[Online Quarterly Update]India Butanediol (BDO) market demand in India stood at 12.44 Thousand Tonnes in FY2021 and is forecast to reach 22.32 Thousand Tonnes by FY2030, growing at a healthy CAGR of 6.71% until FY2030. Although the Indian Butanediol industry is still in its nascent phase, the increasing demand in the chemical industry for manufacturing derivatives such as THF(Tetrahydrofuran), PTMEG (Poly-tetramethyl-Ether-Glycol), and GBL(Gamma-butyrolactone) is likely to drive the overall BDO market. Butanediol demand/supply balance plays a crucial role in deciding domestic BDO prices which remained lower in 2015 due to world overcapacity but have declined since then due to an increase in feedstock prices.
China is currently the largest manufacturer satisfying the country’s majority of BDO demand which produces more than 50 percent of the commodity. Hence, India’s Butanediol prices follow the trend set by China. Increasing use of Butanediol in manufacturing engineering plastics, polybutylene terephthalate, and its applications in manufacturing polyurethane are set to fuel 1,4- Butanediol’s global demand. Additionally, 2,3-Butanediol is used as a precursor to manufacture methyl ethyl ketone which is majorly used as a food additive. Increased production cost is one of the major factors which hinders domestic players from entering the Butanediol market. This opens the way for the development of cost-effective methods for the production of the commodity. As the demand for products from natural sources continues to grow, 2,3-Butanediol produced through fermentation of natural products has a vast potential in its manufacturing sector with a variety of applications in pharmaceuticals, fragrance, and food industry.
India’s overall Butanediol demand is anticipated to grow in the future considering the lack of domestic manufacturing units and innovations in the manufacturing techniques which are still being evaluated by major players in this sector. New capacity for BDO and derivatives in the APAC could stimulate the market and encourage new investment in derivatives. India has a strong history of polyester fiber production and could emerge as a major PBT and spandex producer.
The COVID-19 pandemic significantly reduced the demand for butanediol as production activities halted for a temporary period. Changing consumer preferences and reduced use of plastic for packaging further led to weakened demand for butanediol.
Years Considered for this Report:
Historical Years: FY2015– FY2020
Base Year: FY2021
Estimated Year: FY2022
Forecast Period: FY2023 – FY2030
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Objective of the Study:
• The primary objective of the study was to evaluate and forecast Butanediol capacity, production, demand, inventory, and demand–supply gap in India.
• To categorize Butanediol demand based on end use, region, and sales channel.
• To study trade dynamics and company share in the India Butanediol market.
• To identify major customers of Butanediol in India.
• To evaluate and forecast Butanediol pricing by grade in India Butanediol market.
• To identify and profile major companies operating in the India Butanediol market.
• To identify major news, deals, and expansion plans in the India Butanediol market.