Global Oxo Alcohols Market Snapshot
Butanols and 2-ethylhexanol are part of the group of products known as oxo-alcohols, which are so named because of the “oxo-process” by which they are produced. Butanols have performed better in recent years through underlying growth in the market for its key derivative butyl acrylate, mainly in water-based coatings. Isobutanol is coproduced with n-butanol and is frequently in oversupply. It is used as a solvent, and to a lesser extent in the production of amines. The 2-ethylhexanol market has been under pressure for several years due to health and safety concerns surrounding its main derivative; the plasticiser, dioctyl phthalate (DOP). 2-ethylhexyl acrylate is however a fast-growing sector, mainly for coating and adhesives, and 2‑ethylhexyl nitrate is achieving high growth as a diesel fuel additive (cetane improver).
2-ethylhexanol markets saw global demand rebound by one percent to nearly 4.4 million tons in 2024. Key developments in include:
North American growth was particularly strong in 2024, as the construction sector recovered, driving 2-EH demand growth through plasticizer consumption for flexible PVC. The construction sector recovered in 2024 due to stabilising of mortgage rates and increased government support in infrastructure projects. Mexican demand increased in 2024 with the opening of a new trimellitate plasticizer plant in Altacomulco.
Western and Central European consumption grew, as 2-ethylhexyl nitrate production increased as vehicle miles continue to recover from the effects of COVID-19. In the long term, 2-EHN demand is expected to decline due to a switch away from diesel vehicles.
Russia struggled in 2024 due to a significant slowdown in construction dampening PVC demand. High inflation, increasing economic sanctions, and an exodus of skilled labour are hampering further recovery in construction.
Turkish plasticizer exports took a hit in 2023 due to increased shipping rates, and in 2024, the USA investigated Turkish plasticizer exports for being sold under fair value.
Asia Pacific is expected to have strong growth from 2024 onwards. Fiscal stimulus measures implemented by governments are likely to target the construction industry as a route to stimulating the economy while the automotive sector reaches a stable growth.
Global demand for n-butanol increased by two percent in 2024. Key developments in n-butanol markets:
Western European demand stagnated in 2024. A recovery in automotive production pushed butyl acetate demand for topcoats, but was balanced by a weak construction sector impacting butyl acrylates and butyl glycol ether demand in architectural coats and paintings. There are positive signs in the construction industry as building permits have increased, with growth expected to resume in 2025.
North American consumption was strong in 2024, with a recovery in construction volumes, largely spurred by government investment (2021 infrastructure and jobs program coming to fruition). Automotive growth has recovered strongly from COVID-19 but has dampened in 2024 as high interest rates affect the affordability of new car loans. Although production volumes in 2024 is only two percent lower than 2019.
The Russian market has recovered strongly from the effect of sanctions. Butyl acrylate production is ramping up after a period of low operating rates due to facility issues. Butyl acetate demand is also strong due to automotive production volumes recovering to pre-war levels, largely through production of licenced Chinese models.
Demand growth will be driven by Asia Pacific where most new capacity for n-butanol derivatives is expected. With the development of downstream sectors such as coatings, adhesives, textiles, leathers and papermaking, the demand for n-butanol in China will continue to increase. The coatings industry in China does face added pressure with paint production plants having to relocate away from densely populated areas to industrial parks and environmental regulations leading to electricity shortages but underlying demand growth is likely to be strong as construction and automotive industries recover well. Other regions in Asia Pacific are expected to experience above average growth in the near term with the trend to export n-butanol derivatives into China although domestic demand is growing strongly in South-East Asia as well.
Global demand for i-butanol stagnated in 2024 at nearly 770 ktons, falling by two percent from 2023. Key developments in _i-_butanol markets:
Consumption for solvent production remained weak as the construction sector struggled with high interest rates in regions such as Western Europe. In 2024, the recovery in construction output in regions such as North America and Asia Pacific is expected to support the consumption of _i-_Butanol. Butyl acetate production experienced a slight uptick in 2024 as consumers resumed furniture purchases and increased automotive production amid reducing inflation levels.
In Asia Pacific, the uptick in _i-_butanol consumption in 2023 was bolstered by the surge in automotive car production and the strong growth in the construction sector in South-East Asia. Going into 2024, operating rates for _i-_butanol have recovered in line with n-butanol operating rates given the recovery in the global economy and slowdown in capacity addition in China. Total production of _i-_butanol is expected to increase in the forecast with in line with the addition of n-butanol capacity.
Demand of i-butanol into butyl acetates for automotive topcoats and refinish coatings will be lower than the global average for i-butanol over the near term forecast due to the stabilization of car production volumes in 2024.
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Market Analytics: Oxo Alcohols - 2024
This report provides detailed analysis of the global oxo alcohols industry including 2-ethylhexanol, i-butanol, and n-butanol markets. The report includes capacity listings, demand by end-use and supply/demand/trade balances with forecasts to 2050. This analysis identifies the issues shaping the industry, with data for 40 countries.