Bio-butanol Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market is segmented by Application (Acrylates, Acetates, Glycol Ethers, Plasticizers, Biofuel, and Other Applications) and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for bio-butanol in terms of volume (million gallons) for all the above segments.

Market Snapshot

biobutanol market overview
Study Period: 2016 - 2026
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: Asia Pacific
CAGR: >8.5 %
biobutanol market major players

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Market Overview

The Global Bio-butanol Market size is evaluated at 3,000 million gallons in 2020 and is projected to register a CAGR of over 8.5% during the forecast period (2021-2026).

COVID-19 pandemic in 2020 has negatively affected the market due to lockdown and the temporary shutdown of manufacturing plants. Moreover, renewable ethanol producers were actively involved in the effort to contain the pandemic across the European Union. Even as they continue to deliver the necessary volumes of fuel ethanol, refineries are shifting parts of their production from biofuels to ethyl alcohol for use as disinfectants and hand sanitizers, and producers are working with national EU governments to ensure increased production and maintain supply chains.

  • Major factors driving the market studied are the reduction of carbon emission to a great extent and gaining prominence as a building block for chemical manufacturing. Technological challenges in production are expected to hinder the growth of the market studied.
  • The acrylates segment dominated the market, and is expected to grow at a significant rate during the forecast period, owing to the increasing production of butyl acrylates.
  • The Asia-Pacific region was the largest consumer of bio-butanol. Growing production of coatings, adhesives, resin and textile in countries, such as China, India, and Japan, are driving the market growth.

Scope of the Report

The bio-butanol market is segmented by application and geography. By application, the market is segmented into Acrylates, Acetates, Glycol Ethers, Plasticizers, Biofuel, and Other Applications. The report also covers the market size and forecasts for the bio-butanol market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (million gallons).

Application
Acrylates
Acetates
Glycol ethers
Plasticizers
Biofuel
Other Applications
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Acrylates to Dominate the Market

  • Acrylates dominated the market studied, and is expected to maintain its position over the forecast period.
  • Bio-butanol is used as an intermediate in the production of butyl acrylates, which are further used in the production of paints and coatings, adhesives, and textiles, among others. Increasing demand for such products from various end-user industries is likely to result in a demand pull from every phase in the value chain, thereby driving the growth of the market studied.
  • The production of paints and coatings is rising steadily in the global market, owing to its demand from the construction, automotive, and industrial coating applications.
  • Adhesives demand is also rising, driven majorly by the growing construction and infrastructural activities, rising automotive production, increasing need for furniture, etc.
  • Asia-Pacific is the major consumer of butyl acrylates, majorly dominated by Japan, followed by North America and Europe. The demand for butyl acrylate is expected to be the highest in Asia-Pacific, owing to the increasing production of adhesives, textiles, and coatings, followed by the Middle East & African region.
  • The aforementioned factors are expected to drive the demand for bio-butanol, over the forecast period.
isobutanol market share

Asia-Pacific Region to Dominate the Market

  • In the Asia-Pacific region, China accounts for the largest market share in bio-butanol consumption. The country is the largest producer of paints and coatings in the Asia-Pacific region, with an estimated coating production of more than 15 million metric ton, which is expected to increase significantly in the near future.
  • China accounts for more than one-fourth of the global coatings market presently. According to the China National Coatings Industry Association, the industry has been registering a growth of 7% through recent years. It was estimated that from 2019, the construction of at least ten large coatings investment projects in China had been reported publicly. Nippon has been tapping into this market situation by upgrading its coatings production process in its new plants in China. The increased living spaces required in urban areas, resulting from urbanization, and the desire of middle-class urban residents to improve their living conditions are expected to have a profound effect on the housing market.
  • In May 2021, PPG announced the completion of its USD 13 million investment in its Jiading, China paint and coatings facility, including eight new powder coating production lines and an expanded powder coatings technology center that is expected to enhance PPG’s research and development capabilities. The expansion is likely to increase the plant’s capacity by more than 8,000 metric ton per year.
  • According to the National Bureau of Statistics of China, in 2020, the total production of plastic products amounted to more than 78 million metric ton in the country. China is the world's largest plastic producer, accounting for nearly one-third of the global plastics production. Moreover, the country produced 6.5 million ton to 7.5 million ton of plastic products from August 2020 to August 2021.
  • The Indian chemical industry produces 80,000 different chemical products, covering bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilizers. According to India Brand Equity Foundation (IBEF), the domestic chemicals sector's small and medium enterprises are expected to showcase 18%-23% revenue growth in FY22, owing to an improvement in domestic demand and higher realization due to high prices of chemicals
  • Such aforementioned factors are expected to drive the market growth, over the forecast period.
isobutanol market size

Competitive Landscape

The bio-butanol market is in the nascent stage and is apparently a consolidated one. The key players include Cathay Industrial Biotech, Gevo inc., GranBio, Eastman Chemical Company, and Abengoa, among others.

Recent Developments

  • In September 2021, Gevo Inc. completed the acquisition of Butamax patent estate. This adds fundamental patents to its portfolio to produce renewable isobutanol and derivative renewable fuel products. The Butamax patent estate acquisition is expected to increase Gevo’s intellectual property value, now that Gevo owns the Butamax patents.
  • In August 2020, Brazil-based GranBio announced a strategic alliance with NextChem, to co-license its patented technology for the production of second-generation (2G) ethanol worldwide. The partnership will enable the commercialization of this technology globally, combining GranBio’s knowledge in biomass and second-generation biofuels with NextChem’s engineering intelligence and Group global presence, to offer integrated services—feasibility studies, development of integration projects, engineering and construction of factories worldwide.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Report

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Growing Emphasis on Reduction in Carbon Emissions

      2. 4.1.2 Gaining Prominence as a Building Block for Chemical Manufacturing

    2. 4.2 Restraints

      1. 4.2.1 Technological Challenges in Production

      2. 4.2.2 High Production Cost

      3. 4.2.3 Unfavorable Conditions Arising Due to the COVID-19 Outbreak

    3. 4.3 Industry Value-chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Acrylates

      2. 5.1.2 Acetates

      3. 5.1.3 Glycol ethers

      4. 5.1.4 Plasticizers

      5. 5.1.5 Biofuel

      6. 5.1.6 Other Applications

    2. 5.2 Geography

      1. 5.2.1 Asia-Pacific

        1. 5.2.1.1 China

        2. 5.2.1.2 India

        3. 5.2.1.3 Japan

        4. 5.2.1.4 South Korea

        5. 5.2.1.5 Rest of Asia-Pacific

      2. 5.2.2 North America

        1. 5.2.2.1 United States

        2. 5.2.2.2 Canada

        3. 5.2.2.3 Mexico

      3. 5.2.3 Europe

        1. 5.2.3.1 Germany

        2. 5.2.3.2 United Kingdom

        3. 5.2.3.3 Italy

        4. 5.2.3.4 France

        5. 5.2.3.5 Rest of Europe

      4. 5.2.4 South America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Argentina

        3. 5.2.4.3 Rest of South America

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 South Africa

        3. 5.2.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%) Analysis**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Gevo Inc

      2. 6.4.2 Praj Industries

      3. 6.4.3 Abengoa

      4. 6.4.4 Cathay Industrial Biotech

      5. 6.4.5 GranBio

      6. 6.4.6 Eastman Chemical Company

      7. 6.4.7 Phytonix

      8. 6.4.8 Metabolic Explorer

      9. 6.4.9 Working Bugs LLC

      10. 6.4.10 Celtic Renewables

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Alternative to Ethanol

    2. 7.2 Increasing Consumption of Biofuels in Aviation Industry

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Frequently Asked Questions

The Bio-butanol Market market is studied from 2016 - 2026.

The Bio-butanol Market is growing at a CAGR of >8.5% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Cathay Industrial Biotech Ltd, Gevo, GranBio, Eastman Chemical Company are the major companies operating in Bio-butanol Market.

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