Butyl acetate (n-/iso-butyl acetate; also known as BAC, BUAC, or butac) is an aliphatic ester derived from acetic acid and butanol. It occurs naturally in various fruits (e.g., apples) and is a potent odorant and aroma compound. Historically, butyl acetate was initially obtained as a by-product of corn fermentation until the development of a technology that enabled its production from synthetic butanol.
Butyl acetate is a highly versatile chemical. In its early commercial use, it was employed in the aviation to stiffen the fabric skins of the aircraft. This was followed by widespread adoption in the automotive sector, which required large quantities of lacquer solvents. Over time, it also found applications across a broad range of industries, including cosmetics, food, pharmaceuticals, aerospace, construction, paper, furniture, leather, and more. Today, butyl acetate is primarily used in the coatings industry, specifically as a solvent for various film-forming components, such as acrylic resins, alkyds, epoxies, and polyesters, which are used in coating formulations and systems.
The industrial production of butyl acetate involves the esterification of n-butanol with acetic acid. As a result, butyl acetate prices are closely tied to those of n-butanol, its primary raw material (global n-butanol production exceeds 6 million tonnes annually). For example, in early 2025, Oxea (formerly known as OQ Chemicals, and rebranded again to Oxea in May 2025 following its acquisition by Strategic Value Partners and Blantyre Capital) announced a USD 110 per tonne price increase for its n-butyl acetate produced at its facility in Bay City, TX. This price adjustment applied to all regions, including the Americas. The decision followed the increase in n-butanol prices. In addition to rising raw material costs, Oxea also cited supply and demand fluctuations as a contributing factor behind the spike in butyl acetate prices.
The frequency and amplitude of the afore-mentioned fluctuations may augment, thus increasing price volatility, especially in the light of the current challenging macroeconomic environment, affected by the recent developments around the U.S. tariff policy. To this extent, a business strategy of producing locally for the local markets might be considered the most optimal and resilient for the current situation. This strategy is followed by the key butyl acetate manufacturers, such as Oxea, Ineos Oxide, or BASF. They produce their butyl acetate in various regions of the world. For instance, over 80 percent of BASF’s sales in the United States are generated from products manufactured domestically. However, indirect impacts of the current global macroeconomic uncertainty is a potent factor, which can also adversely influence various butyl acetate-consuming end markets, such as car manufacturing, pharmaceuticals, and construction. To make matters worse, the butyl acetate market, particularly in Europe, was already subdued in Q1 2025, as evidenced by reduced capacity utilization rates among various producers. This bearish sentiment was driven by sluggish demand from butyl acetate-consuming sectors (influenced by multiple macroeconomic factors), volatility in upstream costs (such as natural gas for European producers), ample supply, and persistent logistics challenges.
Find a detailed analysis of the butyl acetate market in the in-demand research report “Butyl Acetate (BAC): 2025 World Market Outlook and Forecast up to 2034”.