The global furfural market to grow at a CAGR of 12.31% during the period 2017-2021.
Global Furfural market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
The latest trend gaining momentum in the market is Increasing demand for green building. The demand for green building constructions, which are aimed for eco-friendliness, energy-efficiency, and reduction of CO2 emissions, is growing rapidly. It is estimated that the global green building construction market in the US has grown at a CAGR of 25.38% during 2014-2016.
Moreover, this expeditious growth is due to the tax benefits provided by the governments. For instance, the US government has adopted the Energy Policy Act of 2005, which includes tax incentives on energy-efficient products. As wood is one of the most energy-efficient building material, demand for wood in green buildings is growing rapidly. This is expected to fuel the demand for furfural used in the treatment of these materials.
According to the report, one of the major drivers for this market is Growing global apparel market. The global apparel market is expected to grow at a faster pace in developing economies, such as India, China, and Brazil, than in developed economies. Growing brand consciousness and disposable income are spurring the growth of the global apparel market, encouraging garment and textile manufacturers to develop modern designs and apparel of high quality.
Further, the report states that one of the major factors hindering the growth of this market is Fluctuation in furfural prices. Furfural is mainly manufactured by natural raw materials such as corn cob, sugarcane bagasse, and rice husk. The market is considerably dependent on environmental and climatic conditions. Fluctuations in the prices of these seasonal raw materials have a significant impact on the price of furfural.
These raw materials are used in several furfural applications. This has hampered the raw materials supply and resulted in high manufacturing cost for manufacturers. Also, the economic scenario plays a crucial role in the performance of the market. The pricing structure of raw materials differs from one region to another based on import and export tariffs. The uncertainty in economic activities affects the prices of raw materials and of furfural, thereby posing a challenge to the market.
Increasing demand for green building
Growing medical tourism
Shift toward natural ingredients in cosmetic products