LPG - Butane: Market Size & Forecast 2026

The global butane market sits at approximately USD 85 billion in 2025 (base year), growing at 4.2 percent CAGR through 2032 to reach roughly USD 113 billion. Butane trades as a co-product of LPG alongside propane, sourced roughly 60 percent from natural gas processing and 40 percent from crude oil refining, with pricing anchored to crude oil benchmarks and regional supply-demand balance. The category is structurally tight: feedstock concentration in a handful of integrated majors, fractionation bottlenecks at gas plants, and a Q1 2026 supply disruption from the Iran conflict and Strait of Hormuz transit risk that pushed Brent crude above USD 100/bbl and re-rated the forward curve. > **Analyst Take.** The consensus 4.2 percent CAGR is directionally right but the composition is wrong: the headline includes propane blend value, while standalone butane economics are tighter. Buyers anchoring

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