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    Bio Butanol Market

    ID: MRFR/E&P/26910-HCR
    128 Pages
    Priya Nagrale
    October 2025

    Bio Butanol Market Research Report By Feedstock (Sugarcane, Corn, Cellulosic biomass, Others), By Production Process (ABE fermentation, Butanol fermentation), By Application (Fuel, Industrial solvent, Chemical intermediate, Others), By End-User Industry (Transportation, Chemical, Pharmaceutical, Food and beverage, Others) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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    Bio Butanol Market Infographic
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    Bio Butanol Market Summary

    The Global Bio Butanol Market is projected to grow from 1.04 USD Billion in 2024 to 4.08 USD Billion by 2035, indicating robust growth potential.

    Key Market Trends & Highlights

    Bio Butanol Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 13.22 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 4.07 USD Billion, reflecting a substantial increase from the base year.
    • in 2024, the market is valued at 1.04 USD Billion, highlighting the current investment landscape.
    • Growing adoption of biofuels due to increasing environmental concerns is a major market driver.

    Market Size & Forecast

    2024 Market Size 1.04 (USD Billion)
    2035 Market Size 4.08 (USD Billion)
    CAGR (2025-2035) 13.18%

    Major Players

    GEVO, Butamax, Cobalt Technologies, BioAmber, Aemetis, Reverdia, Green Biologics, LCY Bioproducts, Altane Technologies, Clariant, LG Chem, Biobutanol International, China National Bluestar

    Bio Butanol Market Trends

    There are a lot of potential for bio butanol due to the increasing use of biofuels in marine and aviation transportation. Furthermore, new opportunities for market expansion are created by the potential of bio butanol as a feedstock for renewable chemicals and polymers.

    The cost-effectiveness of producing bio-butanol has increased with recent technological developments. Because production costs are now lower due to the development of more scalable and efficient fermentation techniques, biobutanol is now more competitively priced than conventional fuels.

    Additionally, the use of biobutanol in a variety of industries is being fueled by government rules and incentives that encourage the shift to renewable energy.

    The growing emphasis on sustainable energy sources and the transition towards biofuels is likely to drive the demand for bio butanol, which is perceived as a viable alternative to conventional fossil fuels.

    U.S. Department of Energy

    Bio Butanol Market Drivers

    Market Growth Projections

    The Global Bio Butanol Market Industry is projected to experience substantial growth, with estimates indicating an increase from 1.04 USD Billion in 2024 to 4.07 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 13.22% from 2025 to 2035, reflecting the increasing adoption of bio butanol as a sustainable fuel alternative. The market dynamics are influenced by various factors, including technological advancements, supportive government policies, and rising consumer awareness regarding sustainability. As these elements converge, the bio butanol market is poised for significant expansion in the coming years.

    Supportive Government Policies

    Government policies and incentives are significantly influencing the Global Bio Butanol Market Industry, as many countries are promoting biofuels to achieve energy independence and reduce carbon footprints. Subsidies, tax credits, and mandates for renewable fuel usage are encouraging investments in bio butanol production. For instance, the Renewable Fuel Standard in the United States has established a framework that supports the growth of biofuels, including bio butanol. Such supportive measures are likely to enhance market dynamics, fostering an environment conducive to growth and innovation, which is critical for achieving the anticipated CAGR of 13.22% from 2025 to 2035.

    Growing Demand for Renewable Fuels

    The Global Bio Butanol Market Industry is experiencing a surge in demand for renewable fuels, driven by increasing environmental concerns and regulatory support for sustainable energy sources. Governments worldwide are implementing policies to reduce greenhouse gas emissions, which is propelling the adoption of biofuels. Bio butanol, being a versatile biofuel, is gaining traction as a cleaner alternative to fossil fuels. In 2024, the market is projected to reach 1.04 USD Billion, reflecting a growing recognition of bio butanol's potential to contribute to energy security and sustainability goals. This trend is expected to continue, with the market anticipated to expand significantly by 2035.

    Technological Advancements in Production

    Innovations in production technologies are playing a crucial role in the Global Bio Butanol Market Industry, enhancing the efficiency and cost-effectiveness of bio butanol production. Advances such as fermentation processes and genetic engineering of microorganisms are being explored to improve yield and reduce production costs. These technological improvements not only make bio butanol more competitive against conventional fuels but also facilitate its integration into existing fuel infrastructures. As production methods evolve, the market is likely to witness a substantial increase in output, supporting the projected growth from 1.04 USD Billion in 2024 to 4.07 USD Billion by 2035.

    Increasing Applications in Various Industries

    The versatility of bio butanol is driving its adoption across various industries, thereby propelling the Global Bio Butanol Market Industry. Bio butanol is not only utilized as a fuel but also serves as a solvent, plasticizer, and intermediate in chemical synthesis. Its applications in the automotive, pharmaceuticals, and cosmetics sectors are expanding, as industries seek sustainable alternatives to traditional petroleum-based products. This diversification of applications is expected to contribute to the market's growth trajectory, with projections indicating a rise from 1.04 USD Billion in 2024 to 4.07 USD Billion by 2035, highlighting the increasing recognition of bio butanol's multifaceted benefits.

    Rising Consumer Awareness and Preference for Sustainable Products

    Consumer awareness regarding environmental issues is on the rise, influencing purchasing decisions and driving the Global Bio Butanol Market Industry. As individuals become more conscious of their carbon footprints, there is a growing preference for sustainable products, including biofuels. This shift in consumer behavior is prompting manufacturers to explore bio butanol as a viable alternative to conventional fuels. The increasing demand for eco-friendly products is likely to stimulate market growth, aligning with the broader trend of sustainability in consumer choices. This evolving landscape may further support the anticipated growth trajectory of the bio butanol market.

    Market Segment Insights

    Bio Butanol Market Segment Insights

    Bio Butanol Market Segment Insights 

    Bio Butanol Market Feedstock Insights

    Bio Butanol Market Feedstock Insights

    The market growth is primarily driven by the increasing demand for renewable and sustainable fuels, coupled with government initiatives and regulations promoting biofuel production. Sugarcane is the dominant feedstock for bio butanol production, accounting for over 60% of the global market share. Brazil is the largest producer of sugarcane-based bio butanol, followed by Thailand, India, and China.

    Sugarcane offers high sugar content and availability, making it a cost-effective feedstock. However, concerns over land-use change and competition with food production have led to increased interest in alternative feedstocks.

    Corn is another significant feedstock for biobutanol production, particularly in the United States. Corn-based biobutanol has a higher energy density compared to sugarcane-based biobutanol, but it is more expensive to produce due to higher feedstock costs.

    The development of genetically modified corn varieties with improved sugar content and yield is expected to enhance the competitiveness of corn as a feedstock for bio butanol production.

    Bio Butanol Market Production Process Insights

    Bio Butanol Market Production Process Insights

    ABE fermentation and butanol fermentation are the two main production processes for biobutanol. ABE fermentation involves the fermentation of sugars by bacteria to produce acetone, butanol, and ethanol (ABE).

    This growth is attributed to the increasing demand for biofuels and the growing awareness of the environmental benefits of biobutanol. ABE fermentation is the more traditional method of producing biobutanol, and it is still the most widely used process today. However, butanol fermentation is gaining popularity due to its higher efficiency and lower production costs.

    The choice of production process depends on a number of factors, including the feedstock, the desired product yield, and the cost of production. ABE fermentation is typically used when the feedstock is a sugar-based material, such as corn or sugarcane.

    Butanol fermentation, on the other hand, can be used with a wider range of feedstocks, including biomass and waste materials. The global biobutanol market is highly competitive, with a number of major players. Some of the leading companies in the market include Gevo, Butamax, and Cobalt Technologies.

    Bio Butanol Market Application Insights

    Bio Butanol Market Application Insights

    The application segment in the Bio Butanol Market is categorized into fuel, industrial solvent, chemical intermediate, and others. Among these, the fuel segment held the largest market share in 2023 and is projected to maintain its dominance throughout the forecast period (2024-2032).

    The growing demand for biofuels, primarily driven by concerns over fossil fuel depletion and environmental sustainability, has propelled the growth of the fuel segment in the Bio Butanol Market. Additionally, government initiatives and policies promoting the use of biofuels have further contributed to the segment's growth.

    The industrial solvent segment is expected to witness significant growth over the forecast period. Biobutanol is increasingly used as a sustainable and environmentally friendly alternative to traditional solvents in various industries, including paints and coatings, cleaning products, and pharmaceuticals.

    The chemical intermediate segment is also anticipated to grow at a steady pace due to the rising demand for biobutanol as a raw material in the production of bioplastics and other chemicals. The 'Others' segment includes applications such as personal care products and food additives, which are expected to contribute to the overall growth of the Bio Butanol Market.

    Bio Butanol Market End-User Industry Insights

    Bio Butanol Market End-User Industry Insights

    The end-user industry segment is a crucial aspect of the Bio Butanol Market segmentation, providing insights into the diverse applications of bio butanol across various industries. The transportation sector is projected to hold a significant share of the market, driven by the growing demand for biofuels as a sustainable alternative to fossil fuels.

    In 2023, the transportation segment accounted for approximately 35% of the Bio Butanol Market revenue, valued at USD 0.29 billion. The chemical industry is another major end-user, utilizing bio butanol as a feedstock for the production of various chemicals, including solvents, plasticizers, and detergents.

    The pharmaceutical industry also holds a notable share, employing bio butanol in the manufacturing of pharmaceuticals, such as antibiotics and vitamins. The food and beverage industry utilizes bio butanol as a flavoring agent and solvent in the production of food products and beverages. Other end-user industries, such as cosmetics and personal care, contribute to the overall market growth.

    Get more detailed insights about Bio Butanol Market Research Report — Global Forecast till 2034

    Regional Insights

    The regional segmentation of the Bio Butanol Market offers valuable insights into the market's geographical distribution and growth dynamics. North America holds a significant share of the market, driven by increasing demand from the automotive sector and government initiatives promoting renewable fuels.

    Europe follows closely, with a growing focus on reducing carbon emissions and transitioning to sustainable energy sources. Asia-Pacific (APAC) is projected to witness substantial growth in the coming years, fueled by rising demand from emerging economies such as China and India.

    South America and the Middle East and Africa (MEA) regions are expected to contribute to the market's overall growth, albeit at a slower pace, as these regions are still developing their biofuel industries.

    The Bio Butanol Market revenue is expected to reach USD 2.5 billion by 2032, expanding at a CAGR of 13.18% from 2024 to 2032.

    Bio Butanol Market, by Region 2023 & 2032

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    Major players in the Bio Butanol Market, the Bio Butanol Market is highly competitive, with a number of well-established global companies competing for market share. The Leading Bio Butanol Market players include names such as GEVO, Butamax, and BioAmber.

    These companies have a long history of innovation and investment in the Bio Butanol Market development, and they are constantly striving to improve their products and processes. The Bio Butanol Market Competitive Landscape is characterized by a number of factors, including technological advancements, changes in government regulations, and fluctuations in the price of feedstocks.

    GEVO is a leading Bio Butanol Market player that has been in operation for over a decade. The company has developed a proprietary process for converting renewable feedstocks into bio-based fuels and chemicals. GEVO's bio-butanol is a low-carbon fuel that can be used as a substitute for gasoline or diesel.

    The company has a strong track record of commercializing new technologies and has partnered with a number of major oil companies to bring its products to market.

    Butamax is another major Bio Butanol Market player that has been in operation for over a decade. The company has developed a process for producing bio-butanol from corn using a fermentation process. Butamax's bio-butanol is a low-carbon fuel that can be used as a substitute for gasoline or diesel.

    The company has a strong track record of commercializing new technologies and has partnered with a number of major oil companies to bring its products to market.

    Key Companies in the Bio Butanol Market market include

    Industry Developments

    The Bio Butanol Market is projected to grow significantly in the coming years, driven by increasing demand for biofuels and renewable energy sources.

    Recent news developments in the market include the announcement by Gevo, Inc. to construct a net-zero biorefinery in Natchez, Mississippi, which is expected to be operational by 2025 and produce 265 million gallons of sustainable aviation fuel and 12 million gallons of renewable gasoline annually.

    The European Union's adoption of the Renewable Energy Directive II, which mandates the use of renewable energy sources, is also driving market growth.

    Future Outlook

    Bio Butanol Market Future Outlook

    The Global Bio Butanol Market is projected to grow at a 13.18% CAGR from 2025 to 2035, driven by increasing demand for sustainable fuels and advancements in production technologies.

    New opportunities lie in:

    • Invest in R&D for advanced fermentation technologies to enhance yield efficiency.
    • Develop strategic partnerships with automotive manufacturers for biofuel integration.
    • Explore niche markets in bioplastics and solvents to diversify product applications.

    By 2035, the Bio Butanol Market is expected to achieve substantial growth, reflecting a robust position in the renewable energy sector.

    Market Segmentation

    Bio Butanol Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Bio Butanol Market Feedstock Outlook

    • Sugarcane
    • Corn
    • Cellulosic biomass
    • Others

    Bio Butanol Market Application Outlook

    • Fuel
    • Industrial solvent
    • Chemical intermediate
    • Others

    Bio Butanol Market End-User Industry Outlook

    • Transportation
    • Chemical
    • Pharmaceutical
    • Food and beverage
    • Others

    Bio Butanol Market Production Process Outlook

    • ABE fermentation
    • Butanol fermentation

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024    1.04 (USD Billion)
    Market Size 2025    1.18 (USD Billion)
    Market Size 2035 4.08 (USD Billion)
    Compound Annual Growth Rate (CAGR) 13.18% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2023
    Market Forecast Units USD Billion
    Key Companies Profiled INEOS, Toyota Tsusho, Aemetis, Reverdia, Green Biologics, LCY Bioproducts, Altane Technologies, Gevo, Cobalt Technologies, Butamax Advanced Biofuels, Clariant, LG Chem, Biobutanol International, China National Bluestar
    Segments Covered Feedstock, Production Process, Application, End-User Industry, Regional
    Key Market Opportunities Increased demand from fuel industries Growing awareness of environmental sustainability Technological advancements in biofuel production The expanding applications in the chemical industry Rising government support for renewable energy sources
    Key Market Dynamics Increasing demand for renewable fuels Technological advancements in biobutanol production Government support for biofuels Growing environmental concerns Fluctuating feedstock prices
    Countries Covered North America, Europe, APAC, South America, MEA

    FAQs

    What was the market size of the biobutanol market in 2025?

    The biobutanol market reached a value of 1.18 billion USD in 2025.

    What is the expected CAGR of the biobutanol market from 2025 to 2034?

    The biobutanol market is expected to grow at a CAGR of 13.18% from 2025 to 2034.

    Which region dominated the biobutanol market in 2023?

    The Asia-Pacific region dominated the biobutanol market in 2023.

    What are the key applications of biobutanol?

    Key applications of biobutanol include its use as a fuel, a solvent, and a feedstock for the production of other chemicals.

    Who are the key competitors in the bio-butanol market?

    Key competitors in the bio-butanol market include Gevo, Inc., Cobalt Technologies, and Butalco, Inc.

    What are the challenges facing the biobutanol market?

    Challenges facing the bio-butanol market include the high cost of production and the availability of alternative fuels.

    What are the opportunities for growth in the global bio-butanol market?

    Opportunities for growth in the Bio Butanol market include the increasing demand for renewable fuels and the development of new technologies to reduce production costs.

    What is the expected market size of the biobutanol market in 2032?

    The biobutanol market is expected to reach a value of 2.5 billion USD by 2032.

    What is the impact of government regulations on the global bio-butanol market?

    Government regulations, such as mandates for the use of renewable fuels, can have a positive impact on the growth of the Bio Butanol market.

    What are the key trends in the biobutanol market?

    Key trends in the Bio Butanol market include the development of new production technologies and the increasing use of bio butanol as a fuel additive.

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