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1 3 Butanediol Market

ID: MRFR/CnM/24094-HCR
111 Pages
Priya Nagrale
October 2025

1 3 Butanediol Market Research Report By Grade (Industrial Grade, Pharmaceutical Grade), By Application (Polyester Butanediol Terephthalate (PBT), Polybutylene Terephthalate (PBT), Polytetramethylene Ether Glycol (PTMEG), Gamma-Butyrolactone (GBL), 1,4-Butanediol (BDO)), By End-User Industry (Automotive, Electrical & Electronics, Packaging, Construction, Pharmaceuticals), By Distribution Channel (Direct Sales, Distributors, E-commerce) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast... read more

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1 3 Butanediol Market
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1 3 Butanediol Market Summary

As per MRFR analysis, the 1 3 Butanediol Market Size was estimated at 1105.62 USD Billion in 2024. The 1 3 Butanediol industry is projected to grow from 1146.66 USD Billion in 2025 to 1650.92 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 3.71 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The 1,3 Butanediol market is experiencing robust growth driven by sustainability and technological advancements.

  • North America remains the largest market for 1,3 Butanediol, primarily due to its established industrial base.
  • Asia-Pacific is emerging as the fastest-growing region, fueled by increasing demand in various applications.
  • The industrial grade segment dominates the market, while the pharmaceutical grade segment is witnessing rapid growth.
  • Key market drivers include rising demand in cosmetics and personal care, alongside expansion in pharmaceutical applications.

Market Size & Forecast

2024 Market Size 1105.62 (USD Billion)
2035 Market Size 1650.92 (USD Billion)
CAGR (2025 - 2035) 3.71%

Major Players

BASF SE (DE), Mitsubishi Chemical Corporation (JP), Zhejiang Jianye Chemical Co., Ltd. (CN), Royal Dutch Shell plc (GB), Repsol S.A. (ES), LyondellBasell Industries N.V. (NL), Oxea GmbH (DE), Dairen Chemical Corporation (TW), Huntsman Corporation (US)

1 3 Butanediol Market Trends

The 1 3 Butanediol Market is currently experiencing a notable transformation, driven by various factors that influence its dynamics. The increasing demand for sustainable and bio-based products appears to be a significant catalyst for growth. Industries such as cosmetics, pharmaceuticals, and plastics are increasingly adopting 1 3 butanediol due to its versatile applications and favorable properties. Furthermore, the ongoing advancements in production technologies may enhance efficiency and reduce costs, potentially making this compound more accessible to a broader range of industries. As environmental concerns gain prominence, the shift towards greener alternatives is likely to shape the future landscape of the market. In addition to sustainability, the 1 3 Butanediol Market seems to be influenced by regulatory frameworks that encourage the use of eco-friendly materials. This regulatory support could foster innovation and investment in research and development, leading to the emergence of novel applications. Moreover, the growing awareness among consumers regarding the benefits of using biodegradable and non-toxic substances may further propel market expansion. Overall, the interplay of these factors suggests a promising outlook for the 1 3 Butanediol Market, with potential opportunities for stakeholders to capitalize on emerging trends and technologies.

Sustainability Focus

The emphasis on sustainable practices is reshaping the 1 3 Butanediol Market. Companies are increasingly seeking eco-friendly alternatives, leading to a rise in demand for bio-based products. This trend reflects a broader societal shift towards environmental responsibility.

Technological Advancements

Innovations in production methods are likely to enhance the efficiency of 1 3 butanediol manufacturing. These advancements may reduce costs and improve product quality, making it more appealing to various industries.

Regulatory Support

Government regulations promoting the use of biodegradable materials are influencing the 1 3 Butanediol Market. This support could drive investment in research and development, fostering new applications and expanding market reach.

1 3 Butanediol Market Drivers

Growth in Bio-based Chemical Production

The 1 3 Butanediol Market is poised for growth due to the increasing emphasis on bio-based chemicals. As industries strive to reduce their carbon footprint, the shift towards renewable resources is becoming more pronounced. 1 3 Butanediol, derived from bio-based feedstocks, aligns with this trend, offering a sustainable alternative to petroleum-derived chemicals. The market for bio-based chemicals is projected to grow significantly, with estimates suggesting a CAGR of around 10% over the next five years. This growth is likely to be driven by consumer preferences for environmentally friendly products, thereby enhancing the appeal of 1 3 Butanediol in various applications, including plastics and solvents. The alignment of 1 3 Butanediol with sustainability goals may provide a competitive edge in the chemical market.

Expansion in Pharmaceutical Applications

The pharmaceutical sector is increasingly recognizing the utility of 1 3 Butanediol, which serves as a versatile intermediate in drug formulation. Its role in enhancing solubility and bioavailability of active pharmaceutical ingredients (APIs) is particularly noteworthy. The 1 3 Butanediol Market is likely to benefit from the growing trend of developing complex drug formulations, as The 1 3 Butanediol is expected to reach USD 1.5 trillion by 2025. This expansion may lead to increased investments in research and development, further propelling the demand for 1 3 Butanediol as a critical component in innovative drug delivery systems. The potential for 1 3 Butanediol to improve therapeutic outcomes positions it as a key player in the evolving pharmaceutical landscape.

Increasing Use in Industrial Applications

The industrial applications of 1 3 Butanediol are expanding, particularly in the production of plastics and polymers. Its properties as a solvent and plasticizer make it an attractive choice for manufacturers looking to enhance product performance. The 1 3 Butanediol Market is likely to see increased demand as industries such as automotive and construction seek high-performance materials. The global market for industrial chemicals is projected to grow, with estimates indicating a potential increase of 4% annually. This growth may drive the adoption of 1 3 Butanediol in various industrial formulations, thereby solidifying its position as a key ingredient in the production of advanced materials. The versatility of 1 3 Butanediol in industrial applications suggests a promising outlook for the market.

Rising Demand in Cosmetics and Personal Care

The 1 3 Butanediol Market is experiencing a notable surge in demand from the cosmetics and personal care sector. This compound is increasingly utilized as a solvent and humectant in various formulations, enhancing product stability and moisture retention. The market for cosmetics is projected to grow at a compound annual growth rate (CAGR) of approximately 5% over the next few years, which could further bolster the demand for 1 3 Butanediol. As consumers become more conscious of ingredient safety and efficacy, manufacturers are likely to favor 1 3 Butanediol for its non-toxic profile, thereby driving its adoption in personal care products. This trend indicates a shift towards more sustainable and effective formulations, positioning the 1 3 Butanediol Market favorably for future growth.

Technological Innovations in Production Processes

Technological advancements in the production of 1 3 Butanediol are likely to play a crucial role in shaping the market landscape. Innovations aimed at improving yield and reducing production costs are emerging, which could enhance the economic viability of 1 3 Butanediol. The 1 3 Butanediol Market may benefit from these advancements, as they could lead to more efficient manufacturing processes and lower environmental impact. As companies invest in research and development to optimize production techniques, the potential for increased supply and reduced prices may arise. This could make 1 3 Butanediol more accessible to a wider range of industries, further driving its adoption across various applications. The interplay between technology and market dynamics suggests a transformative period for the 1 3 Butanediol Market.

Market Segment Insights

By Grade: Industrial Grade (Largest) vs. Pharmaceutical Grade (Fastest-Growing)

The 1 3 Butanediol market is characterized by two primary grades: Industrial Grade and Pharmaceutical Grade. The Industrial Grade accounts for a significant portion of the market share, driven by its extensive application in manufacturing and industrial processes. Meanwhile, the Pharmaceutical Grade, although smaller in share, is gaining immense traction due to its critical role in the production of pharmaceuticals and healthcare products. As the demand for high-purity solvents increases, the share of the Pharmaceutical Grade is expected to rise steadily.

Grade: Industrial (Dominant) vs. Pharmaceutical (Emerging)

Industrial Grade 1 3 Butanediol remains the dominant player within this market segment, primarily utilized in industrial applications such as plastics, solvents, and chemicals. Its versatility and cost-effectiveness make it a preferred choice among manufacturers. On the other hand, the Pharmaceutical Grade is an emerging segment, reflecting a rapid growth trajectory fueled by rising health-conscious consumer trends and stringent regulations on drug manufacturing. As pharmaceutical companies increasingly prioritize quality and purity, the demand for Pharmaceutical Grade is set to expand, marking a significant shift in market dynamics as it positions itself as a critical ingredient in high-value healthcare products.

By Application: 1,4-Butanediol (BDO) (Largest) vs. Polytetramethylene Ether Glycol (PTMEG) (Fastest-Growing)

The 1,3 Butanediol market exhibits a diverse application landscape, with 1,4-Butanediol (BDO) leading the segment in market share. It is extensively utilized in the production of plastics, elastomers, and solvents, showcasing a significant foothold in various industrial applications. In contrast, Polytetramethylene Ether Glycol (PTMEG) is emerging rapidly, primarily driven by its exceptional properties such as flexibility and resilience, which make it particularly appealing in high-performance applications such as spandex fibers and advanced coatings. The growth trajectory of the application segment in the 1,3 Butanediol market is influenced by increasing demand in various industries, including automotive, textiles, and consumer goods. The shift towards sustainable and bio-based alternatives also plays a critical role in propelling the growth of BDO, while PTMEG's rapid expansion is supported by its versatility and the rising trend of high-performance materials. These trends indicate a promising outlook for both dominant and emerging applications within this sector.

1,4-Butanediol (BDO): Dominant vs. Polytetramethylene Ether Glycol (PTMEG): Emerging

1,4-Butanediol (BDO) stands out as a dominant player in the 1,3 Butanediol market due to its extensive applications in producing various chemicals, including plastics, elastomers, and solvents. Its ability to act as a key intermediate in the synthesis of other industrial products solidifies its prominent market position. Meanwhile, Polytetramethylene Ether Glycol (PTMEG) is identified as an emerging segment, particularly valued for its exceptional elasticity and chemical resistance, making it a highly sought-after component in the production of high-performance materials such as spandex fibers and advanced coatings. As industries increasingly prioritize flexibility and durability, PTMEG is expected to witness accelerated growth, potentially challenging the long-established market dominance of BDO.

By End-User Industry: Packaging (Largest) vs. Automotive (Fastest-Growing)

In the 1,3 Butanediol Market, the distribution of market share among end-user industries reveals Packaging as the most significant segment. Representing the highest demand, packaging utilizes 1,3 Butanediol extensively in producing various materials, including flexible films and protective packaging. Following closely, the Automotive sector has gained notable attention for its increasing reliance on 1,3 Butanediol for manufacturing fluids and chemicals essential to vehicle production and maintenance, indicating a robust competitive landscape among these industries. The growth trends in the 1,3 Butanediol market for End-User Industries are driven by evolving consumer needs and applications. Packaging continues to dominate, driven by the growing e-commerce sector requiring sustainable and efficient packaging solutions. Meanwhile, the Automotive industry displays the fastest growth, spurred by innovations in electric and hybrid vehicle technologies demanding high-performance chemicals to enhance efficiency and reduce emissions. Both sectors are set to shape the future of the market significantly.

Packaging (Dominant) vs. Automotive (Emerging)

The Packaging sector stands out as the dominant player in the 1,3 Butanediol market, with its expansive use in creating various packaging materials that offer durability and performance. Its strength lies in the growing demand for sustainable and aesthetic packaging solutions across various industries, particularly in food, beverage, and consumer goods. The industry emphasizes innovation, focusing on eco-friendly alternatives that do not compromise quality. On the other hand, the Automotive sector presents itself as an emerging value in this market. Although smaller in size compared to packaging, it is rapidly gaining traction due to increased investments in electric vehicle production and the corresponding need for advanced materials that enhance vehicle performance while minimizing environmental impact. This creates a balanced dynamic where packaging retains dominance, but automotive growth signals a promising evolution in application.

By Distribution Channel: Direct Sales (Largest) vs. E-commerce (Fastest-Growing)

In the 1 3 Butanediol Market, the distribution channel segment reveals a diverse landscape where Direct Sales hold the largest market share. This traditional approach allows manufacturers to engage directly with customers, providing personalized service and fostering strong relationships. Distributors also play a crucial role, serving as intermediaries that enhance market penetration across various regions. E-commerce, while currently smaller in share, is rapidly gaining traction as more companies adapt to digital sales platforms, offering greater convenience and accessibility for buyers. The growth trends in the distribution channels highlight a significant shift towards e-commerce as companies recognize the changing preferences of consumers and the advantages of online sales. Factors driving this trend include increased internet penetration and the rise of digital marketing strategies, which allow companies to reach broader audiences. As a result, while Direct Sales maintains dominance, E-commerce is anticipated to proliferate, reflecting broader changes in the buying behavior of purchasers in the 1 3 Butanediol Market.

Direct Sales (Dominant) vs. E-commerce (Emerging)

Direct Sales in the 1 3 Butanediol Market is characterized by established relationships and personalized service, positioning it as the dominant distribution model. This method allows for direct communication and stronger customer loyalty among businesses involved. On the other hand, E-commerce presents an emerging distribution channel that leverages technology to penetrate the market rapidly. It attracts a tech-savvy audience by offering convenience, broader product selection, and competitive pricing. The flexibility of E-commerce allows companies to adjust to market demands more swiftly, catering to changing consumer preferences. As the industry evolves, the interplay between these two channels will define the landscape of the 1 3 Butanediol distribution strategies.

Get more detailed insights about 1 3 Butanediol Market

Regional Insights

Middle East and Africa : Resource-Rich and Emerging Markets

The Middle East and Africa region is gradually emerging in the 1 3 Butanediol market, holding about 5% of the global share. The growth is primarily driven by the availability of raw materials and increasing investments in the chemical sector. Countries like South Africa and the UAE are focusing on developing their chemical industries, supported by government initiatives aimed at diversifying their economies and reducing dependence on oil. The competitive landscape in this region is still developing, with a few key players beginning to establish their presence. Companies are exploring opportunities to invest in local production facilities and partnerships to enhance their market reach. As the region continues to develop its industrial capabilities, the demand for 1 3 Butanediol is expected to rise, driven by both local consumption and export opportunities.

1 3 Butanediol Market
 Regional Image

Key Players and Competitive Insights

Major players in 1 3 Butanediol Market are constantly striving to gain a competitive edge by investing in research and development, expanding their production capacities, and forming strategic partnerships. The 1 3 Butanediol Market industry is characterized by a high level of competition, with leading 1 3 Butanediol Market players employing various strategies to maintain and expand their market share. These strategies include product innovation, geographical expansion, and mergers and acquisitions. 1 3 Butanediol Market development is being driven by increasing demand from end-use industries such as the automotive, construction, and packaging sectors.

The growing adoption of sustainable and eco-friendly materials is also contributing to the market's growth.Leading 1 3 Butanediol Market players are focusing on developing innovative products that meet the evolving needs of customers. For example, BASF SE has introduced a new range of bio-based 1 3 butanediol products that are derived from renewable resources. These products offer improved sustainability and performance compared to traditional 1 3 butanediol products.A prominent competitor in the 1 3 Butanediol Market is Evonik Industries AG. The company has a strong presence and offers a wide range of 1 3 butanediol products.

Evonik Industries AG is also actively involved in research and development to improve the performance and sustainability of its products. The company has recently developed a new process for the production of 1 3 butanediol that is more efficient and environmentally friendly.

Key Companies in the 1 3 Butanediol Market market include

Industry Developments

The 1,3-butanediol market is anticipated to reach a valuation of USD 1,427.5 billion by 2032, expanding at a CAGR of 3.71% from 2024 to 2032. The increasing demand for 1,3-butanediol in the production of polybutylene terephthalate (PBT) and polybutylene succinate (PBS) is driving market growth. PBT is used in various applications, including automotive parts, electrical and electronic components, and consumer products. PBS is gaining popularity as a biodegradable alternative to conventional plastics, further contributing to market expansion. Technological advancements and the development of cost-effective production processes are expected to support market growth in the coming years.

Future Outlook

1 3 Butanediol Market Future Outlook

The 1 3 Butanediol Market is projected to grow at a 3.71% CAGR from 2024 to 2035, driven by increasing demand in pharmaceuticals, cosmetics, and biofuels.

New opportunities lie in:

  • Expansion into biodegradable plastics production facilities.
  • Development of customized formulations for personal care products.
  • Investment in renewable feedstock sourcing for sustainable production.

By 2035, the market is expected to solidify its position as a key player in various industrial applications.

Market Segmentation

1 3 Butanediol Market Grade Outlook

  • Industrial Grade
  • Pharmaceutical Grade

1 3 Butanediol Market Application Outlook

  • Polyester Butanediol Terephthalate (PBT)
  • Polybutylene Terephthalate (PBT)
  • Polytetramethylene Ether Glycol (PTMEG)
  • Gamma-Butyrolactone (GBL)
  • 1,4-Butanediol (BDO)

1 3 Butanediol Market End-User Industry Outlook

  • Automotive
  • Electrical Electronics
  • Packaging
  • Construction
  • Pharmaceuticals

1 3 Butanediol Market Distribution Channel Outlook

  • Direct Sales
  • Distributors
  • E-commerce

Report Scope

MARKET SIZE 20241105.62(USD Billion)
MARKET SIZE 20251146.66(USD Billion)
MARKET SIZE 20351650.92(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)3.71% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesGrowing demand for sustainable solvents and bio-based chemicals in the 1 3 Butanediol Market.
Key Market DynamicsRising demand for sustainable solvents drives innovation and competition in the 1 3 Butanediol market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

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FAQs

What is the projected market valuation of the 1 3 Butanediol Market by 2035?

The projected market valuation for the 1 3 Butanediol Market by 2035 is 1650.92 USD Billion.

What was the overall market valuation of the 1 3 Butanediol Market in 2024?

The overall market valuation of the 1 3 Butanediol Market in 2024 was 1105.62 USD Billion.

What is the expected CAGR for the 1 3 Butanediol Market during the forecast period 2025 - 2035?

The expected CAGR for the 1 3 Butanediol Market during the forecast period 2025 - 2035 is 3.71%.

Which companies are considered key players in the 1 3 Butanediol Market?

Key players in the 1 3 Butanediol Market include BASF SE, Mitsubishi Chemical Corporation, and Royal Dutch Shell plc.

What are the projected valuations for the Industrial Grade segment of the 1 3 Butanediol Market?

The projected valuations for the Industrial Grade segment range from 660.0 to 990.0 USD Billion.

How does the Pharmaceutical Grade segment perform in terms of market valuation?

The Pharmaceutical Grade segment is projected to have valuations between 445.62 and 660.92 USD Billion.

What is the market valuation range for the Automotive end-user industry in 2025?

The market valuation range for the Automotive end-user industry is expected to be between 200.0 and 300.0 USD Billion.

What are the projected valuations for the Packaging end-user industry segment?

The projected valuations for the Packaging end-user industry segment range from 250.0 to 400.0 USD Billion.

What is the expected market performance for the Polytetramethylene Ether Glycol application?

The expected market performance for the Polytetramethylene Ether Glycol application is projected to be between 250.0 and 370.0 USD Billion.

How do distribution channels impact the 1 3 Butanediol Market?

Distribution channels such as Direct Sales and E-commerce are projected to have valuations ranging from 400.0 to 600.0 USD Billion and 355.62 to 550.92 USD Billion, respectively.

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