Butyl Acrylate Market Report 2024 (Global Edition)

Current scenario of the Butyl Acrylate market 

Key opportunity of butyl acrylate market

• Increasing demand for bio-based and sustainable butyl acrylate acts as an opportunity.

As consumers and regulators become increasingly aware of the negative effects that petroleum-based butyl acrylate has on the environment and human health, there is a growing market demand for bio-based and sustainable butyl acrylate. It usually comes from non-renewable, fossil fuel-based resources like natural gas and crude oil, which are linked to waste production, pollution, and greenhouse gas emissions. 

For example,
Numerous industry participants are looking at renewable and alternative sources, like corn, sugar, and biomass, which have lower carbon footprints than traditional sources. These are made from renewable feedstocks by chemical catalysis or fermentation methods, created by Myriant Corporation, OPX Biotechnologies, and BASF. 

Source (https://chemicals.basf.com/global/en/Catalysts/hydrogenation-specialty/sustainability.html)

Key drivers of the butyl acrylate market

• Expansion in the automotive industry drives butyl acrylate market growth.

Rapid urbanization and an increase in disposable income are driving up demand for car ownership in emerging economies. big manufacturing hubs like China, Japan, and Germany are also seeing a return to pre-pandemic levels of car output, which is a big factor in the growth of the automobile sector. 
In 2021, global car production increased by 3% compared to 2020, with China, Japan, and Germany leading the production. Butyl acrylate is an essential ingredient in the production of premium adhesives, sealants, and coatings that support lightweight manufacturing, enhancing fuel efficiency and guaranteeing long-term durability and resistance to severe environments.

Furthermore, the growing popularity of electric and hybrid cars as well as technological developments in driving are making this a profitable time for automakers and supporting the expansion of the butyl acrylate market. 

For example, 
India depends heavily on fossil fuels-based energy, and EV adoption is especially important for our country's economy and its growth prospects. The acceptance and development of the EV industry have received significant attention from the Indian government over the last several years, and this is manifest in the widespread use of electric vehicles. The governments, both at the central and state levels, are providing strategic policy support for achieving majority EV penetration by 2030 via programs like FAME, PLI, Tax Incentives (direct and indirect), tariffs, etc.

Source (https://auto.economictimes.indiatimes.com/news/industry/how-evolving-trends-redefine-future-of-auto-industry-in-india/101452414)

With an increase in the automotive sector, it supplements the butyl acrylate market. As it creates high-quality adhesives, sealants, and coatings that support lightweight production and guarantee long-term durability as well as resistance to severe environments, butyl acrylate is an essential component.

• Rise in Paints and Coatings application leads to Butyl acrylate market growth 

The surge in construction activities, rapid urbanization, and renovation or maintenance of existing infrastructure along with an increase in infrastructure investments in the developing countries is propelling the demand for quality paints and coatings globally. 

For example, 
The need for quicker construction is growing as a result of the boom in building activities in developing nations. According to the Global Powers of Construction (GPoC), revenue increased 6.3% to US$ 1,940 trillion in 2022. Construction sales surged despite obstacles like rising commodity prices, supply chain disruptions, and inflation brought on by a European war. But 2023 is predicted to witness slow growth because of the poor state of the economy, rising prices for building supplies, and labor scarcity.

Source (https://www.deloitte.com/global/en/Industries/energy/perspectives/deloitte-global-powers-of-construction.html)

Butyl acrylate improves the overall performance of paints and coating by ensuring the coating lasts for a longer time and offers better protection against extreme weather conditions.  

For example, 
The size of the Indian paints & coatings industry is estimated to grow to Rs 1 lakh crore in the next five years from the present Rs 62,000 crore. As raw materials account for approximately 55-60 percent of the input costs, price corrections in crude oil and other essential components resulted in improved margins for the industry.

Source (https://economictimes.indiatimes.com/industry/cons-products/paints/indian-paints-coatings-industry-estimated-to-grow-to-rs-one-lakh-crore-in-next-5-years/articleshow/101644039.cms?from=mdr)

Global demand for high-quality paints and coatings is being driven by an increase in infrastructure investments in developing nations, a surge in construction activities, rapid urbanization, and the rehabilitation or upkeep of existing infrastructure.

Key restraints of the butyl acrylate market

• Fluctuations in Raw Material Prices hamper butyl acrylate market growth.

The market for butyl acrylic is not growing as quickly as it should due to fluctuations in raw material prices. Unpredictable price fluctuation for essential commodities threatens market stability and obstructs economic possibilities in general. 

For example,
Only 6% of companies report full visibility on their supply chain. 69% of businesses still have poor visibility across their supply chains. This lack of visibility can lead to inefficiencies, increased costs, and a reduced ability to respond to disruptions. 

Source (https://cashflowinventory.com/blog/supply-chain-statistics/#:~:text=Only%206%25%20of%20companies%20report,ability%20to%20respond%20to%20disruptions.') 

These variations might affect the cost of production, which raises operating costs for companies in the butyl acrylate industry. The market's ability to grow is hampered by this economic uncertainty, necessitating the adoption of calculated strategies to manage and lessen the impact of these changes in raw material prices.

How did COVID-19 impact the Butyl Acrylate market

The market for butyl acrylate was negatively impacted by the recent coronavirus outbreak. Restrictions connected to COVID-19 have already caused problems for supply chain activities worldwide. A logistical standstill prevented the items from being transported. The production factories had to close as a result of lockdowns in multiple locations. Consequently, several manufacturers were forced to close their doors and incurred large financial losses. Demand has sharply declined from several industries, including the textile and automobile sectors. 
As a result, the butyl acrylate market experienced a significant financial loss throughout the outbreak.

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Butyl Acrylate Market is witnessing significant growth in the near future.

In 2023, the i-butyl acrylate segment accounted for noticeable share of global Butyl Acrylate Market and is projected to experience significant growth in the near future.

The Paints and coatings segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Dow , Arkema and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

Frequently Asked Questions (FAQs)