The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
Furfuryl Alcohol Market Growth & Trends
The global furfuryl alcohol market size is anticipated to reach USD 772.6 million by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 6.2% from 2020 to 2027. The growth in the market can be attributed to mounting demand for furfuryl alcohol from furan foundry binders. The principal use of the product is as a monomer in resins synthesis for bonding foundry sands in the conventional FURAN-NO-BAKE method and production of molds and cores, such as Warm-box, Hot-box, and gas hardened processes.
The product is extensively used in the production of furan resins and foundry sand binders owing to its unique properties. The flexibility of the product is huge as a binder base. It is also used in adhesive formulations either by itself or in combination with urea, acetone or phenol to produce solid resins. These types of resins are used for manufacturing aircraft components, fiberglass, and in the automotive industry. Growing demand for furfuryl alcohol resins from the construction and automotive sectors is expected to drive the market in the near future.
Growth in end-use industries across key countries in Asia Pacific is estimated to fuel the demand for furfuryl alcohol over the forecast period. However, the outbreak of coronavirus disease in Wuhan, China, in December 2019 has negatively influenced the Chinese markets as well as the economy. Shutdown of factories, trade bans, and domestic lockdowns are estimated to hamper the market growth in the country over a short period. The further spread of pandemic to India, Japan, South Korea, and Pakistan has blocked the raw material supply. China, the most affected Asian economy and the leading manufacturer, has observed a complete lockdown of manufacturing units in the country, which is estimated to result in the supply-demand gap in the short run.
Manufacturers involved in the market are integrated across the value chain. Companies such as TransFurans Chemicals bvba, ILLOVO SUGAR AFRICA (PTY) LTD, Pennakem, LLC, Hongye Holdings Group Corp., Ltd., and Hebeichem are among the key players as they have higher furfuryl alcohol output as compared to other players in the market. The leaders are well-equipped with large manufacturing facilities and are engaged in several research and development activities. These players are also leaders in the global market in terms of revenue, employee count, global footprint, and clientele base. ILLOVO SUGAR AFRICA (PTY) LTD. is integrated across the value chain. The company uses own sugarcane bagasse for furfural production and also manufactures furfuryl alcohol by using the furfural produced in their plant.
Furfuryl Alcohol Market Report Highlights
- In 2019, resins emerged as the largest application segment owing to growing utilization of furfuryl alcohol in the production of furan resins and foundry sand binders for the foundry sector
- In 2019, foundry emerged as the largest end-use segment due to wide utilization of furfuryl alcohol in the production of molds and cores for metal casting
- In 2019, Asia Pacific emerged as the largest regional segment owing to mounting demand for furfuryl alcohol from several end-use industries, especially in India and China.