Tetrahydrofuran (THF) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Tetrahydrofuran (THF) Market is segmented by Application (Polytetramethylene Ether Glycol (PTMEG), Solvent, and Other Applications), End-user Industry (Polymer, Textile, Pharmaceutical, Paints and Coatings, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for Tetrahydrofuran in revenue (USD million) for all the above segments.

Market Snapshot

Tetrahydrofuran  Market  Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 6 %

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Market Overview

The Global Tetrahydrofuran (THF) Market is projected to register a CAGR of 6% during the forecast period (2021-2026).

The market was negatively impacted due to COVID-19 in 2020. Countries like India, China, Italy, France, Poland, the United Kingdom, South Africa, and New Zealand went into lockdown during 2020. Moreover, owing to restrictive mass quarantines due to coronavirus, polymer, textile, paints, and coatings industries were negatively impacted. The construction industry has also been impacted, as the workers keep themselves away from the project sites, which affected the demand for paints and coatings, consequently affecting the tetrahydrofuran market. In India, construction workers are kept away from work sites, which has put a hold on almost 20,000 ongoing projects in the country. Berger Paints, India's second-largest paint company, reported a 6.5 percent drop in consolidated net profit for the fourth quarter ended March 31 to INR 1,032 million (USD13.76 million). Due to COVID-19, the petrochemical industry was also negatively impacted and thus impacted the polymer industry. Owing to all these factors, the tetrahydrofuran market is negatively impacted by COVID-19.

  • In the medium term, growing demand for spandex from the textile industry and increasing demand for polyvinyl chloride manufacturing are the major factors driving the market.
  • On the flip side, the availability of close substitutes, hazardous nature (highly flammable and health hazard) of THF, and negative impact of COVID-19 pandemic are hindering the growth of the market.
  • The Asia-Pacific region is expected to dominate the market across the world, with the largest consumption from countries, such as China, India, and Japan.

Scope of the Report

Tetrohydrofuran is an organic compound, used chiefly as a solvent for plastics and as an intermediate in organic synthesis. It is a colorless, water-miscible organic liquid with low viscosity. The Tetrahydrofuran (THF) Market is segmented by application, end-user industry and geography. By application, the market is segmented into polytetramethylene ether glycol (ptmeg), solvent, and other applications. By end-user industry, the market is segmented into polymer, textile, pharmaceutical, paints and coatings, and other end-user industries. The report also covers the market size and forecasts for the Tetrahydrofuran (THF) Market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD Million).

Application
Polytetramethylene Ether Glycol (PTMEG)
Solvent
Other Applications
End-user Industry
Polymer
Textile
Pharmaceutical
Paints and Coatings
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Growing Demand for Polytetramethylene Ether Glycol (PTMEG)

  • Tetrahydrofuran (THF) is widely used for polytetramethylene ether glycol (PTMEG) manufacturing, which is used as a base chemical in the manufacturing of polyurethanes, and it is expected to be the fastest-growing market during the forecast period.
  • More than 65% of the tetrahydrofuran produced globally is used in the manufacturing of PTMEG, which is used mainly in the production of spandex and other polyurethanes. The increasing demand for spandex in the textile industry is expected to drive the market for tetrahydrofuran during the forecast period.
  • Spandex is a synthetic fabric that is composed of 85% polyurethane by weight. Spandex is a segmented polymer that contains alternating rigid and flexible segments of polyurethane.
  • Due to the superior characteristics of spandex, it is used widely in women's clothing, swimsuits, casual wear, and sports fabrics to provide more comfort and elasticity. It has good strength, high uniformity, and high abrasion resistance. This is increasing its demand, which is consequently boosting the market studied.
  • According to Cotton Incorporated, in 2020 28% of people in the United States feel spandex is a very safe clothing material and 27% of people feel that it is very comfortable.
  • According to Covestro, the estimated demand for polyurethane worldwide in the year 2019 was 18.4 million tons and is forecasted to reach 22.5 million tons by 2024.
  • The revenue from the global apparel market was estimated at USD 1.4 trillion in 2020, and it is projected to recah USD 2.2 trillion by 2025. This is expected to stimulate the market over the forecast period.
  • Owing to all these factors, increasing demand for polytetramethylene ether glycol is expected to drive the market for tetrahydrofuran during the forecast period.
Tetrahydrofuran Market Share

Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region is expected to dominate the market for tetrahydrofuran during the forecast period, due to an increase in demand from countries, like China, India, and Japan.
  • The growing textile industry in emerging economies, like China and India, is expected to drive the market during the forecast period. According to the National Bureau of Statistics China, China has amounted to around 152.66 billion yuan retail trade revenue of clothing, shoes, hats, and knitwear in December 2020, a 3.8 percent increase compared to the revenue generated in the same period of the previous year.
  • The Chinese government is planning Xinjiang as the hotbed for the textile and apparel manufacturing and has invested USD 8 billion. It is expected that China's northwest region is to become the country's largest textile production base by 2030.
  • In India, the rising per capita income, favorable demographics, and a shift in preference to branded products boost the demand for the textile industry, thus, boosting the market studied. According to the IBEF, the textile industry in India is estimated to reach about USD 220 billion by 2025.
  • Apart from the textile industry, THF is mainly used as a solvent in various processes in pharmaceutical industries, along with minor applications being from paints and coatings, adhesives, and magnetic tapes.
  • In the pharmaceutical industry, THF is used to synthesize cough serum, rifamycin, progesterone, and other hormone drugs and as a reaction medium in the Grignard synthesis process. India’s pharmaceutical industry occupies a 20% share in global supply by volume, and it is placed third worldwide for the production by volume. The increasing demand and expansion of pharmaceutical industries are expected to drive the market for THF.
  • According to Government of India, the Indian pharma industry market size is expected to reach USD 130 billion by 2030. Also India has provided pharmaceutical products to more than 200 countries and will continue to do so in the future. India has reached INR 3650 crore Foreign Direct Investment inflows in pharmaceutical sector in 2019-20, a recorded growth of 98% year on year.
  • Further, India holds a significant position in the global pharmaceuticals sector. India is the largest producer of generic drugs in the world. The Indian pharmaceutical industry caters to more than 50% of the global demand for various vaccines, 40% of the demand for generic medicine in the United States, and 25% of the demand for all medicines in the United Kingdom.
  • China is the second-largest market for pharmaceuticals, globally. The market for pharmaceuticals is emerging rapidly, owing to the growing middle-class and aging society present in the country, rising incomes, and increasing urbanization. The pharmaceutical sales of the country is expected to reach up to USD 175 billion by 2022. This is expected to boost the growth of tetrahydrofuran (THF) used in the pharmaceutical applications.​
  • The aforementioned factors, coupled with government support, are contributing to the increasing demand for tetrahydrofuran (THF) market in Asia-Pacific during the forecast period.
Tetrahydrofuran Market  Growth

Competitive Landscape

The global tetrahydrofuran (THF) market is partially fragmented with major players accounting for a marginal share of the market. Few companies include Ashland, BASF SE, Mitsubishi Chemical Corporation, DCC, and Banner Chemicals Limited.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Growing Demand for Spandex from the Textile Industry

      2. 4.1.2 Increasing Demand for PVC Manufacturing

    2. 4.2 Restraints

      1. 4.2.1 Availability of Close Substitutes

      2. 4.2.2 Hazardous Nature (Highly Flammable and Health Hazard) of THF

      3. 4.2.3 Negative Impact of COVID-19 Pandemic

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Polytetramethylene Ether Glycol (PTMEG)

      2. 5.1.2 Solvent

      3. 5.1.3 Other Applications

    2. 5.2 End-user Industry

      1. 5.2.1 Polymer

      2. 5.2.2 Textile

      3. 5.2.3 Pharmaceutical

      4. 5.2.4 Paints and Coatings

      5. 5.2.5 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%) **/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Ashland

      2. 6.4.2 Banner Chemicals Limited

      3. 6.4.3 BASF SE

      4. 6.4.4 BHAGWATI CHEMICALS

      5. 6.4.5 DCC

      6. 6.4.6 Hefei TNJ Chemical Industry Co.,Ltd.

      7. 6.4.7 Henan GP Chemicals Co.,Ltd

      8. 6.4.8 Mitsubishi Chemical Corporation

      9. 6.4.9 NASIT PHARMACHEM

      10. 6.4.10 REE ATHARVA LIFESCIENCE PVT. LTD

      11. 6.4.11 Riddhi Siddhi Industries

      12. 6.4.12 Shenyang East Chemical Science-Tech Co., Ltd.

      13. 6.4.13 Sipchem

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Innovations in Development of Bio-based Tetrahydrofuran (THF)

    2. 7.2 Other Opportunities

**Subject to Availability

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Frequently Asked Questions

The Tetrahydrofuran (THF) Market market is studied from 2016 - 2026.

The Tetrahydrofuran (THF) Market is growing at a CAGR of 6% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Ashland, BASF SE, Mitsubishi Chemical Corporation, DCC, Banner Chemicals Limited are the major companies operating in Tetrahydrofuran (THF) Market.

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