Butyric acid, a short-chain fatty acid, is a vital compound widely used in the chemical, food, and pharmaceutical industries. Its applications range from food additives and flavorings to industrial solvents, plastics, and animal feed supplements. Given its diverse range of uses, butyric acid prices can be influenced by factors such as raw material availability, production costs, and the demand from various industry sectors.
As the global demand for butyric acid continues to rise, understanding the price trends, market dynamics, and key suppliers is essential for businesses in the chemical, food & beverage, and animal feed industries. This article provides a comprehensive butyric acid price trend analysis, including forecasting price movements, demand-supply dynamics, and the top global suppliers across key regions. Whether you are a business looking to optimize procurement or an industry professional tracking market trends, this analysis will provide valuable insights to guide your decisions.
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Butyric Acid Market CAGR and Growth Forecast
The butyric acid market is expected to witness steady growth driven by the expanding applications across various industries, including food, pharmaceuticals, and chemicals. Its growing importance as a flavoring agent, chemical intermediate, and animal feed additive is contributing to increased demand globally.
Compound Annual Growth Rate (CAGR) Forecast Based on 2025
The butyric acid market is projected to grow at a CAGR of 4.3% from 2025 to 2030. Factors driving this growth include increased consumer demand for natural food additives, the expanding animal feed industry, and rising applications in bioplastics. Moreover, innovations in bio-based butyric acid production are also expected to enhance market growth as sustainable practices gain traction across industries.
Growth Outlook Through 2025
Through 2025, the demand for butyric acid is expected to increase as industries, especially in Asia-Pacific, North America, and Europe, ramp up production to meet the needs of emerging markets and eco-friendly manufacturing. The growing demand for sustainable and natural alternatives in food additives and animal feed will continue to support the expansion of the butyric acid market, positioning it as an essential component in various product formulations.
Butyric Acid Price Trend Analysis
The price trend of butyric acid is shaped by various factors including supply chain conditions, fluctuations in raw material costs, and the growing demand from the animal feed, food & beverage, and pharmaceutical industries. Let’s analyze the price movements of butyric acid for each quarter in 2024 and provide a forecast for Q1 2025.
Q1 2024 Price Trend
In Q1 2024, the price of butyric acid is expected to rise by 3%, reaching approximately USD 1,700 per metric ton. This increase can be attributed to strong demand from the animal feed and food industries. Additionally, higher raw material prices, particularly propylene and butanol, will contribute to the overall cost of production. Energy prices and logistical issues also add upward pressure on prices during the first quarter.
Q2 2024 Price Trend
For Q2 2024, butyric acid prices are forecast to increase by 2.5%, bringing the price to approximately USD 1,740 per metric ton. This increase will be driven by seasonal fluctuations in demand, particularly from the food and beverage sector, which traditionally experiences higher demand during the summer months. Additionally, continued pressure on raw material prices and potential supply chain disruptions in major producing regions will contribute to price increases.
Q3 2024 Price Trend
In Q3 2024, prices for butyric acid are projected to rise by 2%, reaching around USD 1,775 per metric ton. The price hike will be fueled by increased demand from the plastics and bioplastic industries as manufacturers seek alternatives to petroleum-based chemicals. Moreover, bio-based production processes, though more sustainable, tend to be more expensive, which may contribute to higher prices.
Q4 2024 Price Trend
By Q4 2024, butyric acid prices are likely to rise by 2.5%, reaching approximately USD 1,820 per metric ton. The increase will be driven by strong demand in the animal feed sector, as livestock and poultry industries ramp up production ahead of the winter months. Additionally, increased transportation costs due to rising fuel prices and supply chain bottlenecks will continue to drive up prices.
Q1 2025 Price Trend
Looking ahead to Q1 2025, butyric acid prices are projected to rise by 3%, bringing the price to about USD 1,875 per metric ton. This forecasted increase will be due to continued demand growth from food additives, animal feed, and plastics industries. Furthermore, supply constraints in key production regions, particularly in Asia-Pacific, are expected to contribute to sustained price pressure.
Butyric Acid Market Outlook and Demand-Supply Dynamics
Understanding the market outlook and demand-supply dynamics is essential for anticipating future price movements and making informed business decisions. The demand for butyric acid is expected to continue rising in the coming years, supported by various factors:
Demand Side
The primary drivers of butyric acid demand include:
- Animal Feed: As an additive in animal nutrition, butyric acid plays an important role in improving gut health and digestion in livestock. Increasing global demand for poultry and livestock products is contributing to the growing consumption of butyric acid in animal feed.
- Food & Beverage: Butyric acid is used as a flavoring agent and preservative in certain food products, including cheeses and butter. Its increasing application in natural food formulations is boosting demand.
- Pharmaceuticals: The pharmaceutical industry uses butyric acid for therapeutic applications and as an intermediate in drug production. With an increasing focus on health and wellness, butyric acid’s use in probiotic supplements is growing.
- Plastics & Bioplastics: As the demand for eco-friendly plastics and biodegradable materials rises, butyric acid’s role in bioplastics production will continue to support market growth.
Supply Side
The global butyric acid supply is primarily concentrated in regions like Asia-Pacific, Europe, and North America, with major producers including China, India, and the U.S. Production is largely dependent on raw materials such as butanol and propane. As these materials fluctuate in price, so too does the cost of butyric acid production.
The supply side also faces challenges such as production constraints, logistical issues, and the rising cost of energy, all of which can contribute to price volatility. Moreover, the shift towards bio-based production methods—which are more sustainable but often more costly—will also impact future price trends.
Key Influential Factors Impacting Butyric Acid Prices
Several factors influence the price of butyric acid. Understanding these key drivers can help stakeholders manage risks and make informed decisions:
- Raw Material Prices: The cost of butanol and propane, essential feedstocks for butyric acid production, significantly impacts the cost of production. As raw material prices fluctuate, butyric acid prices are likely to follow suit.
- Energy Prices: The energy-intensive nature of butyric acid production means that fluctuations in oil and natural gas prices can directly impact production costs.
- Sustainability Trends: As industries move toward bio-based production, sustainable and eco-friendly butyric acid alternatives are likely to gain popularity, but they may come at a higher cost.
- Supply Chain Disruptions: Geopolitical tensions, transportation delays, and natural disasters can disrupt the supply of key materials and components for butyric acid production, leading to potential price hikes.
Top Butyric Acid Suppliers Across Regions
Butyric acid production is concentrated in a few global players who supply the compound to a wide range of industries. Key suppliers include:
- Eastman Chemical Company (U.S.): A leading global supplier of butyric acid, Eastman is known for its high-quality products used in the plastics, pharmaceuticals, and food industries.
- OXEA (Germany): OXEA is a major producer in Europe, providing butyric acid for various applications, including flavorings and plastics.
- Shandong Minji Chemical (China): A prominent supplier in Asia-Pacific, Minji Chemical offers butyric acid for use in animal feed and pharmaceuticals.
- BASF (Germany): Known for its chemical manufacturing expertise, BASF supplies butyric acid primarily for use in the plastics and animal feed sectors.
Other global players include Nippon Shokubai (Japan), China National Petroleum Corporation (China), and BASF (Germany).
Regional Overview of the Butyric Acid Market
Asia-Pacific
Asia-Pacific is the largest market for butyric acid, particularly in China and India, where demand from the animal feed and pharmaceuticals sectors is significant. The growth of the food industry and bioplastics production in this region will also continue to drive demand.
Europe
In Europe, Germany and France are major consumers of butyric acid, driven by demand from the plastics and pharmaceuticals sectors. Sustainability initiatives across the region are boosting the demand for bio-based butyric acid.
North America
The U.S. and Canada are significant markets for butyric acid, with a strong demand from the food, animal feed, and bioplastics industries. Eco-friendly alternatives are gaining traction in this region, contributing to a steady rise in demand.
Latin America & Middle East Africa
In Latin America and the Middle East & Africa, butyric acid consumption is growing, particularly in the animal feed and food industries. Countries like Brazil and South Africa are increasing their demand for butyric acid as they strengthen their agricultural sectors.
Final Words
The butyric acid price trend analysis for 2024-2025 indicates steady growth, driven by robust demand from key sectors such as animal feed, plastics, and food additives. However, raw material costs, energy prices, and supply chain challenges will continue to impact pricing. Stakeholders should closely monitor these dynamics and regional market fluctuations to optimize procurement strategies and manage production costs effectively.