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2,3-Butanediol Market: Recent Industry Trends, Analysis and Forecast 2018 -2026


2,3-Butanediol is an isomer of butanediol. It is produced by using a process called butanediol fermentation, which involves indulging of a variety of microorganisms such as Enterobacter species or microbes found in the gut. This process is anaerobic fermentation of glucose, which yields 2,3-butanediol as one of the end-products. On consumption by humans, 2,3-Butanediol is oxidized into acetyl-CoA via acetoin. Naturally, 2,3-butanediol is found in cocoa butter. It is primarily used in food additives and ingredients, as a flavoring agent. It is also employed in pharmacology. It is also extensively used in biochemical research activities to study biological effects on mice.

2,3-Butanediol Market: Overview

Based on application, the 2,3-butanediol market can be segmented into plastics, food additives, and bio-pesticides. 2,3-Butanediol is currently available as a laboratory chemical and is being sold as a small-volume intermediate for certain niche applications such as food flavoring additives. 2,3-Butanediol was earlier used as a feedstock to manufacture butadiene for synthetic rubber. However, it has now been abandoned, favoring the use of a more cost-effective option of naphtha-based butanediol.

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2,3-Butanediol Market: Key Trends

In 2014, LanzaTech produced carbon monoxide-based 2,3-butanediol at a pilot facility with a capacity of 15,000 gal/year in Glenbrook, New Zealand. In April 2014, LanzaTech started operating its ethanol demonstration facility in Shanghai, China with a capacity of 100,000 gal/year, by using carbon monoxide from a neighboring steel mill owned by its partner Baosteel Group, which is the largest steel producer in China. The 2,3-butanediol market is currently very limited, due to the difficulty in separation of intermediates into downstream derivatives such as butanediol, methyl ethyl ketone (MEK), and butenes.

2,3-Butanediol Market: Region-wise Outlook

Based on region, the global 2,3-butanediol market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. In terms of consumption, Asia Pacific held a major share of the global 2,3-butanediol market in 2017 and the trend is likely to continue during the forecast period as well. The market in Asia Pacific is projected to register a significant growth rate during the forecast period. Rise in the consumption of plastic, synthetic rubber products, and a variety of foods by people especially in South Korea, Japan, and China is anticipated to fuel the demand for 2,3-butanediol in Asia Pacific in the next few years. China and India are expected to hold a major share of the Asia Pacific market for 2,3-butanediol by the end of the forecast period. Europe and North America are anticipated to follow Asia Pacific between 2018 and 2026. The 2,3-butanediol market in other regions such as Latin America and Middle East & Africa is anticipated to witness sluggish growth during the forecast period.

2,3-Butanediol Market: Key Players

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A large number of companies operate in the global 2,3-butanediol market. Several regional and local traders, distributors, and importers supply 2,3-butanediol to end-users. Prominent companies operating in the global 2,3-butanediol market are BioAmber, Inc., LanzaTech, TCI (India) Pvt. Ltd., and MERCK.

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