Butyl Glycol Market Size, Share & Industry Analysis, By Application (Solvent, Chemical Intermediate, and Others), and Regional Forecast, 2024-2032

The global butyl glycol market size was USD 0.92 billion in 2023 and is projected to grow from USD 0.97 billion in 2024 to USD 1.43 billion by 2032 at a CAGR of 5.0% during the forecast period (2024-2032). Asia Pacific dominated the butyl glycol market with a market share of 47.83% in 2023.

Butyl glycol, also known as 2-butoxyethanol is an organic compound with a sweet ether-like odor. It is also known as butyl ether or ethylene glycol. It is one of the inexpensive and non-volatile employed in various industrial and domestic applications. It is obtained by two production processes which include ethoxylation of butanol and ethylene oxide and second processes includes etherification of 2-chloroethanol. The compound possesses modest surface active properties and can also be used as solvent attributed to the non-volatile nature and cost-effectiveness.

The COVID-19 pandemic significantly hit the chemical sector and severely disrupted the raw materials and product supply and chain cycle. Moreover, the pandemic heavily changed the spending behavior of consumers which caused a drop in demand for chemicals. The paints and coatings industry sustained the impact of the pandemic due to a sudden decline in the construction, automotive, and industrial sectors.

Butyl Glycol Market Trends

Growing Application in Textiles and Fabric to Aid Growth

Butyl Glycol is one of the raw materials used for manufacturing a broad set of products including polyester fibers for clothes, carpets, upholstery, pillows, and also fiberglass. These products are further used in manufacturing various products such as polyethylene terephthalate. Most of the products manufactured are recyclable and cost efficient. These properties make it a sustainable choice which further is resulting in growth in demand for butyl alcohol.

Butyl Glycol Market Growth Factors

Growing Demand from Paints & Coatings Manufacturers to Drive Market Growth

A majority of this chemical produced is used as solvent in producing paints & coatings. Increasing demand for water and solvent based paints from various end-use sectors including construction, industrial, chemical, and food & beverages is boosting the demand for butyl glycol. It is also employed in making printing inks and varnishes. The low volatility of the compound extends the drying time of the coating and further improves its flow. Various properties such as volatility, inflammability, and solubility in water & other hydrophobic substances is driving market growth. In addition, paints and coating manufacturers are heavily influenced by the expanding construction and infrastructure sectors worldwide, which fuel the demand for paints and coatings, which are essential for protecting and enhancing the durability of buildings, bridges, and infrastructure projects. Butyl glycol serves as a key ingredient in the formulation of water-based paints and coatings, offering excellent solvency, viscosity control, and film-forming properties. Moreover, the automotive industry's growth drives the demand for paints and coatings used in vehicle manufacturing and refinishing. Butyl glycol is utilized in automotive coating for its ability to improve flow and leveling, reduce surface tension, and enhance adhesion to substrates, contributing to the overall quality and appearance of automotive finishes.

Increasing Adoption of Butyl Glycol in Cleaning Agents to Result in Growth

Butyl glycol possesses surface active properties and hence is widely used in cleaning and sterilizing chemicals and products. It is one of the major ingredients used in industrial and domestic cleaning solutions. The compound has polar and nonpolar ends and therefore effectively removes dirt and grease. It is also widely used in the petroleum industry as a component in drilling stabilizers, fracturing fluids and dispersing agents for water and oil based hydraulic fracturing. Growing demand for the compound as a surface active component is expected to drive the market growth.

RESTRAINING FACTORS

Carcinogenic Nature towards Rodents to Limit Butyl Glycol Market Growth

Butyl Glycol has low acute toxicity and can cause adrenal tumors in animals after long term exposure. Additionally, according to the American Conference of Governmental industrial hygienists, it is carcinogenic in nature for rodents. In California, it is listed as hazardous substance and employers are mandated to inform when assigned projects involving use of butyl glycol. Hazardous nature of the compound is a prime factor limiting the market growth.

Butyl Glycol Market Segmentation Analysis

By Application Analysis

Solvent Segment to Exhibit a Significant CAGR due to its lower cost and volatility

Based on application, the market is segmented into solvent, chemical intermediate, and others.

Extensive use of solvents in paints and coatings industry is the primary factor influencing the segment growth. Almost 74.7% of the market is dominated by the solvent segment and is attributed to the extensive use due to its lower cost and volatility. It is also used as a chemical intermediate in producing various significant chemicals and therefore, chemical intermediate application holds the second largest butyl glycol market share.

REGIONAL INSIGHTS

Asia Pacific held the largest share of the butyl market in 2023 and is expected to continue the dominance attributed to the larger manufacturing base. China is one of the largest producers and covers almost 60% of the Asian market. Additionally, increasing demand for inexpensive and less volatile industrial solvent is expected to drive growth.

Europe is one of the major markets for butyl alcohol. Presence of a large manufacturing base along with a high demand for solvents in paints and coatings industry is expected to fuel the market growth. This is expected to positively influence the market growth.

North America holds a significant market share in the global market due to increasing demand for industrial solvents from various end-use sectors. Increasing constructional activities is resulting in growth for paints which in turn is boosting the demand.

Latin America and the Middle East and Africa are anticipated to grow sluggishly due to the presence of lower number of manufacturing units and lower demand.

List of Key Companies in Butyl Glycol Market

Market Players such as DuPont Inc., BASF, and Solvent Are Expected to Strengthen Their Market Position

The producers in North America and Europe are focusing on increasing their presence in various countries in Asia Pacific in order to strengthen their position in the market and to drive the market growth of their organizations. The key players in the market have, therefore, developed strong presence in regional markets, distribution channels, and increased product offerings.

Major market players are investing in research and development in order to produce higher-quality products with more features. In addition, manufacturers emphasis on strategic collaborations in order to boost their R&D activities. Businesses place a strong emphasis on expanding their service areas in order to increase market share and income. Companies are committed to introducing new products to meet consumer demand. Key players are devising strategies in market including Lyondelbasell, Dow, Anshika Polysurf, and others are expected to boost market growth.

LIST OF KEY COMPANIES PROFILED

• Anshika Polysurf Ltd. (Gujarat, India)


• Nippon Nyukazai Co. Ltd. (Tokyo, Japan)


• Sasol Ltd. (Sandton, South Africa)


• Lyondell Basell Industries N.V. (Rotterdam, Netherlands)


• Eastman Chemical Corporation (Kingsport, U.S.)


• Asia Pacific Petrochemicals Co Ltd (Bangkok, Thailand)


• Dow Chemical Company (Michigan, U.S.)


• BASF SE (Ludwigshafen, Germany)


• INEOS (London, U.K)


• Solventis Ltd (Guildford, U.K.)

KEY INDUSTRY DEVELOPMENTS

• August 2021: Eastman Chemical Company announced the hike in prices for specialty chemicals including EB solvent in North America and Latin America effective 1^St September 2021.


• August 2021: BASF and Sinopec announced the further expansion of the joint venture at Verbund site by expansion of production capacities in various downstream chemical manufacturing units which include Glycol ethers.

REPORT COVERAGE

The global butyl glycol market analysis covers both qualitative and quantitative data. The global market sizing in terms of value (USD billion) and volume (Kilo tons) through each segment, region, and sub-segment highlighted in the study scope are among the quantitative insights. The market research study also includes market share data and growth rates for each region's segment, sub-segment, and important nations. Qualitative insight entails a thorough examination of the market's drivers, restraints, growth opportunities, and important/key trends. The competitive landscape section includes thorough company profiles of the market's major players.

Report Scope & Segmentation