The global isobutanol market is primarily being driven by the widespread product adoption in the chemical industry. Isobutanol acts as a feedstock chemical to produce several industrially important compounds, such as isobutyl acetate, isobutyl acrylate, and isobutyl esters which are further used for manufacturing rubber, plastics, and coating resins.
Furthermore, the rising demand for isobutanol in gasoline blending applications due to its high octane number and more energy content than ethanol is acting as a growth-inducing factor. In line with this, the growing utilization of the compound for manufacturing advanced renewable fuels and next-generation biofuels is creating a positive outlook for the market.
Additionally, the development of efficient and low-cost bio-based isobutanol that is produced using yeast and renewable feedstock, such as corn, barley, and sugarcane, is providing an impetus to market growth. Apart from this, the increasing product demand for manufacturing isobutyl acetate, which is widely used in the food industry as a flavoring agent, is providing a considerable boost to market growth. Other factors, including rapid industrialization, the implementation of various government initiatives to support environmentally friendly chemical production, and the growing application of isobutanol in thin-layer chromatography, are supporting market growth.