TERTIARY BUTYL ACETATE MARKET ANALYSIS

Market Challenges And Opportunities

MARKET DYNAMICS

Regulations imposed on the limited use of volatile organic solvents for manufacturing various products have encouraged manufacturers to use solvents that meet the performance expectations and also the stringent environmental regulations. For instance, the U.S. Environmental Protection Agency (EPA) through National Volatile Organic Compound Emission Standards for Architectural Coatings aims to limit the Volatile Organic Compounds (VOCs) emissions from the use of architectural coatings. The rule is estimated to reduce VOC emissions by 113,500 tons per year. This factor is expected to drive growth of the tert-butyl acetate market over the forecast period.

Furthermore, in 2016, the U.S. Environmental Protection Agency (EPA) amended EPA’s regulatory definition of VOC compounds under the Clean Air Act (CAA). The new regulatory definition exempted tert-butyl acetate from the VOC list on the basis that it makes negligible contribution to tropospheric ozone formation. The VOC exemption is expected to increase demand for tert-butyl acetate over the forecast period.

Availability of low cost substitutes such as xylene, toluene, esters, hydrocarbons, and ketones as solvents is expected to hamper market growth of tert-butyl acetate. However, these solvents are VOC and HAP compounds which restrict their use in various end-use industries.