Bio-Based Butanol Market to Surge from USD 1,489.4 Million in 2024 to USD 4,500 Million by 2035, Driven by Strong 10.6% CAGR and Rising Demand for Sustainable Chemicals

The Bio-Based Butanol Market Size was valued at 1,489.4 USD Million in 2024. The Bio-Based Butanol Market is expected to grow from 1,647.3 USD Million in 2025 to 4,500 USD Million by 2035. The Bio-Based Butanol Market CAGR (growth rate) is expected to be around 10.6% during the forecast period (2025 - 2035).The bio‑based butanol market is emerging as a key pillar in the global shift toward sustainable chemicals, positioning itself as a renewable, drop‑in alternative to traditional petroleum‑derived butanol. With its diverse applications—from solvents in coatings and adhesives to biofuel additives—bio‑butanol is fast gaining traction in a wide range of industries.

Market Outlook & Growth Drivers

According to Grand View Research, the global bio‑butanol market is projected to expand at a compound annual growth rate (CAGR) of 9.2% between 2024 and 2030, reaching a value of USD 29.37 billion. This remarkable growth stems from several converging trends: increasing demand for renewable and low‑carbon chemicals, volatile fossil fuel prices, and tightening regulations aimed at reducing greenhouse gas emissions.

Key Applications & Sector Dynamics

Bio‑based butanol’s versatility makes it indispensable across multiple sectors:

• Acrylates & Coatings: The acrylate segment held the largest share (~37.4%) in 2023, driven by its use in producing butyl acrylate for paints, adhesives, and coatings.
• Glycol Ethers: Projected to grow at a CAGR of ~9.7% through 2030, mainly due to demand in cleaning agents, cosmetics, inks, and more.
• Biofuels: Bio‑butanol is increasingly used as a high-energy, low-emission fuel additive, offering a renewable option compatible with current infrastructure.
• Solvents and Plasticizers: Its biodegradability and performance make it a preferred choice in construction, automotive, and specialty chemical sectors.

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The Asia–Pacific region dominated the bio‑butanol market in 2023, fueled by strong industrial expansion, particularly in China’s coatings and automotive sectors. North America also holds significant potential, supported by advanced biorefinery infrastructure, proactive environmental policies, and strong R&D investments.

Innovation & Technology

Technological progress is a major enabler for this market’s growth. Breakthroughs in fermentation technologies, genetically engineered microorganisms, and efficient downstream recovery methods like membrane filtration and solvent extraction are reducing production costs and enabling high-purity yields. These innovations help bio‑butanol compete directly with petrochemical butanol, making it more accessible and scalable.

Opportunities & Challenges

Opportunities:

• Biofuel Expansion: As governments tighten emissions norms, bio‑butanol’s role as a renewable fuel additive is increasingly attractive.
• Circular Economy: The shift to second‑gen feedstocks (like lignocellulosic biomass) reduces reliance on food-based raw materials, easing sustainability concerns.
• Feedstock Constraints: The availability and cost of biomass (corn, sugarcane) remain key bottlenecks.
• Processing Costs: Despite technological gains, fermenting, purifying, and scaling bio‑butanol still require high capital investment.

Major players in the bio‑based butanol space include Gevo, Green Biologics, Butamax, Cobalt Technologies, LanzaTech, and INEOS. These companies are aggressively expanding capacity, improving strain engineering, and forming partnerships to capture growing demand in green solvents, biofuels, and specialty chemicals.

Key Companies in the Global Bio-Based Butanol Market include:

• Gevo
• LanzaTech
• Dupont
• Synthopia
• Green Biologics
• SABIC
• Reverdia
• Genomatica
• BASF
• Eastman Chemical
• Cobalt Technologies
• Renewable Energy Group
• Myriant
• Novozymes
• Butamax
• BioAmber

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Future Outlook

Looking ahead, the bio‑based butanol market is well‑positioned for sustainable growth. Adoption will likely accelerate as industries decarbonize, regulatory support strengthens, and bio-refineries scale up. With its dual role as a low-carbon solvent and renewable fuel component, bio-butanol is set to become a foundational molecule in the next-generation green chemical economy.

Translation of the Report in Different Languages:

バイオ由来ブタノール市場 | Bio-basierter Butanol Markt | Marché du butanol biosourcé | 바이오 기반 부탄올 시장 | 生物基丁醇市场 | Mercado de butanol bio‑basado

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