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Tert-butanol Market: 'Multimodal Growth' to Expand Frontiers 

The global chemical industry has been on a steady rise, as almost all manufactured goods rely on some form of chemical process. With the growing demand for chemicals, tert-butanol is marching towards being an essential ancillary in the end-use sector. The tert-butanol market gains its strength from applications across a pool of industries, such as pharmaceuticals, flavors and fragrances, construction, and automotive. This diversity in applications means that the market shares a symbiotic relationship with end-use industries. 

Although this multimodal growth strengthens the global foothold of the market, stringent regulatory norms regarding VOC emissions may stunt its growth. When looked at from a manufacturer’s lens, this is a probable growth opportunity, as it encourages the development of bio-based solvents. Sensing the growth potential and the impact of high demand for chemicals on the market’s future, Transparency Market Research conducted exhaustive research on the tert-butanol market. In its new offering, TMR provides actionable insights on how key market trends have shifted consumer preference and impacted the strategies adopted by key players in the tert-butanol market.  

tert butanol market strategy

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Evolution and Future Prospects of the Tert-butanol Market 

The tert-butanol market has undergone a sea of evolution with the rise in its use as a chemical intermediate for a range of products. Revenue of the tert-butanol market closed in on US$ 470 Mn in 2018, and is anticipated to cross the US$ 650 Mn mark by 2027, states TMR. Although demand from the manufacturing sector still continues to be the bedrock that the market thrives upon, it is the shift in consumer preference towards clean burning fuels that has caused a stir in the tert-butanol market. 

The booming construction industry has impacted the market at large, as tert-butanol is the most sought-after solvent used in paints and paint coatings. Gauging the probable growth opportunities in this sector, market players are concentrating their efforts on building strategic alliances with paint manufacturers. The market’s penetration in the food and beverages industry stems from the high demand for processed foods, and also the use of tert-butanol as a flavoring agent. 

These subtle shifts in consumer behavior across different end-use industries have proven to be instrumental in shaping the future of the tert-butanol market. Manufacturers diversifying their product portfolio and strengthening their position in untapped revenue pockets are expected to gain the first-mover advantage in the market. 

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Key Trends Redefining the Tert-Butanol Market 

Tert-butanol is gradually making its way as the preferred freeze-drying agent in the biomedical industry. The ever-evolving nature of the pharmaceutical industry and rise in research activities have necessitated the need for the preservation of vaccines, blood samples, purified proteins, and numerous other biological materials. Tert-butanol, being a high vapor pressure, low toxicity, and low melting solvent, serves as an optimal freeze-drying agent. Manufacturers are capitalizing on this trend by strengthening their ties and collaborating with raw material providers and service providers in the pharmaceutical industry to exploit the market’s potential to the fullest in this industry. They are laying considerable emphasis on the development of high purity grade tert-butanol, optimal for pharmaceutical applications. 

Another overriding trend expanding the paradigms of the tert-butanol market is the high use of tert-butanol as a solvent or intermediate. Solvents accounted for more than 50% of the tert-butanol market share in 2018. Manufacturers endeavor to bank on this trend by tapping into the leading markets for paints and coatings; this being the leading application segment of the tert-butanol market in 2018. Enhancing the production of tert-butanol as a solvent and co-solvent continues to be the best way forward for companies in the tert-butanol market.  

tert butanol market north america

Winning Strategies to Tackle the Headwinds in the Market 

Key companies in the tert-butanol market are focusing on increasing their production capacities as a prominent winning strategy. They are planning on increasing production, either through investing in building new plants or by amplifying the amount of tert-butanol produced in existing plants. For instance, LyondellBasell Industries N.V, a prominent plastics, chemicals, and refining company, invested US$ 2.4 Bn to build a new plant in Channelview, Texas, which is expected to be operational by 2021. This plant is anticipated to produce 1 million tons of tert-butanol every year. This will definitely serve as a cornerstone to succeed in the global market, since it equips manufacturers with the ability to target a pool of end-use industries, and also cater to the growing demand. 

Market frontrunners are also vying to enhance their product portfolios by extending utilities distribution agreements. For instance, in 2018, LyondellBasell extended its utilities supply agreement with Air Liquide for its new PO and TBA project in Houston, Texas. Similarly, Air Liquide entered into a long-term agreement with Channelview Complex to supply oxygen to its PO/TBA plant. Apart from enhancement of product portfolio, this strategy also aims at strengthening ties with enterprises operating in the tert-butanol market, thus unlocking opportunities for future collaborations. 

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Sneak-Peek into the Market Structure 

The tert-butanol market features a highly consolidated vendor landscape, with the top three players accounting for more than 40% of the market share. These companies include LyondellBasell Industries N.V., Lotte Chemical Corporation, and Evonik Industries AG. Among these, LyondellBasell Industries N.V stood at the top of the ladder in 2018, occupying more than 20% of market share. The monopoly of these companies is driven by massive production capacities and powerful product portfolios. 

The tert-butanol market space is highly dynamic in nature, as players invest heavily on research and development activities. Additionally, mergers and acquisitions, and collaborations, serve as a growth platform for players, as the market is essentially controlled by a pool of end-use industries. In order to enhance their presence on the desired end-use sector, key market players are focusing on building strategic alliances that may facilitate easy proliferation. Moreover, a key differentiation strategy deployed by these players is obtaining patent grants. This is a key weapon that has helped players build recognition for themselves in the market, based on the innovative technology deployed by them or a new product launched.  

tert butanol market segmentation

Analyst Viewpoint 

The authors of the report opine that, the tert-butanol market will witness moderate growth during the forecast period. The nature of growth will essentially be multimodal, due to high demand across a range of industries. Companies producing tert-butanol as a solvent or a co-solvent may lead the bandwagon, while the ones shying away from this may lag behind. Key players in the market are expected to be benefitted by the rising applications in the paints and coatings industry. Increasing construction and infrastructural development activities will further fillip the sales of the product. Overall, strengthening of ties with raw material providers of different industries and enhancing production capacities will help market players gain prominent shelf space in the tert-butanol market.


  • Tert-butanol, also known as tertiary butyl alcohol (TBA), is one of the four isomers of butanol. It is the simplest alcohol with a tertiary carbon atom. Tert-butanol is commercially produced as a co-product of isobutane during the manufacture of propylene oxide.
  • Tert-butanol is consumed as a chemical intermediate for various products. Besides this, it is largely used as a solvent in various applications. It is also employed as a paint remover ingredient, alcohol denaturant, etc.
  • Tert-butanol is also used as an alkylating agent for aromatics and phenols in the production of tert-butyl aromatics and tert-butyl esters, which are employed as precursors for antioxidants, phenolic resins, pharmaceutical products, and perfumes.

Key Growth Drivers of the Tert-butanol Market

  • Tert-butanol is a versatile solvent, with excellent solvating characteristics. It is miscible with most solvents as well as water. Thus, tert-butanol is ideal for usage in a majority of industrial applications.
  • Tert-butanol is used as a solvent in paints & coating applications on metal and paperboard food containers, and industrial cleaning compounds. It reduces the viscosity of resin paints, thus improving the flow of paint and its brushing ability. A small concentration of tert-butanol prevents cobwebbing in the formulations of lacquers.
  • Tert-butanol is employed on large-scale applications such as in the manufacture of flavors, perfumes, and paint removers, owing to its polar organic solvent property. It is used as a dehydrating agent in perfumes and fruit essences. Tert-butanol is also used as a flavoring agent in foods and beverages. Tert-butanol is employed in the manufacture of flavors, artificial musk, essences, and perfumes due to its camphor-like aroma, in the cosmetics industry.
  • Rise in construction activities due to the increase in infrastructure development in China, India, and ASEAN; and growth in the automotive industry, are expected to drive the tert-butanol market during the forecast period.
  • Increase in the demand for packaged food and growth in consumer preference for exotic and authentic flavors and fragrances are likely to fuel the demand for tert-butanol during the forecast period.

Key Challenges in the Tert-butanol Market

  • Limited supply of propylene oxide, coupled with stiff competition from bio-solvents and other available oxo-alcohols such as n-butanol and isobutanol, is projected to restrain the demand for tert-butanol during the forecast period.
  • Industrial and chemical manufacturing companies largely depend upon solvents for various processes. Solvents include various commonly-used chemicals such as tert-butanol, tetrachloroethylene, benzene, turpentine, toluene, xylene, perchloroethylene, methyl chloride, ethyl acetate, trichloroethylene, methyl ethyl ketone, cyclohexanes, and ethylene glycol. These solvents emit large amounts of VOCs during their manufacture and usage. Thus, stringent regulations on VOC-emitting solvents and increase in the awareness about the harmful effects of VOCs are expected to hamper the tert-butanol market during the forecast period.

Lucrative Opportunities for the Global Tert-butanol Market

  • Tert-butanol is utilized as a freeze-drying agent in the manufacture of pharmaceutical compounds. Freeze-drying agents or the lyophilization process are used for the removal of ice or other frozen solvents from a material. They are used to preserve vaccines, blood samples, purified proteins, and other biological materials. Rise in the demand for freeze-drying agents in biotechnology and biomedical industries to preserve vaccines, blood samples, purified proteins, and other biological materials is anticipated to provide lucrative opportunities to the manufacturers of tert-butanol.
  • Leading manufacturers are increasing their production capacities of propylene oxide by investing in PO/TBA plants in order to produce MTBEs and MMAs. This is also estimated to create lucrative opportunities for the tert-butanol market.

Asia Pacific a Prominent Region in the Tert-butanol Market

  • China is a leading country in terms of the consumption of tert-butanol in Asia Pacific. Growth in construction and automotive industries due to the rise in population, urbanization, and industrialization is estimated to boost the demand for protective coatings. This, in turn, is projected to drive the tert-butanol market during the forecast period.
  • The China National Urbanization Plan on New Urbanization (2014-2020): Turning Migrants into Urban. The Government of China announced plans to develop 100 million residential houses in urban areas by 2020. This is expected to boost the urbanization rate to 60%. In turn, this is likely to propel the demand for paints and coatings, and thereby tert-butanol, in the near future.
  • India is expected to provide lucrative opportunities to the manufacturers of tert-butanol in the near future. Significant expansion in real estate and rapid industrial development are projected to augment the demand for tert-butanol in the country.
  • Increase in the demand for perfumes, air fresheners, and toiletries in developing economies such as India, China, and Vietnam is also projected to boost the demand for tert-butanol during the forecast period.

Europe Offers Growth Opportunities

  • Europe is another prominent region in terms of consumption of tert-butanol. Rise in the demand for automotive refinish performance coatings and architectural coatings is boosting the demand for tert-butanol in automotive as well as construction paint & coating industries in the region.
  • Increase in consumer preference for masking flavor products — these are used in conjunction with antioxidants and vitamins to reduce off-tastes and off-odors — is propelling the demand for tert-butanol in Europe.
  • Rise in R&D expenditure in the pharmaceutical industry, growth in popularity of niche fragrances, and increase in the demand for premium fragrances, especially in Western Europe, are estimated to boost the tert-butanol market during the forecast period.
  • In 2018, Air Liquide S.A. extended its utilities supply agreement with LyondellBasell for its new propylene oxide (PO) and tertiary butyl alcohol (TBA) project in Houston, Texas, U.S. In April 2018, Air Liquide signed a separate long-term agreement to supply oxygen to the PO/TBA plant in Channelview Complex.

Leading Players in the Tert-butanol Market

  • Key players operating in the global tert-butanol market include Evonik Industries AG, LyondellBasell Industries Holdings B.V., Kuraray Co., Ltd, Zibo Qixiang Petrochemical Industry Group Co., Ltd., Lotte Chemical Titan Corporation, Avantor Performance Materials, Maruzen Petrochemical, Mitsui Chemicals, Inc., China Petroleum & Chemical Corporation, and Wanhua Industrial Group.

Capacity expansion and mergers & acquisitions (M&A) are key strategies being adopted by major players to excel in the tert-butanol market.

Transparency Market Research (TMR) recently published a market report on the tert-butanol market. The tert-butanol market report encompasses an incisive analysis of the market drivers, restraints, growth opportunities, and challenges in the market. The report presents an exhaustive research on the current market trends, and how the tert-butanol market has shaped up during the forecast period of 2019-2027. 

The tert-butanol market study sheds light on the key shifts in consumer behavior and their impact on the business strategies adopted by key market players. The global tert-butanol market has been assessed on a macroscopic and microscopic level to provide comprehensive analysis of the market’s future during the predefined period. This information arms stakeholders with the ability to take key business-related decisions and develop effective growth strategies. 

Detailed information about the competitive landscape and the key manufacturers operating in the market has been included in the study on the tert-butanol market. The study provides an incisive outlook on the key share of each market player, and the growth strategies adopted by them. The report covers the notable developments and trade dynamics in order to ascertain the growth prospects of the tert-butanol market. 

Tert-butanol Market: Key Questions Answered 

TMR’s study offers key market figures and forecast analysis based on exhaustive research on the market structure and the historical trends in the tert-butanol market. The information provided in the study on the tert-butanol market helps readers gain a better understanding of the behavior of the tert-butanol market. Some of the prominent questions answered in the report include: 

  • What are the key trends contributing to the tert-butanol market’s growth during the forecast period?
  • What are the differential strategies adopted by prominent players in the tert-butanol market?
  • How have the regulatory scenario and price trends impacted the growth of the tert-butanol market?
  • How will upcoming developments in the tert-butanol market impact the key strategies adopted by prominent enterprises?
  • Which region holds the maximum share in the tert-butanol market, and what are the factors contributing to the same? 

Tert-butanol Market: Research Methodology 

To acquire detailed information about the tert-butanol market, researchers have adopted a top-down and bottom-up approach. The top-down approach helps in assessing the market figures, and the bottom-up approach aids in counter-validating the numbers of each region and application segment. Secondary and primary research has been conducted to gain actionable insights on the nature of the tert-butanol market. 

As a part of the primary research, analysts conducted one-to-one interviews and discussions with industry leaders, CEOs, regional operators, and brand managers of leading companies. The information gathered through primary research helped in understanding the key trends, challenges, and growth prospects in the tert-butanol market. 

In the secondary phase of research on the tert-butanol market, analysts gathered information from reliable secondary sources such as company websites, news articles, press releases, the Environmental Protection Agency, the Flavor and Extract Manufacturer’s Association (FEMA), and statistical databases, including others. This information helped in analyzing the volume of the sales and demand for each application in the tert-butanol market.

Tert-butanol Market – Segmentation 

The report on the tert-butanol market is segmented in two broad categories - application and region. Exhaustive research has been conducted to analyze the share of each segment and their contribution to the tert-butanol market’s growth during the forecast period. 

The report assesses the tert-butanol market based on the volume consumed on a regional and country level. It takes into account segment-specific trends and their impact on the tert-butanol market’s growth. It analyzes the demand of each application and the factors contributing to the same. The information provided in the report on the tert-butanol market includes Y-o-Y growth analysis, value chain analysis, and supply chain analysis. 


Solvents and Intermediates

  • Paints and Coatings
  • Flavors and Fragrances
  • Pharmaceuticals
  • Others

Ethanol Denaturants


Methylmethacrylates (MMAs)



North America

Latin America


Asia Pacific

Middle East and Africa

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Tert Butanol Market

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