Market Trends of Bio-butanol Industry
Acrylates to Dominate the Market
- Bio-butanol is used as an intermediate for the production of butyl acrylates, which are used in producing paints and coatings, adhesives, and textiles, among others.
- The Asia-Pacific region is the major consumer of butyl acrylates, dominated by Japan, followed by North America and Europe. The demand for butyl acrylate is expected to be the highest in the Asia-Pacific region, owing to the increasing production of adhesives, textiles, and coatings, followed by the Middle East and Africa.
- Arkema Group, BASF SE, BASF Petronas Chemicals Sdn Bhd, CNPC, and Dow are some major butyl acrylates manufacturers. Few of the companies mentioned above are focusing on increasing the production capacity of butyl acrylate due to increasing demand.
- In August 2021, BASF SE and SINOPEC planned to expand their Verbund site operated by a 50-50 joint venture, namely, BASF-YPC Co. Ltd (BASF-YPC), in Nanjing, China. It includes the capacity expansion of various downstream chemical plants, including a new tert-butyl acrylate plant, to cater to the growing Chinese market. The expanded and new plants are planned to come on stream in 2023.
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The Asia-Pacific Region to Dominate the Market
- In the Asia-Pacific region, China accounts for the largest market share in bio-butanol consumption. The country is the largest producer of paints and coatings in the Asia-Pacific region, with an estimated coating production of more than 15 million metric tons, which is expected to increase significantly in the near future.
- China is the world's largest plastic producer, accounting for nearly one-third of global plastic production. Moreover, the country averaged 6.5 million to 7.5 million tons of plastic product production from August 2020 to August 2021.
- In May 2021, PPG announced the completion of its USD 13 million investment in its Jiading, China, paints and coatings facility, including eight new powder coating production lines and an expanded powder coatings technology center that is expected to enhance PPG's R&D capabilities. The expansion will likely increase the plant's capacity by more than 8,000 metric tons annually.
- The Indian chemical industry produces 80,000 different chemical products, covering bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilizers. According to the India Brand Equity Foundation (IBEF), the domestic chemicals sector's small and medium enterprises are expected to showcase an 18%-23% revenue growth in FY22, owing to an improvement in domestic demand.
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