Furfural Derivatives Market Size, Share, and Trends 2024 to 2033

Furfural Derivatives Market Size and Companies

The global furfural derivatives market size was valued at USD 13.20 billion in 2023 and is anticipated to reach around USD 26.70 billion by 2033, growing at a CAGR of 7.30% from 2024 to 2033. The rising demand for biofuels due to the increasing environmental pollution drives the growth of the market.

Furfural Derivatives Market Key Takeaways

• Asia Pacific led the furfural derivatives market with the largest market share of 67% in 2023.
• By region, Europe is expected to witness the fastest growth in the market during the forecast period.
• By route, the Tetrahydrofuran segment led the market with the largest share in 2023.
• By raw material, the sugarcane bagasse segment dominated the market with the highest market share in 2023.
• By application, the derivatives segment held the largest market share in 2023.
• By end-user, the chemicals segment held a significant share of the market in 2023.
• By end-user, the pharmaceuticals segment held a considerable share of the market in 2023.
• By end-user, the food and beverages industry segment is expected to hold a notable share of the market during the forecast period.

Furfural Derivatives Market Size in Asia Pacific 2024 to 2033

The Asia Pacific furfural derivatives market size reached USD 8.84 billion in 2023 and is expected to hit around USD 18.02 billion by 2033 at a CAGR of 7.38% from 2024 to 2033.

Asia Pacific led the furfural derivatives market with the largest market share in 2023. The region is observed to sustain the position throughout the forecast period. The dominance of the market in the region is attributed to the rising industrialization in the regional countries that are negatively impacting the environment by using the petrochemical products in the operations, these petrochemicals are highly hazardous to the environment due to its increased carbon emission. The rising awareness among the population and governments regarding rising pollution due to the higher use of petrochemicals is driving the demand for furfural derivatives while promoting the expansion of the market. The increasing demand for renewable and sustainable energy sources is also influences the growth of the furfural derivatives market in the region.

India has recently started receiving opportunities to increase the global biofuel deployment from the Global Biofuels Alliance that launched in the 2023 with eight different countries leaders. 

• According to the IEA, the demand for biofuel will increase by 200 billion liters, that is 23% by 2028.

Europe is expected to witness the fastest growth in the furfural derivatives market during the forecast period. The growth of the market is expected to increase due to the rising concern over the environment and stringent government policies in terms of the zero-carbon emission which fuel the demand for the biochemical products such as biofuels are driving the expansion of the furfural derivatives market in the region.

Furfural Derivatives Market Size in Europe 2023 to 2033

The Europe furfural derivatives market size was calculated at USD 2.11 billion in 2023 and is projected to expand around USD 4.41 billion by 2033, poised to grow at a CAGR of 7.65% from 2024 to 2033.

Furfural Derivatives Market Overview

Furfural is one of the important parts of the biofuels that is made from agricultural residues such as rice husk, corncob, sugarcane bagasse, or wooden residues. Furfural is highly used in the manufacturing of biofuels such as biochemicals, biodiesel, and biojets. Furfural derivatives are emerging as the ideal product as an alternative to petrochemical products with zero-carbon emission and less hazardous to the environment. Furfurals are widely accepted in industries such as agrochemicals, plastics, and pharmaceuticals. Furfural derivatives are used in the production of resins, coating, paints, and varnishes. The rising environmental concern and the favorable government policies in the adoption of biochemicals are contributing to the growth of the furfural derivatives market.

Growth Factors

• The rising demand for biofuels as a sustainable and environmentally friendly alternative that drives the expansion of the market.
• The rising environmental pollution due to the rise in use of petrochemicals as the main source of energy in vehicles and other industries is driving the expansion of the furfural derivatives market.
• The increasing demand for furan-based biofuels and biochemicals from the various end-use industries such as agriculture, pharmaceuticals, plastics manufacturing, and oil and gasoline commercial applications are driving the expansion of the market.
• The rising demand for the furfural as the alternative approach to the petrochemical products and the rising awareness regarding the environmental pollution results in the higher acceptance of the furfural as the alternative methods are driving the growth of the market.
• The increasing investments in research and development activities in the latest product launch and innovation in the furfural products are further propelling the growth of the furfural derivatives market.

Furfural Derivatives Market Scope

Furfural Derivatives Market Dynamics

Driver: The increasing demand for the biofuels

The continuously rising environmental pollution due to the higher use of petrochemicals in the various end-use industrial operations such as in agriculture, automobile, industrial manufacturing, and others. And the rising awareness regarding the global warming and rising environmental pollution creating the health problems in the humans are driving the demand for the biofuels and biochemicals as an alternative product to the petrochemicals that driving the demand for the furfural derivatives market.  Furfural is made by the organic substance like the agricultural waste such as rice husk, corncob, wooden residues, and sugarcane bagasse all these substances are used in the manufacturing of biochemical and biofuels that are environmentally safer and act as the ideal alternative to the petrochemical products.

Restraint: Fluctuating prices raw material

The fluctuating prices of raw material is observed to act as a restraint for the furfural derivatives market. Uncertainty surrounding raw material prices can create challenges for long-term planning, investment, and expansion initiatives within the furfural derivatives industry. Manufacturers may hesitate to commit resources to new projects or capacity expansions if they anticipate continued volatility in raw material prices. This can impede industry growth, limit innovation, and hinder the development of new products or technologies within the furfural derivatives market.

Opportunity: Expansion of application

Furfural is the most commonly found chemical in industrial applications due to its flexible production. It is a chemical that is produced from biomass. Furfural are the most widely used chemicals in industries such as agrochemicals, plastics manufacturing, and pharmaceuticals. Furfural and its derivatives are highly used in the applications like transportation fuels, ungicides and nematicides, lubricants, gasoline additives, decolorizing agents, drugs, jet fuel blend stocks, bio-plastics, insecticides, drugs, flavor enhancers for food and drinks, wood modification and book preservation, and rapid all-weather repair system for bomb-damaged runways and potholes. Thus, the rising investments in research and development activities in focusing on the new development in the furfural derivatives are further propelling the growth of the market.

Route Insights

The Tetrahydrofuran segment led the furfural derivatives market with the largest share in 2023. Tetrahydrofuran is used as a solvent and reaction medium in pharmaceutical synthesis and drug formulation processes. It is commonly employed in the production of pharmaceutical intermediates, active pharmaceutical ingredients (APIs), and drug delivery systems due to its ability to dissolve a wide range of organic compounds and facilitate chemical reactions. The pharmaceutical industry's increasing demand for THF for drug development and manufacturing purposes further strengthens its position as a leading segment in the furfural derivatives market.

Raw Materials Insights

The sugarcane bagasse segment dominated the furfural derivatives market with the largest market share in 2023. Sugarcane bagasse is highly used in the manufacturing of biochemicals due to its higher source of biomolecules that helps in the formulation of the biofuels. sugar cane bagasse contains the preposition of the phytochemicals like terpenoids, phytosterols, fatty acids, flavonoids, and phenolic acids, the microbial population and phytochemicals that are available in the sugarcane which situated in the soil (rhizosphere) and on the surface (phyllosphere) consists of plenty of potential for various industrial applications. Sugarcane bagasse is considered as the most sustainable safeguard method of producing biofuels and bioactive compounds.

Application Insights

The derivatives segment had the largest market share in the furfural derivatives market in 2023. Furfural derivatives are highly used in the manufacturing of gasoline additives, alternative fuel to petrochemical, raisins, lubricants in automobiles. Furfural derivatives are highly used in the drug formulation in pharmaceutical and food and beverages industry as a flavor enhancer in the food and beverages. It is used in the various end-use industries such as agrochemicals, food and beverages, pharmaceuticals, and others.

End-user Insights

The chemicals segment held a significant share of the furfural derivatives market in 2023. Furfural derivatives play a crucial role in the production of furan resins, which are widely used in foundry and casting applications, as well as in the manufacturing of adhesives, binders, and coatings. Furan resins offer excellent thermal stability, chemical resistance, and mechanical properties, making them suitable for high-performance applications in construction, automotive, aerospace, and electronics industries. The chemicals segment captures a significant share of the furfural derivatives market due to the robust demand for furan resins and related products.

Furfural derivatives, particularly furfuryl alcohol and tetrahydrofurfuryl alcohol, serve as important solvents and surfactants in various industrial and consumer applications. These derivatives exhibit solvent properties and can act as effective dispersants, emulsifiers, and wetting agents in coatings, adhesives, paints, and personal care products.

The pharmaceuticals segment held a considerable share of the furfural derivatives market in 2023. Furfural derivatives have demonstrated potential therapeutic properties, making them valuable ingredients in pharmaceutical formulations. Compounds derived from furfural, such as furfural alcohol and furfurylamine, exhibit antimicrobial, anti-inflammatory, and analgesic properties, which are beneficial for treating various medical conditions, including infections, inflammation, and pain management.

The food and beverages industry segment is expected to grow at a notable rate in the furfural derivatives market during the forecast period. Furfural is being widely adopted in the food and beverages product as an additive that enhances the shelf-life of the product. It is also used as a flavor enhancer and added in the wide range of products for enhancing the taste. Furfural consists of vitamin C which is the major component in fruit juices and wines. It is also used in alcoholic and non-alcoholic drinks as a flavor enhancer and increases the shelf life of the product. Thus, these factors are driving the demand for furfural in the food and beverages industry.

Furfural Derivatives Market Recent Developments

• In 2023, Veeder-Root, a global leader in environmental technology and fuel management launched the Biofuel Blending System (BBS) with the collaborating Total Meter Services, an expert in precision measurement solutions. BBS is a technological advancement in fuel bending technology.
• In March 2024, Creative Enzymes, the first global provider of quality-assured enzyme-related products, introduces its revolutionary launch Native Roxburgh Superoxide Dismutase (SOD).
• In April 2024, Umbrella Labs, a biochemical research industry announced the launch of the 5-Alpha-Hydroxy Laxogenin (SARM Support). The launch is available in 30ml and 60ml bottles with 100mg/ml concentrations.
• In April 2024, an industry collaboration The Coastal Sustainability Alliance (CSA), held by the Kuok Maritime Group (“KMG”) announced the planning of advance maritime biofuel ecosystem in Singapore with the investment of S$10 million. The partnership is held between the Green COP and Ken Energy with the signing of MOU (Memorandum of Understanding) at the Tech Stage (EXPO @SMW) at Singapore Maritime Week 2024.
• In March 2024, the UAE introduces the details of the National Policy on Biofuels which received approval by the UAE cabinet. The policy is made by the Ministry of Energy and Infrastructure (MoEI) with the strategic partnering with the private and public sector intended to offer sustainable fuel alternatives and expand energy mix.
• In March 2024, Luis Arce Catacora, a president of Bolivian announced the launch of first biodiesel production plant in its country and starts its operations in Santa Cruz de la Sierra. As per the government the launch will generate a US$100 million saving on the imports on fossil fuels.
• In April 2024, Forto, the first digital freight forwarder in Europe is announced the launch of Insetting Light, a low cost, and sustainable entry level product that leverages the alternative fuels - sustainable aviation fuel, and biofuel and use o renewable energy source to decrease the shipments emission.
• In April 2024, Viking Line is continuously working on the development of its fleet and introducing biofuel alternatives aiming towards a carbon neutral future. The organization launched the biofuel option for the passengers in the route of Turku.
• In April 2024, Japan Airlines (JAL) announced the launch of JAL Corporate SAF Programme a latest business initiative from April 2024 that received the certification of environmental value of COâ‚‚ reduction achieved with the use of Sustainable Aviation Fuel (SAF).
• In April 2024, Strategic Biofuels, a leading project developed of the sustainable aviation fuels (SAF) received the investments from the Magnolia Sustainable Energy Partners (M-SEP), a latest investment consortium in Japan created by the JX Nippon Oil & Gas Exploration Corporation (JX) and Sumitomo Corporation of Americas (SCOA). The investments are held for advancing the Louisiana Green Fuels (LGF) a company flagship project.

Furfural Derivatives Market Companies

• Pyran
• Pennakem, LLC
• TransFurans Chemicals bvba
• BASF SE
• UBE Corporation
• Yuanli Chemical Group
• Hefei Home Sunshine Pharmaceutical Technology Co., Ltd.
• AB Enterprises
• Hefei TNJ Chemical Industry Co., Ltd.
• International Furan Chemicals B.V.

Market Segmentation

By Route

• 1-5 Pentanediol
  • Bio-based
  • Fossil-based
• Furoic Acid
  • Bio-based
  • Fossil-based
• Tetrahydrofuran
  • Bio-based
  • Fossil-based
• 2 Methyl Tetrahydrofuran
  • Bio-based
  • Fossil-based
• 2 Methylfuran
• Maleic Anhydride
  • Bio-based
  • Fossil-based
• Cyclopentanone
  • Bio-based
  • Fossil-based
• Tetrahydrofurfuyl Alcohol

By Raw Material

• Sugarcane Bagasse
• Corncob
• Rice Husk
• Others (Wood Chips, Oat Hulls, and Cotton Husks)

By Application

• Derivatives
• Solvent
• Others (Pharmaceutical, Agriculture, and Food & Beverage)

By End-user

• Food & Beverages
• Chemicals
• Agriculture
• Pharmaceuticals
• Paints and Coatings
• Resins

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa