Gamma-butyrolactone Market Introduction
• Gamma-butyrolactone is a hygroscopic colorless, water-miscible liquid with a weak characteristic odor. It is the simplest 4-carbon lactone. It is primarily used as an intermediate in the production of other chemicals, e.g. methyl-2-pyrrolidone. In humans, it acts as a prodrug for γ-hydroxybutyric acid (GHB), and is used as a recreational CNS depressant with effects similar to barbiturates.
• Gamma-butyrolactone has been found in extracts from samples of unadulterated wines. This finding indicates that it is a naturally occurring component in some wines and may be present in similar products.
• In terms of application, global Gamma-butyrolactone market can be segmented into agrochemical, electrical & electronics, food, pharmaceutical, petroleum, and others. The electrical & electronics segment is expected to expand at a significant pace during the forecast period owing to growth in usage of gamma-butyrolactone in the manufacture of capacitors, batteries (electrolytic solution), and photographic films.
Key Drivers of Gamma-butyrolactone Market
• Growth in usage of Gamma-butyrolactone in the manufacture of various chemical compounds is expected to boost the consumption of gamma-butyrolactone during the forecast period. Gamma-butyrolactone is a fine chemical intermediate that is used in the manufacture of various chemical compounds. Gamma-butyrolactone is used extensively in various industrial applications. It is a common solvent found in paint strippers, nail polish removers, stain removers, and circuit board cleaners. It is also a common intermediate in industrial chemistry.
• Wide use of Gamma-butyrolactone in agricultural & forestry, pharmaceuticals and cosmetics fields is expected to boost the gamma-butyrolactone market during the forecast period. Gamma-butyrolactone acts as an antioxidant, plasticizer, extracting agent, dispersing agent, absorbent, and coagulating agent. Gamma-butyrolactone is also used as an intermediate in the production of herbicides, growth regulator in plants, and production of thiodibutyric acid used in rubber production, cosmetics, pharmaceuticals, and printing inks.
Restraints of Gamma-butyrolactone Market
• Side effects associated with Gamma-butyrolactone are restraining the market growth. There have been numerous adverse reactions of Gamma-butyrolactone including fatalities. Signs and symptoms can include euphoria, relaxation, reduced inhibition and sedation progressing to vomiting, urinary and fecal incontinence, agitation, convulsions, bradycardia, respiratory depression, coma, and death.
• Dearth of universal directives pertaining to applications of Gamma-butyrolactone is likely to hamper the market in the near future. Every country has different directives and legislations pertaining to the use of Gamma-butyrolactone. Companies find it difficult to meet these country-wise directives and legislations. This can discourage investment in the Gamma-butyrolactone market, thereby adversely affecting the market.
COVID-19 impact on Gamma-butyrolactone Market
• The COVID-19 outbreak is hampering the demand for Gamma-butyrolactone in many applications. Many governments across the globe enforced lockdown measures to curb the spread of the coronavirus. This has resulted in slowdown and halt in manufacturing operations, restrictions on supply and transport, and infrastructure slowdown. This is adversely affecting the demand for Gamma-butyrolactone.
• Key players operating in the Gamma-butyrolactone market are primarily tier I and tier II manufacturers and suppliers. Manufacture and supply chain facilities of these manufacturers are spread across various countries in Asia Pacific, Europe, North America, Latin America, and Middle East & Africa. Many of these players have halted their production output over the last few months due to the COVID-19 pandemic. The pandemic has negatively impacted the demand and supply chain of Gamma-butyrolactone.
Asia Pacific to Hold Major Share of Gamma-butyrolactone Market
• In terms of region, the global Gamma-butyrolactone market can be split into North America, Asia Pacific, Europe, Middle East Asia, and Latin America
• Asia Pacific is projected to hold significant share of the global Gamma-butyrolactone market in terms of consumption during the forecast period. End-user industries such as agrochemical, electrical & electronics, food, pharmaceutical, cosmetics, and petroleum are rapidly expanding in the region. Rise in disposable income and improvement in standard of living in many countries in Asia Pacific are boosting the demand for consumer electronics. This, in turn, is augmenting the demand for Gamma-butyrolactone.
• The Gamma-butyrolactone market in North America and Europe is expected to expand at a sluggish pace due to implementation of stringent regulations on the production and consumption of Gamma-butyrolactone. Some countries in Europe such as the Netherlands and Spain have forbidden import & export, manufacture, or possession of Gamma-butyrolactone. Many other European countries have formulated laws which could lead to imprisonment for not having license to manufacture, sell, or possess Gamma-butyrolactone.
Prominent Players in Global Gamma-butyrolactone Market
Major players operating in the global Gamma-butyrolactone market are adopting various organic and inorganic growth strategies such as joint ventures, mergers & acquisitions, expansion, collaborations, new product launches, strategic alliances, and research and development to increase their regional presence and business operations. Key players operating in the market include:
• BASF
• Boai NKY
• Realsun Chemical
• Changxin Chemical
• Mitsubishi Chemical
• Ruian Chemical, Ashland
• LyondellBasell
• Puyang Guangming Chemicals
• Binzhou Yuneng Chemical
• Lutianhua Group
• Xuchang Ruida Biology Technology
• Jinlong Chemical
• Dairen Chemical
Research Scope of Gamma-butyrolactone Market
Gamma-butyrolactone Market, by Purity
• Industrial Class (5 wt. %)
• Common Class (8 wt. %)
• Electric Capacitance Class (9 wt. %)
Gamma-butyrolactone Market, by Application
• Agrochemical
• Electrical & Electronics
• Food
• Pharmaceutical
• Petroleum
• Cosmetics
• Others
Gamma-butyrolactone Market, by Region
• North America
o U.S.
o Canada
• Europe
o Germany
o U.K.
o France
o Italy
o Spain
o Russia & CIS
o Rest of Europe
• Asia Pacific
o China
o India
o Japan
o ASEAN
o Rest of Asia Pacific
• Latin America
o Brazil
o Mexico
o Rest of Latin America
• Middle East & Africa
o GCC
o South Africa
o Rest of Middle East & Africa