N-Butanol Market Analysis and Forecast 2024-2028

The N-Butanol market size is projected to grow by USD 1.88 billion at a CAGR of 6.1% between 2023 and 2028.The N-Butanol market is witnessing significant growth, driven by its extensive use across industries. In the plastics sector, it is utilized as a monomer for producing coating resins, butyl acrylate, and butyl acetates. In the construction industry, it serves as a solvent and a raw material for glycol ethers. The increasing preference for renewable N-Butanol as a biofuel is also contributing to market expansion. Additionally, volatile crude oil prices have spurred demand, making N-Butanol a cost-effective alternative to petroleum-derived solvents.

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Market Segmentation

By Application

• Butyl Acrylate
• Glycol Ethers
• Butyl Acetate
• Direct Solvent
• Others

By Geography

• APAC
  • China
  • India
  • Japan
  • South Korea
• North America
  • Canada
  • US
• Europe
  • Germany
  • UK
  • France
  • Italy
• South America
• Middle East and Africa

Application Insights

The butyl acrylate segment is expected to witness significant growth during the forecast period. Butyl acrylate is a key component in plastics and construction, serving as a monomer in acrylate polymer production. These polymers are essential for manufacturing butyl acetates, glycol ethers, and other chemicals.

In the construction sector, butyl acetate is used as a solvent, while butyl acrylate contributes to the production of coating resins. These resins are widely utilized in paints, adhesives, and other coating applications. They offer benefits such as low viscosity and reduced volatile organic compounds (VOCs), making them an eco-friendly choice.

Additionally, butyl acrylate is used in the production of 1-butanol, which serves as a biofuel and a solvent in various industries. The demand for butyl acrylate-based coatings is rising due to their versatility and increasing adoption in multiple industries.

Regional Market Trends

APAC – 49% Market Growth Contribution

• The increasing use of N-Butanol as a biofuel in China, India, Japan, and Indonesia is driving demand.
• The expanding automotive sector is boosting demand for N-Butanol in coatings and plastics.
• N-Butanol is widely used in personal care, cosmetics, and pharmaceuticals.

North America

• In the US and Canada, N-Butanol is extensively used in solvent-based coatings, adhesives, and plastics production.
• Growth in the pharmaceutical and construction industries is driving demand.

Europe

• In Germany, UK, France, and Italy, N-Butanol is used in automotive coatings, personal care, and textiles.
• Strict environmental regulations are increasing the demand for low-VOC coatings.

Market Dynamics

Market Drivers

• Rising demand for N-Butanol as a solvent
  • N-Butanol is widely used in coatings, lubricants, disinfectants, and metalworking fluids.
  • It serves as a key feedstock for butyl acrylates, glycol ethers, and butyl acetates in the coatings industry.
  • The pharmaceutical and personal care industries use N-Butanol in lipsticks, deodorants, and drug formulations.

Market Trends

• Increasing preference for renewable N-Butanol
  • Bio-based N-Butanol is gaining popularity as a low-toxicity and environmentally friendly alternative.
  • It is produced from biomass fermentation using Clostridium microbes.
  • Bio-based N-Butanol is used in coatings, adhesives, cosmetics, textiles, and agrochemicals.

Market Challenges

• Volatile crude oil prices
  • The primary feedstock for N-Butanol is propene, derived from crude oil.
  • Fluctuating crude oil prices can impact profit margins and product pricing.
  • Cost-cutting measures in the oil and gas sector may affect market growth.

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Key Players

• Arkema
• BASF SE
• China National Petroleum Corp.
• Dow Inc.
• Eastman Chemical Co.
• Formosa Plastics Corp.
• Grupa Azoty SA
• INEOS Group Holdings S.A.
• KH Neochem Co. Ltd.
• Mitsubishi Chemical Corp.
• OQ SAOC
• Perstorp Holding AB
• Sasol Ltd.
• Saudi Arabian Oil Co.
• Texmark Chemicals Inc.

Future Market Insights

The N-Butanol market is expected to continue expanding, driven by growing demand in plastics, coatings, adhesives, and biofuels. The shift towards renewable and bio-based solutions will further shape industry trends, while fluctuating crude oil prices may present challenges.