India Butyl Acrylate Market Outlook to 2030

India Butyl Acrylate Market Overview

• The India Butyl Acrylate market was valued at USD 433 million, driven largely by its increasing demand in the paints and coatings and adhesive & sealants sectors. Butyl acrylate, a key raw material in these industries, is used extensively due to its properties, such as durability and weather resistance. The construction and automotive sectors are significant drivers of this demand, as water-based coatings continue to replace traditional coatings in both industries.

• The market in India is geographically dominated by Bharat Petroleum Corporation Limited (BPCL), which holds a unique position as the sole domestic producer of butyl acrylate. Major cities like Mumbai, with its strong industrial base, and Visakhapatnam, due to its proximity to petrochemical hubs, dominate the regional market due to their infrastructural advantages and access to major port facilities.
• The Indian governments Make in India campaign, aimed at boosting domestic manufacturing, has opened up opportunities for the butyl acrylate market. The government has allocated INR 2 trillion for chemical industry development under this initiative, which includes incentives for setting up new chemical production facilities in 2024, fostering local production and reducing import dependency.

India Butyl Acrylate Market Segmentation

By End-Use: The market is segmented by end-use into Paints & Coatings, Adhesive & Sealants, Printing Inks, Textiles, Cleaning Products, and Others. Paints & Coatings, this sub-segment commands the largest market share in 2023, primarily due to its wide range of industrial applications. Butyl acrylate's high durability and weather resistance make it a critical component for coatings used in the automotive and construction sectors, which are expanding rapidly in India.

By Sales Channel: The India Butyl Acrylate market is segmented by sales channel into Direct Sale and Indirect Sale. The direct sales channel dominates the market, accounting for the highest market share in 2023. Manufacturers prefer direct sales to large-scale buyers, such as companies in the paints and coatings or adhesives industries, ensuring better control over pricing and supply.

India Butyl Acrylate Market Competitive Landscape

The market is highly consolidated, with a few major players controlling the majority of the market. Companies such as Bharat Petroleum Corporation Limited (BPCL) hold a unique position as the sole domestic producer, while other global players rely on imports to meet demand.

India Butyl Acrylate Market Analysis

Market Growth Drivers

• Rising Demand from the Paints and Coatings Industry: The Indian paints and coatings sector is witnessing robust growth due to increased infrastructure development and construction activities, leading to higher demand for butyl acrylate. In 2024, India's construction industry is expected to reach a value of INR 20 trillion, which is driving the consumption of paints and coatings.
• Growing Adoption in Adhesives and Sealants: The expanding automotive, packaging, and construction sectors in India have spurred the need for adhesives and sealants, which rely heavily on butyl acrylate as a critical raw material. India is set to produce 12 million new vehicles in 2024, and the increased use of adhesives in vehicle assembly processes will fuel the demand for butyl acrylate.
• Expanding Textile Sector: Indias textile sector, which is growing at a rapid pace with a projected output of 15 billion square meters of fabric in 2024, is increasingly adopting butyl acrylate-based polymers to produce textile coatings and finishes. With India's textile exports expected to cross INR 4 trillion in 2024, the need for enhanced fabric performance is creating a demand surge for butyl acrylate, especially in fabric finishes like waterproofing and elasticity enhancement.

Market Challenges

• Environmental Regulations and Compliance: The Indian government is tightening regulations on the production and disposal of chemical waste, including butyl acrylate, due to its potential environmental hazards. With the expected implementation of more stringent guidelines in 2024 under the Hazardous Waste Management Rules, manufacturers face higher compliance costs, which could hinder production scalability and increase operational expenses by up to INR 500 crore annually.
• Limited Domestic Production of Raw Materials: India depends on imports for a significant portion of the raw materials required for butyl acrylate production. In 2024, Indias acrylic acid production is estimated at only 75,000 metric tons, far below the 300,000 metric tons needed to meet local demand. This reliance on imports leads to supply chain disruptions and price fluctuations, limiting the local industrys ability to meet the rising demand for butyl acrylate.

India Butyl Acrylate Market Future Outlook

Over the next five years, the India Butyl Acrylate industry is projected to experience substantial growth driven by increasing demand from the construction, automotive, and packaging industries. Expanding infrastructural projects, growth in urbanization, and rising environmental concerns pushing for water-based coatings are expected to further stimulate demand for butyl acrylate.

Future Market Opportunities

• Development of High-Performance Butyl Acrylate for Specialized Applications: By 2029, Indian manufacturers will diversify their product portfolio to offer specialized grades of butyl acrylate for niche applications, including high-performance coatings and medical adhesives. Research and development investments, estimated at INR 2,000 crore, will drive innovation in product formulations, aligning with the demands of high-growth sectors such as automotive and healthcare.
• Shift Towards Domestic Raw Material Sourcing: The next five years will see a gradual shift toward domestic production of raw materials like acrylic acid and n-butanol, reducing Indias dependency on imports. With the Indian government expected to invest INR 1,000 crore in petrochemical infrastructure development by 2029, this will enhance the self-reliance of the butyl acrylate industry and stabilize supply chains.