Europe Butane Market Size, Share & COVID-19 Impact Analysis, By Type (Normal Butane {Research grade (>99.9%), Instrument (>99.9%), Chemically Pure (~99.9%)}, Iso Butane {High Purity (>99.5%), Chemically Pure (~99.9%)}), High Purity Propane (>99%), By Application (LPG {Residential/ Commercial, Industrial, Refinery}, Petrochemicals, Refineries, Cosmetics, Pharmaceuticals), and Country Forecast, 2020-2027

The Europe butane market size was USD 7,301.9 million in 2019 and is projected to reach USD 8,580.9 million by 2027, exhibiting a CAGR of 3.6% during the forecast period.

Butane is a colorless, flammable, and easily liquefiable gas with the chemical formula C₄H₁₀ and is used for the production of LPG and in the formulation of personal care and cosmetic products. Due to its higher heat value, easy transportation, and low cost, this gas is witnessing a surging demand for heating and cooking applications. The comparatively less amount of carbon emissions generated from it makes it an ideal candidate to replace coal for energy generation. The changing norms on emissions by European countries are having a positive effect on the growth of this market. The detrimental health effects caused by excessive exposure to this gas will restrain market growth.

Unexpected Outbreak of COVID-19 Will Decline the Demand

In the midst of COVID-19, the supply has been affected due to a decline in the demand for LPG from the automotive industry. Crude oil prices declined substantially, entering the negative territory in April due to the downfall in demand and excess supply. Additionally, the shutdown of manufacturing facilities across industries and the swelling restrictions due to the lockdown in Europe reduced the operating profits of manufacturers. This has affected the product pricing in Europe and has thereby hampered market growth. However, the rise in the demand for LPG for cooking and heating applications has been supporting market growth during the pandemic.

LATEST TRENDS

Rising Utilization of Butane in the Cosmetics Industry to Create Growth Opportunities

In the personal care and cosmetics industry, C₄H₁₀ is used in the formulation of shaving foams, makeup, and cleaning products. In cosmetics, iso-butane is used as an aerosol propellant or solvent. Companies in the personal care industry have started incorporating this product as substitutes for chlorofluorocarbons (CFCs) in their formulations due to the negative environmental impact caused by them. Key players in the market, such as ExxonMobil and Repsol, are offering butane for aerosol propellant and solvent applications. Moreover, the stringent regulations by governments on the use of CFCs due to their harmful effects, such as climate change, ozone depletion, and their severe effects on the human nervous system, are expected to boost the demand for compounds in the cosmetics industry.

DRIVING FACTORS

Increasing Preference of LPG over Coal to Drive Market Growth

Europe is transitioning from conventional energy sources to more affordable and sustainable renewable energy solutions to fulfill the growing energy demand. Governments and energy companies across the European Union (EU) are phasing out fossil fuel energy technologies and products, which played an important role in the development of the European economy in the 20^th century. The preference for LPG over coal is rising due to the several advantages offered by it. For example, LPG has a higher heat value, which allows consumers to heat their homes at low costs. LPG is also an ideal choice of fuel as it is easy to transport and emits less amount of carbon in comparison with other fuel sources. The implementation of regulations such as 443/2009/EC to reduce carbon emissions from vehicles, combined with several companies pledging towards net-zero emissions, are expected to drive the market growth.

RESTRAINING FACTORS

Toxic Nature of C₄H₁₀ May Hamper Market Growth

Butane is one of the most important components in the formulation of pharmaceuticals, cosmetics, and LPG. However, while its properties are ideal for the manufacturing of several products, it is known to have harmful effects on both human beings and the environment. It is known to be cancerous and can alter the genetic information of an organism. Excessive exposure can result in dysfunctions of the central nervous system and cardiac arrest. It has high flammability, and its leakage in the environment can be detrimental. These disadvantages of the chemical are expected to decline the growth of the market.

SEGMENTATION

By Type Analysis

Normal Butane Segment to Hold the Dominant Share in the Europe Market

Based on type, the Europe market is segmented into normal-butane, iso-butane, and high purity propane. The normal butane segment is projected to be the leading segment during the forecast period. Factors such as high heat value and low cost have led to the segment witnessing increasing demand from LPG manufacturers and residential & non-residential establishments for heating and cooking applications.

The rising demand for iso-butane from pharmaceutical and cosmetics manufacturers for aerosol propellant applications, along with the high demand from HDPE manufacturers, is anticipated to drive the growth of the segment.

By Application Analysis

LPG Segment to be the Fastest-Growing Segment

On the basis of application, the market is segmented into LPG, petrochemicals, refineries, cosmetics, pharmaceuticals, refrigeration & air conditioning, and others. The LPG segment leads the Europe butane market owing to its low cost and high heat value, which makes it an ideal choice for cooking and heating applications. Additionally, initiatives by the European Union to achieve a zero-GHG economy are estimated to drive the growth of the segment.  

The cosmetics segment will grow at a substantial rate due to the boost in demand from personal care product manufacturers for aerosol applications. The substitution of CFCs by butane will further support the segment’s growth.

The rise in demand from the pharmaceutical segment is associated with the increasing acceptance of cannabis for medical applications, where C₄H₁₀ is used for the extraction of oils from cannabis.

The increasing substitution of chlorofluorocarbons by butane for cooling applications will fuel the growth of the refrigeration segment.

The growth of the petrochemicals segment is associated with the rising demand in the manufacturing of high-density polyethylene.

COUNTRY INSIGHTS

The market size was USD 7,301.9 million in 2019. Russia accounted for the major Europe butane market share owing to the rising demand for basic energy requirements for heating and cooking activities. Favorable government policies promoting the industrial and manufacturing sectors of Germany and France are responsible for the market growth in these countries. Furthermore, the rising demand from the chemical and manufacturing industries in Germany will also support the market’s growth.

Initiatives by companies and the EU to achieve the goal of zero greenhouse gas emissions will drive the growth of the market in Italy. Rising disposable incomes of consumers have resulted in an increase in the demand for cosmetics products, which will drive the growth of this market.

KEY INDUSTRY PLAYERS

Product Innovation and Effective Distribution Channels to be the Core Focus Areas for Companies

Product offerings & innovation are the important aspects that key market players are focusing on to cater to the growing demand for C₄H₁₀. These companies are developing butane offerings for a variety of applications and technologies to maintain their dominance. British Petroleum plc, ExxonMobil, and Total SA are some of the leading players in this market. These companies are involved in the exploration, production, refining, distribution, and marketing of oil & gas and their derivatives. Companies have also established strong and effective distribution channels to efficiently serve their end-users and increase their market presence.

LIST OF KEY COMPANIES PROFILED:

• British Petroleum plc (UK)


• ConocoPhillips Company (U.S.)


• Chevron Corporation (U.S.)


• ExxonMobil (U.S.)


• Sinopec Group (China)


• Total SA (France)


• China National Petroleum Corporation (China)


• Linde plc (Ireland)


• Air Liquide (France)


• Equinor (Norway)


• MOL Group (Hungary)


• Other Key Players

REPORT COVERAGE

The Europe butane market research report provides a detailed analysis of the market and focuses on crucial aspects, such as competitive landscape, applications, disposable types, and distribution channels. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation