N-Butanol Market

N-Butanol Market Outlook (2024 to 2034)

The global n-butanol market is estimated at US$ 5.42 billion in 2024. According to the latest report by Fact.MR, the market has been projected to expand at a CAGR of 4.1% to end up at US$ 8.11 billion by 2034.

Butanol is an essential product produced by microbes and serves as a source of power or fuel component. It is easier to blend butanol with gasoline and other top hydrocarbons due to its longer chain. Moreover, butanol possesses lower water solubility and is less volatile and corrosive as compared to ethanol.

Increasing consumption of bio-based butanol as a green alternative to fossil fuels as well as petrochemical-derived solvents is a key factor driving market expansion. Advanced biotechnology and fermentation techniques have increased yields and decreased production costs, increasing the competitiveness of bio-based butanol. Moreover, there has been an escalation in demand for biodegradable plastics, with n-butanol often being used as one of the building blocks for these plastics.

Report Attribute	Detail
N-Butanol Market Size (2023A)	US$ 5.2 Billion
Estimated Market Value (2024E)	US$ 5.42 Billion
Forecasted Market Value (2034F)	US$ 8.11 Billion
Global Market Growth Rate (2024 to 2034)	4.1% CAGR
North America Market Share (2024E)	30.9%
East Asia Market Growth Rate (2024 to 2034)	4.4% CAGR
China Market Growth Rate (2024E)	4.6% CAGR
Key Companies Profiled	BASF; The DOW Chemical Company; Eastman; OQ Chemicals; Sasol Ltd.; BASF Petronas Chemicals; Petrochina; Mitsubishi Chemical Company; Sinopec; KH Neochem.

Sales Analysis of N-Butanol (2019 to 2023) vs. Market Forecasts (2024 to 2034)

Worldwide n-butanol sales are expected to increase steadily over the coming years due to the growing demand from a range of end-use sectors. The market for n-butanol expanded at a CAGR of 3.9% from 2019 to 2023, and by the end of 2023, it was valued at US$ 5.2 billion. Primary drivers for n-butanol market growth are growing downstream segment investments in Saudi Arabia and stringent laws favoring the usage of bio-based n-butanol.

Historical Report Attribute	Detail
Market Size (2019A)	US$ 4.44 Billion
Market Size (2023A)	US$ 5.2 Billion
Historical CAGR (2019 to 2023)	3.9%

• Short Term (2024 to 2027): In the near future, n-butanol will still be the favored biofuel considering its energy density benefits and compatibility with current infrastructure. Alternative fuels such as ethanol and biodiesel will also become more competitive in the market. The market will experience expansion in end uses such as adhesives, coatings, and pharmaceuticals.
• Medium Term (2027 to 2030): In the medium term, there will be an increase in the use of n-butanol by governments of developing countries, especially those in Africa and Latin America. These countries are channeling their resources toward infrastructure development and the promotion of clean energy. Applications such as plastic paints and personal care products will be key during this time frame.
• Long Term (2030 to 2034): New technologies such as carbon capture and utilization will require n-butanol more frequently. Applications such as construction and agriculture will be on the rise. Leading companies in the n-butanol market will focus on creating novel formulations and innovations that can facilitate the shift to a low-carbon economy. To lower expenses and increase production efficiency, companies will also invest in research and development.

According to Fact.MR, the n-butanol market size is estimated at US$ 5.42 billion in 2024. Demand is projected to rise at a CAGR of 4.1% through 2034 to reach US$ 8.11 billion by the end of the forecast period (2024 to 2034).

What are the Main Factors Driving the Need for N-Butanol Worldwide?

“High Demand for N-Butanol from Chemical Industry”

N-butanol is a versatile intermediate chemical that is used to produce a variety of compounds, including butyl acetate, butyl glycol, and esters. The chemical industry accounts for the high demand for this chemical. This is to cater to the high demand for maritime coatings, automotive coatings, engineering plastics, super absorbent polymers, and adhesives.

There is enormous demand for N-butanol as a biofuel. Ethanol and biodiesel are currently the most widely used biofuels. This is due to several beneficial qualities such as less hydrophilic in nature, higher energy content, higher compatibility, low volatility with oil, and low corrosive nature.

• Green Biologics and Eastman are two of the leading manufacturers of n-butanol derived from biomass.
• China is the leading supplier, according to the United States International Trade Commission (USITC).

The import-export dynamics show that the chemical industry accounts for a sizable demand for n-butanol due to the high need for intermediates.

“Growing Usage of N-Butanol in Biodegradable Polymers”

Synthetic polymer pollution of the environment has grown to hazardous proportions in developing nations. Plastics made from petroleum cannot biodegrade easily and rather build up in the environment due to their resistance to microbial breakdown. Besides, world prices of oil have significantly increased in recent years. As a result, interest in biodegradable polymers has grown of late. Use of n-butanol is rising steadily due to the growing need for biodegradable polymers.

Biodegradable polymers, including polylactic acid (PLA), polybutylene succinate (PBS), and polyhydroxyalkanoates (PHA), are made from n-butanol as a building block. These biodegradable polymers find several uses in fabrics, packaging, and single-use items. For instance, PBS is used in packaging materials, diapers, and hygiene items; however, PLA is used in biodegradable packaging materials. N-butanol is an essential intermediate chemical, with demand driven by the growing need for biodegradable polymers.

What are the Primary Constraints Faced by N-Butanol Manufacturers?

“Fluctuating Raw Material Prices and Supply Chain Disruptions”

Fermentation issues with bio-butanol can restrict market expansion to some extent. The toxicity of the microorganisms that aid in the fermentation makes mass manufacturing of bio-butanol fuel impractical when utilizing the conventional ABE fermentation technique. Thus, propylene, a derived crude oil, is used to synthesize most of the n-butanol used in different industrial and chemical applications. Crude oil is a raw resource that fluctuates in price every day, and this volatility is reflected in the ultimate product or end products of butanol.

Main challenges faced by market competitors are price fluctuations and interruptions in the supply chain. Availability of raw materials, including corn starch, sugarcane, and petrochemicals, which can be impacted by weather, crop failures, and trade restrictions, is a key factor influencing the manufacturing of n-butanol. The dynamics of global supply and demand affect n-butanol prices, making it challenging for rivals to maintain stable pricing strategies.

Country-wise Insights

Country-wise Forecasts N-Butanol Market :

Country	CAGR
United States	4.7%
China	4.6%
Japan	4.5%
South Korea	3.8%

What is the Scenario for N-Butanol in the United States?

“Demand for N-Butanol Fueled by High Biodegradable Polymer Production"

From 2024 to 2034, the United States n-butanol market is projected to expand at a CAGR of 4.7%, driven by the expansion of biodegradable polymer synthesis. The market is estimated at a value of US$ 1.25 billion in 2024, with an expected absolute dollar opportunity worth US$ 720.3 million between 2024 and 2034.

Demand for n-butanol in the U.S. market is anticipated to be driven by the growing need for environment-friendly and sustainable packaging solutions. Rising emphasis on lowering plastic waste and raising recycling rates will also help the n-butanol business to expand.

Packaging, textiles, and disposable goods are among the key industries using biodegradable polymers. Market growth has been driven by the high necessity for n-butanol in butyl acrylate and butyl acetate production formulations, as well as its use as an immediate solvent.

• For illustration, businesses such as Nature Works and Purac are already employing n-butanol as a feedstock to produce biodegradable PLA and PBS polymers.

Why is China a Lucrative Market for N-Butanol Manufacturers?

“Construction and Industrial Sectors Prominent End Users”

The market in China has been valued at US$ 793.6 million in 2024 and is projected to expand at a CAGR of 4.6% during the projected period of 2024 to 2034.

High demand for n-butanol as a key component in adhesives, coatings, and cleaning solutions is being driven by China's economic expansion and infrastructural development. In the production of adhesives and coatings for building materials such as roofing and insulation, n-butanol is utilized as a solvent.

Furthermore, the country's industrial sector is growing steadily, leading to a rise in the demand for cleaning products with n-butanol as a key ingredient.

• For example, to meet the increased demand from these sectors, businesses such as Sinopec and Shandong Yulong are increasing their production of n-butanol. Burning fuel is one of the main uses of n-butanol.

Category-wise Insights

Which Application of N-Butanol Will Generate High Revenue Streams?

“Direct Solvent Use to Be Substantial across Regions”

According to projections, the worldwide direct solvent use application is expected to generate revenue of US$ 1.47 billion in 2024. The segment is forecasted to advance at a CAGR of 4.6% since it is a vital aspect for a majority of copolymers required in paints, emulsions, aqueous adhesives, lacquers, and inks, as well as other commodities.

With its adequate solubility and compatibility with a variety of resin compositions, n-butanol is employed in several aqueous systems. N-butanol makes paints and coatings easier to brush by lowering viscosity and avoiding cobweb and flushing. These reasons are set to increase the demand for n-butanol as a direct solvent in alkaloids, camphor, fats, rubbers, waxes, paints and coatings, dyes, varnishes, and vegetable oils.

Where is N-Butanol Consumption Most Significant?

“Paints, Coatings, and Inks Account for High N-Butanol Consumption”

The building & construction and industrial end-user segments together account for 51.3% market share in 2024, valued at US$ 2.78 billion.

N-butanol consumption is high in paints, coatings, and inks. Since n-butanol has good solubility, it works well with a variety of resins and binders and has desirable evaporation rates. It is frequently employed as a solvent in the formulation of paints, coatings, and inks.

Growth of infrastructure and building industries is driving up demand for paints and coatings. There is an increased need for automotive coatings due to the growth of the transportation and automotive industries. Growing consumer demand for printed goods and packaging is fueling the need for printing inks. With rapid urbanization and industrialization in countries such as China and India, the Asia Pacific region has been identified as a key consumer of n-butanol for paints, coatings, and inks, while North America and Europe also account for considerable demand for n-butanol owing to their well-established paints, coatings, and printing industries.

Competitive Landscape

Market growth for n-butanol is being driven by leading companies such as BASF, The DOW Chemical Company, Eastman, OQ Chemicals, Sasol Ltd., BASF Petronas Chemicals, Petrochina, Mitsubishi Chemical Company, Sinopec, and KH Neochem.

Demand from the consumer products, construction, and automotive industries is driving the growth of the market. Several companies are making investments in environment-friendly technologies and procedures to support n-butanol market expansion.

• In Aug 2021, BASF SE and SINOPEC declared to enlarge Nanjing’s Ver bund plant managed by a 50/50 joint venture of BASF-YPC Co., Ltd. The project involves setting up a new tert-butyl acrylate plant to cater to China's expanding market, as well as the expansion of capacity at other downstream chemical factories

Fact.MR has provided detailed information about the price points of key manufacturers of n-butanol positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently updated market report.

Segmentation of N-Butanol Market Research

• By End Use :

  • Building & Construction
  • Industrial
  • Automotive
  • Pharmaceuticals
  • Food & Chemical Processing
  • Personal Care

• By Application :

  • Plasticizers
  • Direct Solvents
  • N-Butyl Acetate
  • Glycol Ethers
  • Methacrylate Esters
  • Butyl Acrylate

• By Sales Channel :

  • Retailers
  • Distributors & Traders
  • Direct Imports
  • Direct Company Sales

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa