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India Butanediol Market Analysis: Plant Capacity, Production, Operating Efficiency, Process, Demand & Supply, End Use, Application, Sales Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030
|India Butanediol Market Analysis: Plant Capacity, Production, Operating Efficiency, Process, Demand & Supply, End Use, Application, Sales Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030|
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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.
Historical Years: FY2015- FY2020
Base Year: FY2021
Estimated Year: FY2022
Forecast Period: FY2023 - FY2030
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Major players operating globally in this market include Germany-based BASF, Taiwan-based Dairen Chemical Corporation (DCC), the U.S.-based LyondellBasell, and others. No domestic manufacturers are currently operating in the Indian market; hence the entire demand is being met through imports.
To extract data for the India Butanediol market, primary research surveys were conducted with Butanediol manufacturers, suppliers, distributors, wholesalers, and end-users. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various end user segments and projected a positive outlook for the India Butanediol market over the coming years.
ChemAnalyst calculated Butanediol demand in India by analyzing the historical data and demand forecast was carried out considering acetylene prices. ChemAnalyst sourced these values from industry experts and company representatives and externally validated them through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
The study is useful in providing answers to several critical questions that are important for industry stakeholders, such as Butanediol manufacturers, distributors, and policymakers. The report also provides useful insights about which market segments should be targeted over the coming years to strategize investments and capitalize on growth opportunities.
In this report, the India Butanediol market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Market, by End Use- Process Chemicals, Plastics, Food Additives, Cosmetics, Pesticides & Others
Market, by Application- Thinner, Solvents, Stripper, Supplements, GBL, GHB & Others
Market, by Sales Channel- Direct/Institutional Sales, Retail Sales, Other Channel Sales
Market, by Region- North, West, East, and South
With the given market data, ChemAnalyst offers customizations according to a company's specific needs.
Figure 11 India Butanediol By Application (%)
Figure 13 : India Butanediol By Region (%)
Figure 14: India Butanediol By Company Share (%)
Table 3 India Butanediol Capacity By Technology, 2015-2030f (000' Tonnes)
Table 4 India Butanediol Capacity By Process, 2015-2030f (000' Tonnes)
Table 6 : India Butanediol Operating Efficiency By Company, 2015-2030f (000' Tonnes)