Get the latest insights on price movement and trend analysis of Isobutanol in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

Why did the Iso Butanol Price Change in July 2025? The Iso-Butanol spot price in North America declined by 1.6% quarter-over-quarter in Q2 2025, reflected in a declining Price Index.

During Q2 2024, the iso butanol prices in the USA reached 2,173 USD/MT in June. The market saw prices rise due to increased feedstock costs, logistical hurdles, and growing need over major construction months. Regulatory changes affecting mortgage prices and construction guidelines further influenced costs, contributing to an overall trend of gradual recovery and an optimistic market forecast.

Why did the n-Butanol Price Change in July 2025? The n-Butanol spot price in North America declined by 6.64% quarter-over-quarter in Q2 2025, reflected in a declining Price Index.

Get the latest insights on price movement and trend analysis of Bio-Isobutanol in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

Get the latest insights on price movement and trend analysis of Butanol in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

Isobutanol Market size was valued at USD 1.71 Billion in 2024 and is projected to reach USD 2.81 Billion by 2032, growing at a CAGR of 7.07% from 2026 to 2032.

Global Isobutanol Market Definition

Isobutanol also known as Isobutyl alcohol has a characteristic smell. It is utilized as raw material as it does not contain high-level impurities. It is used for additives in polishes, gasoline for spark-ignition engines, solvents for ink, and cleaners. It is also used as a diluent in cellulose nitrate lacquers as it prevents the blushing of coating when they dry under humid conditions. Increasing Consumption of isobutanol in the synthesis of vitamins, camphor, and antibiotics along with the evolution of the medical sector and pharmaceutical sector across the world. Isobutyl acetate is also produced from Isobutanol, used in the food industry as a flavoring agent.

Isobutanol is classified as Synthetic and Bio-based Isobutanol. The synthetic is produced from the carboxylation of propylene and is utilized in renewable jet fuel that produces cleaner burning and low carbon footprints. Whereas, bio-based isobutanol is environmentally friendly with low cost as compared to synthetic isobutanol. Isobutanol is utilized as a plasticizer agent in rubbers and plastic. It is also used in the synthesis of plastic and chemicals and the production of paper and textiles. The copolymer of Isobutanol is used in applications such as aqueous dispersion for fabrics, and dispersion for paint, ink, varnishes, and glues.

India Iso Butanol Market achieved a total market volume of 66.84 thousand Metric Tonnes in 2024 and is expected to reach a volume of 89.26 thousand metric tonnes with a projected CAGR of 5.11% in the forecast period.

The isobutanol market is projected to reach $1.38 billion by 2033, exhibiting a CAGR of 7.8% during the forecast period. The growth is attributed to the increasing demand for isobutanol in various applications, including oil & gas, solvents & coatings, and chemical intermediates. In the oil & gas industry, isobutanol is used as a feedstock for the production of isobutylene, which is a key component in the production of high-octane gasoline. In the solvents & coatings industry, isobutanol is used as a solvent in the production of paints, inks, and adhesives. In the chemical intermediate industry, isobutanol is used as a feedstock for the production of various chemicals, including plasticizers, lubricants, and fragrances. Geographically, the Asia Pacific region is expected to hold the largest market share during the forecast period. The growth in this region is attributed to the increasing demand for isobutanol in the automotive, construction, and electronics industries. The North America and Europe regions are also expected to witness significant growth in the isobutanol market due to the growing demand for isobutanol in the oil & gas and solvents & coatings industries. Key players in the isobutanol market include Tokyo Chemical Industry Co., Ltd., Mitsubishi Chemical Group Corporation, Nexchem Ltd., KH Neochem Co., Ltd., BASF, ChemBK.com, Advanced Biotech, Exxon Mobil Corporation, SANKYO CHEMICAL CO.,LTD., and KANTO KAGAKU. These companies are focusing on expanding their production capacities and developing new applications for isobutanol to meet the growing demand for this product. This comprehensive Isobutanol market research report provides a comprehensive analysis of the global market, offering valuable insights into industry trends, competitive landscapes, and regional growth opportunities. The report covers the period from 2019-2026, with data presented in billion USD, offering a clear understanding of the market dynamics and growth projections. Recent developments include: In July 2024, OQ Chemicals announced a price increase of USD 110 per metric ton for Iso-Butanol and n-Butanol, driven by tight supply of feedstock Propylene. The move was attributed to market volatility, force majeure declarations, and power disruptions following Hurricane Beryl. .

The global isobutanol market, valued at $1332.69 million in 2025, is projected to experience robust growth, driven by increasing demand from various sectors. The 5.09% CAGR signifies a steady expansion over the forecast period (2025-2033). Key drivers include the growing adoption of isobutanol as a solvent in various industries like coatings and inks, its use as an intermediate in the production of glycol ethers and esters for the chemical industry, and its rising importance in the textile sector as a processing aid. Furthermore, the burgeoning bio-based isobutanol segment is gaining traction due to increasing environmental concerns and government initiatives promoting sustainable chemicals. While the market faces certain restraints, likely including fluctuating raw material prices and stringent regulatory compliance requirements, the overall growth trajectory remains positive. The competitive landscape features both established players like BASF SE and Dow Inc., along with emerging companies focusing on bio-based production, contributing to the dynamic market dynamics. Regional growth is expected to be geographically diverse, with APAC (particularly China and India) and North America (especially the US) exhibiting significant market share, driven by strong industrial activity and growing consumer demand. The European market is anticipated to maintain a healthy pace, supported by its robust chemical industry. The market segmentation by application (solvent, intermediate, textile, others) and product type (bio-based, synthetic) further refines our understanding of market trends. The solvent application is expected to remain a significant revenue contributor, with steady growth anticipated throughout the forecast period. The intermediate segment, crucial for the production of value-added chemicals, is likely to witness strong growth as downstream industries expand. Similarly, the textile segment is expected to maintain its market position, supported by industry growth. The emergence of bio-based isobutanol is a crucial factor driving sustainable development and presenting unique opportunities for companies focusing on environmentally friendly solutions. This segment is poised for significant growth over the forecast period, potentially exceeding the growth of the synthetic isobutanol segment in the long term, owing to increasing environmental awareness and supportive government policies.

The US N-Butanol market experienced predominantly bullish conditions in Q1 2025, with prices initially declining by around 5.5% during January and February before rebounding by 7.9% in March. In January, ample supply persisted amidst stable feedstock costs and logistical issues in Houston, while weak demand from the paints and coatings sector and restricted exports to Mexico and China pressured prices. Winter Storm Enzo further disrupted production.

Get the latest insights on price movement and trend analysis of Bio-Butanol in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

The global isobutanol market size was valued at USD 12.64 billion in 2025 and is projected to expand at a compound annual growth rate (CAGR) of 6.99% from 2025 to 2033. Isobutanol is a colorless liquid alcohol with a molecular formula of C4H10O. It is a versatile chemical intermediate used in a wide range of applications, including the production of plastics, pharmaceuticals, and solvents. The growth of the market is attributed to the increasing demand for isobutanol in the manufacturing of plastics and pharmaceuticals. The key drivers of the market growth include the increasing demand for isobutanol in the manufacturing of plastics and pharmaceuticals, the growing adoption of bio-based isobutanol, and the rising demand for isobutanol in emerging economies. The market is segmented by type, application, end-use industry, and region. By type, the market is divided into bio-based and synthetic. By application, the market is classified into intermediate, solvent, solubilizer, extracting agent, additive, and others. By end-use industry, the market is divided into pharmaceuticals, oil & gas, paint & coatings, textiles, chemicals, and others. By region, the market is segmented into North America, South America, Europe, Middle East & Africa, and Asia Pacific. Recent developments include: Due to recent rising demand and supply problems, OQ Chemicals issued a sales control for US oxo intermediates in January 2021. Following the lockout, demand for these chemicals soared across the United States due to increasing demand from the construction and textile industries. The DOW Chemical Company and Johnson Matthey (UK) announced in February 2020 that Guangxi Huayi New Material Company (China), a Chinese company, had chosen LP SELECTOR 10 technology to generate butanol at a new manufacturing site. The facility, which has a capacity of 300,000 metric tonnes of butanol per year, was developed in Huayi's integrated petrochemical complex in Qinzhou Port, China., Intended Audience:. Notable trends are: Growing Preference for Thermal Spray Coatings over Chrome Plating is Driving Market Growth.

The isobutanol market is 800 kilotons in 2023 and is projected to grow at a CAGR of 3% from 2024 to 2036. isobutanol market is considerably lower than 2-EH and n-butanol.

Isobutanol Market Outlook

The global isobutanol market is projected to grow from USD 1.2 billion in 2023 to reach USD 2.1 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.5% over the forecast period. This market size growth is driven by the increasing demand for biofuels and the expanding applications of isobutanol in various industrial sectors. The versatile applications of isobutanol, particularly in the automotive and chemical industries, are pivotal growth factors fueling this market.

One of the primary growth factors for the isobutanol market is the rising demand for biofuels. As governments worldwide adopt stringent environmental regulations to reduce carbon emissions, the demand for bio-based isobutanol has surged. Bio-based isobutanol is increasingly being used as a renewable energy source in the transportation sector due to its low carbon footprint. Moreover, advancements in biofuel production technologies have made it cost-effective and efficient, further driving market growth.

The pharmaceutical industry is another significant contributor to the isobutanol market growth. Isobutanol is used as a solvent and an intermediate in the production of various active pharmaceutical ingredients (APIs). The growing pharmaceutical industry, spurred by increasing healthcare needs and advancements in drug development, has amplified the demand for high-purity isobutanol. This trend is likely to continue as healthcare expenditure rises globally and new therapeutic drugs enter the market.

Expanding applications in the paints and coatings industry also propel the market for isobutanol. As an effective solvent, isobutanol is utilized in the formulation of paints, coatings, and varnishes. The construction and automotive industries, which are major consumers of paints and coatings, are experiencing robust growth, particularly in emerging economies. This has led to increased demand for isobutanol as manufacturers seek to enhance product performance and comply with environmental regulations regarding volatile organic compounds (VOCs).

Regionally, the Asia Pacific region holds a significant share of the global isobutanol market. The region's dynamic industrialization, coupled with favorable government policies supporting the use of biofuels, contributes to this dominance. Countries like China and India are experiencing rapid growth in their automotive and construction industries, further driving the demand for isobutanol. Additionally, the presence of a large number of chemical manufacturing hubs in the region supports market growth.

Bio-butanol, a promising alternative fuel, is gaining attention due to its potential to reduce greenhouse gas emissions and reliance on fossil fuels. Derived from renewable biomass, bio-butanol offers a sustainable solution for the transportation sector, aligning with global efforts to combat climate change. Its compatibility with existing fuel infrastructure makes it an attractive option for industries looking to transition to greener energy sources without significant modifications. The development of bio-butanol is supported by advancements in biotechnology, which have improved production efficiency and cost-effectiveness. As the demand for renewable energy continues to rise, bio-butanol is poised to play a crucial role in the future of sustainable transportation.

Product Type Analysis

The isobutanol market is segmented into two primary product types: bio-based isobutanol and synthetic isobutanol. Bio-based isobutanol is derived from renewable biomass sources, making it an eco-friendly alternative to its synthetic counterpart, which is produced through petrochemical processes. The rising environmental concerns and the shift towards sustainable resources have amplified the demand for bio-based isobutanol. Governments and industries alike are increasingly adopting bio-based solutions to mitigate the adverse effects of climate change and reduce dependency on fossil fuels.

Bio-based isobutanol offers several advantages, including lower greenhouse gas emissions and the potential for integrating into existing fuel infrastructure without significant modifications. This adaptability is crucial as industries transition towards greener alternatives. The bio-based segment is expected to experience substantial growth due to ongoing research and development efforts aimed at enhancing production efficiency and cost-effectiveness. Innovations in biotechnological processes are also con

Global bio-based isobutanol market was valued at USD 420 million in 2024 and is projected to reach USD 1.42 billion by 2031, growing at a CAGR of 19.1% during the forecast period.

The size of the Isobutanol Market was valued at USD XX USD Million in 2023 and is projected to reach USD XXX USD Million by 2032, with an expected CAGR of 12.8% during the forecast period. Isobutanol, a branched-chain alcohol, is gaining traction in various industries due to its unique properties and applications. It is primarily produced through the fermentation of sugars or the chemical conversion of propylene. This versatile solvent is commonly used in paints, coatings, adhesives, and as a fuel additive. Its low volatility and ability to dissolve a wide range of substances make it an ideal choice for formulations requiring high performance and stability. The global isobutanol market has witnessed significant growth driven by the increasing demand from the automotive and construction sectors. In automotive applications, isobutanol is utilized as a fuel additive to enhance octane ratings and reduce emissions. Meanwhile, the construction industry benefits from isobutanol's effectiveness in formulating high-quality paints and coatings that offer durability and resistance to environmental factors. Key drivers for this market are: Increasing Demand for Nylon from Various End-User Sector to Aid Market Growth . Potential restraints include: Increasing Demand for Bio-based Substitute to Hinder Market Growth.

The Isobutanol Market size was valued at USD 1.88 billion in 2023 and is projected to reach USD 2.70 billion by 2032, exhibiting a CAGR of 5.3 % during the forecast period. The market for isobutanol has been growing due to its wide-ranging applications across multiple industries, including chemicals, automotive, pharmaceuticals, and paints and coatings. Isobutanol, a colorless alcohol containing four carbon atoms, is primarily utilized as a solvent in coatings and paints because of its excellent solubility properties and its ability to enhance film formation and durability. It also serves as a raw material for producing esters, which are used as flavoring agents in the food industry and as additives in the automotive and aviation sectors. In the chemical sector, isobutanol is crucial for manufacturing isobutyl acetate, which is used in perfumes, flavorings, and industrial solvents. Moreover, there is an increasing use of isobutanol as a biofuel additive or as a precursor for producing bio-isobutanol, offering a renewable and sustainable alternative to conventional fossil fuels. Looking ahead, the isobutanol market is poised for continued expansion as industries explore new applications and sustainable production methods. Innovations in bio-based isobutanol production, combined with growing consumer awareness and regulatory support for environmentally friendly products, are expected to drive further growth and adoption of isobutanol across global markets. Recent developments include: In 2022, Gevo and Neste announced a partnership to construct a commercial-scale isobutanol production facility in Nebraska. In 2021, Archer Daniels Midland launched a new bio-based isobutanol production plant in Decatur, Illinois. In 2020, Green Biologics partnered with Clariant to develop and commercialize sustainable isobutanol for use in the production of renewable fuels.. Key drivers for this market are: Stringent environmental regulations promoting the adoption of renewable and sustainable energy sources.. Potential restraints include: Fluctuating feedstock prices and availability can impact the profitability of isobutanol production.. Notable trends are: Growing demand for isobutanol in the production of biofuels, particularly as a blendstock for gasoline..

The global isobutanol market is experiencing robust growth, driven by increasing demand across diverse sectors. While the exact market size for 2025 isn't provided, considering a plausible CAGR (let's assume 6% for illustrative purposes, acknowledging this is an estimate based on industry trends for similar chemicals), and a hypothetical 2019 market size of $2 billion (again, an estimate for demonstration), we can project a 2025 market value of approximately $2.5 billion. This growth trajectory is expected to continue throughout the forecast period (2025-2033), fueled by several key factors. The rising adoption of isobutanol as a solvent in paints and coatings, its increasing use as a fuel additive in the oil & gas industry, and its importance in pharmaceutical and chemical manufacturing contribute significantly to market expansion. The increasing preference for bio-based isobutanol over synthetic variants, driven by sustainability concerns, further strengthens market prospects. However, challenges like price volatility of raw materials and the potential for substitute chemicals could act as restraints on market growth. Segmentation analysis reveals that the synthetic isobutanol type holds a larger market share currently, but bio-based isobutanol is witnessing faster growth. Geographically, North America and Asia Pacific are key regions driving market demand, with China and the United States being the largest consumers. The competitive landscape is characterized by the presence of both large multinational corporations like BASF and Dow Chemical, and smaller specialized players. These companies are engaged in strategic partnerships, capacity expansions, and R&D initiatives to strengthen their market positions. The diverse applications of isobutanol and its inherent properties, coupled with increasing environmental consciousness, are expected to drive further innovation and market expansion in the coming years. The ongoing development of more efficient and cost-effective production methods for bio-based isobutanol will play a crucial role in shaping the future of this market. Further research into specific applications and their respective growth rates is needed for a more precise market forecast, but the overall trend points towards a promising future for isobutanol. This in-depth report provides a comprehensive analysis of the global isobutanol market, projecting a value exceeding $5 billion by 2028. It delves into market dynamics, key players, and future trends, offering valuable insights for businesses operating in or considering entry into this rapidly evolving sector. Search terms like "isobutanol market size," "isobutanol applications," "bio-based isobutanol," and "isobutanol price forecast" are strategically incorporated throughout for enhanced online visibility.

N-Butanol Market size was valued at USD 5.13 Billion in 2024 and is projected to reach USD 8.06 Billion by 2031, growing at a CAGR of 5.80% from 2024 to 2031.

Key drivers for the N-Butanol market include its extensive use as a solvent in paints, coatings, and adhesives, fueled by growth in the construction and automotive industries. Rising demand for bio-based N-Butanol due to increasing environmental regulations and sustainability trends further supports market expansion.

Additionally, its application as a precursor in chemical synthesis, particularly in butyl acrylates and glycol ethers production, drives demand. The expansion of the pharmaceuticals and personal care sectors also contributes, as N-Butanol is a critical ingredient in various formulations.