n-Butanol Market Report 2025

This n-Butanol market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

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.

The increasing demand for sustainable fuel is projected to drive growth in the n-butanol market in the future. Sustainable fuel refers to renewable energy sources that are low-carbon and environmentally friendly, aiming to reduce dependence on finite fossil fuels and address climate change. Factors contributing to this demand include heightened awareness of climate change, stricter environmental regulations, advancements in renewable energy technologies, and efforts towards energy security and independence. n-butanol is advantageous as a sustainable fuel because it can be derived from renewable biomass, offers higher energy content and lower emissions compared to ethanol, and is compatible with existing gasoline engines. For instance, the International Energy Agency (IEA) reported a significant increase in global investments in clean energy from $1.4 trillion in 2021 to $1.74 trillion in 2023, underscoring the growing commitment to environmentally sustainable practices. Therefore, the increasing demand for sustainable fuel is a driving force behind the n-butanol market.

The expanding demand within the construction industry is anticipated to propel growth in the n-butanol market moving forward. The construction industry encompasses activities related to infrastructure planning, design, construction, and maintenance. The rise in demand within this sector can be attributed to population growth, urban development, infrastructure improvements, and government investments in construction projects. n-butanol contributes significantly to the construction industry by enhancing the performance and sustainability of materials and processes. Its use as a solvent in coatings and adhesives, as an intermediate in chemical synthesis, and as a sustainable fuel for construction machinery enhances efficiency and reduces environmental impact. For example, according to the Bureau of the Census, construction spending in March 2024 reached an annual rate of $2.08 trillion, marking a 9.6% increase from March 2023, with spending totaling $461 billion in the first three months of 2024, a 10.6% increase over the same period in 2023. Hence, the growing demand within the construction industry is a key driver of the n-butanol market.

Leading companies in the market are focusing on developing advanced processes, such as the PO/TBA production processes, to achieve a competitive advantage. The PO/TBA process is particularly efficient and economically beneficial, as it yields two valuable products with a wide range of industrial applications. For example, in March 2023, Lyondell Basell Industries N.V., a petrochemical company based in the United States, launched the world’s largest propylene oxide (PO) and tertiary butyl alcohol (TBA) facility, dedicated to producing essential chemicals for various industrial and consumer uses. Propylene oxide (PO) is primarily utilized in the production of polyurethane foam, found in products like mattresses, car seat cushions, and insulation, which supports energy efficiency. Tertiary butyl alcohol (TBA) is processed into fuel additives, such as methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE), which improve gasoline combustion, helping to reduce vehicle emissions.

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.

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. The countries covered in the n-butanol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

n-Butanol, with the chemical formula C4H9OH, is a colorless liquid alcohol characterized by its distinctive odor. It serves as both an industrial solvent and an intermediate in the production of several chemicals, including butyl acrylate, butyl acetate, and glycol ethers.

The primary grades of n-butanol include pharmaceuticals, industrial, and chemicals. The pharmaceuticals grade is specifically tailored for the production of medicines and pharmaceutical products. Its manufacturing processes involve oxyhydrogenation of propylene, oxidation of butane, and biomass fermentation. These processes yield a range of derivatives used in direct solvents, plasticizers, and various applications across industries such as paints, coatings, chemicals, textiles, agriculture, construction, food and beverages, transportation, and pharmaceuticals.

The n-butanol market research report is one of a series of new reports that provides n-butanol market statistics, including the n-butanol industry global market size, regional shares, competitors with n-butanol market share, detailed n-butanol market segments, market trends, and opportunities, and any further data you may need to thrive in the n-butanol industry. These n-butanol market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The n-butanol market consists of sales of adhesives, sealants, lubricants, printing inks, and cosmetics. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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