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N-Butanol Market

N-Butanol Market Analysis, By End-use (Construction, Industrial, Automotive, Pharmaceutical, Food & Chemical Processing), By Application (Plasticizers, Direct Solvent use, n-Butyl Acetate, Glycol Ethers, Methacrylate Esters &Butyl Acrylate), By Sales and Region - Global Market Insights 2022 to 2032

Analysis of N-Butanol Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

N-Butanol Market Outlook (2022-2032)

The global sales of N-Butanol Market in 2021 were held at US$ 4.8 Billion. With 4.0%, the projected market growth during 2022 - 2032 is expected to be significantly higher than the historical growth.

N-butanol as Direct Solvent is expected to be the highest revenue-generating category, projected to register a CAGR of 3.9% during 2022 – 2032.

Report Attributes

Details

Market CAGR (2022-2032)

4%

Market Size (2022)

US$ 5 Billion 

Market Size (2032)

US$ 7.6 Billion 

Key Companies Profiled

  • BASF
  • The DOW Chemical Company
  • Eastman
  • OQ Chemicals
  • Sasol Ltd.
  • BASF Petronas Chemicals
  • Petrochina
  • Mitsubishi Chemical Company
  • Sinopec
  • KH Neochem

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Revenue of N-Butanol Market from 2015 to 2021 Compared to Demand Outlook for 2022 to 2032

As per the N-Butanol Market research by Fact.MR - a market research and competitive intelligence provider, historically, from 2015 to 2021, the market value of the Market increased at around 4.3% CAGR.

The market is fuelled by the expanding butyl acrylate manufacturing industry and rising product demand in the Asia-Pacific region. Key market players' lack of product differentiation as a strategy, as well as negative trends related to compound DOP (Bis (2-Ethylhexyl) Phthalate) in regions such as Europe and North America, are limiting the market growth. The low demand and supply in China, as well as rising investment in the downstream segment in Saudi Arabia and strict regulations supporting the use of bio-based N-Butanol, are the key factors driving the global N-Butanol market forward.

Owing to the high demand for marine coatings, automotive coatings, engineering plastics, super absorbent polymers, and adhesives, n-butanol consumption in butyl acetate, butyl acrylate, glycol ethers, plasticizers, and direct solvent is expected to increase over the forecast period.

In the near future, n-butanol industry penetration will be fuelled by rising usage in various segments such as pyroxylin plastics, herbicide esters, pharmaceuticals, polymers, and printing. In addition, high usage as a reactant and diluent in the production of urea-formaldehyde resins and melamine-formaldehyde is expected to drive significant growth in the coming years. Demand for n-butanol in adhesives & sealants has huge growth prospects.

As a biofuel, N-butanol is in high demand. Currently, the most popular biofuels are ethanol and biodiesel. Due to properties such as less hydrophilic nature, more energy per volume, high energy content, higher compatibility, low volatility with the oil infrastructure, installed base of vehicles, environmentally friendly by-product (H2), and low corrosive nature, bio-based n-Butanol will most likely be the preferred fuel in the next 5 to 10 years. Green Biologics, and Eastman, are among the major producers of bio-based n-Butanol.

N-Butanol Market

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What is the Road Map for N-Butanol Demand Sustainability?

Growth opportunities in the n-butanol market is reflected from the growing demand for green, sustainable, and non-polluting fuels. Butanol fuel, made from biomass feedstock produced through the ABE fermentation, is a clean and sustainable fuel with a high energy density comparable to gasoline. It is an important replacement for bioethanol fuel, which has a lower energy density and may be harmful to the existing gasoline-powered internal combustion engines.

Large-scale fermentation processing of n-butanol will be possible in the future owing to advanced technology and technological advancements such as CRISPR and bio-engineering. The mass production of n-butanol, which has enormous potential in the energy and fuel sectors, will be aided by genetically modifying certain species of bacteria.

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

What are the present Roadblocks to N-Butanol Market Growth?

Difficulties in bio-butanol fermentation are likely to limit the market growth. Mass production of bio-butanol fuel using the traditional ABE fermentation technique is not feasible due to the toxicity of the bacteria that aid in the fermentation. As a result, the majority of n-Butanol used in various industrial and chemical applications is synthesized from propylene, a derived crude oil. Because crude oil is a volatile raw material with daily price fluctuations, it reflects in the final product or end products of n-Butanol.

Besides, regulatory policies concerning the use of paints and coatings vary by country. N-butanol manufacturers are required to comply with new policies as coating regulations change. Products that do not meet the requirements are not allowed on the market.

N-Butanol is used in a variety of industries to meet specific needs and to control emissions from specific formulations. Various regulations govern the production and sale of paints and coatings in Europe and the United States, including EU Construction Products Regulation (CPR), DIN EN 16516, US EPA, and REACH – Registration, Evaluation, Authorization, and Restriction of Chemicals, among others. These factors have created rippled the demand for n-butanol in paints & coatings.

Region-wise Analysis

Throughout the forecast period, Asia Pacific Region is expected to dominate N-Butanol Market. Check How?

Throughout the forecast period, APAC will be the most valuable market for N-Butanol. N-butanol's demand is prompting the manufacture and use of n-butanol butyl acrylate, butyl acetate, glycol ethers, and plasticizers; as well as its use in solvents, they're promoting further sales growth.

Demand for n-butanol in automotive applications are also contributing to its growth in this sector. Construction, pharmaceuticals, textiles, paints and coatings, and automotive industries are all growing in APAC, which is driving the demand for N-Butanol. More than half of all vehicles produced in APAC come from China, India, Japan, Malaysia, and South Korea.

The price of Oxo Alcohol fluctuated in the Chinese market, with an upward trend in February and prices stabilizing towards the end of the quarter. Owing to Covid, China's prices fluctuated due to plant shutdowns by the majority of oxy-alcohol producers in the north-eastern regions, which recovered in March after the Chinese government took a cautious stance.

In China, the price of n-Butanol was observed to be USD 1,720/Tonne Spot Ex- Shandong at the end of the quarter. The availability and prices of upstream crude oil increased in Q1 as a result of the Russia-Ukraine conflict, resulting in higher operating rates and, as a result, lower prices in the first half of the quarter.

Country-wise Analysis

U.S. N-Butanol Market Analysis

The United States is expected to account for the highest market share of US$ 2.7 Bn by the end of 2032 with an absolute dollar opportunity of US$ 900 Mn.

In light of the region's growing personal care, textile, and medical sectors, the United States has witnessed significant industry expansion. In addition, rising demand for butyl acrylate and glycol ether, as well as low shale gas prices, will spur industry expansion. In the first quarter of 2022, the price of n-Butanol increased due to increased demand from downstream industries such as plastics, polymers, and lubricants.

By the end of the quarter in March 2022, the price of n-butanol in the United States rose to US$ 2,680/Tonne FOB New York. Increased freight charges, combined with a container shortage, drove up prices even more. Crude oil prices declined abruptly during Asian trading in November, with the ICE Brent future falling within growing concerns about crude oil oversupply and rising concerns about COVID-related uncertainties.

As upstream prices fell, supply began to outstrip demand among the country's paint manufacturers. As a result, price dynamics changed in December, but the change was minor, and traders noted largely the price stability for the product in the US market. The high demand for n-Butanol in the formulation of butyl acrylate and butyl acetate, as well as its use as a direct solvent, fuelled the market growth.

U.K. N-Butanol Market Analysis

The N-Butanol market in the U.K. was held at US$ 227.8 Mn in 2021. The market is projected to grow at a CAGR of 3.4% during 2022 – 2032 to reach a valuation of US$ 317.5 Mn by 2032.

Japan N-Butanol Market Analysis

The N-butanol market in Japan is projected to reach a valuation of US$ 454.9 Mn by 2032. During 2022 - 2032, the market is likely to grow at 3.5% CAGR to witness an absolute dollar opportunity of US$ 132.1 Mn.

South Korea N-Butanol Market Analysis

The market for N-butanol in South Korea is likely to reach a valuation of US$ 273 Mn by 2032. The market in the country is expected to register a growth of 3% during 2022 – 2032 to gross an absolute dollar opportunity of US$ 69.1 Mn.

Category-wise Insights

Which N-Butanol Segment is projected to Witness the Fastest Growth among Inventory Management Application Types?

Segment Direct Solvent Use propelled the market with a CAGR of 3.9% as it played a key role in the manufacture of various copolymers used to manufacture paints, dispersions, water-based adhesives, varnishes, inks, glue, among others. They can be also used to manufacture textiles, paper, paint, and other chemicals. This has given rise to a greater demand for Direct Soluble in paints and coatings, adhesives, textiles, plastic, paper, and many other industries.

As a result, rising construction activities and infrastructural development in emerging economies, owing to rising disposable income and a higher standard of living among consumers, play a critical role in the growth of the direct solvent application, boosting demand for n-butanol. N-Butanol is used in several aqueous systems due to its adequate solubility and compatibility with an array of resin formulations. By reducing viscosity and preventing cobwebbing and blushing, n-butanol improves the brush ability of paints and coats. The demand for N-Butanol as a direct solvent in resins, paints and coatings, dyes, varnishes, vegetable oils, camphor, fats, rubbers, waxes, shellac, and alkaloids is expected to rise as a result of these factors.

How Covid-19 Impacted N-Butanol Market?

Refineries, power plants, chemical processing, food, and pharmaceuticals are among the key industries that use N-Butanol. COVID-19 had a significant impact on these industries. The industries have been negatively impacted by various countries' lockdowns and logistical restrictions. Supply chain disruptions, workforce shortages, logistical constraints, limited component availability, decreased demand, low company liquidity, and manufacturing shutdowns due to lockdown in various countries have all harmed the industry. During this period of crisis, raw material suppliers and other related businesses are being forced to reconsider their strategies in order to serve this industry.

Due to the pandemic, residential and commercial construction came to a halt. During the crisis, there was a low impact on N-butanol demand from this sector. Delays in order shipments, supply chain constraints, manpower and equipment shortages, and material shortages are all key concerns. Following the end of this crisis, the market is expected to recover, and demand for n-Butanol is expected to rise. Amid the pandemic, countries gradually lifted restrictions and began business operations in various sectors in the second half of 2020. Thus there will have an impact on the N-Butanol market.

Competitive Analysis

The n-butanol market is still in its infancy and appears to be consolidated. BASF, The Dow Chemical Company, Eastman, OQ Chemicals, Sasol Ltd, and Gevo Inc are among the key players. N-butanol producers had been actively involved in the European Union's effort to contain the pandemic which has spurred the market in Europe. Producers are working with national governments to ensure increased production and maintain supply chains, even as they continue to deliver the required volumes.

Some of the recent developments of N-Butanol Industry are as follows :

  • In September 2021, The Butamax patent estate was purchased by Gevo Inc. This expanded its portfolio of fundamental patents for the production of renewable isobutanol and derivative renewable fuel products. After Gevo’s ownership of Butamax patents, the Butamax patent estate is expected to boost Gevo's intellectual property value.
  • In August 2021, BASF SE and SINOPEC announced plans to expand their Ver bund site in Nanjing, China, which is run by a 50-50 joint venture called BASF-YPC Co., Ltd. It includes the expansion in capacity at a number of downstream chemical plants, including a new tert-butyl acrylate plant to serve China's growing market. In 2023, the expanded and new plants will be operational.
  • In May 2021, PPG announced the completion of a USD 13 Mn investment in its paint and coatings facility in Jiading, China, which includes eight new powder coating production lines and an expanded powder coatings technology center, which will improve PPG's research and development capabilities. The expansion will boost the plant's capacity by over 8,000 metric tonnes per year.

Similarly, recent developments related to companies in N-Butanol services have been tracked by the team at Fact.MR, which are available in the full report.

Market Segments Covered in N-Butanol Industry Analysis

  • By End-User :

    • Building Construction
    • Industrial End-User
    • Automotive
    • Pharmaceutical
    • Food & Chemical Processing
    • Personal Care
  • By Sales channel :

    • Retailers
    • Distributors & Traders
    • Direct Import
    • Direct Company Sale
  • By Application :

    • Plasticizers
    • Direct Solvent Use
    • N-Butyl Acetate
    • Glycol Ethers
    • Methacrylate Esters
    • Butyl Acrylate
  • By Region :

    • North America 
    • Europe 
    • Asia Pacific 
    • Middle East and Africa 
    • Latin America 

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The global market for N-Butanol is worth more than US$ 4.8 Bn at present.

Value of N-Butanol Market are projected to increase at a CAGR of around 4.0% during 2022 – 2032.

The market for N-Butanol Market in US is projected to expand at a CAGR of around 4.1% during 2022 – 2032.

The increasing demand for coating from end-use industries and increasing infrastructural and construction activities are shaping the N-Butanol demand.

BASF, The DOW Chemical Company, Eastman, OQ Chemicals & Sasol Ltd are the top 5 N-Butanol providers.

Value of N-Butanol Market increased at a CAGR of around 4.3% during 2015 – 2021.

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