Tetrahydrofuran (THF) Market Size and Share
Tetrahydrofuran (THF) Market Analysis by Mordor Intelligence
The global tetrahydrofuran market stands at 1 million tons in 2025 and is projected to reach 1.22 million tons by 2030, expanding at a 4.07% CAGR over the forecast period. This growth trajectory underscores the solvent’s central role as a precursor to polytetramethylene ether glycol (PTMEG) for spandex fiber and as a specialty solvent in battery-grade electrolyte and pharmaceutical formulations. Asia-Pacific’s large textile base, rising electric-vehicle battery investments, and aggressive PVC capacity additions are steering demand, while tightening exposure limits in Europe and North America compel producers to adopt greener routes and invest in advanced emission controls. Supply security is another theme shaping the tetrahydrofuran market as manufacturers lock in long-term contracts; Ube, Capchem, and BASF have all announced multiyear deals to guarantee volumes for battery and textile customers, and these agreements are widening the geographic distribution of production capacity.
Key Report Takeaways
- By process route, maleic anhydride-BDO dominated with 90% of the tetrahydrofuran market share in 2024, while bio-based routes are projected to grow fastest at 5.80% CAGR through 2030.
- By application, PTMEG production accounted for 78% of the tetrahydrofuran market size in 2024 and is advancing at a 4.32% CAGR through 2030.
- By end-use industry, textiles led with 58% revenue share in 2024; paints and coatings is forecast to expand at a 3.75% CAGR to 2030.
- By distribution, direct sales dominated with 75% of the tetrahydrofuran market share in 2024 and is projected to grow fastest at 4.30% CAGR through 2030.
- By geography, Asia-Pacific controlled 85% of the tetrahydrofuran market share in 2024 and will maintain the highest regional growth rate at 4.21% CAGR through 2030.
Global Tetrahydrofuran (THF) Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Rising Demand for Spandex Fiber in Asia-Pacific Driving THF Consumption | +1.20% | Asia-Pacific, with spillover to global markets | Medium term (2-4 years) |
Capacity Expansion in Li-ion Battery Electrolyte Plants | +0.80% | North America, Europe, East Asia | Medium term (2-4 years) |
PVC Capacity Additions in Asia Elevating THF Demand | +0.70% | Asia-Pacific, particularly China and India | Short term (≤ 2 years) |
Pharmaceutical Shift Toward Green Solvents in Europe | +0.30% | Europe, with spillover to North America | Long term (≥ 4 years) |
Growth of UV-Curable Digital Inks Requiring THF Diluent | +0.20% | Global, with concentration in developed markets | Medium term (2-4 years) |
Source: Mordor Intelligence
Rising Demand for Spandex Fiber in Asia-Pacific Driving THF Consumption
The textile industry expansion across Asia-Pacific creates substantial demand for tetrahydrofuran as a critical precursor to PTMEG used in spandex fiber production. China's yarn export reached USD 13.7 billion in 2023, while imports totaled USD 5.98 billion, with a significant 32.6% increase in total yarn import volume[1]China Textile Industry Federation, "2023 National Yarn Import and Export Overview," cntac.org.cn . This growth reshapes consumption patterns as manufacturers secure stable supply chains for elastane production. Vietnam has emerged as the second-largest global exporter of textiles and garments, though its weaving and dyeing sectors remain underdeveloped, creating partnership opportunities for tetrahydrofuran suppliers with local manufacturers. The growth in athletic wear and comfort-stretch apparel continues to drive demand for spandex fibers, with BASF's biomass-balanced tetrahydrofuran supply to Asahi Kasei for sustainable stretch fiber production signaling a shift toward eco-conscious manufacturing.
Capacity Expansion in Li-ion Battery Electrolyte Plants
Electric vehicle adoption is driving unprecedented expansion in battery electrolyte production facilities, with tetrahydrofuran serving as a critical solvent in electrolyte formulations. Electrolyte manufacturers are investing over USD 1 billion in US facilities, including Ube's USD 500 million plant in Louisiana for electrolyte solvents and Shenzhen Capchem's USD 350 million plant for carbonate solvents. This expansion creates new demand centers for tetrahydrofuran outside traditional Asian markets. The strategic importance of localized production is emphasized by Capchem Technology's recent USD 676 million deal with a European battery maker valid until 2035, which will require significant tetrahydrofuran volumes for electrolyte production.
PVC Capacity Additions in Asia Elevating THF Demand
Asia's aggressive expansion of PVC production capacity creates cascading demand for tetrahydrofuran, which serves as a processing solvent in PVC manufacturing. Shin-Etsu's US subsidiary, Shintec, is adding 380,000 t/yr of PVC capacity at its Plaquemine plant in Louisiana, increasing total US PVC capacity to 3.62 million t/yr. This expansion signals growing tetrahydrofuran requirements for PVC processing. Meanwhile, Sinopec has launched the world's largest single-unit PTA production facility in Jiangsu, with a capacity of 3 million tonnes per year, which will indirectly boost tetrahydrofuran demand through increased polymer production.
Pharmaceutical Shift Toward Green Solvents in Europe
European pharmaceutical manufacturers are increasingly replacing tetrahydrofuran with greener alternatives due to stringent regulatory pressures. The European Chemicals Agency updated the REACH Candidate List in January 2025, adding five new Substances of Very High Concern, bringing the total to 247. This regulatory environment accelerates the adoption of bio-based solvents like Cyrene, launched by MilliporeSigma as a sustainable alternative derived from renewable cellulose. Similarly, Syensqo has introduced Rhodiasolv IRIS, an eco-friendly oxygenated solvent with a high flash point (98°C) and boiling point (222-224°C), making it a safer alternative to tetrahydrofuran for pharmaceutical applications.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Stringent OSHA & REACH Exposure Limits on THF | -0.70% | Europe and North America | Short term (≤ 2 years) |
Feedstock BDO Price Volatility | -0.50% | Global, with higher impact in import-dependent regions | Short term (≤ 2 years) |
Higher Insurance Premiums After Fire/Explosion Incidents | -0.20% | Global, with higher impact in developed markets | Medium term (2-4 years) |
Source: Mordor Intelligence
Stringent OSHA & REACH Exposure Limits on THF
Regulatory constraints on tetrahydrofuran exposure are intensifying, with OSHA maintaining a strict 200 parts per million limit as an 8-hour time-weighted average. These regulations require employers to implement engineering or administrative controls to maintain exposure below this threshold, significantly increasing operational costs[2]Occupational Safety and Health Administration, "Standard for exposure to tetrahydrofuran," osha.gov . The situation is further complicated by OSHA's revised Hazard Communication Standard published on May 20, 2024, which enhances labeling and safety data sheet requirements for chemicals like tetrahydrofuran, with full compliance required by January 19, 2026, for substance labels and July 19, 2027, for mixture labels. These regulatory developments drive manufacturers to explore alternative solvents or implement costly control measures, particularly in pharmaceutical and fine chemical applications.
Feedstock BDO Price Volatility
The tetrahydrofuran market faces significant challenges due to price fluctuations in its primary feedstock, 1,4-butanediol (BDO). This volatility creates pricing pressures on tetrahydrofuran production, as BDO accounts for a significant portion of production costs. The volatility is exacerbated by the fact that tetrahydrofuran production consumes most of global BDO output, making tetrahydrofuran manufacturers particularly vulnerable to BDO price fluctuations. This dependency drives interest in alternative production routes, including bio-based methods that could potentially stabilize input costs.
Segment Analysis
By Process Route: Bio-based Methods Gaining Momentum Despite Maleic Anhydride-BDO Dominance
The maleic anhydride-BDO route dominates the tetrahydrofuran market with a 90% share in 2024, leveraging established production infrastructure and economies of scale. This conventional pathway benefits from decades of process optimization and integrated manufacturing facilities that maximize yield and energy efficiency. Major producers like BASF and LyondellBasell have invested heavily in this technology, creating significant barriers to entry for alternative routes. However, growing sustainability concerns and volatile feedstock prices are driving interest in alternative production methods.
The bio-based (succinic/furfural) route is emerging as the fastest-growing segment with a 5.80% CAGR projected for 2025-2030, outpacing the overall tetrahydrofuran market size growth of 4.07%. This shift is driven by sustainability initiatives and the potential for cost advantages as production scales. Johnson Matthey's butanediol production technology now supports the use of bio-based succinic acid as an alternative feedstock, promoting more sustainable production practices while maintaining high product purity. Recent advancements in enzymatic processes are accelerating the transition to bio-based routes, with researchers developing a novel chemobiocatalytic method for converting glucose into 2,5-bis(hydroxymethyl)furan without purifying the intermediate 5-hydroxymethylfurfural, achieving a yield of approximately 42% from glucose.
By Application: PTMEG Dominates Consumption Patterns While Solvent Uses Face Regulatory Headwinds
Polytetramethylene ether glycol (PTMEG) accounts for 78% of tetrahydrofuran applications in 2024 and is also the fastest-growing segment with a projected CAGR of 4.32% from 2025 to 2030. This dominant position stems from PTMEG's critical role in producing elastomeric fibers, particularly spandex, which continues to see robust demand in athletic wear and comfort-stretch apparel. The growth in this segment is further supported by innovations in sustainable fiber production, exemplified by BASF's supply of biomass-balanced tetrahydrofuran to Asahi Kasei for producing sustainable stretch fiber under the ROICA brand, reducing CO2 emissions by approximately 25% compared to standard tetrahydrofuran products.
The solvent application segment, while smaller, remains vital for pharmaceutical and chemical synthesis processes. However, this segment faces headwinds from regulatory pressures, particularly in Europe where the EU Chemicals Strategy for Sustainability is imposing stricter regulations on hazardous chemicals. The "One Substance, One Assessment" approach aims for consistent chemical safety evaluations across EU agencies, potentially limiting tetrahydrofuran's use as a solvent in certain applications. Other applications, including tetrahydrofuran's use as a reaction medium in specialty chemical production, account for the remaining market share and are expected to grow at rates below the market average due to the emergence of alternative technologies and solvents.
By End-Use Industry: Textile Sector Leads Consumption While Paints and Coatings Show Promising Growth
The textile industry commands 58% of tetrahydrofuran end-use in 2024, driven primarily by spandex fiber production. The sector's dominance is reinforced by continued expansion in Asia-Pacific's textile manufacturing capacity, particularly in China and Vietnam. Vietnam has emerged as a significant player in the global textile market, being the second-largest exporter of textiles and garments, though its weaving and dyeing sectors remain underdeveloped. This creates opportunities for tetrahydrofuran suppliers to establish strategic partnerships with local manufacturers seeking to vertically integrate their operations.
The paints and coatings sector represents the fastest-growing end-use segment with a projected CAGR of 3.75% from 2025 to 2030. This growth is fueled by increasing demand for UV-curable coatings that utilize tetrahydrofuran as a solvent and viscosity modifier. The pharmaceutical sector, while smaller, is experiencing significant transformation as manufacturers shift toward greener solvents in response to regulatory pressures. MilliporeSigma's launch of Cyrene, a sustainable solvent derived from renewable cellulose, exemplifies this trend. The polymer and other end-use segments collectively account for the remaining market share, with growth rates influenced by regional manufacturing trends and regulatory environments.

Note: Segment Share of all individual segments available upon report purchase
By Distribution Channel: Direct Sales Maintain Dominance While Distributors Serve Niche Markets
Direct sales/OEM channels account for 75% of tetrahydrofuran distribution in 2024 and are projected to grow at a CAGR of 4.30% from 2025 to 2030, slightly outpacing the overall market growth. This dominance reflects the specialized nature of tetrahydrofuran applications and the preference for direct supplier relationships among major consumers like spandex manufacturers and pharmaceutical companies. Direct channels enable better quality control, supply security, and technical support, which are critical considerations for tetrahydrofuran users given the compound's specific handling requirements and regulatory constraints.
Distributors and traders serve the remaining 25% of the market, primarily catering to smaller volume users and geographically dispersed customers. This segment plays a crucial role in making tetrahydrofuran accessible to small and medium enterprises that lack the scale for direct procurement. The distribution landscape is evolving with increasing emphasis on safety and compliance services, as distributors seek to differentiate their offerings beyond price competition. Gantrade Corporation, for instance, emphasizes its compliance with regulatory requirements for sourcing 1,4-butanediol, tetrahydrofuran's precursor, highlighting its classification as a controlled substance and providing comprehensive safety data sheets and handling guidelines.

Geography Analysis
Asia-Pacific dominates the tetrahydrofuran market with an 85% share in 2024 and is projected to maintain the highest regional growth rate at 4.21% CAGR from 2025 to 2030. This commanding position stems from the region's concentrated textile manufacturing base, particularly in China, which drives demand for PTMEG and subsequently tetrahydrofuran. China's petrochemical sector is undergoing significant expansion, with Ningxia Coal Industry Company commencing its methanol to olefins plant construction with a CNY 11.8 billion investment. This expansion, coupled with PVC capacity additions across the region, creates robust demand for tetrahydrofuran as a processing solvent. Additionally, the region's battery manufacturing boom establishes new consumption centers for tetrahydrofuran in electrolyte production, with companies like Asahi Kasei announcing plans to construct an integrated lithium-ion battery separator plant in Ontario, Canada, with a total investment of approximately JPY 180 billion.
North America and Europe collectively account for most of the remaining tetrahydrofuran market share, with growth rates slightly below the global average due to mature industrial bases and stringent regulatory environments. North America's market is being reshaped by significant investments in battery manufacturing, with Lyten's planned USD 1 billion lithium-sulfur battery gigafactory in Reno, Nevada, expected to produce up to 10 GWh of batteries annually. This facility will drive demand for tetrahydrofuran in electrolyte formulations. Europe's market, meanwhile, is characterized by a shift toward sustainable chemistry, with the EU's Chemicals Strategy for Sustainability imposing stricter regulations on hazardous chemicals, including tetrahydrofuran. This regulatory pressure accelerates the adoption of green alternatives in pharmaceutical and chemical applications.
South America and the Middle East & Africa represent smaller but growing markets for tetrahydrofuran, driven primarily by expanding textile industries and increasing chemical manufacturing capacity. India's petrochemical sector is poised for significant growth, with projected investments of USD 87 billion over the next decade. This expansion will increase regional demand for tetrahydrofuran across multiple applications.

Competitive Landscape
The global tetrahydrofuran market is consolidated, with the top five players—BASF, LyondellBasell, Dairen Chemical, Mitsubishi Chemical, and Sipchem—controlling approximately 60% of production capacity. These industry leaders are pursuing divergent strategies, with BASF focusing on sustainability through innovations like biomass-balanced tetrahydrofuran, which reduces CO2 emissions by about 25% compared to standard products. LyondellBasell, meanwhile, is emphasizing operational excellence and portfolio optimization, reporting a Q3 2024 EBITDA of USD 1.2 billion while progressing toward sustainability goals, including the construction of the MoReTec-1 catalytic recycling facility in Germany.
The competitive landscape is evolving with increasing emphasis on sustainability and technological innovation. Johnson Matthey's butanediol production technology, which allows for the generation of BDO, GBL, and tetrahydrofuran from maleic anhydride in a single reaction train, represents a significant technological advantage with a licensed capacity of 1.9 million tonnes/year[3]Johnson Matthey, "Butanediol products (BDO, GBL, THF, DMS)," matthey.com . This technology supports the production of biodegradable plastics and lithium-ion battery solvents, addressing plastic pollution and climate change concerns. Meanwhile, smaller players are finding niches in specialized applications, with companies like RevoSolv offering alternative solvents that compete with tetrahydrofuran in specific use cases.
Strategic partnerships and vertical integration are becoming increasingly important in the tetrahydrofuran value chain. Air Liquide's agreement to supply oxygen to LG Chem for their electric vehicle battery plant in the United States exemplifies how ancillary service providers are positioning themselves to support the growing demand for battery materials, which indirectly drives tetrahydrofuran consumption. Similarly, SCG Chemicals' USD 700 million investment in the Ethane Feedstock Enhancement Project at LSP Complex in Vietnam demonstrates how upstream players are securing feedstock supplies to support downstream chemical production, including tetrahydrofuran and its derivatives.
Tetrahydrofuran (THF) Industry Leaders
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BASF SE
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LyondellBasell Industries Holdings B.V.
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DCC
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Mitsubishi Chemical Group Corporation
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Sipchem Company
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- May 2024: BASF has expanded its biomass balance portfolio to include selected chemical intermediates, such as tetrahydrofuran, by utilizing a certified approach to replace fossil resources with renewable raw materials. This initiative is expected to drive sustainability and innovation in the tetrahydrofuran market.
- October 2023: BASF supplied biomass-balanced tetrahydrofuran (THF BMB) to Asahi Kasei Corporation, enabling the production of sustainable stretch fiber under the ROICA brand and achieving a 25% reduction in CO2 emissions compared to standard THF products.
Global Tetrahydrofuran (THF) Market Report Scope
Tetrahydrofuran 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 market is segmented by application, end-user industry, and geography. By application, the market is segmented into polytetramethylene ether glycol (PTMEG), solvents, 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, market sizing and forecasts have been done on the basis of revenue (USD million).
By Process Route | Maleic Anhydride-BDO Route | ||
Bio-based (Succinic/Furfural) Route | |||
By Application | Polytetramethylene Ether Glycol (PTMEG) | ||
Solvent | |||
Other Applications | |||
By End-Use Industry | Polymer | ||
Textile | |||
Pharmaceutical | |||
Paints and Coatings | |||
Other End-Uses | |||
By Distribution Channel | Direct Sales / OEM | ||
Distributors and Traders | |||
By Geography | Asia-Pacific | China | |
India | |||
Japan | |||
South Korea | |||
ASEAN | |||
Rest of Asia-Pacific | |||
North America | United States | ||
Canada | |||
Mexico | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Italy | |||
Spain | |||
Rest of Europe | |||
South America | Brazil | ||
Argentina | |||
Chile | |||
Rest of South America | |||
Middle East and Africa | Saudi Arabia | ||
South Africa | |||
Rest of Middle East and Africa |
Maleic Anhydride-BDO Route |
Bio-based (Succinic/Furfural) Route |
Polytetramethylene Ether Glycol (PTMEG) |
Solvent |
Other Applications |
Polymer |
Textile |
Pharmaceutical |
Paints and Coatings |
Other End-Uses |
Direct Sales / OEM |
Distributors and Traders |
Asia-Pacific | China |
India | |
Japan | |
South Korea | |
ASEAN | |
Rest of Asia-Pacific | |
North America | United States |
Canada | |
Mexico | |
Europe | Germany |
United Kingdom | |
France | |
Italy | |
Spain | |
Rest of Europe | |
South America | Brazil |
Argentina | |
Chile | |
Rest of South America | |
Middle East and Africa | Saudi Arabia |
South Africa | |
Rest of Middle East and Africa |
Key Questions Answered in the Report
How big is the global tetrahydrofuran market?
The tetrahydrofuran market size is estimated at 1 million tons in 2025 and is forecast to reach 1.22 million tons by 2030.
Which region dominates THF demand?
Asia-Pacific holds the largest tetrahydrofuran market share, driven by its expansive textile and chemical manufacturing base.
Why is bio-based THF gaining attention?
Bio-based THF routes offer lower carbon footprints and reduced reliance on price-volatile petrochemical feedstocks, aligning with corporate sustainability goals.
How do regulations affect THF consumption?
Stricter OSHA and REACH exposure limits raise compliance costs and encourage the search for greener solvents, but they also prompt investments in safer handling systems that maintain THF’s relevance.
Page last updated on: June 23, 2025