Furfuryl Alcohol Market to Reach USD 1.34 Billion by 2035, Supported by Rising Demand for Bio-Based Chemicals and Expanding Foundry Industry | TMR

The global Furfuryl Alcohol Market was valued at US$ 624.3 million in 2024 and is projected to reach US$ 1,341.2 million by 2035, expanding at a compound annual growth rate (CAGR) of 7.2% from 2025 to 2035.

This growth is primarily driven by the rising demand for bio-based and sustainable chemicals, along with the steady expansion of the foundry and metal casting industry, particularly across emerging economies in Asia Pacific.

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Market Overview

Furfuryl alcohol is a renewable, biomass-derived chemical produced through the hydrogenation of furfural, which itself is obtained from agricultural waste such as corn cobs, sugarcane bagasse, rice hulls, and cotton hulls. Owing to its high reactivity, excellent bonding properties, and thermal stability, furfuryl alcohol serves as a critical intermediate in the production of furan resins, polymers, adhesives, solvents, and specialty chemicals.

The compound plays a pivotal role in industrial applications, particularly in the foundry sector, where it is extensively used in sand mold and core binders. Its ability to provide high mechanical strength, dimensional accuracy, and resistance to heat makes it indispensable for high-performance metal casting applications.

As industries increasingly transition toward sustainable raw materials and circular economy practices, furfuryl alcohol is gaining prominence as an environmentally superior alternative to petroleum-based chemicals. This shift is reinforcing its adoption across multiple end-use industries, including chemicals, agriculture, pharmaceuticals, and energy.

Key Market Growth Drivers

Rising Demand for Bio-Based and Sustainable Chemicals

The growing global emphasis on sustainability and environmental responsibility is significantly reshaping the chemical manufacturing landscape. Governments, regulatory bodies, and international organizations are increasingly encouraging the use of renewable feedstocks and low-carbon chemical processes, thereby accelerating the adoption of bio-based chemicals such as furfuryl alcohol.

Derived from agricultural waste biomass, furfuryl alcohol aligns well with sustainability goals by reducing dependency on fossil fuels and lowering carbon emissions. It supports circular economy initiatives by converting agricultural by-products into high-value industrial inputs.

In regions such as Europe and North America, stringent environmental regulations and carbon-reduction targets are prompting chemical manufacturers to integrate sustainable sourcing into their procurement strategies. As a result, demand for furfuryl alcohol is rising steadily across industrial applications.

Manufacturers are investing in process optimization, improved catalytic hydrogenation technologies, and low-emission production methods to meet growing demand while maintaining product quality. These advancements are strengthening furfuryl alcohol's position as a cornerstone of the global bio-based chemicals market.

Expanding Foundry and Metal Casting Industry

The foundry and metal casting industry represents the largest consumer of furfuryl alcohol globally. The compound is widely used in the production of furan resins, which serve as binders for sand molds and cores in metal casting processes.

Furan resin systems offer superior casting accuracy, enhanced mechanical strength, reduced defects, and improved surface finish. These properties make them highly desirable for manufacturing components used in automotive, machinery, construction, and heavy engineering industries.

Rapid industrialization and urbanization, particularly in Asia Pacific, are fueling demand for metal components, thereby driving consumption of furfuryl alcohol. Countries such as China and India are major hubs for foundry operations due to their large manufacturing bases and growing infrastructure investments.

Additionally, the shift toward environmentally safer casting solutions is reinforcing the adoption of furfuryl alcohol-based resins. Compared to conventional phenol-based binders, furfuryl alcohol offers lower toxicity and better environmental performance, helping foundries comply with regulatory standards while improving productivity.

Analysis of Key Players - Market Structure and Competitive Landscape
The global furfuryl alcohol market is moderately consolidated, with a mix of established producers and regional manufacturers operating across the value chain. Key companies actively engaged in furfuryl alcohol and furfural production include:

ILLOVO SUGAR AFRICA (PTY) LTD.

Linzi Organic Chemical Inc. Ltd.

TransFurans Chemicals Geel

DalinYebo

Hebeichem

Additional prominent players include Silvateam S.p.a., Shandong Crownchem Industries Co., Ltd., Hongye Holdings Group Corp. Ltd., Xian Welldon Trading Co., Ltd., Furnova Polymers Ltd., NC Nature Chemical, and Pennakem, LLC.

These companies focus on renewable biomass-based manufacturing processes, product purity enhancement, and capacity expansion to meet rising global demand. Competitive advantage is increasingly determined by feedstock availability, production efficiency, sustainability credentials, and regional distribution strength.

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Market Challenges & Opportunities

Challenges

Despite strong growth prospects, the furfuryl alcohol market faces several challenges, including:

Volatility in agricultural feedstock availability

Fluctuating raw material prices

Capital-intensive production processes

Stringent environmental and safety regulations

Ensuring consistent supply of furfural feedstock and maintaining process efficiency remain key operational concerns for manufacturers.

Opportunities

Conversely, the market presents substantial opportunities through:

Increasing penetration of bio-based chemicals

Rising demand from pharmaceuticals and specialty chemicals

Development of high-purity furfuryl alcohol grades

Technological innovation in catalytic hydrogenation

These opportunities are expected to support long-term market expansion and diversification beyond traditional foundry applications.

Key Player Strategies

Leading market participants are adopting several strategic initiatives to strengthen their market presence, including:

Backward integration into furfural production to secure raw material supply

Expansion of production facilities in Asia Pacific

Development of high-purity and low-emission product grades

Investment in R&D to improve yield and energy efficiency

Establishment of new regional distribution networks

These strategies are helping companies improve profitability, ensure supply stability, and comply with global sustainability standards.

Recent Developments

May 2025: A young scientist won the grand prize at the Regeneron International Science and Engineering Fair (ISEF), receiving a US$ 100,000 award for developing a low-cost method to produce antiviral drugs using furfuryl alcohol as a key building block. The innovation demonstrates the potential of bio-based chemicals like furfuryl alcohol in advancing pharmaceutical research and improving global public health access.

Investment Landscape and ROI Outlook

The furfuryl alcohol market is witnessing growing interest from chemical manufacturers and investors due to its strong alignment with sustainability trends and industrial demand. Investments in bio-based production facilities and process optimization are expected to yield attractive returns through improved margins and long-term demand stability.

With expanding applications in foundry resins, adhesives, agriculture, and pharmaceuticals, furfuryl alcohol offers a favorable ROI outlook for stakeholders investing in capacity expansion, technology upgrades, and supply chain integration.

Market Segmentations

By Purity

Upto 98%, 98% to 99%, 99%

By Raw Material

Corncobs, Rice Hulls, Cotton Hulls, Sugarcane Bagasse, Others

By Application

Resins, Solvents, Plastics, Adhesives, Corrosion Inhibitors, Others

By End-use

Foundry, Food & Beverages, Chemical, Energy, Agriculture, Pharmaceuticals, Others

The foundry segment dominated the market in 2024 with a 70.0% revenue share, driven by extensive use of furfuryl alcohol-based furan resins.

By Region

Asia Pacific (Leading region with 69.1% market share)

Europe, North America, Latin America, Middle East & Africa

Asia Pacific leads due to strong industrial growth, abundant biomass feedstock, and expanding foundry operations.

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FAQs

1. What is the current market size of the furfuryl alcohol market?
The market was valued at US$ 624.3 million in 2024.

2. What is the expected growth rate of the market?
The market is projected to grow at a CAGR of 7.2% from 2025 to 2035.

3. Which region dominates the market?
Asia Pacific leads the market with a 69.1% revenue share.

4. What is the largest end-use segment?
The foundry segment dominates, accounting for 70.0% of market revenue in 2024.

5. What factors are driving market growth?
Key drivers include demand for bio-based chemicals and expansion of the foundry and metal casting industry.

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