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Butanediol Market

ID: MRFR/CnM/1711-HCR
105 Pages
Anshula Mandaokar
October 2025

1, 4-Butanediol Market Research Report Information By Technology (Reppe Process, Davy Process, Propylene Oxide Process & Others), By Application (Gamma-Butyrolactone (GBL), Polybutylene Terephthalate (PBT), Polyurethanes (PU), Tetrahydrofuran (THF)) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2035

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Butanediol Market Infographic
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Butanediol Market Summary

As per Market Research Future analysis, the Butanediol Market Size was estimated at 9.23 USD Billion in 2024. The Butanediol industry is projected to grow from 9.98 USD Billion in 2025 to 21.78 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 8.12% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The Butanediol Market is currently experiencing robust growth driven by sustainability and technological advancements.

  • North America remains the largest market for butanediol, driven by its extensive applications in various industries.
  • The Asia-Pacific region is emerging as the fastest-growing market, fueled by increasing industrialization and demand for diverse applications.
  • The solvent segment continues to dominate the market, while the plasticizer segment is witnessing rapid growth due to evolving consumer preferences.
  • Rising demand in the automotive sector and a growing focus on renewable chemicals are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 9.23 (USD Billion)
2035 Market Size 21.78 (USD Billion)
CAGR (2025 - 2035) 8.12%

Major Players

BASF SE (DE), Invista (US), Mitsubishi Chemical Corporation (JP), LyondellBasell Industries N.V. (NL), Eastman Chemical Company (US), Dairen Chemical Corporation (TW), SABIC (SA), Asahi Kasei Corporation (JP), Repsol S.A. (ES)

Butanediol Market Trends

The Butanediol Market is currently experiencing a dynamic phase characterized by evolving consumer preferences and technological advancements. The demand for butanediol, a versatile chemical used in various applications such as plastics, solvents, and pharmaceuticals, appears to be on an upward trajectory. This growth is likely driven by the increasing need for sustainable and eco-friendly products, as industries seek alternatives to traditional materials. Furthermore, the expansion of the automotive and textile sectors may contribute to the rising consumption of butanediol, as manufacturers incorporate this compound into their production processes to enhance product performance and reduce environmental impact. In addition, the Butanediol Market is witnessing a shift towards bio-based production methods. This trend suggests a growing awareness of environmental concerns and a desire to minimize reliance on fossil fuels. Companies are investing in research and development to explore innovative pathways for butanediol synthesis, which could lead to more sustainable practices in the future. As the market continues to evolve, stakeholders must remain vigilant to adapt to changing regulations and consumer demands, ensuring that they remain competitive in this rapidly transforming landscape.

Sustainability Initiatives

The Butanediol Market is increasingly influenced by sustainability initiatives. Companies are focusing on developing bio-based alternatives to traditional butanediol, reflecting a broader trend towards environmentally friendly practices. This shift may enhance brand reputation and appeal to eco-conscious consumers.

Technological Advancements

Technological advancements in production processes are reshaping the Butanediol Market. Innovations in synthesis methods could lead to more efficient and cost-effective production, potentially increasing supply and reducing prices. This trend may attract new entrants to the market.

Diverse Applications

The versatility of butanediol is driving its demand across various sectors. From automotive to textiles, the compound's applications are expanding, suggesting a robust growth potential. This diversification may provide stability to the market amid fluctuating economic conditions.

Butanediol Market Drivers

Market Growth Projections

The Global 1, 4-Butanediol Market Industry is projected to experience substantial growth, with forecasts indicating a market size of 21.8 USD Billion by 2035. This growth trajectory reflects the compound's versatility across various applications, including automotive, textiles, and pharmaceuticals. The anticipated compound annual growth rate of 7.6% from 2025 to 2035 suggests that the market will continue to expand as new applications are discovered and existing ones are optimized. This upward trend highlights the increasing importance of 1, 4-Butanediol Market in the global chemical market, positioning it as a critical component in multiple industries.

Expansion in Textile Applications

The Global 1, 4-Butanediol Market Industry is witnessing significant expansion within the textile sector. This compound is utilized in the production of fibers and fabrics, enhancing their strength and elasticity. As consumer preferences shift towards high-performance textiles, the demand for 1, 4-Butanediol Market is expected to grow. The market's potential is underscored by projections indicating a rise to 21.8 USD Billion by 2035, driven by innovations in textile manufacturing processes. This growth reflects a broader trend towards sustainable and functional materials, positioning 1, 4-Butanediol Market as a key player in the evolving textile landscape.

Rising Demand in Automotive Sector

The Global 1, 4-Butanediol Market Industry is experiencing heightened demand driven by the automotive sector. As manufacturers increasingly utilize 1, 4-Butanediol Market in the production of plastics, coatings, and adhesives, the market is projected to reach 9.73 USD Billion in 2024. This growth is attributed to the material's properties, which enhance durability and performance in automotive applications. Furthermore, the shift towards lightweight materials in vehicle design is likely to bolster the demand for 1, 4-Butanediol Market-based products, indicating a robust trajectory for the industry as it adapts to evolving automotive standards.

Growing Pharmaceutical Applications

The Global 1, 4-Butanediol Market Industry is experiencing growth due to its expanding applications in the pharmaceutical sector. 1, 4-Butanediol Market is utilized in the formulation of various drugs and as a solvent in pharmaceutical manufacturing. The increasing focus on healthcare and the development of new medications are likely to drive demand for this compound. As the industry evolves, the integration of 1, 4-Butanediol Market into pharmaceutical processes may enhance drug efficacy and stability. This trend indicates a promising future for the market, as it aligns with the broader healthcare industry's growth trajectory.

Increased Focus on Sustainable Solutions

The Global 1, 4-Butanediol Market Industry is increasingly influenced by the global emphasis on sustainability. As industries seek eco-friendly alternatives to traditional chemical processes, 1, 4-Butanediol Market emerges as a viable option due to its biodegradable properties. This shift is likely to attract investments and innovations aimed at developing sustainable production methods. The anticipated compound annual growth rate of 7.6% from 2025 to 2035 suggests that the market will expand as companies align their practices with environmental regulations and consumer expectations. This trend indicates a transformative phase for the industry, where sustainability becomes a core driver of growth.

Technological Advancements in Production

The Global 1, 4-Butanediol Market Industry is benefiting from technological advancements in production methods. Innovations in synthesis processes are enhancing efficiency and reducing costs, making 1, 4-Butanediol Market more accessible to various industries. These advancements are likely to lead to increased production capacities, thereby meeting the rising demand across sectors such as pharmaceuticals and cosmetics. As production becomes more streamlined, the market is expected to see a surge in applications, further solidifying its position in the global chemical landscape. This evolution suggests that the industry is poised for significant growth as it embraces modern manufacturing techniques.

Market Segment Insights

By Application: Solvent (Largest) vs. Plasticizer (Fastest-Growing)

In the Butanediol market, the application segment is predominantly driven by the solvent component. Solvents contribute significantly to the overall market share, allowing the market to leverage a wide range of industrial applications. Following solvents, plasticizers are emerging, showcasing rapid growth due to the increasing demand in the plastics industry. These applications play a crucial role in the versatility and usability of end products.

Solvent (Dominant) vs. Plasticizer (Emerging)

As the dominant application in the Butanediol market, solvents are widely utilized across various industrial sectors, including paints, coatings, and adhesives. Their ability to dissolve substances and improve fluidity makes them indispensable in the manufacturing process. On the other hand, plasticizers, deemed an emerging segment, are gaining prominence due to their critical role in enhancing the flexibility and durability of plastics. This increase in demand is fueled by the growing need for lightweight and high-performance materials in automotive and construction applications, driving innovations and further investments in this niche.

By End Use Industry: Automotive (Largest) vs. Textiles (Fastest-Growing)

The Butanediol market is significantly influenced by its end-use industries, with automotive leading the way as the largest sector. This segment benefits from increasing automotive production and technological advancements, driving demand for high-quality butanediol derivatives. Textiles follow closely, particularly as innovations in fiber technology lead to greater incorporation of butanediol in synthetic materials. The respective market shares reflect the diverse applications of butanediol across these sectors, with each one contributing to overall market dynamics. Looking at growth trends, the automotive sector is projected to maintain its dominance due to continuous developments in fuel-efficient and lightweight vehicles. Conversely, textiles are emerging rapidly, fueled by consumer preferences for sustainable and high-performance fabrics. This growth is also supported by collaborative advancements in manufacturing processes and raw material sourcing, signifying a shift towards more sustainable practices in the butanediol supply chain.

Automotive (Dominant) vs. Textiles (Emerging)

The automotive segment remains dominant in the Butanediol market, characterized by its extensive use in the production of anti-lock braking systems, fuel systems, and other automotive components. This sector is essential for advancing vehicle performance and safety, leveraging butanediol’s properties for enhanced durability and resistance. In contrast, the textiles segment is emerging, as it increasingly integrates butanediol for creating innovative fabrics like spandex and other high-performance textiles. This shift is propelled by rising consumer demand for eco-friendly materials and properties that enhance comfort and functionality in textile products. Both segments illustrate the versatility of butanediol, catering to distinct yet complementary needs within their respective industries.

By Type: 1,4-Butanediol (Largest) vs. Butanediol Derivatives (Fastest-Growing)

In the Butanediol market, 1,4-Butanediol is the largest segment, holding a significant share due to its diverse applications across industries such as plastics, solvents, and pharmaceuticals. This segment's robust demand stems from its essential role in the production of various polymers and chemical intermediates. Meanwhile, Butanediol Derivatives have emerged as a high-growth segment, driven by increasing applications in the manufacturing of performance materials and specialty chemicals.

1,4-Butanediol (Dominant) vs. Butanediol Blends (Emerging)

1,4-Butanediol stands out as the dominant type in the Butanediol market, primarily due to its extensive utility in producing plastics and elastomers, which are crucial for a wide range of consumer products. Its established market presence is complemented by a steady demand in sectors such as automotive and textiles. In contrast, Butanediol Blends are seen as an emerging segment, gradually gaining traction due to their enhanced properties and versatile applications, particularly in special formulations. The increasing focus on sustainable solutions and the development of advanced materials are propelling this segment's growth, positioning it as a promising area for future investment.

By Production Method: Reppe Process (Largest) vs. Fermentation (Fastest-Growing)

In the Butanediol market, the Reppe process holds the largest share among production methods, primarily due to its efficiency and cost-effectiveness in synthesizing 1,4-butanediol. The Davy process and Hydrogenation of Maleic Anhydride also contribute to market dynamics but do so at a smaller scale. Fermentation is emerging as a notable contender, driven by increasing demand for sustainable production techniques. The share distribution illustrates a clear delineation between established methods and innovative approaches that prioritize environmental considerations. Growth trends indicate that while the Reppe process remains dominant, the fastest-growing interest lies in fermentation. This surge is attributed to strict environmental regulations and a consumer shift towards bio-based products. As industries seek to minimize their carbon footprint, the appeal of fermentation as a viable alternative to traditional methods is gaining traction. This shift reflects broader trends toward sustainability, innovation, and cost efficiency within the Butanediol market.

Reppe Process (Dominant) vs. Fermentation (Emerging)

The Reppe process is the dominant method of Butanediol production, renowned for its high yield and cost-effectiveness. It utilizes acetylene and formaldehyde as starting materials, leading to efficient production of 1,4-butanediol. This process is favored in traditional manufacturing settings for its robust performance and established infrastructure. In contrast, fermentation is emerging as an innovative production approach, leveraging renewable resources like sugars to yield Butanediol. This method aligns with the growing consumer preference for eco-friendly products and sustainability. As technology evolves, fermentation is expected to expand, capturing market share and attracting investment, especially from companies aiming to adopt greener technologies.

Get more detailed insights about Butanediol Market

Regional Insights

North America : Innovation and Demand Growth

The North American butanediol market is poised for growth, driven by increasing demand in automotive, textiles, and pharmaceuticals. With a market size of $2.77 billion, the region is focusing on sustainable production methods and regulatory support for green chemistry initiatives. The rise in consumer awareness regarding eco-friendly products is further propelling market expansion. Leading countries like the US and Canada are home to major players such as BASF SE and Eastman Chemical Company, which are investing in R&D to enhance product offerings. The competitive landscape is characterized by strategic partnerships and mergers, aimed at increasing market share and improving supply chain efficiencies. The region's robust infrastructure supports the growth of the butanediol market, ensuring a steady supply to meet rising demand.

Europe : Sustainability and Innovation Focus

Europe's butanediol market, valued at $2.31 billion, is significantly influenced by stringent environmental regulations and a strong push for sustainable practices. The region is witnessing a shift towards bio-based butanediol, driven by consumer demand for greener alternatives. Regulatory frameworks are encouraging innovation, making it a key player in the global market. Germany and France are leading countries in this sector, with major companies like BASF SE and LyondellBasell Industries N.V. actively participating in sustainability initiatives. The competitive landscape is marked by collaborations between industry players and research institutions, fostering advancements in production technologies. This synergy is expected to enhance the region's market share and position in The Butanediol.

Asia-Pacific : Emerging Powerhouse in Production

Asia-Pacific is the largest market for butanediol, with a market size of $4.0 billion, driven by rapid industrialization and urbanization. The region's growth is fueled by increasing demand from sectors such as automotive, textiles, and consumer goods. Countries like China and Japan are leading the charge, supported by favorable government policies and investments in manufacturing capabilities. China, in particular, is a significant player, with companies like Dairen Chemical Corporation and Mitsubishi Chemical Corporation expanding their production capacities. The competitive landscape is characterized by a mix of local and international players, all vying for market share. The region's focus on innovation and technology adoption is expected to sustain its dominance in The Butanediol.

Middle East and Africa : Emerging Market Potential

The Middle East and Africa represent a nascent but growing market for butanediol, with a market size of $0.15 billion. The region is gradually recognizing the potential of butanediol in various applications, including plastics and solvents. Factors such as increasing industrial activities and investments in petrochemical infrastructure are expected to drive market growth. Countries like Saudi Arabia and South Africa are beginning to establish a foothold in the butanediol market, with local companies exploring production opportunities. The competitive landscape is still developing, with few key players currently operating. However, the region's rich natural resources and strategic location present significant opportunities for future growth in the butanediol sector.

Key Players and Competitive Insights

The Butanediol Market is currently characterized by a competitive landscape that is both dynamic and multifaceted. Key growth drivers include the increasing demand for butanediol in various applications such as plastics, textiles, and pharmaceuticals. Major players like BASF SE (Germany), Invista (US), and Mitsubishi Chemical Corporation (Japan) are strategically positioned to leverage their extensive R&D capabilities and global supply chains. These companies are focusing on innovation and sustainability, which are becoming critical differentiators in the market. Their collective strategies not only enhance their operational efficiencies but also shape the competitive environment by setting higher standards for product quality and environmental responsibility.

In terms of business tactics, companies are increasingly localizing manufacturing to reduce lead times and optimize supply chains. The market structure appears moderately fragmented, with a mix of large multinational corporations and smaller regional players. This fragmentation allows for a diverse range of products and innovations, although the influence of key players remains substantial. The competitive dynamics are further complicated by the need for compliance with stringent environmental regulations, which necessitates continuous investment in sustainable practices.

In November 2025, BASF SE (Germany) announced the launch of a new bio-based butanediol product line aimed at reducing carbon emissions by 30% compared to traditional methods. This strategic move underscores BASF's commitment to sustainability and positions the company as a leader in eco-friendly solutions within the market. The introduction of this product line is likely to attract environmentally conscious consumers and businesses, thereby enhancing BASF's market share.

In October 2025, Invista (US) revealed plans to expand its production capacity for butanediol by 15% at its facility in Texas. This expansion is expected to meet the growing demand from the automotive and textile industries. By increasing its production capabilities, Invista aims to solidify its position as a key supplier in the North American market, which is experiencing a resurgence in manufacturing activities. This strategic decision reflects a proactive approach to capitalize on emerging market opportunities.

In September 2025, Mitsubishi Chemical Corporation (Japan) entered into a strategic partnership with a leading technology firm to develop AI-driven solutions for optimizing butanediol production processes. This collaboration is anticipated to enhance operational efficiencies and reduce costs, thereby improving profit margins. The integration of AI technology into production processes signifies a shift towards digital transformation in the industry, which could redefine competitive advantages in the coming years.

As of December 2025, current competitive trends indicate a strong emphasis on digitalization, sustainability, and technological integration. Strategic alliances are increasingly shaping the landscape, allowing companies to pool resources and expertise to drive innovation. The competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology, and supply chain reliability. This shift suggests that companies that prioritize sustainable practices and technological advancements will be better positioned to thrive in the Butanediol Market.

Key Companies in the Butanediol Market market include

Industry Developments

  • Q2 2024: BASF starts up new 100,000 metric ton 1,4-Butanediol Market plant in China BASF announced the successful start-up of its new 1,4-Butanediol Market (BDO) production facility in Zhanjiang, China, with an annual capacity of 100,000 metric tons, aimed at serving the growing demand in Asia-Pacific.
  • Q1 2024: Genomatica and Cargill expand partnership to scale bio-based 1,4-Butanediol Market production Genomatica and Cargill announced an expanded collaboration to increase commercial-scale production of bio-based 1,4-Butanediol Market, targeting sustainable materials markets in North America and Europe.
  • Q2 2024: Sipchem completes upgrade of 1,4-Butanediol Market plant in Jubail Saudi International Petrochemical Company (Sipchem) completed a major upgrade of its Jubail 1,4-Butanediol Market facility, increasing capacity and improving energy efficiency to meet rising regional demand.
  • Q3 2024: Mitsubishi Chemical Group announces new 1,4-Butanediol Market plant in Singapore Mitsubishi Chemical Group revealed plans to construct a new 1,4-Butanediol Market production facility in Singapore, with operations expected to begin in late 2025 to strengthen its supply chain in Southeast Asia.
  • Q2 2024: LyondellBasell signs long-term supply agreement for renewable 1,4-Butanediol Market LyondellBasell entered into a long-term supply agreement with a European biotech firm to source renewable 1,4-Butanediol Market for use in sustainable plastics and polyurethanes.
  • Q1 2025: Evonik launches new grade of 1,4-Butanediol Market for pharmaceutical applications Evonik introduced a new high-purity grade of 1,4-Butanediol Market specifically designed for pharmaceutical and medical device manufacturing, expanding its specialty chemicals portfolio.
  • Q2 2025: Sinopec commissions 120,000 ton/year 1,4-Butanediol Market plant in Chongqing Sinopec announced the commissioning of a new 120,000 ton/year 1,4-Butanediol Market plant in Chongqing, China, to support the growing domestic demand for engineering plastics and spandex.
  • Q3 2024: Ashland expands 1,4-Butanediol Market distribution partnership in Latin America Ashland Inc. announced an expanded distribution agreement with a major Latin American chemical distributor to increase market reach for its 1,4-Butanediol Market products in the region.
  • Q2 2024: Genomatica raises $118 million to accelerate bio-based 1,4-Butanediol Market commercialization Genomatica secured $118 million in new funding to scale up its bio-based 1,4-Butanediol Market technology and expand production capacity for sustainable chemicals.
  • Q1 2025: BASF appoints new head of global 1,4-Butanediol Market business unit BASF announced the appointment of Dr. Anna Müller as the new global head of its 1,4-Butanediol Market business unit, effective March 2025.
  • Q2 2025: LyondellBasell acquires minority stake in European bio-BDO startup LyondellBasell acquired a minority equity stake in a European startup specializing in bio-based 1,4-Butanediol Market, aiming to accelerate the commercialization of renewable BDO technologies.
  • Q3 2025: Evonik signs multi-year supply contract for 1,4-Butanediol Market with major automotive OEM Evonik Industries AG secured a multi-year supply contract to provide 1,4-Butanediol Market to a leading global automotive manufacturer for use in engineering plastics and coatings.

Future Outlook

Butanediol Market Future Outlook

The Butanediol Market is projected to grow at an 8.12% CAGR from 2024 to 2035, driven by increasing demand in automotive and textile applications.

New opportunities lie in:

  • Expansion into bio-based butanediol production facilities.
  • Development of high-performance polymers for automotive applications.
  • Strategic partnerships with textile manufacturers for sustainable solutions.

By 2035, the Butanediol Market is expected to achieve robust growth and diversification.

Market Segmentation

Butanediol Market Type Outlook

  • 1,4-Butanediol
  • 2,3-Butanediol
  • Butanediol Derivatives
  • Butanediol Blends

Butanediol Market Application Outlook

  • Solvent
  • Plasticizer
  • Intermediate
  • Fuel Additive
  • Chemical Synthesis

Butanediol Market End Use Industry Outlook

  • Automotive
  • Textiles
  • Pharmaceuticals
  • Cosmetics
  • Electronics

Butanediol Market Production Method Outlook

  • Reppe Process
  • Davy Process
  • Hydrogenation of Maleic Anhydride
  • Fermentation

Report Scope

MARKET SIZE 20249.23(USD Billion)
MARKET SIZE 20259.98(USD Billion)
MARKET SIZE 203521.78(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)8.12% (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 ProfiledBASF SE (DE), Invista (US), Mitsubishi Chemical Corporation (JP), LyondellBasell Industries N.V. (NL), Eastman Chemical Company (US), Dairen Chemical Corporation (TW), SABIC (SA), Asahi Kasei Corporation (JP), Repsol S.A. (ES)
Segments CoveredApplication, End Use Industry, Type, Production Method
Key Market OpportunitiesGrowing demand for sustainable materials drives innovation in the Butanediol Market.
Key Market DynamicsRising demand for sustainable materials drives innovation and competition in the Butanediol market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Anshula Mandaokar
Team Lead - Research

Anshula Mandaokar holds an academic degree in Chemical Engineering and has been contributing to the field for more than 5 years. She has expertise in Market Research and Business Consulting and serves as a Team Lead for a reputed Market Research firm under the Chemicals and Materials domain spectrum. She has worked on multiple projects, generating explicit results in a quick turnaround time. Her understanding of data interpretation justifies her role as a leader.

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FAQs

How much is the 1, 4-Butanediol market?

The 1, 4-Butanediol Market size was valued at USD 9.73 Billion in 2024.

What is the growth rate of the 1, 4-Butanediol market?

Butanediol Market is expected to grow with a CAGR of 8.12% in the period 2025-2035

Which region held the largest market share in the 1, 4-Butanediol market?

Asia Pacific had the largest share of the 1, 4-Butanediol Market.

Who are the key players in the 1, 4-Butanediol market?

The key players in the market are Zochem (US), SILOX SA (Belgium), American Chemet Corporation (US), H. Chemicals (Canada), Rubamin (India), Grillo Zinkoxid GmbH (Germany), Pan-Continental Chemical Co., Ltd (Taiwan), Mario Pilato Blat, and SA (Spain)

Which Technology led the 1, 4-Butanediol market?

Davy’s process categories dominated the market in 2024.

Which Application led the 1, 4-Butanediol market?

Tetrahydrofuran had the largest share in the global market for 1, 4-Butanediol.

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