Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Furfural Derivatives Market size was USD 14.18 billion in 2024 and is estimated to reach USD 35.44 billion by the end of 2037, expanding at a CAGR of 7.3% during the forecast period, i.e., 2025-2037. In 2025, the industry size of furfural derivatives is evaluated at USD 15.22 billion.
The global furfural derivatives market is poised for significant growth, primarily due to the increasing reliance on petrochemicals across various is, including agriculture, automotive, and manufacturing. This growth is further fueled by the rising demand for biofuels and biochemicals as eco-friendly alternatives to traditional petrochemicals, driven by heightened awareness of global warming and environmental pollution, which pose serious health risks. The International Energy Agency reported that the demand for biofuel is expected to rise by 38 billion liters between 2023 and 2028, which is almost 30% more than during the previous five years. In reality, by 2028, the demand for biofuel will have increased by 23% to 200 billion liters, with two-thirds of this growth coming from renewable diesel and ethanol with the remaining portion coming from biodiesel and bio jet fuel.
Furfural itself is derived from renewable organic materials such as rice husks, corncobs, wood waste, and sugarcane bagasse. These natural sources not only contribute to the production of safer biochemicals and biofuels but also serve as effective substitutes for petrochemical products, aligning with the sustainable objectives of many industries today. The expansion of corn cultivation, particularly in major producing regions, ensures a steady supply of feedstock, reducing production costs and enhancing market growth.
The table below shows the global production of corn:
|
Country |
% of Global Production |
Total Production (2024/25, in million metric tons) |
|
U.S. |
31% |
377.63 |
|
China |
24% |
294.92 |
|
Brazil |
10% |
126 |
|
European Union |
5% |
58 |
|
Argentina |
4% |
50 |
|
India |
3% |
40 |
|
Ukraine |
2% |
26.8 |
|
Mexico |
2% |
23.3 |
|
South Africa |
1% |
16 |
|
Canada |
1% |
15.35 |
Source: U.S. Department of Agriculture
Furfural Derivatives Market: Growth Drivers and Challenges
Growth Drivers
- Surging demand in the food & beverages sector: Furfuryl alcohol, which is synthesized through the chemical or enzymatic reduction of furfural, serves as a vital component in thermally processed foods, including fruit juices, coffee, and baked goods, as well as in cask-aged alcoholic beverages such as wines and distilled spirits, including whiskies and brandy. The International Coffee Organization has reported that global coffee consumption increased by 4.2%, reaching 175.6 million bags during the coffee year 2021–2022, following a prior increase of 0.6% the previous year. This significant rebound in coffee consumption can be attributed to the release of pent-up demand accumulated during the COVID-19 pandemic, coupled with robust global economic growth, which registered an increase of 6.0% in 2021. Therefore, the growing coffee consumption is significantly driving the furfural derivatives market.
Additionally, furfuryl alcohol is utilized as a flavoring agent in butterscotch and butter. Beyond its applications in various Western and Asian culinary traditions, it is also incorporated into infant food products. The inclusion of furfuryl alcohol not only enhances the flavor profile but also extends the shelf life of processed foods and beverages. The increasing demand for processed food and drink, particularly in developing markets, is expected to drive innovations in furfural-based compounds.
- Growing utilization in pharmaceuticals and agrochemicals sectors: Furfural derivatives' adaptability and environmentally favorable qualities have led to their widespread use in agrochemicals and pharmaceuticals. Furfural derivatives are employed as intermediates in the pharmaceutical industry to synthesize various medications, particularly those with antibacterial and anti-inflammatory qualities. Furfural derivatives are also useful to the agricultural industry in the production of bio-pesticides and fertilizers, which are less damaging to the environment than traditional synthetic chemicals. These industries' demand is driven by the rising demand for non-toxic, sustainable products that meet environmental and health safety regulations. The demand for furfural derivatives in these high-growth industries is anticipated to stay robust due to growing investment in green chemistry, especially in emerging nations, which will create a favorable environment for market expansion.
Challenges
- Higher production costs: Furfural derivatives are made from agricultural biomass, which necessitates extensive processing and specialized machinery, in contrast to petrochemical-based compounds, which have the advantages of established, large-scale production facilities and economies of scale. This limits adoption rates, particularly in cost-sensitive businesses, by increasing production costs and raising end-user prices. In addition, seasonal fluctuations and climate change can cause raw material availability to fluctuate, which can result in an uneven supply and raise expenses. This high-cost structure is a major barrier to market penetration, especially for small and medium-sized businesses that can find it difficult to absorb these costs or pass them on to customers.
- Lack of awareness and skilled labor: Despite being aware that furfural derivatives have several advantages over conventional chemicals in terms of sustainability and adaptability, many industries in poor nations are still unaware of their uses. Furthermore, due to a lack of research and development facilities and a shortage of qualified experts, these locations may lack the specialized expertise and infrastructure needed for the manufacturing and application of furfural derivatives. Furfural derivatives are highly beneficial for key industries, but their acceptance may be hampered by this knowledge gap. Market participants and stakeholders must work together to address these issues by investing in technical training, education, and local collaborations that could progressively raise awareness and capacity in these unexplored areas.
Furfural Derivatives Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
7.3% |
|
Base Year Market Size (2024) |
USD 14.18 billion |
|
Forecast Year Market Size (2037) |
USD 35.44 billion |
|
Regional Scope |
|
Furfural Derivatives Segmentation
Route (1-5 Pentanediol, Furoic Acid, Tetrahydrofuran, 2 Methyl Tetrahydrofuran, 2 Methylfuran, Maleic Anhydride, Cyclopentanone, Tetrahydrofurfuyl Alcohol)
Tetrahydrofuran segment is predicted to dominate over 30.3% furfural derivatives market share by 2037. Tetrahydrofuran is employed in pharmaceutical synthesis and drug formulation procedures as a solvent and reaction media. Since it can dissolve numerous organic compounds and promote chemical processes, it is frequently used in manufacturing pharmaceutical intermediates, active pharmaceutical ingredients (APIs), and drug delivery systems. THF's position as a market leader for furfural derivatives is further reinforced by the pharmaceutical industry's growing need for it for medication development and manufacture.
End user (Food & Beverages, Chemicals, Agriculture, Pharmaceuticals, Paints & Coatings, Resins)
The chemicals segment in furfural derivatives market is anticipated to garner a significant share during the assessed period. Derivatives of furfural are essential for the synthesis of furan resins, which are used extensively in casting and foundry processes as well as in the creation of adhesives, binders, and coatings. Furan resins have superior mechanical, chemical, and thermal stability, which makes them appropriate for high-performance uses in the electronics, automotive, aerospace, and construction sectors. As a result of the strong demand for furan resins and associated products, the chemicals segment accounts for a sizeable portion of the furfural derivatives market.
Our in-depth analysis of the global furfural derivatives market includes the following segments:
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Route |
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Raw Material |
|
|
Application |
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End user |
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Customize this ReportFurfural Derivatives Industry - Regional Synopsis
APAC Market Statistics
By 2037, Asia Pacific furfural derivatives market is set to capture over 67.1% revenue share. The market's dominance in the region is ascribed to the growing industrialization of the surrounding nations, which is negatively impacting the environment through the use of petrochemical products in their operations. These petrochemicals are extremely dangerous to the environment due to their elevated carbon emissions. Growing public and governmental awareness of the increased pollution caused by increased petrochemical use is fueling demand for furfural derivatives and encouraging market growth. The region's growing furfural derivatives market is also influenced by the growing need for sustainable and renewable energy sources.
In China, increasing focus on bio-based chemicals, driven by its push for sustainable industrial practices and reduced reliance on petroleum-based products. China is the world’s largest producer of furfural, benefiting from abundant agricultural waste such as corncobs and sugarcane bagasse, which serve as key materials. The government’s support for green chemistry and stricter environmental regulations have encouraged industries to adopt bio-based solvents, resins, and pharmaceuticals, boosting demand for furfural derivatives. According to the UN Trade and Development, China has committed to reaching carbon neutrality before 2060 and peaking carbon dioxide emissions before 2030. However, realizing such significant emission reductions in the 30–60 timeframe poses considerable challenges for the country. This difficulty arises from China’s existing high emissions levels and an economic structure that heavily depends on the industrial sector and fossil fuel usage. Therefore, the correlation between China's economic framework and its climate goals highlights the complexity of transitioning to a more sustainable future.
Similarly, India’s strong agro-based economy provides an abundant supply of raw materials including corncobs, sugarcane bagasse, and rice husks, which are essential for furfural production. The India Science, Technology, and Innovation Portal reported that more than 350 million tons of sugarcane bagasse are produced each year in India, the world's second-largest producer of sugarcane. This residue, known as sugarcane bagasse ash (SCBA), is used as fuel in boilers and turbines, producing 8–10 ashes as solid waste. This produces 15 million metric tons of SCBA per year. Additionally, rapid industrialization and expanding applications in various industries contribute to market growth. With India’s growing emphasis on self-reliance in chemical production and increasing exports, the furfural derivatives market is set for further expansion.
European Market Analysis
Europe furfural derivatives market is expected to grow at a significant rate during the projected period. Due to the region's strict environmental laws in the world, eco-friendly chemicals like furfural derivatives have become more widely used across a range of industries. Agricultural wastes like oat hulls and wheat straw are being used more frequently in European nations as feedstocks for the manufacturing of furfural. As a result, there are more raw materials available for furfural derivatives.
Furthermore, the UK’s strong focus on research and development in bio-refining technologies is enhancing production efficiency, making furfural derivatives more competitive with traditional petrochemical-based products. To address this requirement, the Biotechnology and Biological Sciences Research Council (BBSRC) established a research and technology club in collaboration with industry, the Bioscience for Business Knowledge Transfer Network (now Biosciences KTN), and the Engineering and Physical Sciences Research Council (EPSRC). About USD 6.49 million was spent by UK Research and Innovation on fundamental biological, chemical, and engineering research on biorefining technologies that are useful to the industry. Moreover, the push for circular economy initiatives and eco-friendly industrial processes is also contributing to the growing adoption of furfural derivatives in the country.
Companies Dominating the Furfural Derivatives Market
- Pyran
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Pennakem LLC
- Transfurans Chemicals BV
- BASF SE
- UBE Corporation
- Yuanli Chemical Group
- Hefei Home Sunshine Pharmaceutical Technology Co., Ltd.
- AB Enterprises
- International Furan Chemicals B.V.
- Hongye Holding Group Corporation Limited
Due to the existence of numerous international and regional companies, the worldwide furfural industry is fragmented. Leading producers are keeping up with the most recent developments in the furfural market, emphasizing product quality, client base growth, and geographic reach. To produce cutting-edge products and solutions, they are also stepping up their research and development activities and taking part in strategic initiatives like mergers and acquisitions.
In the News
- In July 2024, MAIRE announced that NEXTCHEM (Sustainable Technology Solutions), through its subsidiary CONSER, a technology licensor for high-value chemical derivatives and biodegradable plastics, has been awarded a feasibility study in North America by a major industrial player to optimize an existing maleic anhydride (MAN) facility as part of a malic and fumaric acid manufacturing plant.
- In October 2023, BASF announced the supply of biomass-balanced tetrahydrofuran (THF BMB)2 to the ROICA Division of Asahi Kasei Corporation (Asahi Kasei), a global Japanese firm. Asahi Kasei will employ BASF's THF BMB to make ROICA, a mass balance grade premium sustainable stretch fiber. Customers of Asahi Kasei will benefit from this relationship when they introduce a new sustainable clothes assortment.
Author Credits: Rajrani Baghel
- Report ID: 7435
- Published Date: Apr 03, 2025
- Report Format: PDF, PPT
