Furandicarboxylic Acid Market - By Type, By Application (Polycarbonates, Propylene, Polyethylene, Polyamides, Polyethylene Terephthalate, Polybutylene Terephthalate, Polyethylene Furanoate, Polypropylene Terephthalate, Polyester Polyols, Plasticizers, Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2022-2027

Furandicarboxylic Acid Market Overview

The furandicarboxylic acid market globally is forecast to reach US$802.3 million by 2027 after growing at a CAGR of 8.7% during 2022-2027. Owing to the properties of biocompatibility and biodegradability, furandicarboxylic acid (FDCA) has gained global commercial interest as a bio-based material for the production of bioplastics like polyethylene furanoate (PEF). The demand for bio-sourced PEF is gaining traction in the packaging industry owing to its sustainable and renewable properties. This demand for PEF application is projected to grow upward in the coming years which will drive the furandicarboxylic acid market’s growth in the forecast period. For instance, as per the April 2021 press release report by Avantium Holdings NV, the company has produced 100% bio-PEF with the help of its furandicarboxylic acid. Furthermore, the growing concern about the harmful environmental effects of traditional plastics coupled with various government regulations will drive the furandicarboxylic acid market’s growth in the forecast period. For instance, in 2019, Japan introduced a new policy for the higher implementation of plant-based bioplastics to reduce marine plastic waste. Along with PEF, the demand for furandicarboxylic acid is projected to increase in the production of other plastics that include polyethylene terephthalate (PET), polyamides, polycarbonates, polyester polyols, and plasticizers. However, the synthesis of furandicarboxylic acid from biomass-based HMF might slow down the market’s growth in the forecast period.

COVID-19 Impact

The furandicarboxylic acid market was hit moderately due to the COVID-19 pandemic. The furandicarboxylic acid ecosystem went through multiple disturbances including supply constraints, procurement of raw material, cross-border movement, etc. Amid these challenges, market players modified their service and production methods. For instance, Eastman Chemical Company faced severe supply chain issues during the pandemic. The overall product shipping capacity by Eastman Chemical Company was hampered mainly due to restrictions in global travel and cross-border movement. However, the company kept its business afloat by adopting safety protocols and guidelines directed by the provincial and federal governments. Similarly, as per the official COVID-19 data by Avantium Holdings NV, the company kept only its critical plant and laboratory operations running. Going forward, the target market will witness robust growth owing to the increasing demand for furandicarboxylic acid in bio-based plastic applications.

Report Coverage

The report: “Furandicarboxylic Acid Market Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Furandicarboxylic Acid Industry. 

By Type: Purity 97%, Purity 98%, Purity 99%
By Application: Polycarbonates, Propylene, Polyethylene, Polyamides, Polyethylene Terephthalate, Polybutylene Terephthalate, Polyethylene Furanoate, Polypropylene Terephthalate, Polyester Polyols, Plasticizers, Others
By Geography: North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of Asia Pacific), South America (Brazil, Argentina, Colombia and Rest of South America), and RoW (Middle East and Africa).

Key Takeaways:

• The growing demand for PEF application will drive the furandicarboxylic acid market growth in the forecast period. As per the November 2019 press release report by Avantium Holdings NV, the company opened its new branch office in Japan which focuses on the development of PEF based on furandicarboxylic acid.
• The stringent regulations against the use of conventional plastics will drive the market’s growth in the forecast period. For instance, as per the data by foodpackagingforum.org, from July 2022, several single-use plastic items including food contact articles like plates, candy and ice-cream sticks, certain wrapping films, and trays will be banned from the manufacture, sale, and import.
• In October 2019, Avantium Holdings NV joined hands with Paboco, a paper bottle manufacturing company, for developing bottles with a thin layer of polyethylene furanoate (PEF) to provide a high barrier property to the bottle. This will influence the furandicarboxylic acid market growth.

Figure: European Furandicarboxylic Acid Market Revenue, 2021-2027 (US$ Billion)

Furandicarboxylic Acid Market - By Type

Furandicarboxylic acid with a purity of 99% dominated the global furandicarboxylic acid market in 2021 and is growing at a CAGR of 8.9% in the forecast period. The furandicarboxylic acid is generally copolymerized with ethylene glycol (EG) to form polyethylene furanoate (PEF) but the impurity content in the furandicarboxylic acid negatively affect the color and weight of PEF for which is FDCA goes under purification process. The furandicarboxylic acid with a purity of 99% has been widely used in the production of polyethylene furanoate (PEF). Manufacturers in the target market and research organizations opt for this high purity grade FDCA. For instance, biochemicals company Corbion produces 99% purity-based FDCA with no reaction by-products. This high-grade FDCA with a purity of 99% will witness higher demand in the furandicarboxylic acid market in the forecast period.

Furandicarboxylic Acid Market - By Application

The polyethylene furanoate (PEF) application segment held the largest market share in 2021 and is growing at a CAGR of 9% in the forecast period. Furandicarboxylic acid (FDCA) is the main building block for PEF. The robust biocompatibility and biodegradability properties of furandicarboxylic acid make it a desirable choice among market players to produce bio-based materials like polyethylene furanoate (PEF) which is widely used in the packaging industry. With the help of furandicarboxylic acid, PEF is made lightweight, recyclable, and nature friendly, and these are some of the important factors in a sustainable packaging solution. Manufacturers in the target market are collaborating with brands to develop more bio-based PEF materials. For instance, as per Avantium Holdings NV’s October 2019 press release report, Avantium Holdings NV joined hands with South Korea based company R&F Chemical to implement high-value PEF application in smart packaging systems in the South Korea region. Similarly, as per the 2020 annual report by Sulzer Chemtech, the company is scaling up the production of furandicarboxylic acid-based PEF. Such high demand in PEF application with the involvement of furandicarboxylic acid will drive the target market’s growth in the forecast period. Other applications like the production of polyethylene terephthalate, polycarbonates, polyamides, polyester polyols, plasticizers will drive the market’s growth significantly in the forecast period.

Furandicarboxylic Acid Market - By Geography

The European region held the largest market share in the furandicarboxylic acid market in 2021 with a market share of up to 31%. The presence of top market players in the region coupled with increased deals and agreements involving furandicarboxylic acid is amplifying the target market. Furandicarboxylic acid is gaining traction in bio-based plastic production and the packaging industry through PEF application. Accordingly, market players are collaborating with brands and companies for the commercialization of furandicarboxylic acid. For instance, in May 2021, Switzerland-based Sulzer Chemtech partnered with Ava Biochem, which is another Switzerland-based chemical company, to amplify the production of 5-hydroxymethylfurfural (HMF) which is later used in the production of a variety of chemical products including furandicarboxylic acid. Similarly, in October 2019, Italy-based bioplastics and bioproducts company Novamont announced its new plant for the production of furandicarboxylic acid. Such high production of furandicarboxylic acid and the development of PEF materials based on furandicarboxylic acid will contribute to the growth of the target market in the forecast period. The Asia-Pacific region will witness significant demand for furandicarboxylic acid in the forecast period owing to the demand for bio-sourced PET materials in the packaging industry.

Furandicarboxylic Acid Market Drivers

Increasing demand for PEF application will drive the market’s growth

Furandicarboxylic acid has been the key element in the production of bio-based polymer polyethylene furanoate (PEF). PEF is becoming a popular choice in the packaging industry, owing to its superior renewable properties, which ultimately drive the demand for furandicarboxylic acid. The PEF application is mainly used in various types of bottle packaging as it provides good barrier properties. Bolstered by such high impact properties of PEF application, market players are teaming up with brands to make the widespread reach of furandicarboxylic acid globally. For instance, in March 2021, Netherland-based Avantium Holdings NV joined hands with Denmark-based Carlsberg Group to develop biobased PEF material with the help of Avantium’s furandicarboxylic acid which will help in reducing carbon footprints and will enhance Carlsberg’s packaging solution. This growing PEF application based on furandicarboxylic acid will drive the growth of the market in the forecast period.

Growing concern and regulations regarding the use of traditional plastics will help in driving the market’s growth

The growth of furandicarboxylic acid is fueled by the strict regulations incorporated by governments regarding the growing concern of fossil-based plastic use. Traditional plastics have been a major issue when it comes to recyclability and their hazardous effect on nature. For instance, in 2019, the European Union passed the law to ban single-use plastic in the European region by 2021. This law was incorporated to reduce the use of plastic and tackle plastic wastes. Manufacturers and various industries are looking for a suitable alternative to traditional plastic and reduce plastic wastes. This is where furandicarboxylic acid is found helpful as it helps in developing bio-sourced plastics like polyethylene furanoate (PEF) and polyethylene terephthalate (PET). The bio-PEF and PET are implemented extensively in the plastic industry as it allows the packaging companies to attain their sustainability goals. The harmful effects caused by the traditional plastic and government regulation stimulate higher use of bioplastics like PEF and PET, ultimately helping the furandicarboxylic acid to excel in the forecast period.

Furandicarboxylic Acid Market Challenges

The High production cost of furandicarboxylic acid might hinder the market’s growth

Furandicarboxylic acid involves a costly production process which is a key challenge in the market. Production of furandicarboxylic acid from biomass feedstock or its derived sugars is gaining traction in recent years as furandicarboxylic acid (FDCA) is utilized to produce bioplastics like polyethylene furanoate (PEF), an alternative to polyethylene terephthalate (PET) produced from fossil fuel. Generally, 5-hydroxymethylfurfural (HMF) which is an intermediate product of the acid dehydration of sugars is used as a precursor for the production of FDCA. However, the final production of FDCA from HMF makes the production process costly. As per the April 2019 journal by Wiley Online Library, production of FDCA becomes costly owing to the high processing cost for converting HMF to FDCA. The journal also mentioned that manufacturers and researchers are focusing on the development of a cost-effective process for the conversion of biomass for FDCA production. This costly production process of furandicarboxylic acid (FDCA) might slow hamper the growth of the furandicarboxylic acid market in the forecast period.

Furandicarboxylic Acid Market Industry Outlook

Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the furandicarboxylic acid market. Major players in the furandicarboxylic acid market are:

1. AVA Biochem
2. Sulzer Chemtech
3. Avantium Holdings NV
4. Carbion NV
5. Novamont
6. Carbone Scientific
7. Chemsky
8. Tokyo Chemical Industry Co. Ltd.
9. R&D Synbias Ltd.
10. Eastman Chemical Company
11. Satachem Co., Ltd.
12. Toronto Research Chemicals
13. Others

Recent Development

In January 2020, Avantium Holdings NV, a market leader in furandicarboxylic acid, announced that the company will build its flagship plant for furandicarboxylic acid (FDCA) in Netherland which will be operational in 2023. This will contribute to increased production and application of furandicarboxylic acid in the forecast period, which will help in the growth of the target market in the coming years.

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