Global Gamma Butyrolactone Market - 2023-2030

Market Overview

The global Gamma Butyrolactone market reached US$ XX million in 2022 and is projected to record significant growth by reaching up to US$ XX million by 2030 and growing at a CAGR of XX% during the forecast period (2023-2030).

Gamma Butyrolactone (GBL) is a chemical compound that belongs to the class of organic compounds known as lactones. It is a cyclic ester of gamma-butyrolactone and a clear, colorless liquid soluble in water. GBL has a strong, characteristic odor and a slightly sweet taste. In chemical terms, it is defined as an organic chemical compound, a lactone with the formula C4H6O2. It has a molecular weight of 86.09 g/mol. GBL is a chemical intermediate used to produce other chemicals. GBL is also a controlled substance used as a recreational drug and its possession and sale are prohibited in many countries.

Market Dynamics

GBL is a powerful solvent that is used to dissolve a wide range of substances, including fats, oils and resins. It is used as a cleaning agent in the electronics industry. Increase in demand for GBL in the industrial chemicals industry: GBL is used as an intermediate in producing a wide range of industrial chemicals, such as pyrrolidones and polymers. It is in higher demand in the agricultural and chemical industries for producing herbicides and pesticides.

Gamma butyrolactone is used as an intermediate in the production of polyurethanes, which manufacture a wide range of products, including insulation, adhesives and coatings. Gamma butyrolactone is also used as a solvent in many applications, including in producing electronic components, printing inks and adhesives. It is used as a reagent in various chemical reactions and as an intermediate in producing other chemicals. Therefore, the above-mentioned factors drive the growth of the global market.

An increase in demand for GBL in the pharmaceutical industry drives the market growth

The increased demand for gamma butyrolactone (GBL) in the pharmaceutical industry is driving the market growth. GBL is a precursor in producing certain drugs, such as GHB (gamma-hydroxybutyric acid), used to treat conditions such as narcolepsy, alcoholism and insomnia. As the demand for these treatments increases, the demand for GBL increases and is used in producing other drugs and medicines as raw materials. As the demand for these drugs and medicines rises, the demand for GBL also increases.

The increasing research in medicine and the increasing number of patents filed for drugs using GBL as an intermediate material will drive market growth. It can be used in the production of drugs for veterinary use. As the demand for veterinary medicines increases, the product market also increases. Furthermore, the rising use of gamma butyrolactone in pharmaceuticals propels the global market growth.

Stringent rules and regulations across various economies hamper the global market growth

Stringent rules and regulations can impede the growth of the global Gamma Butyrolactone (GBL) market. It is a controlled substance and its possession and sale are prohibited in many countries. This can restrict market growth as GBL is not allowed in these countries.

Government regulations on GBL use, production and disposal can also hinder the market growth. Companies that produce and use GBL may have to comply with strict environmental regulations, which can increase their production costs and make it difficult for them to compete in the market. Stringent rules and regulations on the transportation and storage of GBL also add to the cost of production and may discourage companies from entering the market. Furthermore, the increasing regulations on its usage as a recreational drug also hamper the market growth.

COVID-19 Impact Analysis

Due to the shutdown of construction sites and factories, the pandemic has led to a decline in demand for products in the paint and coatings, solvent and electronics industries. Lockdown measures, social distancing regulations and other restrictions have reduced the production and sales of GBL. The uncertain economic situation has reduced chemical industry investment, negatively impacting the GBL market. Furthermore, owing to its controlled use in many economies, it is easy to anticipate that the demand for the product was at its worst during the COVID-19 period.

Segment Analysis

The global Gamma Butyrolactone market is segmented based on grade, purity, application and region.

Global gamma butyrolactone market booms with 99.9% purity standards

Minimum purity of 99.9% dominates the global market. This high-purity GBL is used as a cleaning agent in the electronics industry, where a high purity level is required to remove impurities from electronic components. This high-purity segment also produces other drugs and medicines as raw materials. It is also used in industries such as electronics, where high-purity GBL is required as a cleaning agent.

Additionally, gamma butyrolactone is used in other industries such as paint and coating, solvent and industrial chemicals and the agricultural and chemical industry for producing herbicides and pesticides. Still, purity requirements may vary according to the industry.

Geographical Analysis

The global Gamma Butyrolactone market is segmented based on grade, purity, application and region.

The higher presence of a large number of the manufacturer in the region bolsters the Asia-Pacific market

Many Asia-Pacific companies produce gamma butyrolactone, which has led to a high supply of chemicals in the market. The Asia-Pacific is home to many end-use industries such as paints and coatings, pharmaceuticals and agrochemical products that use gamma butyrolactone as a key ingredient.

The cost of production in the Asia-Pacific is relatively low compared to other regions, making it an attractive location for manufacturers to set up operations. Furthermore, Asia-Pacific dominates the global gamma butyrolactone market.

Global Gamma Butyrolactone Market Competitive Landscape

The global gamma butyrolactone market is highly competitive, with several large and small players operating. These players focus on expanding their production capacity, investing in R&D activities and increasing their global presence to strengthen their position in the market. Some players are also involved in collaborations and partnerships to enhance their product offerings and expand their customer base. The key players in the market are BASF, Sigma Aldrich, Realsun Chemical, Changxin Chemical, Mitsubishi Chemical, Ashland, Lyondell Basell, Puyang Guangming Chemicals, Lutianhua Group and Boai NKY.

BASF SE

Overview: BASF SE is one of the world's largest chemical companies, operating in over 80 countries. The company was founded in 1865 and is headquartered in Ludwigshafen, Germany. The company operates in six main business segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF SE is known for its strong emphasis on sustainability and has set ambitious targets to reduce its environmental impact. BASF SE has also made significant investments in R&D and is recognized as a leader in developing new and innovative products. The company's portfolio of products and solutions are used in a wide range of industries, including automotive, construction, energy, healthcare and agriculture. The company has a presence in Europe, North America and Asia-Pacific, with major production sites in Germany, United States, China, South America, Africa and the Middle East.

Product Portfolio:

• Gamma Butyrolactone (GBL): Gamma butyrolactone is a derivative of 1,4-butanediol. BASF offers or produces intermediates or precursors for 1,4-butanediol, such as GBL. 1,4-Butanediol (BDO) is an important industrial chemical used as an intermediate in producing various industrial chemicals and polymers, such as polyurethanes, solvents and plasticizers. The product has a colorless liquid with an unpleasant smell. It is easily dissolved in water and has a high boiling point.

Key Development:

• On December 1, 2020, In Europe, BASF increased the price of butanediol and its derivatives. Gamma Butyrolactone (GBL) European selling prices will increase by +300 EUR/mt immediately or as approved by contract terms by BASF SE. In North America, the price is increased by US$ 0.08/ lb.

Why Purchase the Report?

• To visualize the global gamma butyrolactone market segmentation based on grade, purity, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global gamma butyrolactone market by analyzing trends and co-development.
• Excel data sheet with numerous data points of gamma butyrolactone market-level with all segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players.

The global gamma butyrolactone market report would provide approximately 61 tables, 58 figures and 210 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies