Global n-Butanol Market Poised for 5.7% Growth, Surpassing $4.7 Billion by 2029

What is the current market size and future outlook for the n-butanol market?

The n-butanol market size has grown strongly in recent years. It will grow from $3.55 billion in 2024 to $3.77 billion in 2025 at a compound annual growth rate (CAGR) of 6.1%. The growth in the historic period can be attributed to growth in construction industry, increasing demand for plasticizers, rise in demand for coatings and paints, increase in agrochemical production, rising disposable incomes.

The n-butanol market size is expected to see strong growth in the next few years. It will grow to $4.7 billion in 2029 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to rising demand for bio-based chemicals, growth in personal care industry, increase in food processing activities, growing automotive production, rise in infrastructure development projects. Major trends in the forecast period include advancements in production technologies, growing adoption in sustainable chemical manufacturing, rising focus on reducing carbon footprint, and increasing investments in research and development.

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How have varous drivers impacted the growth of the n-butanol market?

The growing demand for sustainable fuel is expected to propel the growth of the n-butanol market going forward. Sustainable fuel refers to energy sources that are renewable, low-carbon, and environmentally friendly, aiming to reduce reliance on finite fossil fuels and mitigate climate change. The growing demand for sustainable fuel is due to increasing awareness of climate change, stricter environmental regulations, advancements in renewable energy technologies, and the pursuit of energy security and independence. n-butanol is beneficial as a sustainable fuel because it can be produced from renewable biomass, offers higher energy content and lower emissions than ethanol, and is compatible with existing gasoline engines. For instance, in May 2023, according to the International Energy Agency (IEA), a France-based intergovernmental organization, investments in clean energy on a global scale experienced a notable upsurge from $1,408 billion in 2021 to $1,740 billion in 2023, which unequivocally demonstrates the growing commitment towards environmentally sustainable practices. Therefore, the growing demand for sustainable fuel drives the n-butanol market.

What are the primary segments of the n-butanol market?

The n-butanol market covered in this report is segmented –

1) By Grade: Pharmaceuticals, Industrial, Chemicals

2) By Production Process: Oxyhydrogenation Of Propylene, Butane Oxidation, Fermentation Of Biomass

3) By Application: Butyl Acrylate, Butyl Acetate, Glycol Ethers, Direct Solvent, Plasticizers, Other Applications

4) By End-Use Industry: Paints And Coatings, Chemicals And Petrochemicals, Textiles, Agriculture, Buildings And Constructions, Food And Beverages, Transportation, Pharmaceuticals

Subsegments:

1) By Pharmaceuticals: Active Pharmaceutical Ingredients (APIs), Solvents For Drug Formulations, Excipients

2) By Industrial: Solvent For Paints And Coatings, Adhesives And Sealants, Plasticizers, Lubricants And Hydraulic Fluids

3) By Chemicals: Butyl Acetate, Butyl Acrylate, Butanol-Based Polymers, Glycol Ethers

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Which firms are leading the n-butanol market?

Major companies operating in the n-butanol market are China National Petroleum Corporation, BASF SE, Grupa Azoty, The Dow Chemical Company, Saudi Basic Industries Corporation, Thermo Fisher Scientific Inc., Mitsubishi Chemical Corporation, Merck KGaA, Ineos Group Limited, Brenntag AG, Sasol Limited, Arkema S.A., Eastman Chemical Company, PETRONAS Chemicals Group, Jiangsu Huachang Chemical Industry Company Limited, Solventis Ltd, BASF PETRONAS Chemicals Sdn. Bhd., OQ Chemicals GmbH, KH Neochem Co. Ltd., Texmark Chemicals Inc., Santa Cruz Biotechnology Inc., Anhui Shuguang Chemical Group, Finar Limited, Tokyo Chemical Industry Co. Ltd., Pacific Texchem Private Limited, Andhra Petrochemicals Ltd.

How will industry trends affect the trajectory of the n-butanol market?

Major companies operating in the market are focusing of developing advanced process such as the PO/TBA production processes, to gain a competitive edge. PO/TBA production processes this process is particularly efficient and economically advantageous, as it produces two valuable products that serve a wide array of industrial applications. For instance, in March 2023, Lyondell Basell Industries N.V., a US-based petrochemical company, launched the world’s largest propylene oxide (PO) and tertiary butyl alcohol (TBA) unit, which specializes in producing key chemicals used across various industrial and consumer applications. Propylene oxide (PO) is primarily used to manufacture polyurethane foam, found in products like mattresses, car seat cushions, and insulation, which enhances energy efficiency. Tertiary butyl alcohol (TBA) is converted into fuel additives such as methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE), which improve gasoline combustion, helping reduce vehicle emissions.

Which geographic trends are shaping the n-butanol market, and which region has the highest market share?

Asia-Pacific was the largest region in the n-butanol market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the n-butanol market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Does The n-Butanol Market Report 2025 Offer?

The n-butanol market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.

n-Butanol refers to a type of alcohol with the chemical formula C4H9OH. It is a four-carbon straight-chain alcohol colorless liquid with a characteristic smell. n-Butanol is an industrial solvent and an intermediate in producing other chemicals, including butyl acrylate, butyl acetate, and glycol ethers.

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