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N-Butanol Market Size ,Growth Research Report 2024-2032 | 250 Pages

06-21-2024 10:30 AM CET | Chemicals & Materials

Press release from: Emergen research

N-Butanol Market

N-Butanol Market

The global N-Butanol market size was USD 6,845.50 Million in 2022 and is expected to register a rapid revenue CAGR of 4.43% during the forecast period. Rising demand from various end-use industries, including chemical, pharmaceutical, food and beverage, textile, Paints and Coatings, among others is a key factor driving market revenue growth. The production of bio-based N-Butanol and other renewable chemicals is increasing due to rising investments in Research & Development (R&D) and the construction of new manufacturing facilities. This increasing production, is in turn, will rise need from consumers and businesses for environment-friendly products, as well as government regulations aimed at reducing greenhouse gas emissions and promoting the use of renewable resources.

Market Overview and Trends

N-butanol is a versatile four-carbon alcohol with a wide range of applications. Traditionally derived from petroleum, the market is experiencing a significant shift towards bio-based n-butanol produced from renewable feedstocks like corn and sugarcane.

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Key Drivers

Sustainability Concerns: Stringent environmental regulations and growing consumer preference for eco-friendly products are driving the demand for bio-based n-butanol, which boasts a lower carbon footprint compared to its petroleum-derived counterpart.

Industrial Applications: N-butanol finds application in a diverse range of industries, including coatings, paints, solvents, plasticizers, and as a fuel additive. The increasing demand from these sectors is expected to propel market growth.

Technological Advancements: Ongoing research and development in bio-based n-butanol production methods are improving efficiency and cost-effectiveness, making it a more competitive alternative to traditional options.

Restraints and Challenges
Price Fluctuations: The n-butanol market is susceptible to price fluctuations due to its dependence on feedstock costs and supply chain disruptions. Recent events like the force majeure declared at an oxo-alcohol production facility in Germany have caused price hikes in Europe .

Competition: The n-butanol market faces competition from established alternatives like ethanol and other solvents. Manufacturers need to focus on product differentiation and innovation to maintain market share.

Regulatory Landscape: Strict regulations governing the production and use of n-butanol can create uncertainties for market participants.

Growth Opportunities

Emerging Applications: N-butanol's potential as a biofuel and in the production of bio-based chemicals presents exciting growth opportunities. Further research and development in these areas can unlock new markets.

Expansion into New Regions: The growing demand for n-butanol in developing economies like China and India presents significant opportunities for market expansion.

Focus on Sustainability: Manufacturers who can demonstrate a commitment to sustainable production practices and offer environmentally friendly bio-based n-butanol solutions are likely to gain a competitive edge.

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SWOT Analysis

Versatile product with a wide range of applications
Growing demand for bio-based alternatives
Potential as a biofuel and in bio-based chemical production

Dependence on feedstock costs and supply chain disruptions
Competition from established alternatives

Emerging applications in biofuels and bio-based chemicals
Expansion into new regions
Focus on sustainability for market differentiation

Price fluctuations
Stringent regulations governing production and use
Latest Strategic Developments

The n-butanol market is witnessing strategic developments as companies look to expand their production capacity and cater to the growing demand for bio-based solutions. Recent examples include:

In March 2024, Eastman Chemicals, a leading producer of oxo-alcohol, announced a price increase for n-butanol in North and South American markets, reflecting rising feedstock costs

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Key Market Insights :

Based on grade, the pharmaceutical grade segment is expected to account for largest revenue share in the global n-butanol market due to increasing use of n-butanol in the pharmaceutical industry as a solvent in the manufacturing of various drugs and medications, including Antibiotics, anti-inflammatory drugs, and anticancer drugs, among others. In addition, pharmaceutical grade n-butanol is used in the production of Butylated Hydroxytoluene (BHT), which is commonly used as a food preservative. Moreover, increasing need for pharmaceuticals and medications worldwide is also expected to drive revenue growth of this segment during the forecast period.

Based on application, the butyl acrylate segment is expected to register steadily fast revenue growth rate in the n-butanol market during the forecast period due to wide range of applications in various industries, including coatings, adhesives, and textiles. Butyl acrylate is produced by the esterification of n-butanol with acrylic acid and is used as a key raw material in the production of polymers and resins. In addition, increasing need for coatings and paints in the construction and automotive industries is also expected to drive revenue growth of this segment.

Based on end use, the paints and coatings segment is expected to account for significantly large revenue share in the global n-butanol market during the forecast period. This is due to rising demand for high-performance coatings with improved durability and resistance to weathering and chemical attacks. N-butanol is a key raw material in the manufacturing of paints and coatings, which are widely used in various industries, including construction, automotive, and industrial.

Major players in the N-Butanol Market include:

BASF SE, DOW INC., Eastman Chemical Company, INEOS GROUP, SABIC, SASOL, Mitsubishi Chemical Corporation, PETRONAS Chemicals Group Berhad, OQ Chemicals GmbH, Formosa Plastics Corporation, U.S.A., KH Neochem Co., Ltd., MERCK KGAA, Anhui Shuguang Chemical Group, The Andhra Petrochemicals Limited, and Vizag Chemical.

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