The Global Furandicarboxylic Acid Market is a rapidly emerging market owing to the growing need for sustainable polymers and chemicals. Furandicarboxylic acid (FDCA) is an organic compound which is a building block used in the production of various polymers and resins. FDCA can replace terephthalic acid which is derived from fossil fuels. FDCA provides many advantages over conventional polymers such as lower toxicity, biodegradability and higher performance. It is widely used for the manufacturing of polyethylene furandicarboxylate (PEF), polytrimethylene furandicarboxylate (PTF), polybutylene furandicarboxylate (PBF) and others which finds applications in bottles, fibers and films. The low cost production of furan through renewable resources such as agricultural waste makes FDCA a highly sustainable alternative to fossil fuel-based polymers.
The Global Furandicarboxylic Acid Market is estimated to be valued at US$ 8.61 BN in 2024 and is expected to exhibit a CAGR of 34% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Global Furandicarboxylic Acid Market are Tokyo Chemical Industry Co. Ltd., Chemsky (shanghai) International Co. Ltd, Avantium, Synbias Pharma, V & V Pharma Industries, Carbone Scientific. Key players operating in the Global Furandicarboxylic Acid Market are focusing on expanding their production capacities and global footprint to cater to the growing demand. Tokyo Chemical Industry Co. Ltd. is one of the major manufacturers with over 50% market share with production facilities in Japan, China and Germany. Chemsky (shanghai) International Co. Ltd is another leading producer based out of China.
The Furandicarboxylic Acid Market Demand is expected to witness significant growth owing to the growing demand for sustainable polymers from end-use industries such as packaging, fibers and automotive industries on account of stringent environmental regulations regarding the use of fossil fuel-based polymers.
Key players are expanding globally with new production plants to cater to the demand from different geographies especially in Asia Pacific and North America. Avantium has collaborated with BASF to produce FDCA on a commercial scale with a 30,000 metric ton per year plant in Antony, France by 2023.
Market Drivers
The growing environmental regulations regarding the use of single-use plastics and fossil fuel-based polymers is a key factor driving the demand for sustainable polymers manufactured using furandicarboxylic acid. FDCA based polymers provide a viable alternative with properties equivalent or better than conventional plastics while reducing dependence on crude oil.
Rising consumer preference for eco-friendly products along with initiatives by governments worldwide to promote the use of bio-based and biodegradable materials is further propelling the Global Furandicarboxylic Acid Market. Continuous research and development by leading players to lower the production costs of FDCA through improved catalyst systems using industrial waste as raw material will help boost the market growth over the forecast period.
Geopolitical Impact on Global Furandicarboxylic Acid Market Growth
The current geopolitical instability across several regions is having an impact on the growth of the global furandicarboxylic acid market. The ongoing Russia-Ukraine conflict and sanctions on Russia have disrupted supply chains and export of raw materials. Both Russia and Ukraine are major producers and exporters of raw materials like furfural which is used to synthesize furandicarboxylic acid. Restrictions on trade with Russia have limited the availability of these raw materials impacting manufacturing volumes. This supply shortage is expected to hamper the market growth in the near-term until alternative sourcing arrangements are put in place.
Furthermore, rising tensions between USA and China are posing additional challenges as China is one of the leading manufacturing hubs for furandicarboxylic acid. Imposition of harsher trade tariffs can increase import costs and affect market demand. To sustain long-term growth, manufacturers will need to diversify their supply networks and find new sources of raw materials beyond Russia, Ukraine and China. Developing domestic production capacities in other geographies will help reduce dependencies on geopolitically vulnerable regions.
Region of Highest Market Concentration
Europe currently accounts for the largest share of the global furandicarboxylic acid market in terms of value. The region is home to many leading chemical companies that are investing heavily in research and commercial production of furandicarboxylic acid. Countries like Germany, Italy, Netherlands and Belgium are major manufacturing hubs. Strong government support for renewable chemicals and easy access to European markets give the region an added advantage. Many manufacturers have production facilities located within Europe to ensure reliable supplies and cater to strong local demand from plastic, polyester and other chemical industries. The European market is projected to continue dominating worldwide in the forecast period as well.
Fastest Growing Regional Market
The Asia Pacific region is poised to witness the fastest growth in the furandicarboxylic acid market during the next few years. Rapid industrialization and thriving end-use sectors are driving the market growth in Asia Pacific. Countries like China, India, Japan and South Korea are showing high demands for bio-based plastics and polymers where furandicarboxylic acid based formulations are increasingly finding applications. A growing consumer base, willingness to adopt sustainable alternatives and supportive government policies are some factors supporting the APAC furandicarboxylic acid market expansion. Several global players are also building new manufacturing plants in the region to capture this high growth potential.
Get more insights on Furandicarboxylic Acid Market
The global 2,5-furandicarboxylic acid market was valued at around US$ 300.0 Mn in 2016 and is anticipated to expand at a CAGR of over 8.2% from 2017 to 2025, according to a new report published by Transparency Market Research (TMR) titled ‘2,5-Furandicarboxylic Acid (FDCA) – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2017–2025.’ Expansion of the global 2,5-furandicarboxylic acid market is driven by rise in demand from the carbonated soft drink industry and legislative support.
The 2,5-furandicarboxylic acid market in Asia Pacific is expected to expand at a CAGR of over 9.0% during the forecast period.
Favorable government regulations, development and expansion of new plants by global manufacturers, and increased demand for biobased packaging are likely to propel the 2,5-furandicarboxylic acid market in the region.Are you a start-up willing to make it big in the business?
Grab an exclusive PDF sample of this report here Rise in Demand for Environmentally Friendly Plastics and Legislative SupportIncreasing awareness about environmental problems and severe regulations against plastic usage and carbon emissions are anticipated to propel the 2,5-furandicarboxylic acid market.
Changing lifestyles and rise in demand for bio-based packaging among consumers are expected to significantly boost the market.
Technological advancements and rise in investments in research and development of biobased chemicals and materials are projected to be expansion opportunities for the 2,5-furandicarboxylic acid market.
