2,3-Butanediol Market: Introduction
In terms of value, the global 2,3-Butanediol market is anticipated to expand at a CAGR of 3.5% from 2020 to 2030. The rise in demand for rubbers such as styrene–butadiene rubber, styrene–butadiene latex, nitrile rubber, and chloroprene rubber in the tire industry is expected to drive the global 2,3-Butanediol market, as 2,3-Butanediol is converted into 1,3-Butadiene that is extensively employed in the manufacture of different kinds of rubbers. 2,3-Butanediol acts as a precursor to methyl ethyl ketone (also known as MEK or 2-butanone). The demand for 2,3-Butanediol is estimated to rise significantly in this area of application during the forecast period. The demand for products with natural origin has been rising across the globe. Products manufactured through fermentation and biorefinery processes are replacing synthetic and petrochemical products. 2,3-Butanediol (2,3-BD) is a promising bulk chemical with potentially wide range of applications.
High Cost of Commercial Production to Hamper 2,3-Butanediol Market
2,3-Butanediol is a niche chemical. The industry is currently in the early phase of its adoption. The high cost involved in the commercial production of 2,3-Butanediol is a key factor hampering the global market. 2,3-Butanediol witnessed a moderate level of commercialization up to 2019. Currently, manufacturers are engaged in scaling up the production of 2,3-Butanediol and its usage as a precursor to several industrial chemicals such as methyl ethyl ketone, butadiene, and acetoin through pilot plant operations. The availability of prominent cost-effective substitutes such as 1,4-Butanediol, 1,3-Butanediol, and 1,2-Butanediol is projected to hinder the global 2,3-Butanediol market in the near future.
Intermediate Chemicals to Offer Lucrative Opportunities
In terms of application, the global 2,3-Butanediol market has been divided into intermediate chemicals, plastics, food additives, cosmetics, and others. In terms of value, the intermediate chemicals segment dominated the global 2,3-Butanediol market in 2019. The intermediate chemicals segment is anticipated to expand at a CAGR of more than 3.6% during the forecast period. 2,3-Butanediol is used as an intermediate chemical in various industrial compounds, which can be used as building blocks for the production of synthetic rubbers, plasticizers, printing inks, solvents, flavorings, and pharmaceuticals. 2,3-Butanediol is employed in the production of acetoin, a high value feedstock that can be widely used in dairy and cosmetic products, and chemical synthesis. The demand for 2,3-Butanediol is high as synthetic rubber precursor, as it is used in the production of 1,3-butadiene. 2,3-Butanediol can be converted into methyl ethyl ketone (MEK), which is used as a biofuel additive. After combining with methyl-ethyl-ketone and hydrogenation reaction, 2,3-Butanediol can be converted into octane, which is used to produce high-quality aviation fuel.
Asia Pacific to be Lucrative Region of 2,3-Butanediol Market
Based on region, the global 2,3-Butanediol market has been split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. In terms of volume, Asia Pacific accounted for significant share of the global 2,3-Butanediol market in 2019. This trend is projected to continue during the forecast period. Several 2,3-Butanediol manufacturers such as Global Bio-Chem Technology Group and TCI operate in Asia Pacific. Latin America is a high potential region of the global 2,3-Butanediol market. The demand for 2,3-Butanediol is likely to rise in the region as food additive during the forecast period. Regional manufacturers have been significantly using waste gas as a resource to create a diversified range of fuels and chemicals, including 2,3-Butanediol.
In October 2018, Shimadzu (Shanghai) Global Laboratory Consumables Co., Ltd. became the exclusive distributor of Orochem Technologies Inc.’s bio-analytical sample preparation products in China. In 2018, Global Bio-Chem Technology Group entered into extensive collaborations with local and overseas research institutes and universities to encourage theoretical and technological exchange worldwide. It invests about 1%-3% of the turnover in research and development annually. The company has completed more than 10 R&D projects on corn-based biochemical products. It had several new products under development in 2018. Precigen, Inc. invested US$ 404.6 Mn, US$ 143.2 Mn, and US$ 112.1 Mn in research and development activities in 2018, 2017, and 2016, respectively. The company has accomplished biological production on a non-commercial scale of six fuel and chemical products, which hold an array of opportunities. These product opportunities include 2,3-Butanediol and isoprene for conversion into synthetic rubber, isobutanol for gasoline blending, 1,4-Butanediol for polyester, farnesene for diesel fuel and lubricants, and isobutyraldehyde for acrylics. Leading players have taken initiatives to expand their presence through acquisitions, increase of production capacities, and strategic partnerships.
Key Players in Global Market
Key manufacturers operating in the global 2,3-Butanediol market are Global Bio-Chem Technology Group, Orochem Technologies Inc., Precigen, Inc., Haihang Industry Co., Ltd., LanzaTech, Henan Coreychem Co., Ltd., Tokyo Chemical Industry Co., Ltd., Merck KGaA, Biosyncaucho S.L., and GS Caltex.
Global 2,3-Butanediol Market: Segmentation
2,3-Butanediol Market, by Application
2,3-Butanediol Market, by Region
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