Furfuryl Alcohol Market is Predicted to Observe a Tremendous Growth, With a CAGR of 7.2% From 2021 To 2025: Grand View Research Inc.

 

The global furfuryl alcohol market size is estimated to reach USD 821.6 million by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 7.2% from 2021 to 2028. Factors such as rising demand for furfuryl alcohol resins from the construction and automotive sectors are expected to drive the market in the near future.

The product has witnessed high demand over the past decade, owing to its growing usage in the foundry, agriculture, and construction industries, among others. The product is broadly utilized in resins and plastics applications. A surge in research and development activities in the area of rocket fuel is estimated to trigger the demand. The products also play an essential role in manufacturing in the foundry sector in the formulation of molds for metal casting.

Asia Pacific is the largest producer as well as consumer of furfuryl alcohol due to increasing concerns regarding renewable products and growing population resulting in high demand for consumer products. The majority of the furfural manufactured in China, more than 85%, is utilized in the production of furfuryl alcohol. Consequently, the growing demand from various end-use industries, in regions such as Europe, is estimated to boost the furfural market growth over the forecast period.

Manufacturers compete on the basis of competitive pricing owing to the presence of price-sensitive buyers. Furthermore, the recent COVID-19 impact causing logistic disruption along with production shutdowns, especially in China have negatively influenced the pricing dynamics. However, the rapid growth of end-use industries along with recovering the production of furfuryl alcohol which is inclined toward bridging the gap between demand and supply is projected to stabilize the prices over the forecast period.

To Request Sample Copy of this report, click the link:

https://www.grandviewresearch.com/industry-analysis/furfuryl-alcohol-market/request/rs1

Furfural, which is derived from sugarcane bagasse and corncobs, undergoes catalytic reduction to form furfuryl alcohol. It is an organic composite, comprising a furan substituted by a hydroxymethyl group. Its primary application is as a chemical intermediate in the production of several chemical products, including wetting agents, adhesives, and foundry resins.

Furfuryl Alcohol Market Report Highlights

• The resins application segment is expected to witness the fastest CAGR of more than 6.1% in terms of revenue over the forecasted period. The growth is attributed to the increasing use of resins in manufacturing aircraft components, fiberglass, and the automotive industry
• In 2020, the foundry segment emerged as the dominant end-use segment and accounted for more than 82.0% share because of growing foundry industry activities, due to a surge in metal casting production
• In Asia Pacific, the market is anticipated to witness a revenue-based CAGR of 7.6% over the forecast period considering the growth of several end-use industries including agriculture, food and beverage, pharmaceutical, and refinery
• The market is moderately fragmented in nature due to the presence of a large number of manufacturers especially in China
• High demand from the foundry sector has increased manufacturers focus towards manufacturing furfuryl alcohol by utilizing furfural produced in their facilities, there for lowering operational costs by integrating forward

Market participants focus on third-party agreements with professional distributors and also sell distribution rights to these merchants in order to reach developed markets. Growing concerns regarding the toxicity of chemical-based products have created a significant demand for products derived from environment-friendly raw materials. Key players compete to gain market share by adopting various strategies such as setting up new manufacturing facilities and expansion in production capacity. Key manufacturers have in-house research and development laboratories for analysis of finished products, semi-finished products, and raw materials.

Manufacturers are inclined toward collaborations with key players, research institutes, and universities to obtain durable bio-based solutions. Companies are expected to focus on forward integration to reduce logistics & operational costs and acquire a higher market share. For instance, key players are engaged in the production of both furfural and furfuryl alcohol. Companies are focusing on mergers to acquire a larger market share. This helps them increase their client base as well as product portfolio. Some of the prominent players in the furfuryl alcohol market include:

·        ILLOVO SUGAR AFRICA (PTY) LTD.

·        Linzi Organic Chemical Inc. Ltd.

·        TransFurans Chemicals bvba

·        DalinYebo

·        Hebeichem

·        SilvateamS.p.a.

·        Shandong Crownchem Industries Co., Ltd.

·        Hongye Holdings Group Corp., Ltd.

·        Xian Welldon Trading Co., Ltd.

·        Furnova Polymers Ltd.

·        NC Nature Chemicals