n-Butanol Market Report 2026

The n-butanol market size has grown strongly in recent years. It will grow from $3.72 billion in 2025 to $3.91 billion in 2026 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to growth of petrochemical industry, expansion of paints and coatings sector, increased use of solvent based formulations, rising demand for chemical intermediates, availability of propylene based production processes.

The n-butanol market size is expected to see steady growth in the next few years. It will grow to $4.7 billion in 2030 at a compound annual growth rate (CAGR) of 4.7%. The growth in the forecast period can be attributed to shift toward bio based butanol production, increasing demand for lightweight automotive coatings, growth in construction activities, rising use in pharmaceutical formulations, advancements in fermentation technologies. Major trends in the forecast period include rising demand for industrial solvents, growing use in acrylic and coating intermediates, increasing adoption in bio based chemical production, expansion of butanol based plasticizer applications, higher consumption in paints and coatings manufacturing.

The growing demand in the construction industry is expected to drive the n-butanol market going forward. The construction industry encompasses all activities related to planning, designing, building, and maintaining infrastructure and buildings. The increasing demand in the construction sector can be attributed to population expansion, urban development, infrastructural advancements, and governmental funding in construction endeavors. n-Butanol plays a significant role in the construction industry by enhancing the performance and sustainability of materials and processes. Its use as a solvent in coatings and adhesives, as an intermediate in chemical synthesis, and as a sustainable fuel for construction equipment makes it a valuable resource for improving construction activities' efficiency and environmental impact. For instance, in May 2024, according to the report published by the Bureau of the Census, a US-based principal agency of the Federal Statistical System, construction spending during March 2024 was estimated at an annual rate of $2.08 trillion, representing a 9.6% increase compared to March 2023, while during the first three months of 2024, spending amounted to $461 billion, showing a 10.6% increase over the same period in 2023. Hence, the growing demand in the construction industry propels the n-butanol market.

Major companies operating in the market are focusing of developing advanced process such as the PO/TBA production processes, to gain a competitive edge. PO/TBA production processes this process is particularly efficient and economically advantageous, as it produces two valuable products that serve a wide array of industrial applications. For instance, in March 2023, Lyondell Basell Industries N.V., a US-based petrochemical company, launched the world's largest propylene oxide (PO) and tertiary butyl alcohol (TBA) unit, which specializes in producing key chemicals used across various industrial and consumer applications. Propylene oxide (PO) is primarily used to manufacture polyurethane foam, found in products like mattresses, car seat cushions, and insulation, which enhances energy efficiency. Tertiary butyl alcohol (TBA) is converted into fuel additives such as methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE), which improve gasoline combustion, helping reduce vehicle emissions.

In November 2023, BASF-YPC, a China-based producer of oxo-alcohols and intermediates including normal butanol (n-butanol), partnered with SINOPEC to expand their integrated petrochemical Verbund site in Nanjing by increasing the capacity of their C4 chemicals, including n-butanol. Through this collaboration, the companies aim to enhance n-butanol production volume and reinforce supply capabilities in the global n-butanol market. This agreement highlights the chemical industry’s continued emphasis on expanding n-butanol production capacity to accommodate growing demand. SINOPEC is a China-based petrochemical company.

Major companies operating in the n-butanol market are BASF SE, Dow Inc., Saudi Basic Industries Corporation, Ineos Group Limited, Sasol Limited, Eastman Chemical Company, Mitsubishi Chemical Corporation, Arkema S.A., PETRONAS Chemicals Group Berhad, OQ Chemicals GmbH, KH Neochem Co. Ltd., China National Petroleum Corporation, Anhui Shuguang Chemical Group, Jiangsu Huachang Chemical Industry Co. Ltd., Andhra Petrochemicals Ltd., Texmark Chemicals Inc., Grupa Azoty, Chang Chun Group, Nanjing Chemical Fiber Co. Ltd., Zibo Qixiang Tengda Chemical Co. Ltd.

Asia-Pacific was the largest region in the n-butanol market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the n-butanol market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the n-butanol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The n-butanol market consists of sales of adhesives, sealants, lubricants, printing inks, and cosmetics. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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