Tetrahydrofuran Market Analysis by Application {Solvent, Polytetramethylene Ether Glycol (PTMEG), and Others}; by Technology (Davy, Reppe, Butadiene, and Propylene Oxide Process); and by End User (Textile, Pharmaceutical, Paints and Coatings, Polymer, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 3166 | Published Date: Mar 06, 2023
The global tetrahydrofuran market is estimated to garner a revenue of around USD 10 Billion by the end of 2035 by growing at a CAGR of ~8% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of nearly USD 4 Billion in the year 2022. The growth of the market can be attributed to the attributed to increasing demand for tetrahydrofuran (THF) from end user industries, rising number of construction and infrastructural development projects in the world. In 2020, the revenue of the construction industry in the United States alone reached to USD 1.3 billion. The value was almost USD 1 billion in 2018.
In addition to these, factors that are believed to fuel the market growth of tetrahydrofuran include the growing requirement for spandex from textile industry. Tetrahydrofuran is highly used for the manufacturing of the chemical that are used for manufacture swimsuits, sportswear and casual wear. Moreover, rise in usage of THF as adhesive, coating agent and reaction medium is also expected to boost market growth in the upcoming years. Furthermore, high demand for polyvinyl chloride (PVC) and polyurethane manufacturing is projected to offer lucrative opportunities to the market in the near future.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~8% |
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Base Year Market Size (2022) |
~ USD 4 Billion |
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Forecast Year Market Size (2035) |
~ USD 10 Billion |
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Regional Scope |
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Growth Drivers
Growing Building and Construction Sector – Tetrahydrofuran is used in polyurethane coating and paints. The demands for paints and coatings is expected to increase with rising construction. In 2021, France had more residential buildings than any other nation in Europe, with over 471,000 homes being built. Germany came in second with 310,000 homes being built.
Rising Demand of Polyurethane – THF is a major component of polyurethane fibers and urethane elastomers. An estimated of around 18 million tonnes of polyurethanes were consumed globally in 2019, and nearly 23 million tonnes are anticipated to be consumed by 2024.
Increasing Consumption of Prescribed Drugs – Tetrahydrofuran are the chemical intermediate that is used in the manufacturing of various drugs. Over 26% of adults in the UK use prescription drugs. Moreover, 35% of Australians use prescription drugs daily.
Growing Use of Plastic-Made Products – Tetrahydrofuran acts as a solvent for manufacturing polyvinyl chloride (PVC), which in turn is used in producing automotive plastics, packaging plastics, and others. According to the UN Environment Program, by 2050, 1,100 million tonnes of primary plastic are expected to be produced worldwide. Furthermore, single-use plastic goods for food and beverage containers make up about 36% of all plastics produced for packaging.
Growing Global Chemical Industry – It is frequently used to dissolve and react with different compounds. Moreover, it serves as a precursor in the synthesis of a number of other chemical. The global chemical industry rose by nearly 4% in 2022
Challenges
The global tetrahydrofuran market is segmented and analyzed for demand and supply by end user into textile, pharmaceutical, paints and coatings, polymer, and others. Out of the five end-use industries of tetrahydrofuran, the textile segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the increasing use of spandex made clothing followed by higher import and export of spandex material. Since people's need for comfortability has increased throughout the post-pandemic era, the added proportion of spandex in the textile and garment sectors has reportedly increased to around 10-25%. Furthermore, from January through November 2021, spandex exports increased by nearly 26% on a yearly basis to around 74 kt, with a monthly export of about 7,000 tonnes. In addition, from January to November 2021, imports of spandex increased by around 28%, or nearly 7,300 tonnes, on a yearly basis.
The global tetrahydrofuran market is also segmented and analyzed for demand and supply by application into solvent, polytetramethylene ether glycol (PTMEG), and others. Amongst these three segments, the polytetramethylene ether glycol (PTMEG) segment is expected to garner a significant share. Rising use of polytetramethylene ether glycol (PTMEG) is the major growth driver of the segment. Tetrahydrofuran is converted into polytetramethylene ether glycol (PTMEG/PTG) using an acid-catalyzed polymerization process (THF). Tetramethylene ether units are repeatedly present in this straight-chain diol. Moreover, the segment growth is also expected on the account of rising use of polytetramethylene ether glycol (PTMEG) in increase the tensile strength of elastane. The PTMEG elastomer displayed around 67% retention of the initial tensile strength after 72 hours at 105°C and 100% RH.
Our in-depth analysis of the global tetrahydrofuran market includes the following segments:
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By Application |
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By Technology |
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By End User |
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The Asia Pacific tetrahydrofuran market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the rising production of plastic made products and higher constructional activities. China produces over 7 million metric tonnes of plastic goods each month. Since January 2020, December 2021 saw the highest monthly production of plastic items, which was over 8 million metric tonnes. Furthermore, to establish the National Bank for Financing Infrastructure and Development (NaBFID), a $2.5 billion development finance institution, was approved by Parliament in March 2021 in order to finance infrastructure projects in India. Moreover, in India, where urbanization is predicted to increase from 33% to over 40% of the population by 2030, there will be a need for around 25 Million extra mid-range and inexpensive housing units.
The North American tetrahydrofuran market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market in the region is expected to grow on the back of the rising consumption of medicines by the people. Adults in the United States who use prescription medicines comprise about 66% of the population. Moreover, around 65% of Canadians between the ages of 40 and 79 use one or more prescription medicines.
BASF announced that it will increase the selling prices for butanediol and its derivatives, including tetrahydrofuran in the European Union. These products are widely used for producing solvents, polyurethanes and elastic spandex.
Ashland Global Holdings, Inc. releases the new prices of various chemical products, including 1,4 butanediol, tetrahydrofuran, gamma-butyrolactone, n-methyl-pyrrolidone, and others. the price of tetrahydrofuran increases by USD 0.15 per pound.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: Growing construction and chemical industry, rising consumption of medicines, and higher production of plastics are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~8% over the forecast period, i.e., 2023 – 2035.
Ans: Harmful effect of tetrahydrofuran on health, and they are highly inflammable and carcinogenic in nature are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The market is anticipated to attain a CAGR of ~8% over the forecast period, i.e., 2023 – 2035.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by application, technology, end user, and by region.
Ans: The polytetramethylene ether glycol (PTMEG) segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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