U.S. Oxo Alcohol Market - 2022-2029

Market Overview

U.S. Oxo Alcohol market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of 5.4% within the forecast period (2022-2029).

Oxo Alcohols are compounds that combine olefins with syngas with a rhodium catalyst. Isobutanol (IBA), N-Butanol (NBA) and 2-Ethylhexanol (2-EH) are examples of these compounds, which have a wide range of industrial applications. U.S. Environmental Protection Agency (EPA) added Isobutanol as an additive for up to 16 percent mixing into gasoline in car vehicles in 2018. N-Butanol is a colorless, medium-volatile liquid with a sweet aroma. Isobutanol is a clear, colorless liquid with a distinctively sweet, musty odor. Plasticizers, printing inks, amino Resin and nitro-cellulose lacquers are all made with it as a solvent and feedstock.

Regarding the production of adhesives, paints and coatings, oxy alcohols are utilized as solvents and chemical intermediates. Oxo Alcohol is also a crucial raw material in producing plasticizers, acetates and ether, which are important feedstocks for chemical and manufacturing businesses.

The growing use of Oxo alcohol in printing inks, cleansers, resins, solubilizers, polishers, medicines, lubricant oil additives and specialty chemicals is fueling demand. The chemicals also make esters important elements in scented, skincare and hair care products.

Market Dynamics

Growing demand for solvents for preparing paints, coatings & adhesives, lubricant additives and chemical manufacturing drives the Oxo alcohol market.

Growing demand for solvents for preparing paints, coatings & adhesives, lubricant additives and chemical manufacturing drives the Oxo alcohol market

Oxo Alcohol-alcohol is used as a dehydrating agent in various applications, including printing inks, extractants in medication production, additives in polishers & cleaners and solubilizers in the textile sector (entrainer in azeotropic distillation).

Normal butanol is used as a solvent and a feedstock in various chemical processes. Its principal function in the coatings business is to act as a solvent. Because it reduces flushing during drying in humid environments, it is often employed as a diluent in cellulose nitrate lacquers with the potential to improve flow, gloss and robustness. Even in modest doses, N-Butanol decreases viscosity and improves brushability and flow in alkyd resin paints. In lacquers made from spirit-soluble resins, low amounts of N-Butanol avoid cobwebbing.

Iso-butanol is also frequently used as a solvent and a feedstock in chemical processes. Its principal function in the coatings business is to act as a solvent. Because it reduces flushing during drying in humid environments, it is often employed as a diluent in cellulose nitrate lacquers with the potential to improve flow, gloss and resistance.

As a result of its broad application range, Oxo Alcohol-alcohol is gaining market share among various end-users. Due to increased commercial construction activities and rising demand for the product from the country's automotive sector, the paint and coating industry in U.S. is booming, providing enormous chances for the Oxo Alcohol market to develop throughout the forecast period.

In March 2020, U.S. government announced a US$ 2 trillion investment in infrastructure construction, including hospital facilities and motorways, as part of the coronavirus response. As a result of enhanced construction projects in U.S., the market share of paints and coatings has increased.

Growing price fluctuation of raw materials and stringent environmental regulations hamper the growth of the oxo alcohol market

Strict environmental laws and the Oxo Alcohol industry are expected to stifle market growth in the next years. Shifting raw material costs, such as derivatives and crude oil used to produce Oxo Alcohols, are also expected to slow down the market's growth.

The increase in demand and shortage of supply of Oxo Alcohol-intermediates is creating fluctuations in the price of raw materials in U.S.

N-Butanol is utilized in various sectors to meet specific needs and limit emissions from specific formulations. U.S. EPA, for example, regulates the production and sale of paints and coatings in U.S. Currently, laws are focused on VOC concentrations in exhaust gases. However, industry strategy suggests that regulations based on air quality standards or emission limit values stated as the mass of total emissions would be preferable in the long term.

Plasticizers are the fundamental ingredient of flexible polyvinyl chloride (PVC), which allows it to bend without breaking or cracking and is used in medical tubes and bags, squeezable toys, wire and cable, flooring, wallcoverings and a variety of other applications. Different chemistries can be used to make plasticizers. Due to concerns about potential detrimental effects on human health, various rules have been enacted in U.S., which limit the use of some ortho-phthalate plasticizers.

According to the American Chemistry Council (ACC), phthalates are one of the most well-studied chemical families in use due to significant studies. The use of three forms of phthalates (DEHP, DBP and BBP) in children's toys was permanently regulated in 2015 by U.S. Congress, which banned any level larger than 0.1 percent.

COVID-19 Impact Analysis

Despite projections of rising raw material prices, U.S. Oxo Alcohols industry was predicted to grow stronger before the arrival of COVID-19. The increased demand for Oxo Alcohol in various industries, including air conditioning and refrigeration, consumer goods and chemical processing, has fueled the regional market expansion.

However, due to the outbreak of COVID-19, in U.S., the pattern is expected to remain stable, with poor downstream demand shaping the market through the end of 2019 and into H1 2020. In H1 2020, the pandemic hit the chemical sector as a whole and the Oxo Alcohol-alcohol market was no exception. It had low demand and a long supply across U.S.

Demand for Oxo Alcohols is likely to fall due to the trade war between U.S. and China, which has a detrimental influence on the automotive industry. On the other hand, the government tends to implement numerous agreements and investments to create growth prospects.

In March 2020, U.S. government announced a US$ 2 trillion investment in infrastructure construction, including hospital facilities and motorways, as part of the coronavirus response. As a result of better construction projects in U.S., the paints and coatings market share have increased, as have the chances for Oxo Alcohol to grow throughout the forecast period.

Segment Analysis

U.S. oxo alcohol market is segmented by production process, application and end-user.

Due to high energy content, low vapor pressure and low evaporation rate, N-Butanol is in high demand across a wide range of applications

Based on the production process, U.S. oxo alcohol market is segmented into N-Butanol, Isobutanol, 2-Ethylhexanol, Isononanol, 2-Propylheptanol and Others. N-Butanol holds the highest market share in U.S. oxo alcohol market.

N-Butanol is a colorless, sweet-smelling, medium-volatile liquid. It's a solvent in paints, varnishes, coatings, fats, oils, waxes and plasticizers. Nearly half of pure N-Butanol and its derivatives (mostly esters) are used as solvents in the paints industry.

They are frequently used in cellulose nitrate lacquers as a diluent to increase flow, gloss and blush resistance (blushing occurs only in the presence of volatile solvents and at high humidity levels). For this purpose, 5-10% addition rates are usually sufficient. N-Butanol is a suitable solvent for acid-curable lacquers and baked finishes manufactured from urea or phenolic resins. It's usually used with glycol ethers or ethanol in the uses listed.

As a result of its high energy content, low vapor pressure and low evaporation rate, N-Butanol is in high demand across a wide range of applications. Furthermore, the architecture and construction industry requires high-performance materials for protection and aesthetics. Paint, coatings, adhesives and sealants based on N-Butanol must be extraordinarily consistent and cost-effective in terms of quality and performance.

Furthermore, demand for N-Butanol-based solutions is increasing in the building and construction industry. Global N-Butanol demand is expected to be driven by improved infrastructure and residential spaces in emerging economies, particularly in U.S.

For example, Eastman Chemical Company, a chemical manufacturer based in U.S., offers N-Butanol, which has key characteristics such as excellent reactivity as an intermediate, inert food use with restrictions, readily biodegradable, a latent solvent in cellulose lacquers and others that are in high demand across various industries.

Competitive Landscape

U.S. oxo alcohol market is highly competitive with local and global key players. The key players contributing to the market's growth are Exxon Mobil Corporation, Eastman Chemical Company, Dow, Evonik Industries AG, LG Chem, Ltd, BASF SE, Ineos, Bax Chemicals, Grupa Azoty ZAK S.A., OQ Chemicals GmbH among others.

The major companies are adopting several growth strategies, such as product launches, acquisitions and collaborations, contributing to the global growth of the oxo alcohol market.

• In 2021, OQ chemicals increased the rate of the following oxo alcohols in North America: 2-Ethylhexanol: + 0.17 US$ per lb; N-Butanol: + 0.15 US$ per lb and Isobutanol: + 0.15 US$ per lb.
• In 2020, Eastman Chemical Company announced increasing prices on its products. Eastman 2-Ethylhexanol of all packages and grade prices was increased to US$ 0.050 per lb in North America and Latin America.

Evonik Industries AG

Overview: Evonik is a leading specialty chemicals company in over 100 countries globally. The company has segmented its business into the following categories: nutrition & care, resource efficiency, performance materials and services. The company has production facilities in 27 countries in Africa, Asia, Australia / Oceania, Europe, North America and South America. The company manufactures oxo alcohols INA and 2-PH, which are important raw material components for manufacturing plasticizers and surfactants. Evonik offers its INA and 2-PH oxo alcohols with the following means of transportation: ISO containers, tank trucks, rail tank cars, barges, coasters and seagoing vessels.

Product Portfolio: Isononanol: The company manufactures C4-based alcohol, predominantly used as a key element in manufacturing a broad range of applications. The product can be used as the alcohol component for plasticizers and starting material for surfactants.

Key Development

• On September 23, 2020, Evonik Industries AG launched a new brand, "ELUCARE," to gradually expand the range of oxo alcohols. As the first product in the family, the company is marketing the C4 specialty ITDA under ELUCARE TD.

Why Purchase the Report?

• Visualize U.S. oxo alcohol market segmentation by production process, application and end-user, highlighting key commercial assets and players.
• Identify commercial opportunities in U.S. oxo alcohol market by analyzing trends and co-development deals.
• Excel data sheet with thousands of U.S. oxo alcohol market-level 4/5 segmentation points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

U.S. oxo alcohol market report would provide approximately 39 market data tables,35 figures and 201 pages.

Target Audience 2022

• Service Providers/ Buyers
• Residential
• Research Laboratory
• Restaurant Business
• Energy & Utilities Companies
• Distributors