GBL and NMP Market Size & Growth [2033]

Q: What value is the gbl and nmp market expected to touch by 2033

The global gbl and nmp market is expected to reach USD 1112.69 Million by 2033.

Q: What is CAGR of the gbl and nmp market expected to exhibit by 2033?

The gbl and nmp market is expected to exhibit a CAGR of 4.8% by 2033.

Q: Which are the top companies operating in the gbl and nmp market?

BASF, Mitsubishi Chemical Corporation, Ashland, Lyondellbasell, Eastman, Abtonsmart Chemical Group, Tokyo Chemical Industry, MYJ Chemical

Q: What was the value of the gbl and nmp market in 2024?

In 2024, the gbl and nmp market value stood at USD 729.93 Million.

GBL and NMP Market Overview

Global GBL and NMP Market size in 2024 is estimated to be USD 729.93 million, with projections to grow to USD 1112.69 million by 2033 at a CAGR of 4.8%.

The GBL (Gamma-Butyrolactone) and NMP (N-Methyl-2-pyrrolidone) market represents a vital segment within the global chemical industry, primarily driven by its widespread applications across electronics, pharmaceuticals, agrochemicals, and industrial cleaning. In 2023, over 650,000 metric tons of NMP and GBL were produced globally, with Asia-Pacific contributing more than 62% of the volume. NMP is especially valued for its high solvency, low volatility, and superior thermal stability, making it indispensable in lithium-ion battery production and petrochemical processing.

GBL, on the other hand, finds significant use as a precursor in the synthesis of pyrrolidones and as a solvent in agricultural chemicals, polymer processing, and ink manufacturing. Global demand for GBL stood at approximately 275,000 metric tons in 2023. Key market participants are scaling up production capacities in China and South Korea, where over 70% of global lithium-ion battery manufacturing is concentrated. With increasing electric vehicle (EV) adoption, the demand for NMP in battery-grade applications is forecasted to rise sharply, supported by more than 30 new gigafactories announced across Asia and Europe in 2023.

Key Findings

Top Driver Reason: Rising demand from lithium-ion battery manufacturers, especially in EVs and energy storage systems.

Top Country/Region: China leads the market, accounting for more than 45% of the global demand for NMP and GBL.

Top Segment: Battery-grade NMP dominates with a usage volume of over 180,000 metric tons annually in electrode coating processes.

GBL and NMP Market Trends

One of the most prominent trends in the GBL and NMP market is the growing alignment with the global push for electric mobility. As of 2024, EV production exceeded 14 million units, with battery manufacturers requiring over 120,000 metric tons of NMP for electrode coating. This trend is likely to intensify as EV penetration in emerging economies accelerates, prompting chemical producers to boost NMP purity standards to ≥99.9%.

Another trend is the strategic expansion of solvent recovery facilities, especially in Asia-Pacific, where regulations around NMP emissions are becoming increasingly stringent. Japan and South Korea implemented revised VOC (volatile organic compound) limits in industrial zones in 2023, compelling firms to invest in solvent recycling units that achieve over 85% recovery efficiency. As a result, the operational costs for battery producers using NMP have dropped by 8%–12%.

In the GBL segment, the flavor and fragrance industry is emerging as a niche yet growing application. Global exports of GBL used in spice synthesis increased by 9.3% in 2023, with over 12,500 metric tons traded for this purpose. Additionally, GBL's use in green solvent systems has gained traction as manufacturers shift away from hazardous solvents like toluene and dichloromethane.

Digitalization and automation across chemical processing plants have also improved NMP and GBL handling. Smart dispensing units installed in over 65% of facilities in Europe now allow precise

GBL and NMP Market Dynamics

DRIVER

Rising demand for pharmaceuticals and battery manufacturing

The GBL and NMP market is being significantly driven by the rapid expansion in battery manufacturing and pharmaceutical sectors. NMP is extensively used in the production of lithium-ion batteries for electric vehicles (EVs), with over 180,000 metric tons consumed in cathode and anode coating processes in 2023 alone. Global EV production exceeded 14 million units in 2024, driving parallel growth in demand for battery-grade NMP. Additionally, GBL is a crucial precursor in the synthesis of pharmaceuticals such as pyrrolidones and tranquilizers. Over 40,000 metric tons of GBL were utilized in pharmaceutical production in 2023. The pharmaceutical industry's increased focus on producing higher-purity APIs (active pharmaceutical ingredients) also spurs growth in demand for solvent-grade NMP and GBL.

RESTRAINT

Regulatory constraints on solvent toxicity and emissions

One of the key restraints impacting the GBL and NMP market is increasing regulatory pressure related to toxicity and environmental emissions. Both GBL and NMP are listed under substances requiring restricted use under REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) regulations in the European Union. In 2023, Germany, France, and the Netherlands jointly enacted stricter limits on occupational exposure to NMP, reducing permissible airborne concentrations to below 10 mg/m³. As a result, chemical processors in these regions had to spend over USD 120 million collectively on upgrading ventilation and protective systems. This adds to production costs and limits the adoption of GBL and NMP in consumer-facing applications.

OPPORTUNITY

Expanding adoption in eco-friendly solvents and agrochemical formulations

The rising global emphasis on sustainable chemistry has opened up new opportunities for GBL and NMP. GBL's role as a precursor for biodegradable solvents and bio-based polymers positions it favorably in green chemistry applications. In 2023, over 8,000 metric tons of GBL were diverted toward the synthesis of eco-friendly solvents such as 2-pyrrolidone and N-vinylpyrrolidone. In agrochemical sectors, both solvents are being used to improve formulation stability and solubility, especially in herbicides and pesticide concentrates. With global agrochemical consumption exceeding 4.3 million metric tons in 2024, demand for reliable, high-solvency carriers like NMP is projected to expand in crop protection formulations.

CHALLENGE

Rising production costs and fluctuating raw material prices

The volatility in the prices of raw materials such as butyrolactone intermediates and methylamine has posed a significant challenge for manufacturers. In 2023, the price of maleic anhydride and acetylene—key feedstocks for GBL and NMP—rose by over 15% due to supply chain disruptions in Asia. Additionally, energy-intensive purification processes required for battery-grade NMP have increased operating costs by 18% between 2022 and 2024. Producers also face challenges in maintaining consistent product purity levels above 99.9% to meet the stringent quality standards of the electronics and pharmaceutical industries. These rising input costs are impacting profitability and limiting capacity expansion in some regions.

GBL and NMP Market Segmentation

The GBL and NMP market is segmented by type and application. GBL and NMP are used in diverse industries such as pharmaceuticals, batteries, flavors and fragrances, petrochemicals, and agriculture. By type, the market comprises 1-Methyl-2-pyrrolidinone (NMP) and Gamma Butyrolactone (GBL), both offering distinct solvent properties. By application, battery manufacturing remains dominant, followed by pharmaceutical and chemical processing. In 2023, battery and chemical industries accounted for over 65% of global NMP consumption, while GBL saw higher usage in fine chemicals and polymer synthesis.

By Type

1-Methyl-2-pyrrolidinone (NMP): NMP is a polar aprotic solvent widely used for its high solvency, chemical stability, and boiling point of 202°C. In 2023, global NMP production reached over 375,000 metric tons. Around 48% of this was consumed by the battery manufacturing sector, followed by 22% in the petrochemical industry and 18% in pharmaceutical processing. Battery-grade NMP with ≥99.9% purity is in high demand, particularly in China, which alone consumed over 120,000 metric tons in EV battery manufacturing.
Gamma Butyrolactone (GBL): GBL is a colorless, hygroscopic liquid with a boiling point of 204°C and excellent solvency properties. It is primarily used as an intermediate in the production of pyrrolidones and as a solvent in polymer and agrochemical applications. In 2023, the global GBL supply stood at approximately 275,000 metric tons. Over 60,000 metric tons were used in pharmaceutical synthesis, while 40,000 metric tons went into agrochemical formulations. GBL also gained traction in producing eco-solvents and fragrances, especially in the European market.

By Application

Battery: In 2023, over 180,000 metric tons of NMP were used in battery applications, particularly in electrode production. Over 40 battery gigafactories globally have dedicated NMP supply contracts, reflecting its strategic value.
Spices: Approximately 12,500 metric tons of GBL were consumed in spice synthesis and food-grade aroma development in 2023. Its ability to stabilize aromatic compounds drives its use in the flavor industry.
Pharmaceutical: The pharmaceutical industry utilized over 80,000 metric tons of combined NMP and GBL in 2023. NMP is used in API synthesis and drug formulations, while GBL serves as a precursor for several drug intermediates.
Chemical: In 2023, more than 140,000 metric tons of NMP and GBL were consumed in chemical manufacturing processes including polymerization, ink formulation, and metal cleaning.
Others: Minor but growing applications include electronics cleaning, adhesive manufacturing, and pigment dispersion, which together used more than 25,000 metric tons of NMP and GBL in 2023.

GBL and NMP Market Regional Outlook

Global demand for GBL and NMP varies significantly across regions, shaped by industrial activity, regulatory frameworks, and technology investments.

North America

The North American market is driven by pharmaceutical production and high-tech electronics manufacturing. In 2023, the region consumed over 85,000 metric tons of NMP and GBL combined, with over 40% dedicated to the medical sector. U.S.-based manufacturers are investing in cleaner production technologies to comply with EPA VOC regulations, with over USD 50 million spent on emission control systems in 2023 alone.

Europe

Europe is a major consumer of GBL and NMP in chemical synthesis and advanced materials. In 2023, more than 95,000 metric tons were used across Germany, France, and the UK. However, stricter REACH regulations have curbed volume growth. European firms are now pivoting to solvent recycling, achieving 30% reuse of NMP in industrial cleaning operations by the end of 2024.

Asia-Pacific

Asia-Pacific dominates the global market with over 60% share. In 2023, China alone consumed more than 200,000 metric tons of NMP for battery production. South Korea and Japan together accounted for 60,000 metric tons in electronics and pharmaceutical applications. The region benefits from cost-effective production, with multiple new plants under construction in China’s Shandong and Jiangsu provinces.

Middle East & Africa

While still an emerging region, the Middle East and Africa recorded a combined consumption of 25,000 metric tons of GBL and NMP in 2023. Growing investments in industrial processing facilities in the UAE and South Africa are expected to drive future demand. The regional market is seeing growth in petrochemical and agrochemical applications, aided by favorable trade agreements.

List of Top GBL and NMP Market Companies

BASF
Mitsubishi Chemical Corporation
Ashland
LyondellBasell
Eastman
Abtonsmart Chemical Group
Tokyo Chemical Industry
MYJ Chemical

Top Two Companies by Market Share

BASF: BASF held the leading share in the NMP market, supplying over 85,000 metric tons globally in 2023, with more than 35% of it supplied to battery manufacturers.

Mitsubishi Chemical Corporation: Mitsubishi produced over 75,000 metric tons of combined GBL and NMP in 2023 and maintained major supply contracts with Japanese and Korean electronics firms.

Investment Analysis and Opportunities

The GBL and NMP market is undergoing substantial investment activity, driven by robust demand across the battery, pharmaceutical, and specialty chemical sectors. In 2023, capital expenditure in Asia-Pacific exceeded USD 750 million for expanding NMP production lines, primarily in China, South Korea, and India. Over 15 new production facilities and expansions were announced in provinces such as Shandong, Guangdong, and Jeollabuk-do, targeting battery-grade NMP output exceeding 99.9% purity. Each of these facilities is projected to produce between 10,000–25,000 metric tons annually, reflecting strong demand from the energy storage and EV battery supply chain.

Battery gigafactories worldwide are also securing long-term supply partnerships. In 2023, four leading gigafactories in Europe entered into 5-year procurement contracts valued at over USD 200 million with NMP suppliers. These contracts ensure stable input supply amid rising geopolitical tensions and raw material constraints. In addition, global demand for electrode-grade solvents is estimated to increase by 25% annually from 2023 to 2025, which has prompted chemical companies to invest in backward integration strategies.

Investments are also evident in the recovery and recycling segment. In Japan and Germany, over 30 solvent recovery units have been installed since 2022, enabling up to 90% solvent recycling efficiency. These facilities reduce operational waste by 12,000 metric tons per year, significantly improving margins for both manufacturers and end-users.

Emerging opportunities are visible in the green solvent market. Multiple startups and mid-sized players are developing bio-based GBL substitutes. In 2023, more than USD 45 million was invested globally in the R&D of renewable pyrrolidones. NMP analogues derived from bio-succinic acid have shown promise in laboratory-scale trials, achieving 95% solvency performance equivalence with a 30% lower toxicity profile.

New Product Development

Innovation in the GBL and NMP market is geared towards improving solvent performance, environmental compliance, and end-use adaptability. In 2023, several manufacturers introduced high-purity solvent grades with enhanced recovery rates and lower toxicity. BASF launched a new ultra-low moisture NMP variant with <50 ppm water content, aimed at high-efficiency battery electrode production. This product enabled battery manufacturers to increase cell capacity by 3% and reduce defect rates by 10%.

Mitsubishi Chemical introduced a GBL product stabilized for flavor and fragrance applications, with minimized peroxide content (<10 ppm), ensuring longer shelf life and improved reaction efficiency. This variant was adopted by four major aroma chemical companies across France and India by Q3 2023. Similarly, Tokyo Chemical Industry developed a custom-blended NMP solution for pharmaceutical synthesis with optimized pH stability, which resulted in a 15% improvement in drug yield in lab-scale tests.

The emergence of fluorinated NMP alternatives, such as N-Ethyl-2-pyrrolidone (NEP) and N-Butylpyrrolidone (NBP), indicates the industry's attempt to diversify solvent options. These derivatives offer lower vapor pressure and have been tested for applications in electronics cleaning, with recovery efficiency exceeding 82%. Companies in Germany and South Korea have piloted these solvents in circuit board cleaning, achieving reduced environmental footprint and better surface finish quality.

Biodegradable and bio-based solvent innovations also made significant progress. In 2023, a U.S.-based startup commercialized a plant-derived GBL analogue with 95% solvency parity. The product, synthesized using microbial fermentation of glucose, was granted regulatory approval for use in cosmetics and fragrances in two countries. This development could disrupt the market for traditional GBL in non-industrial applications.

Five Recent Developments

BASF: Introduced ultra-dry NMP variant with <50 ppm moisture for battery-grade applications. Over 10,000 metric tons were sold to Chinese and European battery manufacturers in 2023.
Mitsubishi Chemical: Expanded its GBL production facility in Japan by 15,000 metric tons annually to meet rising demand from pharmaceutical clients across Asia-Pacific.
Ashland: Launched a low-VOC NMP replacement for agrochemical emulsions, which improved shelf stability by 25% and met new EU pesticide formulation norms.
LyondellBasell: Signed a 5-year contract to supply 20,000 metric tons of NMP to two major European EV battery makers, locking in long-term capacity utilization.
Tokyo Chemical Industry: Developed a pharmaceutical-grade GBL variant compliant with revised Japanese pharmacopeia standards, leading to 12% growth in exports to Southeast Asia.

Report Coverage of GBL and NMP Market

This report comprehensively covers the global GBL and NMP market, analyzing its competitive landscape, segmentation, and emerging opportunities. It presents factual, data-rich insights into the production, consumption, and end-user demand across multiple regions and industry verticals. With a detailed breakdown by product type and application, the report enables stakeholders to identify critical usage patterns and shifting demand centers.

The study includes a thorough evaluation of the two core chemicals: 1-Methyl-2-pyrrolidinone (NMP) and Gamma Butyrolactone (GBL). Each is analyzed by volume, purity grade, and industrial utility, offering clarity on supply chain requirements and product positioning. Applications analyzed include batteries, spices and fragrances, pharmaceuticals, chemical synthesis, agrochemicals, and niche specialty uses. In 2023, battery applications accounted for over 180,000 metric tons of NMP consumption, while GBL’s role in fine chemical production surpassed 60,000 metric tons.

Regional coverage includes North America, Europe, Asia-Pacific, and the Middle East & Africa, with a specific focus on consumption trends, trade flows, and regulatory developments. For instance, Asia-Pacific remains the volume leader with more than 60% of global NMP and GBL production, whereas Europe’s regulatory tightening has led to innovation in solvent recovery and greener substitutes.

The report also lists the top eight manufacturers in the GBL and NMP space, highlighting two market leaders—BASF and Mitsubishi Chemical—by their production scale and strategic partnerships. BASF accounted for more than 85,000 metric tons of production in 2023, and Mitsubishi expanded its GBL capacity by 15,000 metric tons in early 2024.