The use of fossil-based resources has had adverse implications on the environment and this has resulted in growing concerns among consumers. Thus, there has been a shift from non-renewable, fossil-based sources to renewable and bio-based alternatives. This in turn is driving the global demand for furfural derivatives, which are used for the production of biofuels and bio-chemicals. Strict environmental norms and regulations have also encouraged the use of bio-based products in industries and are behind the growth of the furfural derivatives market. The volatility in crude oil prices and the rising demand for non-toxic furfurylation of woods are expected to drive the market across the globe. The increased awareness of the benefits of furfural is also helping the market’s growth.
Browse the full Fine Global Furfural Derivatives Market Report: http://www.mrrse.com/furfural-derivatives-market
According to a report, the global demand for furfural derivatives is estimated to rise from 947.5 kilo tons in 2016 to 1,172.1 kilo tons by 2024, exhibiting a modest 2.69% CAGR, by volume, from 2016 to 2024. Pricing plays a key role in the competitive market of furfural derivatives as the cost of these derivatives is high. The price of ethanol, which is a material produced by synthetic process is lower than furfural derivatives and thus, they can be substituted. Therefore, the threat of substitutes is expected to be high.
Partnerships and Joint Ventures to be Key Strategies of Players in Furfural Derivatives Market
The global furfural derivatives market is moderately consolidated with the top five companies accounting for 57% of the total market in 2015. These top five companies are Nova Molecular Technologies, Inc., Penn A Kem LLC, Sinochem Qingdao Co. Ltd., Corbion NV, and Hongye Chemical Co. Ltd. The market is characterized by the presence of both small and large companies and this is creating a tough competitive scenario. Thus, the degree of competition is expected to be high.
Players in the global furfural derivatives market are engaging extensively in joint ventures and partnerships in order to lower the prices of these derivatives by increasing the production capacity. Hongye Chemical, a China based company has engaged in various joint ventures and partnerships, as a result of which, in 2015, its production capacity was as high as 150,000 MT of furfuryl alcohol. The company boasts of being the largest producer of furfural and furfuryl alcohol in the world. Thus, joint ventures and partnerships are important strategies which should be implemented by a company so as to grow in the market.
2,5- Furandicarboxylic Acid (FDCA) Segment to Emerge as Swiftly Expanding Market
The furfural derivatives market is segmented on the basis of product into tetrahydrofurfuryl alcohol (THFA), furoic acid, 2,5- furandicarboxylic acid (FDCA), and others, which comprise, methyl tetrahydrofuran (MeTHF), poly tetrahydrofuran (poly THF), and tetrahydrofuran (THF). Of these, the others segment is expected to lead in the market. However, the 2,5- furandicarboxylic acid (FDCA) segment is anticipated to witness a swift paced growth in the coming years.
Browse the full Press Release of Global Furfural Derivatives Market at :http://www.mrrse.com/global-furfural-derivatives-market
By geography, Asia Pacific led in the past and is likely to retain its leading position in the coming years.