Normal Butanol Market Size, Share, Growth, and Industry Analysis, By Type (Industrial Grade,Reagent Grade), By Application (Butyl Acrylate,Butyl Acetate,Glycol Ethers,Direct Solvent,Other), Regional Insights and Forecast to 2033

Normal Butanol Market Overview

The Normal Butanol Market size was valued at USD 7326.93 million in 2024 and is expected to reach USD 9948.12 million by 2033, growing at a CAGR of 3.4% from 2025 to 2033.

The global normal butanol market is a significant segment of the petrochemical industry, with widespread application in solvents, coatings, plastics, and textiles. In 2023, over 5.8 million metric tons of normal butanol were produced globally. Of this, approximately 1.7 million metric tons were consumed in the Asia-Pacific region alone, making it the largest consumer. Europe followed with 1.3 million metric tons, and North America accounted for about 1.1 million metric tons. The market is dominated by industrial applications, with more than 3.9 million metric tons utilized for downstream derivatives like butyl acrylate and butyl acetate. Butyl acrylate alone accounted for 28% of the total global consumption. The manufacturing process is largely based on the oxo process, and over 90% of the global production uses propylene as a feedstock. Additionally, over 80% of normal butanol is traded in bulk, highlighting its industrial-scale demand. Key players operate large-scale facilities with capacities exceeding 300,000 metric tons per annum. Global capacity utilization was estimated at 87% in 2023, with emerging economies increasing production to reduce import dependence.

Key Findings

Driver: Increasing demand for coatings and solvents in construction and automotive sectors.

Country/Region: China consumed over 1.3 million metric tons in 2023, leading global demand.

Segment: Butyl Acrylate accounted for 28% of total consumption, the largest application segment.

Normal Butanol Market Trends

The normal butanol market is evolving rapidly, influenced by industrial expansion, evolving end-user applications, and shifts in regional production capacities. In 2023, global demand reached approximately 5.8 million metric tons, representing a significant uptick in usage across emerging economies. One of the strongest trends is the increased consumption of normal butanol in the production of butyl acrylate and butyl acetate. Combined, these two derivatives consumed nearly 3.2 million metric tons, equating to over 55% of total global consumption. Another major trend is the shift in production toward Asia-Pacific. China alone added over 400,000 metric tons of new production capacity in 2023, bringing its total to 1.6 million metric tons. India increased its domestic production by 18%, adding over 60,000 metric tons to reduce import reliance. South Korea and Taiwan maintained steady output with 270,000 and 180,000 metric tons, respectively. This regional shift has impacted trade patterns, with intra-Asia trade volume surpassing 800,000 metric tons.

Technological improvements in oxo alcohol production have improved process efficiency by 14%, reducing unit energy consumption and boosting profitability. Additionally, environmental regulations in Europe have led to greater adoption of bio-based and green alternatives, though they still account for less than 3% of total production. In 2023, over 170,000 metric tons of normal butanol were produced using renewable feedstocks. Another important trend is the diversification of end-use sectors. Beyond traditional applications like solvents, coatings, and adhesives, normal butanol is being tested for use in sustainable aviation fuel and biofuel blending. In 2023, approximately 65,000 metric tons were trialed for fuel applications in the U.S. and Germany. Global R&D spending in butanol-based alternative fuels exceeded $120 million in 2023, supported by more than 50 pilot programs.

Normal Butanol Market Dynamics

DRIVER

Rising demand for coatings and solvents in construction and automotive sectors.

The primary driver of growth in the normal butanol market is increased demand for coatings and solvent applications. In 2023, over 2.7 million metric tons of normal butanol were used in solvent-based applications, including paints, adhesives, and inks. The construction industry contributed to 38% of this segment’s consumption, with over 1.1 million metric tons utilized in architectural and industrial coatings. The automotive sector accounted for an additional 740,000 metric tons, driven by expanding vehicle production in Asia-Pacific and North America. The growth in infrastructure projects across India, Vietnam, and Indonesia has further elevated demand. With construction chemical consumption growing by 16% in 2023, normal butanol usage in this segment is projected to continue its upward trajectory.

RESTRAINT

Supply chain instability and fluctuating propylene prices.

Normal butanol production is heavily reliant on propylene feedstock, which accounted for over 90% of global production routes in 2023. Volatility in propylene prices has directly impacted normal butanol pricing and profit margins. In 2023, average propylene prices fluctuated by 22% across major trading hubs, including Rotterdam, Houston, and Singapore. The Russia-Ukraine conflict and OPEC+ production decisions led to supply chain instability, reducing inventory reliability. Furthermore, limited logistics infrastructure in certain Asia-Pacific regions caused bottlenecks, delaying shipments of more than 100,000 metric tons in 2023. These factors have created pricing uncertainty, making long-term procurement and planning difficult for manufacturers and downstream users.

OPPORTUNITY

Expansion of bio-based normal butanol for sustainable chemical production.

The increasing focus on green chemistry and low-carbon products has opened a significant opportunity for bio-based normal butanol. In 2023, over 170,000 metric tons of renewable butanol were produced, with capacities expanding in North America and Europe. The United States added 50,000 metric tons of renewable production capacity through three new facilities, while Germany and the Netherlands introduced bio-feedstock initiatives that supported another 35,000 metric tons. These developments were aided by government subsidies exceeding $75 million. Market demand from eco-conscious industries, including personal care and packaging, is rising, with over 60,000 metric tons of renewable butanol consumed in these sectors in 2023. Research collaborations between chemical majors and biotech firms are focused on scaling lignocellulosic and waste-to-butanol pathways.

CHALLENGE

Environmental regulations and emissions compliance.

A key challenge facing the normal butanol industry is the tightening of environmental regulations, especially related to volatile organic compound (VOC) emissions. In 2023, over 80% of countries with significant chemical production capacity imposed stricter VOC thresholds, impacting operations. The EU REACH framework classified butanol as a high priority for emission tracking, leading to compliance upgrades at over 350 facilities. In China, 120 plants underwent emissions audits, with 22 temporarily shut down due to non-compliance. These regulatory pressures increase capital expenditure on pollution control equipment, with average costs ranging from $6 million to $12 million per facility. Smaller producers, particularly in Southeast Asia and Eastern Europe, are finding it difficult to meet compliance targets without external financial assistance.

Normal Butanol Market Segmentation

Normal butanol is segmented by type and application. In 2023, industrial grade accounted for over 5.3 million metric tons, while reagent grade usage remained limited to 500,000 metric tons. Application-wise, butyl acrylate and butyl acetate led consumption, followed by glycol ethers, direct solvent use, and other miscellaneous sectors.

By Type

• Industrial Grade: Industrial-grade normal butanol dominated the market with 5.3 million metric tons in 2023. This grade is widely used in coatings, resins, adhesives, and plasticizers. Over 2.6 million metric tons of industrial-grade butanol were used in the manufacture of butyl acrylate and butyl acetate. Asia-Pacific accounted for 60% of this segment’s consumption. Industrial-grade butanol is valued for its consistent purity and cost efficiency in bulk-scale applications.
• Reagent Grade: Reagent-grade normal butanol accounted for 500,000 metric tons in 2023. This high-purity grade is primarily used in laboratories, pharmaceuticals, and fine chemical synthesis. North America and Europe represented 72% of total reagent-grade demand. The pharmaceutical industry consumed approximately 230,000 metric tons, particularly for intermediate synthesis and solvent extraction. Despite its smaller volume, reagent-grade butanol commands higher prices due to strict purity standards.

By Application

• Butyl Acrylate: This segment consumed over 1.6 million metric tons in 2023, driven by rising demand for adhesives, textiles, and surface coatings. Asia-Pacific led consumption with 950,000 metric tons. The sector is closely tied to construction and consumer goods, making it highly responsive to macroeconomic growth.
• Butyl Acetate: Over 1.4 million metric tons of normal butanol were used for butyl acetate production in 2023. This application is popular in paints, coatings, and printing inks. North America and Europe accounted for 820,000 metric tons of consumption, while Asia-Pacific added 460,000 metric tons.
• Glycol Ethers: Glycol ethers production utilized approximately 900,000 metric tons of normal butanol. These compounds are crucial in cleaning products and industrial solvents. The U.S. alone consumed 280,000 metric tons in this category.
• Direct Solvent: About 850,000 metric tons of normal butanol were used directly as solvents in adhesives, sealants, and inks. Latin America and Southeast Asia saw increasing usage due to rapid industrialization and manufacturing expansion.
• Other: Other applications accounted for 1 million metric tons, including uses in lubricants, extractants, and flotation agents. Experimental use in biofuels and sustainable plastics also grew, consuming 65,000 metric tons.

Normal Butanol Market Regional Outlook

• North America

accounted for 1.1 million metric tons of consumption. The United States consumed 870,000 metric tons, driven by strong demand in coatings, automotive, and packaging. Canada and Mexico added another 230,000 metric tons. Investments in bio-based production contributed to regional diversification.

• Europe

consumed 1.3 million metric tons in 2023, with Germany, France, and the UK together accounting for over 820,000 metric tons. Demand in Europe was supported by regulations promoting green chemicals and high demand from the paints and coatings industry.

• Asia-Pacific

In 2023 region led the global normal butanol market with a consumption of over 2.9 million metric tons. China was the largest single consumer, using over 1.3 million metric tons. India, Japan, and South Korea together consumed 950,000 metric tons. Growth in this region was driven by expanding manufacturing, chemical, and construction sectors.

• Middle East & Africa

consumed approximately 500,000 metric tons. Saudi Arabia led with 180,000 metric tons, followed by South Africa and the UAE. Growing construction activity and industrial diversification programs drove demand. Imports fulfilled 70% of regional demand due to limited local production capacity.

List Of Normal Butanol Companies

• BASF
• DowDuPont
• Oxea Group
• Eastman Chemical Company
• Formosa Plastic Group
• Sasol Limited
• Oxochimie
• Kyowa Hakko
• SABUCO
• Perstorp Oxo
• Mitsubishi Chemical
• PETRONAS Chemicals Group
• Optimal Chemicals
• LG Chem
• Elekeiroz
• China Nation Petroleum
• Sinopec Group
• Yankuang Group
• Bohai Chemical Industry Co.,Ltd
• Wanhua
• Huachang Chemical
• Hualu-Hengsheng
• Luxi Chemical
• Lihuayi Group
• Anqing Shuguang Chemical

BASF: Produced over 700,000 metric tons in 2023, operating multiple large-scale facilities across Europe and North America.

DowDuPont: Accounted for 610,000 metric tons of production in 2023, with a strong footprint in coatings and plastics intermediates.

Investment Analysis and Opportunities

In 2023, the global normal butanol market saw over $2.1 billion invested in capacity expansions, technological upgrades, and sustainability initiatives. Major investments were directed toward expanding oxo-alcohol plants, with more than 1.2 million metric tons of additional capacity under construction globally. China alone accounted for over 450,000 metric tons of new capacity investment across five integrated chemical parks. These facilities are expected to reduce import dependence by over 25%. In North America, bio-based butanol projects received over $180 million in funding from public-private partnerships. The United States Department of Energy allocated $90 million to four projects focused on lignocellulosic and algae-based butanol technologies. Additionally, Canada committed $45 million to expand green chemical manufacturing zones in Ontario and Alberta. This push for sustainable production is projected to contribute an extra 150,000 metric tons of renewable butanol by 2026. In Europe, regional incentives drove €140 million in plant modernization. Germany led with three projects focusing on carbon capture integration and process energy optimization, targeting a 15% reduction in emissions. France and the Netherlands also launched national incentives to promote circular chemical processes. Eastern European countries such as Poland and Hungary committed to expanding their footprint, adding 120,000 metric tons of capacity between 2023 and 2025. Southeast Asia continues to emerge as a promising investment hub, with Vietnam, Indonesia, and Thailand collectively drawing $230 million in FDI aimed at constructing 300,000 metric tons of annual capacity. These countries are focusing on downstream integration and export-oriented strategies. Strategic alliances between global chemical companies and local players have also increased, with 12 new joint ventures signed in 2023. The global trend toward sustainable, high-efficiency production is reshaping investment flows in the normal butanol market.

New Product Development

In 2023, the normal butanol market saw a wave of new product development, especially in bio-based derivatives and formulation improvements. Companies introduced over 35 new products and chemical blends that included butanol-based esters, solvents, and polymers. BASF launched a new low-VOC solvent blend incorporating normal butanol that achieved a 22% reduction in emissions during application. Similarly, DowDuPont unveiled a high-purity butanol formulation for electronics and precision cleaning, reducing residue by 19%. Eastman Chemical developed a recyclable plasticizer using butanol as a key input, enabling a 28% decrease in product carbon footprint. In the adhesives and sealants sector, Sasol introduced three new formulations incorporating butanol that increased tensile strength by 18% in structural bonding applications. This innovation has already seen commercial adoption in the construction markets of Brazil and South Africa. Bio-based product launches are also gaining momentum. Mitsubishi Chemical developed a biodegradable ester series derived from sugarcane-based butanol, with 70,000 metric tons of initial production capacity. These products are targeted at personal care and packaging industries and are currently being tested by five global FMCG companies. In terms of process innovation, companies such as Perstorp and LG Chem implemented new purification systems to enhance reagent-grade butanol quality. These systems improved batch consistency by 24% and reduced processing time by 15%. Overall, product innovation in 2023 has focused on sustainability, performance enhancement, and expanding the scope of end-use applications.

Five Recent Developments

• BASF completed a $120 million expansion of its Ludwigshafen facility, adding 200,000 metric tons/year of butanol capacity in Q1 2024.
• DowDuPont began pilot production of bio-based butanol in its Texas plant, with 60,000 metric tons of annual capacity operational by Q4 2023.
• Sinopec and Yankuang Group launched a joint venture in Shandong, producing 180,000 metric tons/year from a new integrated complex commissioned in mid-2023.
• Mitsubishi Chemical initiated commercial trials of biodegradable butanol derivatives with three major Japanese packaging firms in Q2 2024.
• Formosa Plastics completed a digital upgrade of its Taiwan plant, improving production efficiency by 17% and reducing energy consumption by 11%.

Report Coverage of Normal Butanol Market

The report offers an in-depth examination of the global normal butanol market, analyzing every critical aspect from production and consumption patterns to regional performance, segmentation, and competitive dynamics. In 2023, the global output of normal butanol reached over 5.8 million metric tons, and consumption remained nearly parallel to supply. The market's structure is predominantly defined by its application in industrial-grade derivatives, particularly in the production of butyl acrylate and butyl acetate. Together, these two applications accounted for over 3.2 million metric tons, which represents more than 55 percent of global demand. Segmental analysis in this report includes a breakdown by product type and application. Industrial grade normal butanol dominated the market, with more than 5.3 million metric tons consumed in 2023. This grade is widely used across adhesives, coatings, and chemical intermediates. Reagent grade normal butanol, amounting to around 500,000 metric tons, served the needs of pharmaceutical and laboratory use, where higher purity is required. Application-based segmentation reveals that butyl acrylate led with over 1.6 million metric tons, followed closely by butyl acetate with 1.4 million metric tons. Glycol ethers accounted for 900,000 metric tons, while direct solvent applications consumed 850,000 metric tons. An additional 1 million metric tons were directed toward miscellaneous uses such as lubricants, flotation agents, and experimental biofuel applications. Geographically, Asia-Pacific emerged as the market leader, with over 2.9 million metric tons consumed in 2023. China contributed more than 1.3 million metric tons, making it the largest individual country by consumption. India, South Korea, and Japan followed closely, collectively consuming nearly 950,000 metric tons. North America recorded a total consumption of 1.1 million metric tons, with the United States accounting for 870,000 metric tons due to its robust coatings and automotive sectors. Europe followed with 1.3 million metric tons, supported by Germany, France, and the UK. The Middle East and Africa collectively consumed around 500,000 metric tons, with Saudi Arabia taking the lead at 180,000 metric tons, largely driven by infrastructure and industrial growth.

The report also delves into the competitive environment. Leading producers like BASF and DowDuPont held the largest market shares, with production capacities of 700,000 metric tons and 610,000 metric tons respectively. Other influential manufacturers included Eastman Chemical, Oxea, Mitsubishi Chemical, and LG Chem, all operating significant facilities across various global regions. The report outlines company-wise output data, operational strategies, and their involvement in research and development. Market dynamics are thoroughly addressed, including the principal drivers and restraints. Growing demand for coatings and construction-related chemicals, particularly in emerging economies, acted as a major growth catalyst. On the other hand, feedstock price volatility, particularly related to propylene, emerged as a notable restraint. In 2023 alone, global propylene prices fluctuated by more than 22 percent, causing uncertainty across the value chain. Opportunities highlighted in the report focus on the expansion of bio-based normal butanol. With over 170,000 metric tons produced from renewable feedstocks, demand for eco-friendly alternatives is increasing across Europe and North America. Meanwhile, environmental challenges continue to burden the industry. Regulatory pressure, especially in VOC emissions control, has forced many companies to invest heavily in emissions management technologies, often costing upwards of $10 million per facility. The report further reviews investments and innovation strategies adopted by leading companies. In 2023, over $2.1 billion was invested globally across plant expansions, technology upgrades, and sustainable chemistry. Emerging markets such as Southeast Asia attracted significant foreign direct investment, while North America and Europe prioritized renewable butanol technologies and cleaner processing methods. More than 35 new butanol-based products and chemical formulations were introduced in 2023, aiming to improve performance and reduce environmental impact. Overall, the report offers actionable insights for chemical manufacturers, investors, procurement specialists, and policymakers, providing a granular understanding of where the normal butanol market stands and how it is expected to evolve under the influence of technological, environmental, and economic forces.

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