coatings, and resins, is driving the furfural derivatives market in Asia Pacific. Technological advancements have improved production processes, which has been instrumental in creating innovative products from renewable agricultural biomass. This has had a major impact on the growth of the furfural derivatives in Asia Pacific. The region is projected to expand at a CAGR of 2.93% from 2016 to 2024.
Europe also holds a remarkable share in the global furfural derivatives market and follows Asia Pacific in terms of consumption. The increased number of application areas of furfural alcohol and products of furfural derivatives primarily drives the Europe market. The market for furfuryl alcohol in North America is expected to decline during the forecast period owing to the presence of various substitutes.
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Key players in the furfural derivatives market include Ashland, Inc., Avantium, BASF SE, DynaChem Inc., Hongye Chemical Co. Ltd., Corbion NV, Sinochem Qingdao Co. Ltd., Penn A Kem LLC, Nova Molecular Technologies, and Mitsubishi Chemical.