Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Isobutyraldehyde Market size was USD 2.20 billion in 2024 and is estimated to reach USD 3.27 billion by the end of 2037, expanding at a CAGR of 3.1% during the forecast period, i.e., 2025-2037. In 2025, the industry size of isobutyraldehyde is evaluated at USD 2.27 billion.
The global isobutyraldehyde market is anticipated to grow significantly due to the rapid industrialization and expanding chemical manufacturing operations in emerging nations including China and India. The Department of Chemicals and Petrochemicals in India revealed that in 2022–2023, the manufacturing sector's gross value added (GVA) share of chemicals and chemical products was 9.8% at current prices and 1.4% of all economic activity; at constant prices (2011–12), the figures were 1.6% and 9.5%, respectively, demonstrating the sector's consistent economic contribution. Similarly, the Information Technology & Innovation Foundation reported that China was responsible for 44% of the world's chemical production and 46% of capital expenditure in 2022.
Research and development efforts have been concentrated on the isobutyraldehyde market to improve product quality, streamline production processes, and explore new applications. An essential focus of research and development is enhancing the efficiency of isobutyraldehyde production. This entails maximizing chemical reactions such as the oxo-process, a well-liked method for turning olefins into aldehydes. Isobutyraldehyde needs to be of the highest purity and quality to be used in a wide range of applications, such as flavors, fragrances, and pharmaceutical intermediates. R&D's primary objectives are to develop analytical tools for quality control and enhance purification procedures.
Nowadays, propylene, carbon monoxide, and hydrogen from petroleum are used to create isobutyraldehyde. Isobutyraldeyde is primarily produced via the hydroformylation process, where propylene reacts with syngas in the presence of a catalyst. As petroleum refining and petrochemical industries ramp up propylene and hydrogen production to meet growing demand across various sectors, the availability and cost-effectiveness of these feedstocks improve, leading to higher isobutyraldehyde production. Major companies such as LyondellBasell are increasing propylene production which is significantly driving the isobutyraldehyde market growth.
In March 2025, LyondellBasell announced an investment to increase the capacity of its Channelview Complex near Houston for the production of propylene. It is anticipated that construction and groundbreaking will start in the third quarter of 2025, with a late 2028 startup date. The unit is anticipated to create 25 permanent jobs, employ 750 people during peak construction, and have an annual production capacity of about 400 thousand metric tons of propylene.

Isobutyraldehyde Market: Growth Drivers and Challenges
Growth Drivers
- Growing demand in diverse industries: Isobutyraldehyde is gaining momentum in various end use industries. It is highly used in the production of fertilizers and pest control products. The liquid form of isobutyraldehyde, when mixed with the solid substance urea, serves as an uncoated nitrogen supplier in fertilizers, progressively supplying vital nutrients to plants. It is used in the manufacturing of fertilizers and pest control products. Additionally, since it facilitates controlled reactions and increases the efficiency of drug synthesis processes, isobutyraldehyde is a versatile chemical intermediate used by the pharmaceutical industry to synthesize pharmaceutical compounds. This allows for the production of a wide range of medications.
Moreover, plasticizers and resins, which are necessary ingredients in the creation of plastics and synthetic materials, are made with isobutyraldehyde. In the food and beverage as well as cosmetics industries, the compound is used to create flavors and fragrances. As an intermediary in the synthesis of specialty chemicals used in the production of semiconductors and electronic components, it is also becoming highly popular in the electronics sector.
Increasing production of gasoline: Gasoline refining processes such as fluid catalytic cracking (FCC), generate significant amounts of propylene as a byproduct, leading to a more stable and cost-effective supply for downstream chemical manufacturing. Additionally, isobutyraldehyde derivatives, such as isobutanol, are used as fuel additives to improve gasoline performance by improving combustion efficiency and reducing emissions.
As global gasoline production expands to meet rising transportation and energy demands, the increased output of propylene and the push for high-performance fuel additives further stimulate isobutyraldehyde market growth. Global production of liquid fuels is expected to rise by 1.7 million barrels per day (b/d) in 2025, up from 0.6 million b/d in 2024. The U.S. Energy Information Administration projects that OPEC+ producers will increase production by 0.1 million b/d in 2025, after declining by 1.3 million b/d in 2024, before increasing production by 0.6 million b/d in 2026.
Challenges
- Fluctuating raw material prices: Isobutyraldehyde frequently uses propylene and isobutane as feedstocks, primarily based on cost. Price increases for raw materials raise the cost of producing isobutyraldehyde, which could lead to higher product prices for consumers or smaller profit margins for manufacturers. Changes in the supply and demand for propylene or isobutane can cause price volatility. Numerous factors, such as changes in regulations, geopolitical events, and production disruptions, can affect cost and availability. Global fluctuations in the demand for isobutyraldehyde or its derivatives can affect raw material prices. When suppliers increase their prices to meet demand, feedstock costs may increase as well. Therefore, this factor can impede the isobutyraldehyde market from growing.
- Intense competition from alternatives: Alternative chemicals and derivatives that have comparable uses across a range of industries compete with isobutyraldehyde. Manufacturers in the market for isobutyraldehyde have difficulties due to strict rules on the production, handling, and use of chemicals. Therefore, the high cost and dangers of isobutyraldehyde could reduce acceptance and further impede company expansion.
Isobutyraldehyde Market: Key Insights
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
3.1% |
Base Year Market Size (2024) |
USD 2.20 billion |
Forecast Year Market Size (2037) |
USD 3.27 billion |
Regional Scope |
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Isobutyraldehyde Segmentation
Synthesis Method (Oxidation of Isobutane, Hydroformylation of Propene)
Oxidation of isobutane segment is predicted to capture over 62.5% isobutyraldehyde market share by 2037. This process converts isobutane to isobutyraldehyde (C4H8O), which is subsequently processed to yield the required final products. The isobutyraldehyde market is influenced by regulatory considerations, technological advancements in oxidation processes, and downstream industry demand. Two industries that depend on isobutyraldehyde are the pharmaceutical fragrance and flavor industries, where it is used as a precursor for many scent compounds and in the production of medicinal intermediates.
Form (Liquid, Solid)
The liquid segment is expected to garner a significant share during the assessed period. In the isobutyraldehyde market, the liquid sector refers to the kind of isobutyraldehyde that is in a liquid state under normal conditions (room temperature and atmospheric pressure). Composed of an isopropyl substituent and a butyraldehyde group, the chemical molecule known as isobutyraldehyde itself has the formula (CH₃)â‚‚CHCHO. Isobutyraldehyde is typically clear, colorless, and odorous when it is liquid. It has a boiling point of roughly 74 to 75°C, which keeps it liquid at room temperature even though it evaporates easily. The product's physical state and specific applications, such as serving as an essential chemical intermediate or component in a variety of industrial processes and products, are described by the market's liquid sector.
Our in-depth analysis of the global isobutyraldehyde market includes the following segments:
Form |
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Synthesis Method |
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End use |
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Customize this ReportIsobutyraldehyde Industry - Regional Synopsis
North American Market Statistics
North America isobutyraldehyde market is likely to dominate revenue share of over 47.4% by 2037. Isobutyraldehyde serves primarily as a chemical intermediate within the pharmaceutical, chemical, and agricultural industries. The North American market is indicative of the demand generated by industrial growth and technological innovations. Regulatory frameworks about the production, storage, and utilization of isobutyraldehyde significantly influence market dynamics. Market participants are required to comply rigorously with safety and environmental regulations, as these considerations affect industrial processes and create barriers to market entry. Several factors, including price volatility, the availability of raw materials such as isobutane, and shifts in geopolitical conditions, may also impact the dynamics of the North American market. Furthermore, evolving consumer preferences toward environmentally friendly and bio-based products are likely to influence the use of isobutyraldehyde and its derivatives.
Furthermore, in the U.S., the expansion of biofuels and fuel additives along with environmental policies also boosts isobutyraldehyde consumption. With growing investments in chemical manufacturing, infrastructure development, and sustainable technologies, the isobutyraldehyde market is expected to witness steady growth. Additionally, the country’s robust petrochemical industry, strong industrial base, and increasing demand for high-performance chemicals. The nation is one of the largest producers of propylene, a key feedstock for isobutyraldehyde, benefiting from its extensive shale gas and refining sector. The U.S. Energy Information Administration reported that while other U.S. dry natural gas production rose by roughly 6% to 22.1 Bcf/d, total U.S. shale gas production decreased by roughly 1% to 81.2 Bcf/d from January through September 2024 compared to the same period in 2023.
The graph below shows the production capacity of propylene in the U.S:
Similarly, in Canada, the growing use of isobutyraldehyde derivatives in agriculture, automotive, coatings, and industrial lubricants is driving demand. The government’s focus on bio-based chemicals and green energy solutions is also fostering research into sustainable isobutyraldehyde production, further supporting market growth. For instance, in August 2024, through the AgriScience Program – Clusters Component, an initiative under the Sustainable Canadian Agricultural Partnership, Bioindustrial Innovation Canada (BIC) will receive up to USD 6,592,913 from London North Centre Member of Parliament Peter Fragiskatos on behalf of the Honorable Lawrence MacAulay, Minister of Agriculture and Agri-Food. BIC will lead the Bioproducts Cluster, which will develop specialized technologies that convert renewable resources, such as agricultural residues, into useful bioenergy, biofuels, and biomaterials like ethanol and biodegradable plastics. With increasing investments in chemical manufacturing and fuel additives, Canada is poised to see continued expansion in isobutyraldehyde consumption and production.
APAC Market Analysis
Asia Pacific isobutyraldehyde market is expected to grow at a significant rate during the projected period. Asian nations are home to a large number of isobutyraldehyde producers, which support the regional supply chain. Market dynamics are significantly impacted by the production capacity possessed by Asian nations. Environmental regulations and safety standards have an impact on isobutyraldehyde production processes and the market entry of major key players. Compliance with regulations about the assessment, approval, and limitation of chemicals is crucial for market players. The market is affected by several factors, including shifts toward sustainable practices, technological advancements in production methods, and global economic conditions. The isobutyraldehyde market is impacted by these compounds' use in the construction, automotive, and pharmaceutical sectors.
Additionally, rapid industrialization and urbanization in China are increasing the need for high-performance coatings, adhesives, and synthetic lubricants, all of which rely on isobutyraldehyde-based compounds. The country’s strong petrochemical industry and large-scale refinery expansions ensure a stable supply of propylene, the primary raw material for isobutyraldehyde production. Furthermore, the nation’s focus on self-sufficiency in chemical production and its investment in advanced manufacturing and specialty chemicals are driving domestic production, reducing dependency on imports, and boosting market growth.
In India, the growing agricultural sector is also fueling demand for pesticides and herbicides, where isobutyraldehyde-based intermediates play a crucial role. The Indian food and grocery market is the sixth largest in the world, with 70% of sales coming from retail, and Inc42 projects that the country's agricultural sector will grow to USD 24 billion by 2025.
Additionally, rising gasoline consumption and an increasing focus on fuel additives and performance chemicals are boosting its market growth. With India emerging as a major hub for specialty chemicals, investments in the petrochemical and refining sectors are ensuring a steady supply of propylene, a key material for isobutyraldehyde production, further propelling the market growth.

Companies Dominating the Isobutyraldehyde Market
- BASF SE
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- The Dow Chemical Company
- Eastman Chemical Company
- Technip Energies NV
- Shell Chemicals
- Celanese Corporation
- Perstop Holding AB
- Evonik Industries AG
- INEOS AG
- Arkema S.A.
Growing end-use industries for coatings, pharmaceuticals, fragrances, and flavorings are anticipated to shape the production demands of isobutyraldehyde. To capitalize on the continuously rising demand, the major players in the isobutyraldehyde industry are focusing on optimizing their production capabilities and supply chain performance. The key players in the isobutyraldehyde market are continuously looking to gain a competitive advantage by investing in research and development, broadening the scope of their product portfolios, and forming long-term strategic alliances.
The key players leading the isobutyraldehyde market are:
In the News
- In June 2024, Technip Energies and Mitsubishi Chemical Corporation, a member of the Mitsubishi Chemical Group, announced that they are licensing an improved OXO alcohol technology known as OXO M-Process. The technology produces n-butanol, an important product used in paints and coatings, and 2-ethylhexanol, a product that makes plastic products more flexible, with high selectivity.
- In March 2024, Shell Chemicals began supplying Braskem with bio-attributed and bio-circular propylene feedstocks that are based on a mass balance approach and independently certified by a third party.
Author Credits: Rajrani Baghel
- Report ID: 7358
- Published Date: Mar 21, 2025
- Report Format: PDF, PPT