2,3-Butanediol Market - Production to Move from Pilot Plants to Full-scale
The ~3% CAGR of the 2,3-butanediol market during 2019-2027 is emblematic of a nascent phase of the industry, which currently possesses narrow channels of commercialization. To infiltrate proper education regarding the use of this chemical as a precursor, manufacturers are making investments towards the development of pilot plants.
According to the research, the demand for 2,3-butanediol as a precursor to methyl ethyl ketone has significantly escalated post the approval of the FDA for its use as an indirect food additive. Future applications will highly rely on its effectiveness in solidifying coatings to control emissions during coating operations, which will surge the demand for 2,3-butanediol in Asia Pacific, on account of intensifying paint and coating activities in India and China. Given the future sales opportunities, manufacturers will scale up their production facilities to address the rising demand. Despite these success factors, manufacturers need to consider the high production cost, which directly passes on to the product price.
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Manufacturers to Leverage Economical Means for Production of 2,3-Butanediol
Cost-reduction opportunities await market players as new production processes surface. Currently, this chemical is produced through industrial methods; however, manufacturers can note that, the microbiological production process can be reckoned as a cost-efficient and environmentally-benign alternative to traditional synthesis methods. The study has also found significant improvements in microbial production, which can be achieved through the screening of natural microbial strains. The use of natural microbial strains will act as a twofer for attributing operational efficiency and cost-effectiveness to the final product.
As the world looks for products with natural origins, and is doing away with synthetic and petrochemical products, 2,3-butanediol produced through the fermentation process will hold promising opportunities in the pharmaceutical, fragrance, and food industries. Some market majors also tend to leverage off-gases from numerous industries to achieve the economical production of this chemical, which has been illustrated by LanzaTech. The company entered into a partnership with Baosteel, a China-based steel company, to build a pilot plant demonstrating the conversion of industrial waste gas to 2,3-butanediol. Another significant player, Bio-Chem Technology Group, leverages the corn-based production technique to control overhead costs.
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Innovation - The Essential Key to Survive in the 2,3-Butanediol Market
Addressing energy requirements without bypassing environmental concerns has necessitated the exploration of alternative energy sources, which has also taken 2,3-butanediol by storm. Its use as an intermediate chemical for the production of hydrocarbon fuels is projected to generate ~92% of the total revenue of the market by 2027.
Manufacturers are pushing their thinking abilities to make the best out of the waste produced by numerous industries to increase the production capacity of 2,3-butanediol. Besides experimenting with various sources for its production, manufacturers are also expending their efforts to broaden the scope of application. For example, in Asia Pacific, 2,3-butanediol has been receiving special attention on account of its possible conversion into 1,3-butadiene that is used for manufacturing synthetic rubber. Given the volatility in rubber prices, tire makers in Japan and China are considering this chemical to enhance the affordability of their products.
However, significant opportunities await manufacturers in Europe, as it launches the 'Rehap' project, which is aimed at strengthening the bio-economy of the region by developing novel materials from agricultural and forestry waste, and increasing their viability for commercialization.
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Authors of the report envisage pedestrian growth for the 2,3-butanediol market during the forecast period, and opine that, an economical production processes will hold the key to market success. The widening window of opportunities with new applications of 2,3-butanediol in the plastic, food, and cosmetic industries is likely to create new revenue pockets for the industry. However, survival in the industry will come at the cost of innovation for market players. The development of numerous synthetic products will necessitate the expansion of production plants, and establishing one in Asia Pacific will offer remunerative paybacks in the long run.
Rise in Consumption of Renewable and Bio-based Chemicals to Boost Demand for 2,3-Butanediol
- 2,3-butanediol plays an important role in the chemical, plastic, pharmaceutical, cosmetic, and food industries. It is an intermediate chemical, which is readily convertible into butadiene, butene, and methyl ethyl ketone (MEK). It are used in the production of hydrocarbon fuels and several chemicals in textiles, polymers, synthetic rubbers, and plastics. Led by its natural origin in cocoa butter, mussels, and sweet corn, 2,3-butanediol is considered to have minimal toxicity.
- Government initiatives that aim to encourage the consumption of renewable and bio-based chemicals are anticipated to boost the 2,3-butanediol market in the near future. The European Union-funded project – 'Rehap' - aims to strengthen the bio-economy by creating novel materials from agricultural and forestry waste. The project has been investigating the use of recycled sugar purified from forestry waste, which could be used as a viable alternative to sugar produced from standard processing methods, in order to produce 2,3-butanediol. Such efforts are anticipated to lead to a reduction in the cost of production of 2,3-butanediol in the near future. This, in turn, is projected to boost the market during the forecast period.
Global 2,3-Butanediol Market: Highlights
- In terms of value, the global 2,3-butanediol market is anticipated to expand at a CAGR of ~3%, to reach a value of ~US$ 220 Mn by 2027.
- 2,3-butanediol can be converted into methyl ethyl ketone (MEK), which can be used as a biofuel additive. MEK is a powerful, commercially important industrial solvent. It is widely employed in surface coatings, adhesives, printing inks, chemical intermediates, magnetic tapes, and lube oil dewaxing agents.
- The demand for MEK is estimated to be high over the next decade, due to its effectiveness in the formulation of high solid coatings, which help reduce emissions from coating operations. Rise in the demand for MEK is expected to boost the 2,3-Butanediol market throughout the forecast period.
- Sustainability is a major technological challenge for the chemicals industry, as most chemical products are obtained through synthetic and/or petrochemical processes, with strong carbon footprint and impact on the environment. Manufacturers have been significantly using waste gas as a resource to create a diversified range of fuels and chemicals - including 2,3-butanediol, making it environment-friendly.
- Despite the early phase of adoption and limited levels of industrial commercialization, the cost of production of 2,3-butanediol is high. This is likely to restrain the demand for 2,3-butanediol in the near future.
Demand for 2,3-Butanediol to Increase in Intermediate Chemical Applications
- Based on application, the global 2,3-butanediol market has been segregated into intermediate chemicals, plastics, food-additives, cosmetics, and others (including anti-freeze agents and pesticides).
- The petrochemical industry's transition toward natural gas feedstock is hampering the supply of butadiene. Manufacturers are striving to develop environmentally-sustainable routes for the production of butadiene. The conversion of 2,3-butanediol into 1,3-butadiene has been considered as one of the sustainable methods in this context, with a low carbon footprint. The biotechnological routes for producing butadiene entail the synthesis of 2,3-butanediol from different species of microorganisms. Increase in the demand for bio-based butadiene is anticipated to present immense potential for 2,3-butanediol as an intermediate chemical in the near future.
Asia Pacific to be Highly Lucrative Market
- In terms of value and volume, Asia Pacific constituted a major share of the global 2,3-butanediol market in 2018. The region is projected to maintain its dominance during the forecast period.
- Off late, 2,3-butanediol has been gaining traction in Asia Pacific because of its possible conversion into 1,3-butadiene for usage in the manufacture of synthetic rubber. Amid the instability of rubber prices, tire makers in Japan and China have been considering extracting rubber from alternatives sources.
- Synthetic rubber for tires has been the primary market for 1,3-butadiene. Rise in the demand for butadiene in the production of styrene-butadiene rubber, styrene-butadiene latex, nitrile rubber, and chloroprene rubber is expected to provide significant opportunities to the manufacturers of 2,3-butanediol in Asia Pacific during the forecast period.
Global 2,3-Butanediol Market: Competition Landscape
- Major players operating in the global 2,3-Butanediol include
- Global Bio-Chem Technology Group
- Tokyo Chemical Industry Co., Ltd. (TCI)
- Orochem Technologies Inc.
- Merck KGaA
- Biosyncaucho S.L.
- Several R&D projects are being undertaken for 2,3-butanediol in Asia Pacific. U.S.-based LanzaTech has been engaged in a joint venture with South Korea-based SK Innovation since October 2013, in order to improve the process for the dehydration of 2,3-butanediol to 1,3-butadiene. Global Bio-Chem Technology Group is engaged in up-scaling its proprietary corn-based production technique for 2,3-butanediol.
- The price of 2,3-butanediol is high. The competitive advantage in the 2,3-butanediol market lies in obtaining the chemical at low cost, with high quality and purity. Therefore, manufacturers have been investing in technological upgrades to support the up-scaling of production at reduced costs.
Transparency Market Research’s recent report on the 2,3-butanediol market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the 2,3-butanediol market analyzes the scenario for the period of 2019 to 2027, wherein, 2018 is the base year. This report enables readers to make important decisions with regard to their business, with the help of a wealth of information enclosed in the study.
This TMR study on the 2,3-butanediol market also provides data on the developments made by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of the strengths, weaknesses, threats, and opportunities, along with the trends and restraints in the landscape.
2,3-Butanediol Market: Segmentation
This comprehensive market study on the 2,3-butanediol market offers a comprehensive assessment of the attractiveness of the 2,3-butanediol market by assessing the key segments. The global business study also covers a country-wise assessment, in order to present information regarding the demand and supply ratio of the 2,3-butanediol market.
Each of the segments have been analyzed and studied in this comprehensive report, with a view of offering actionable insights regarding the future growth of the 2,3-butanediol market. This detailed guide on the 2,3-butanediol market elaborates on the historical, current, and futuristic trends shaping the growth of the landscape. In addition to this, this detailed guide also presents crucial information on the value chain, Y-o-Y growth, and supply chain.
This study also discusses the underlying trends and the impact of various factors that are driving the 2,3-butanediol market, along with their influence on the evolution of the market.
This study also offers Porter’s Five Forces Analysis, value chain analysis, regulatory scenario, and a patents landscape of the 2,3-butanediol market, in order to elaborate on the crucial growth tactics and opportunities for market players contributing to the market.
Key Questions Answered in 2,3-Butanediol Market Report
- How much revenue is the 2,3-butanediol market expected to generate by the end of the forecast period?
- Which regions currently account for the maximum share of the global 2,3-butanediol market?
- What are the indicators expected to drive the 2,3-butanediol market?
- Which region is likely to be lucrative during the forecast period?
- What are the essential strategies incorporated by key stakeholders in the 2,3-butanediol market to expand their geographical presence?
- What are the major advancements in the 2,3-butanediol market?
This report answers these questions about the 2,3-butanediol market, aiding major stakeholders and key players in making the right decisions and strategizing for the advancement of their business.
2,3-Butanediol Market: Research Methodology
This TMR report on the 2,3-butanediol market is based on a complete and comprehensive evaluation of the market, backed by secondary and primary sources. The competitive scenario of the 2,3-butanediol market is supported by an assessment of the different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data and current trends, researchers of the 2,3-butanediol market arrived at predictions and estimations, and calculated the forecasts for the market.
This report uses an analytical triangulation method to estimate the numbers and figures of the 2,3-butanediol market, with both, the bottom-up and top-down approach.
This detailed assessment of the 2,3-butanediol market, along with an overview of the landscape, is provided based on careful examination of the avenues related to this industry. Analysts’ conclusions on how the 2,3-butanediol market is set to grow are based on carefully-vetted primary and secondary sources.
This report on the 2,3-butanediol market provides information on the basis of application and region.
Middle East & Africa