CEH Report

Table of Contents

Abstract

China is the dominant player in the world furfural market. With 80% of global capacity and 72% of world consumption, China will continue to drive the overall market. Strong annual growth of over 6% is expected in the next five years as China's furfural consumption continues to grow as a result of strong demand in furfuryl alcohol use for furan resins and increased furfuryl alcohol exports.

Other regions that may experience growth, albeit from smaller volumes, include Africa, Central and Eastern Europe, and Oceania. Only minimal growth is expected in Central and South America and the Middle East. Outside of China, other Asian countries, including Japan, are expected to experience flat growth or slight declines in furfural use.

The following pie chart shows world consumption of furfural:

Furfuryl alcohol is the primary end use for furfural. In major regions, it accounts for 88% of total use, followed by solvent applications in lubricating oils and butadiene extractions (5%); the remainder is in other applications (7%) such as chemical, pharmaceutical and flavoring intermediates.

Furfural is converted into furfuryl alcohol via hydrogenation, and then most is further processed into furan resins used mainly for foundry sand binders in the metal casting industry. Furfural consumption will continue to be driven by furfuryl alcohol use, particularly in China where furfuryl alcohol continues to grow strongly for furan resin production and exports to other regions. In the United States and Western Europe, furfural demand for this application is expected to grow only slightly (1–2% annually) as foundry industry growth is limited.

Other furfural applications such as chemical and agrochemical intermediates, as well as uses in the pharmaceutical, fragrance and food industries, will experience some growth in the various regions.