n-Butanol Market Forecasts to 2032 – Global Analysis By Product (Bio-Based n-Butanol and Petro-Based n-Butanol), Purity, Distribution Channel, Application, End User and By Geography

According to Stratistics MRC, the Global n-Butanol Market is accounted for $1.6 billion in 2025 and is expected to reach $2.6 billion by 2032 growing at a CAGR of 6.7% during the forecast period. n-Butanol, also known as 1-butanol, is a primary alcohol with the chemical formula C₄H₉OH. It is a colorless, flammable liquid with a characteristic banana-like odor. n-Butanol is produced through petrochemical processes or fermentation of sugars and starches using Clostridium bacteria. It is widely used as a solvent in the manufacture of varnishes, resins, coatings, and plastics. Additionally, it serves as an intermediate in the production of other chemicals like butyl acrylate and butyl acetate. n-Butanol is also explored as a potential biofuel due to its high energy content and compatibility with existing gasoline infrastructure.

According to the European Chemicals Agency's March 2024 report, N-butanol usage in pharmaceutical applications grew by 35% year-over-year.

Market Dynamics:

Driver:

Strong industrial demand

Strong industrial demand significantly drives the growth of the n-Butanol market, particularly in sectors like paints and coatings, automotive, and construction. As a key solvent and intermediate in the production of butyl acrylate and glycol ethers, n-Butanol experiences increased consumption aligned with industrial expansion. The rising demand for durable coatings and adhesives in manufacturing and infrastructure projects fuels market growth. Additionally, robust industrialization in emerging economies enhances production volumes, strengthening the global n-Butanol supply chain and overall market performance.

Restraint:

Raw material price volatility

Raw material price fluctuation has a considerable negative and inhibiting effect on the n-Butanol industry. Price fluctuations for important feedstocks, such as propylene, raise manufacturing costs and lower manufacturers' profit margins. Long-term investments are discouraged, budgeting becomes more difficult, and supply chain stability is disrupted by this uncertainty. It also has an impact on pricing tactics, which makes it difficult for companies to stay competitive and limits market expansion and industry expansion as a whole.

Opportunity:

Rising bio based and fuel applications

The rising adoption of bio-based and fuel applications is positively driving the n-Butanol market by boosting demand for sustainable and eco-friendly alternatives to traditional petrochemical-derived solvents and fuels. n-Butanol, when derived from renewable biomass, serves as a viable biofuel blendstock and feedstock for producing green chemicals. This shift aligns with global efforts to reduce carbon emissions and reliance on fossil fuels, encouraging investments and innovation in bio-butanol production, thereby propelling the market’s growth across industrial and transportation sectors.

Threat:

Stringent regulatory & environmental standards

Stringent regulatory and environmental standards have destructively impacted the n-Butanol market by increasing compliance costs and limiting production flexibility. Regulatory pressures to reduce volatile organic compound (VOC) emissions and promote greener alternatives have led to stricter manufacturing and handling protocols. These constraints deter new market entrants, slow down innovation, and compel existing producers to invest in costly upgrades, ultimately hindering market growth and creating uncertainties for long-term investment and expansion.

Covid-19 Impact

The Covid-19 pandemic significantly impacted the n-Butanol market, causing disruptions in production and supply chains due to lockdowns and labor shortages. Demand declined across end-use industries such as automotive, construction, and paints and coatings. Reduced industrial activity and trade restrictions further affected the market's growth. However, as economies gradually reopened, the market began to recover, with resumed operations and renewed demand from key application sectors driving the rebound.

The pharmaceuticals segment is expected to be the largest during the forecast period

The pharmaceuticals segment is expected to account for the largest market share during the forecast period owing to its critical role as a solvent and intermediate in drug synthesis and formulation. The increasing demand for medications, driven by a growing global population, rising chronic disease prevalence, and expanding healthcare access, has accelerated the consumption of n-Butanol in pharmaceutical manufacturing. Additionally, advancements in drug development and expansion of pharmaceutical production facilities in emerging economies further boost n-Butanol usage, reinforcing its significance in this vital industry segment.

The glycol ethers segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the glycol ethers segment is predicted to witness the highest growth rate, due to its extensive use as a key intermediate in glycol ether production. n-Butanol serves as a crucial raw material in manufacturing various glycol ethers, which are widely used in paints, coatings, cleaners, and inks. Rising demand for eco-friendly and high-performance solvents across industrial and commercial sectors further accelerates consumption. This growing application scope significantly boosts the demand for n-Butanol, thereby driving the market's growth and expansion.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share due to expanding construction activities, and growing demand for coatings, adhesives, and plasticizers. Increasing investments in manufacturing and automotive sectors in countries like China, India, and South Korea are fueling consumption. Additionally, supportive government policies, low production costs, and the region’s strong export capabilities are enhancing market opportunities. The shift toward sustainable chemicals is also encouraging the adoption of bio-based n-Butanol, further driving regional growth.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, owing to robust demand from key end-use industries such as construction and pharmaceuticals. The region's well-established chemical manufacturing infrastructure, coupled with increasing investments in sustainable and bio-based chemicals, is further accelerating market expansion. Moreover, rising demand for coatings, adhesives, and plasticizers—where n-Butanol is a critical intermediate—is fostering industry growth. Regulatory support for eco-friendly solvents is also enhancing the adoption of n-Butanol across various industrial sectors in North America.

Key players in the market

Some of the key players profiled in the n-Butanol Market include BASF SE, Dow Chemical Company, Eastman Chemical Company, OQ Chemicals (formerly Oxea GmbH), Mitsubishi Chemical Corporation, Sasol Limited, Grupa Azoty ZAK S.A., INEOS Group, Saudi Kayan Petrochemical Company, Andhra Petrochemicals Limited, KH Neochem Co., Ltd., LyondellBasell Industries N.V., PetroChina Company Limited, ExxonMobil Corporation, Formosa Plastics Corporation, LG Chem Ltd., Luxi Chemical Group Co., Ltd., China National Petroleum Corporation (CNPC) and Shell Chemicals.

Key Developments:

In April 2025, BASF announced its first Canadian Master Research Agreement (MRA) with the University of Toronto, marking a significant milestone in the company's efforts to expand its research collaborations in North America. This partnership aims to streamline innovation projects and foster collaboration between BASF researchers and Canadian academics.

In October 2024, BASF made a strategic partnership with Aspen Aerogels to enhance its aerogel product offerings and expand its market reach. This partnership is set to drive innovation in aerogel technologies, particularly in high-performance insulation materials.

In July 2024, BASF launched Haptex 4.0, an innovative polyurethane solution for the production of synthetic leather that is 100% recyclable. Synthetic leather made with Haptex 4.0 and polyethylene terephthalate (PET) fabric can be recycled together using an innovative formulation and recycling technical pathway without the need of layer peel-off process.

Products Covered:
• Bio-Based n-Butanol
• Petro-Based n-Butanol

Purities Covered:
• High Purity
• Technical Grade

Distribution Channels Covered:
• Retailers
• Direct Imports
• Distributors & Traders
• Direct Company Sales
• Other Distribution Channels

Applications Covered:
• Butyl Acrylate
• Butyl Acetate
• Glycol Ethers
• Direct Solvent
• Plasticizers
• Other Applications

End Users Covered:
• Paints and Coatings
• Chemical Manufacturing
• Automotive
• Construction
• Textiles
• Printing Inks
• Pharmaceuticals
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements