Transparency Market Research (TMR) has anticipated the global 2,3-butanediol market to expand at a CAGR of ~3% from 2019 to 2027.
The demand for renewable chemical products and products with natural origin, manufactured through fermentation and biorefinery processes is expected to be high soon. Bio-based chemicals, such as 2,3-butanediol are anticipated to replace synthetic and petrochemical products in future.
Increase in investments in science and technology, and innovation in these fields, are expected to make China, Japan, South Korea, and India highly dynamic industrial economies in Asia Pacific, in terms of the production and consumption of laboratory chemicals.
Strengthening Bio-economy of 2,3-Butanediol in Europe
Government initiatives and partnerships among companies provide new paths for 2,3-butanediol in Europe. For instance, 'Rehap' is an EU-funded project that aims to strengthen the bio-economy in Europe, by creating novel materials from agricultural and forestry waste, and then investigating their viability for commercialization.
Key Factors Driving the Market
2,3-Butanediol is used as an intermediate chemical for various industrial compounds. These compounds can be used as building blocks in the production of:
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Synthetic rubbers
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Plasticizers
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Printing inks
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Solvents
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Flavorings
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Pharmaceuticals
2,3-butanediol is employed in the production of acetoin, a high-value feedstock that can be widely employed in dairy and cosmetic products, and chemical synthesis.
Commercialization of 2,3-Butanediol in 2018
Intrexon, a leading producer of 2,3-butanediol, is engaged in scaling up its production of 2,3-butanediol and its subsequent conversion to butadiene through pilot plant operations. In 2018, the company estimated the butadiene market to be valued at around US$ 22 B. Thus, according to the company, the outlook of the market appears positive.
2,3-butanediol witnessed a moderate level of commercialization till 2018. Manufacturers are engaged in scaling up the production of 2,3-butanediol and its usage as a precursor to several industrial chemicals such as methyl ethyl ketone (MEK), butadiene, and acetoin, through pilot plant operations.
High Demand for Intermediate Chemicals Segment
Based on application, the global 2,3-butanediol market has been segregated into intermediate chemicals, plastics, food additives, cosmetics, and others.
The intermediate chemicals segment is expected to account for a major share of the global 2,3-butanediol market throughout the forecast period. For instance, the demand for 2,3-butanediol is as high as synthetic rubber precursors, as it is used in the production of 1,3-butadiene.
1,3-butadiene, which is commonly referred to as butadiene, is traditionally produced via the naphtha cracking process while using petroleum-derived feedstock. However, the traditional butadiene process suffers from environmental and technical issues, as petroleum is a non-renewable resource and its production fluctuates in the market. The emissions and by-products of petroleum also pose as a severe threat to the soil, surface groundwater, and other ecosystems. The conversion of 2,3-butanediol into 1,3-butadiene has been considered as an environmentally -sustainable route to produceF butadiene.
Alternative Sources of Butadiene
Asia Pacific is projected to be a highly lucrative region of the global 2,3-butanediol market during the forecast period, followed by North America. The move toward shale gas in the U.S. is leading to the scarcity of butadiene in the country. Companies are seeking ways to produce alternative sources of butadiene; 2,3-butanediol provides substantial opportunities as a precursor to butadiene.
Minimizing Production Costs
Key manufacturers operating in the global 2,3-butanediol market include Global Bio-Chem Technology Group, Intrexon, Tokyo Chemical Industry Co., Ltd. (TCI), Orochem Technologies Inc., LanzaTech, Merck KGaA, and Biosyncaucho S.L.
The competitive advantage for 2,3-butanediol manufacturers lies in minimizing the cost of production. Therefore, manufacturers have been investing in technological upgrades to increase the production of 2,3-butanediol at lower costs. For instance, LanzaTech, supported by Invista, is working with Orochem Technologies to improve the process to dehydrate 2,3-butanediol to 1,3-butadiene.
Source: Transparency Market Research