Global Furandicarboxylic Acid Market Drivers:
Increasing demand from polyethylene terephthalate (PET) plastic production: The demand for furandicarboxylic acid (FDCA) is being driven significantly by its usage in the production of polyethylene terephthalate (PET) plastic. PET plastic has been witnessing rising demand globally due to its increased utility in packaging foods and beverages. According to the United Nations Environment Program, the worldwide production of plastic has grown from 1.5 Mn tons in 1950 to over 380 Mn tons in 2019. A large portion of this is accounted by PET plastic.
As PET plastic production increases to meet demand, the need for FDCA as an alternative replacement for terephthalic acid which is traditionally used in PET production is also growing. FDCA can be derived from biomass sources such as agricultural waste and has potential to make PET production more sustainable. Several large PET manufacturers have begun research and pilot production of bio-based PET by using FDCA. For instance, the United Nations Economic Commission for Europe, the global PET market is expected to reach a value of 43.26 billion U.S. dollars by 2029, registering a CAGR of 3.2 %.
Growing applications in pharmaceutical industry: Furandicarboxylic acid (FDCA) is increasingly being used in the pharmaceutical industry for developing novel drugs and formulations. FDCA acts as an important building block which can be used to replace petroleum-based feedstocks in drug manufacturing. The structure of FDCA is similar to adipic acid which is commonly used to make nylon, but FDCA is derived from renewable biomass like corn or sugarcane. Due to constraints on petroleum resources and a push for more sustainable practices, major drug companies are actively researching the potential of FDCA.
FDCA allows for creating bio-based alternatives to many existing drug substances. It can improve drug efficacy, solubility, and stability properties when used in formulations. FDA surveys show a rising number of investigational new drug applications citing FDCA as an excipient or active molecule since 2020. For instance, according to the research published by the National Institutes of Health, in 2021, successful synthesis of FDCA-derived drug molecules that showed promise in treating conditions like type 2 diabetes, neurodegenerative diseases and certain cancers in early stage clinical trials.
Global Furandicarboxylic Acid Market Opportunities:
Global Furandicarboxylic Acid Market Restrain:
High production cost: The high production cost of furandicarboxylic acid is one of the major factors restraining its market growth. Furandicarboxylic acid is produced through catalytic conversion of biomass-derived sugars like glucose or fructose. This production process involves multiple complex chemical reactions and separation steps making it highly capital intensive. Setting up commercial scale manufacturing plants for furandicarboxylic acid requires huge investments in advanced production infrastructure and technologies. For instance, According to a case study published by the U.S. Department of Energy in 2020, the total expenditure on catalysts and separation was estimated to be around US$2 per kg of furandicarboxylic acid produced.
Counter balance: Subsidies and other forms of government support can help offset the high costs that are associated with new production processes. This may also include tariffs and trade policies that make sustainable raw materials more competitive. Companies can also partnership with upstream raw material suppliers to secure stable, long-term raw material contracts at lower prices.
Limited availability of raw materials: Furandicarboxylic acid or FDCA is an important bio-based building block chemical that can be potentially used as a substitute for terephthalic acid which is used in the production of polyester fibers and plastics. However, limited availability of raw materials that are required for producing FDCA is proving to be a major growth restraining factor for this market. FDCA is mainly produced from the oxidation of furan-2,5-dicarboxylic acid which in turn is derived from hexose sugars like glucose and fructose. Since these plant-based sugars come from agricultural feedstocks like corn or sugarcane, their availability is dependent on fluctuating harvests and crop yields each year. For instance, according to the Food and Agriculture Organization (FAO) of the United Nations, around 25-30% of global agricultural production is lost or wasted after harvesting every year between 2020-2023.
Counterbalance: Increasing raw material availability can be achieved by identifying raw material sourcing opportunities around the world, including in underutilized agricultural regions.
Continued investment in research and development activities may lead to the development of new applications for FDCA and its derivative products, thereby expanding the market potential.
Global Furandicarboxylic Acid Market Report Snapshots
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