Austin, May 13, 2025 (GLOBE NEWSWIRE) -- The n-Butanol Market Size was valued at USD 5.64 Billion in 2023 and is expected to reach USD 9.02 Billion by 2032, growing at a CAGR of 5.36% over the forecast period of 2024-2032.
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Rising Industrial Demand and Green Innovations Drive Global Expansion of n-Butanol Applications Across Key Manufacturing Sectors
n-Butanol, a vital industrial alcohol, plays a key role in manufacturing butyl acrylate, butyl acetate, glycol ethers, and plasticizers. Its widespread use as a solvent in paints and coatings aligns with booming construction and automotive industries. According to the U.S. EPA, demand for n-Butanol-based solvents rose 12% from 2022 to 2023 due to compliance with VOC regulations. In response, BASF SE expanded its Texas facility in 2023 to meet surging regional demand. Additionally, the U.S. EIA reported increased availability of crude oil derivatives, making feedstock sourcing more cost-effective. Growing environmental awareness has also triggered a shift toward bio-based n-Butanol, appealing to pharmaceutical and cosmetic sectors. Global efforts in R&D and supportive regulatory frameworks, particularly in the U.S., Germany, and Japan, continue to promote sustainable production and boost the market outlook.
The US n-Butanol Market Size was valued at USD 862.9 Million in 2023 with a major share of about 68% and a significant growth rate.
The U.S. n-Butanol market is witnessing growth due to increasing demand from paints, coatings, and chemical intermediates, especially in infrastructure and automotive sectors. According to the American Chemistry Council (ACC), 2023 saw a 9% rise in U.S. solvent-grade n-Butanol consumption. Additionally, companies like Dow Inc. and Eastman Chemical are investing in capacity upgrades and innovation in green n-Butanol solutions.
Key Players:
- Andhra Petrochemicals Ltd.
- BASF SE
- Cobalt Technologies
- Eastman Chemical Company
- Formosa Plastics Corp
- Grupa Azoty
- INEOS Oxide Ltd
- KH Neochem Co., Ltd.
- Mitsubishi Chemical Corporation
- OQ Chemicals
- Oxochimie
- Perstorp Holding AB
- PetroChina Company Limited
- Sasol Ltd
- Sinopec
- The Dow Chemical Company
- LG Chem Ltd.
- Reliance Industries Ltd.
- China National Petroleum Corporation (CNPC)
n-Butanol Market Report Scope:
Report Attributes | Details |
Market Size in 2023 | USD 5.64 Billion |
Market Size by 2032 | USD 9.02 Billion |
CAGR | CAGR of 5.36% From 2024 to 2032 |
Base Year | 2023 |
Forecast Period | 2024-2032 |
Historical Data | 2020-2022 |
Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
Key Segments | •By Grade (Industrial, Pharmaceutical, Others) •By Application (Plasticizers, Direct Solvents, N-Butyl Acetate, Glycol Ethers, Methacrylate Esters, Others) •By End-use Industry (Agriculture, Building & Construction, Paints & Coatings, Marine, Pharmaceutical, Chemical, Personal Care, Others) •By Distribution Channel (Retailers, Distributors & Traders, Direct Imports, Direct Company Sales, Others) |
Key Drivers | • Government Policies Promoting Bio-Based n-Butanol Production as a Sustainable Solution for Industrial Applications. |
Technological Advancements Driving Competitive Edge in n-Butanol
- Companies are filing patents for bio-based n-Butanol production technologies.
- Patents highlight innovations in fermentation and catalytic hydrogenation for better yields.
- n-Butanol used in specialized coatings and biomedical applications is on the rise.
- A surge in patents for eco-friendly and biodegradable solvents.
- The U.S., Japan, and Germany lead in patent filings post-2021.
By Grade, Industrial Segment Dominated the n-Butanol Market in 2023 with a 50.3% Market Share
This dominance is due to its extensive use in the production of coatings, adhesives, plasticizers, and resins, particularly in sectors such as automotive and construction. For instance, BASF and Eastman Chemical Company reported higher output of industrial-grade n-Butanol in 2023 to meet growing downstream application needs. Additionally, industrial-grade n-Butanol is favored for its solvent properties and affordability, making it suitable for large-scale applications in developing economies like India and China. As industries across Asia Pacific scale their chemical and plastics manufacturing, the demand for industrial-grade n-Butanol is poised to increase further, reinforcing its leadership in the market.
By Application, Direct Solvents Segment Dominated the n-Butanol Market in 2023 with a 40.5% Market Share
Its widespread use in paint thinners, degreasers, and cleaning agents across the construction, automotive, and electronics industries supported this lead. The U.S. Occupational Safety and Health Administration (OSHA) cited the growing use of low-toxicity and quick-evaporating solvents like n-Butanol in regulated workplaces. The paint and coatings industry, in particular, saw strong demand for n-Butanol-based solvents due to increased real estate development and renovation activities across the U.S. and Asia. Furthermore, industries prefer n-Butanol due to its relatively low volatility and better safety profile compared to other alcohols, making it an ideal solvent in eco-regulated environments.
By End-use Industry, Building & Construction Segment Dominated the n-Butanol Market in 2023 with a 25% Market Share
This is primarily attributed to the massive demand for n-Butanol as a solvent in paints, sealants, and coatings. With global construction output rebounding post-pandemic, especially in North America and Southeast Asia, demand surged for surface finishing solutions, where n-Butanol is extensively used. The National Association of Home Builders (NAHB) reported a 7.8% increase in residential starts in 2023 in the U.S., fueling demand for coatings. Moreover, government-funded infrastructure projects in India and China further stimulated growth, increasing the consumption of construction chemicals where n-Butanol is an essential intermediate.
By Distribution Channel, Direct Imports Segment Dominated the n-Butanol Market in 2023 with a 38.2% Market Share
Countries lacking in-house n-Butanol manufacturing capabilities such as many in Southeast Asia and Latin America—relied heavily on imports from global players. Direct importation allows manufacturers and end-users to bypass intermediaries, ensuring better pricing and reliable supply chains. For example, Thailand and Brazil sourced a major portion of their n-Butanol from the U.S., Germany, and Saudi Arabia in 2023, according to the UN Comtrade Database. Moreover, geopolitical shifts and global trade agreements enabled smoother cross-border chemical trading, bolstering the prominence of the direct import channel in global n-Butanol distribution.
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Asia Pacific Dominated the n-Butanol Market In 2023, Holding a 40.3% Market Share.
The region’s dominance is due to rapid industrialization and infrastructure growth, particularly in China, India, and ASEAN nations. These countries are witnessing a surge in demand for n-Butanol-based coatings, plasticizers, and adhesives. The China Petroleum and Chemical Industry Federation (CPCIF) reported a 12% year-on-year rise in domestic chemical manufacturing output in 2023, directly boosting n-Butanol demand. Additionally, cost-efficient production, government subsidies for chemical industries, and favorable export policies have made the region a global manufacturing hub. Expanding construction and automotive industries, along with consumer product applications such as cosmetics and pharmaceuticals, have amplified demand, positioning Asia Pacific as the clear market leader.
North America Emerged as the Fastest Growing Region in n-Butanol Market with A Significant Growth Rate in The Forecast Period
North America was the fastest-growing region in the n-Butanol market in 2023, driven by high consumption in paints, coatings, adhesives, and pharmaceutical applications. The American Coatings Association reported an 8.6% growth in paint and coating production in 2023, attributing the trend to rising infrastructure renovation and green building initiatives. Companies like Dow and Celanese invested in R&D and sustainable n-Butanol alternatives to meet regulatory requirements and consumer demand for eco-friendly products. The presence of large-scale chemical manufacturing, robust logistics infrastructure, and environmental compliance mechanisms ensures sustained growth in the region.
Table of Contents – Major Key Points
1. Introduction
2. Executive Summary
3. Research Methodology
4. Market Dynamics Impact Analysis
5. Statistical Insights and Trends Reporting
6. Competitive Landscape
7. n-Butanol Market Segmentation, by Grade
8. n-Butanol Market Segmentation, by Application
9. n-Butanol Market Segmentation, by End-use Industry
10. n-Butanol Market Segmentation, by Distribution Channel
11. Regional Analysis
12. Company Profiles
13. Use Cases and Best Practice
14. Conclusion
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