The global tetrahydrofuran market share is projected to expand notably over the coming years, fueled by the product’s wide range of applications including solvent, pharmaceutical, and PTMEG. Besides, the product is also used as a solvent in the production of various adhesives and polymers.
THF is generally polymerized to form Polytetramethylene Ether Glycol (PTMEG) which is commonly used as a raw material for various fibers, including SPANDEX, within the textile industry. Rising demand for spandex from apparel and textile industries owing to the robust strength and elasticity offered by the fiber has led to an increase in the PTMEG production, stimulating the growth prospects of tetrahydrofuran market over 2022-2028.
The market growth is also propelled by a host of other product applications including in coatings, production of varnishes, used in chemical intermediate, as a laboratory chemical, processing aid in the production of petroleum, and use as a reaction medium in the pharmaceutical sector.
Based on the process technology, Reppe process segment is predicted to account for substantial growth in the ensuing years. The process is considered one of the most prevalent method for the production of tetrahydrofuran owing to its low investment costs and high production efficiency. Besides, factors like reduced number of steps involved in the process and decreased process time are also likely to augment the segmental share through 2028. Additionally, in the Reppe process, formaldehyde and ethyne are used as raw materials that produce 1,4-butanediol at the nascent step.
In terms of the application, Polytetramethylene Ether Glycol (PTMEG) segment would record significant gains through the forthcoming years. PTMEG is a chief ingredient in the manufacturing of a variety of elastomeric products, a major element of spandex fibers, and also used in PU resins, and thermoplastic elastomers. High growth in production of spandex and elevating trends in the apparel and textile industry would augment the segmental growth in the near future. According to reliable estimates, 80% of the clothing sold in America contains spandex. The material’s lightweight, unique elasticity, and soft smooth synthetic fiber attributes are likely to increase its applicability. Besides, the fiber can be stretched up to 500% of its length, while boasting of wear and tear resistance.
The global tetrahydrofuran industry is diversified into different regions including Asia Pacific, Europe, North America, and others. Amongst these, the growth in APAC tetrahydrofuran market is anticipated to come from the expanding textile industry in emerging countries like India, China, Japan, and others. As per Invest India, the textiles and garments industry in the Indian subcontinent is foreseen to surpass $190 billion by 2025-2026. Furthermore, growing investments in the industry by various emerging nations would as well enhance the market space in the forthcoming years. For instance, in 2021, Pingnan County in Guangxi province of China announced building a textile industry cluster at an investment of USD 4.08 billion. The County has inked over 226 textile and garment projects for the coming cluster and is estimated to build over 100 enterprises in the foreseeable future.
Eminent players operating in the global tetrahydrofuran market space are Mitsubishi Chemical Corporation, BASF SE, Ashland, LyondellBasell Industries N.V., Dairen Chemical (Chang Chun Group), Nova Molecular Technologies, BioAmber Inc., and Saudi International Petrochemical Company, amongst others.
These participants, in an effort to enhance their product profile and fortify their position in the industry, are taking up significant steps including mergers and acquisitions, partnerships, and product launches.
The outbreak of COVID-19 during 2020 has had a severe impact on the global chemical industry and businesses that deal with raw material supply of different chemicals. This also included tetrahydrofuran market. Negative influence on the market can be reasoned to the disruptions in the supply chain, movement restriction, stringent lockdown norms, and decline in textile and apparel business sales.