Tetrahydrofuran Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Tetrahydrofuran Market Report Segments the Industry by Process Route (Maleic Anhydride-BDO Route and Bio-Based Route), Application (Polytetramethylene Ether Glycol (PTMEG), Solvent, and Other Applications), End-Use Industry (Polymer, Textile, and More), Distribution Channel (Direct Sales/OEM and Distributors and Traders), and Geography (Asia-Pacific, North America, Europe, South America, Middle-East and Africa).

Tetrahydrofuran (THF) Market Size and Share

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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.

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.

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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.

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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.

Tetrahydrofuran Market
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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. 

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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

  1. BASF SE

  2. LyondellBasell Industries Holdings B.V.

  3. DCC

  4. Mitsubishi Chemical Group Corporation

  5. Sipchem Company

  6. *Disclaimer: Major Players sorted in no particular order
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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.

Table of Contents for Tetrahydrofuran (THF) Industry Report

1. Introduction

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Rising Demand for Spandex Fiber in Asia-Pacific Driving THF Consumption
    • 4.2.2 Capacity Expansion in Li-ion Battery Electrolyte Plants
    • 4.2.3 PVC Capacity Additions in Asia Elevating THF Demand
    • 4.2.4 Pharmaceutical Shift Toward Green Solvents in Europe
    • 4.2.5 Growth of UV-Curable Digital Inks Requiring THF Diluent
  • 4.3 Market Restraints
    • 4.3.1 Stringent OSHA and REACH Exposure Limits on THF
    • 4.3.2 Feedstock BDO Price Volatility
    • 4.3.3 Higher Insurance Premiums After Fire/Explosion Incidents
  • 4.4 Value Chain Analysis
  • 4.5 Porter’s Five Forces
    • 4.5.1 Bargaining Power of Suppliers
    • 4.5.2 Bargaining Power of Buyers
    • 4.5.3 Threat of New Entrants
    • 4.5.4 Threat of Substitutes
    • 4.5.5 Competitive Rivalry

5. Market Size and Growth Forecasts (Volume)

  • 5.1 By Process Route
    • 5.1.1 Maleic Anhydride-BDO Route
    • 5.1.2 Bio-based (Succinic/Furfural) Route
  • 5.2 By Application
    • 5.2.1 Polytetramethylene Ether Glycol (PTMEG)
    • 5.2.2 Solvent
    • 5.2.3 Other Applications
  • 5.3 By End-Use Industry
    • 5.3.1 Polymer
    • 5.3.2 Textile
    • 5.3.3 Pharmaceutical
    • 5.3.4 Paints and Coatings
    • 5.3.5 Other End-Uses
  • 5.4 By Distribution Channel
    • 5.4.1 Direct Sales / OEM
    • 5.4.2 Distributors and Traders
  • 5.5 By Geography
    • 5.5.1 Asia-Pacific
    • 5.5.1.1 China
    • 5.5.1.2 India
    • 5.5.1.3 Japan
    • 5.5.1.4 South Korea
    • 5.5.1.5 ASEAN
    • 5.5.1.6 Rest of Asia-Pacific
    • 5.5.2 North America
    • 5.5.2.1 United States
    • 5.5.2.2 Canada
    • 5.5.2.3 Mexico
    • 5.5.3 Europe
    • 5.5.3.1 Germany
    • 5.5.3.2 United Kingdom
    • 5.5.3.3 France
    • 5.5.3.4 Italy
    • 5.5.3.5 Spain
    • 5.5.3.6 Rest of Europe
    • 5.5.4 South America
    • 5.5.4.1 Brazil
    • 5.5.4.2 Argentina
    • 5.5.4.3 Chile
    • 5.5.4.4 Rest of South America
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Saudi Arabia
    • 5.5.5.2 South Africa
    • 5.5.5.3 Rest of Middle East and Africa

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Ashland
    • 6.4.2 Banner Chemicals Limited
    • 6.4.3 BASF SE
    • 6.4.4 BHAGWATI Chemicals
    • 6.4.5 DCC
    • 6.4.6 Hefei TNJ Chemical Industry Co., Ltd.
    • 6.4.7 Henan GP Chemicals Co., Ltd.
    • 6.4.8 INVISTA
    • 6.4.9 LyondellBasell Industries Holdings B.V.
    • 6.4.10 Mitsubishi Chemical Group Corporation
    • 6.4.11 Mitsui Chemicals Inc.
    • 6.4.12 Nan Ya Plastics Corporation
    • 6.4.13 REE Atharva Lifescience Pvt. Ltd.
    • 6.4.14 Shanxi Sanwei Group Co., Ltd.
    • 6.4.15 Shenyang East Chemical Science-Tech Co., Ltd.
    • 6.4.16 Sipchem Company
    • 6.4.17 The Chemours Company

7. Market Opportunities and Future Outlook

  • 7.1 White-space and Unmet-Need Assessment
  • 7.2 Innovation in Bio-based THF Production
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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
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
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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