June 19, 2024
Furandicarboxylic Acid Market

Growing Global Furandicarboxylic Acid Market is influenced by rising PEF Adoption

The global furandicarboxylic acid market is witnessing significant growth owing to the rising demand for renewable and sustainable polyester fibers. Furandicarboxylic acid (FDCA) is a key bio-based building block that is used in the production of polyethylene furandate (PEF), a 100% renewable and biodegradable polyester. FDCA can be produced from sustainably sourced biomass and provides improved barrier properties, higher glass transition temperature, and better stain, chemical and alcohol resistance as compared to conventional terephthalic acid-based polyesters.

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.

PEF made from Furandicarboxylic Acid Market Demand offers an eco-friendly alternative to plastic bottles and food packaging. It can potentially replace polyethylene terephthalate (PET) in beverage bottles, food packaging, and other applications. The improving economics have enabled PEF adoption by leading brands.

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.

– The growing demand for sustainable and biodegradable alternatives to conventional plastics from key industries such as food and beverage, personal care, and pharmaceutical is expected to drive the furandicarboxylic acid market.

– Major players are investing in capacity expansions and global collaborations to cater to the growing demand and tap opportunities in emerging markets.

Market key trends

Rising focus on circular economy and adoption of renewable energy sources is expected to boost Furandicarboxylic Acid Market production via sustainable routes such as Lingo-cellulosic biomass. FDCA offers several advantages over PET such as improved barrier properties and sustainability credentials. This is facilitating its increasing adoption by global brands for food packaging and beverage bottles applications over the forecast period.

Porter’s Analysis

Threat of new entrants: High capital required for R & D and manufacturing facilities limits new competition.

Bargaining power of buyers: Large buyers can negotiate lower prices however they need furandicarboxylic acid for their products so dependence remains.

Bargaining power of suppliers: Suppliers of raw materials have some control over pricing however multiple supplier options are available.

Threat of new substitutes: No direct substitutes currently exist however alternatives to PET end products can be developed.

Competitive rivalry: Competition intense as market is growing rapidly and players are focusing on product developments.

Geographical Regions

North America currently holds the largest share of the global furandicarboxylic acid market in terms of value due to strong presence of end-use industries and manufacturing facilities in the region. The U.S. alone accounts for over 30% market share.

Asia Pacific region is expected to be the fastest growing market during the forecast period. Countries like China, India, Indonesia, Malaysia are witnessing rapid industrialization and demand growth from packaging, automotive and textile industries which will drive furandicarboxylic acid consumption in the region. Established players are also setting up manufacturing units to capture region’s growth potential.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it