Global 1,3-Butanediol (CAS 107-88-0) Market By Type (Chemical Synthesis, Fermentation), By Application (Cosmetics, Pharmaceuticals, Food And Beverage, Industrial Solvents, Others), By End-User Industry (Personal Care, Healthcare, Food And Beverage, Chemical, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2033

Report Overview

The Global 1,3-Butanediol (CAS 107-88-0) Market size is expected to be worth around USD 927.9 Mn by 2034, from USD 480.6 Mn in 2024, growing at a CAGR of 6.8% during the forecast period from 2025 to 2034.

The global 1,3-Butanediol (CAS 107-88-0) market is experiencing steady growth, driven by its wide-ranging applications in cosmetics, pharmaceuticals, industrial chemicals, and food flavoring. 1,3-Butanediol is a colorless, water-soluble, and viscous organic compound primarily used as a humectant, solvent, and intermediate in the production of various chemicals.

The 1,3-Butanediol highlights its growing importance in multiple sectors, with the cosmetics and personal care industry being the largest consumer. The compound is widely used in skincare and haircare formulations as an effective moisturizing agent and solvent. The pharmaceutical sector is another major consumer, utilizing 1,3-Butanediol in drug formulations and as a precursor in active pharmaceutical ingredient (API) synthesis.

Several factors are driving the growth of the 1,3-Butanediol market, including the increasing demand for bio-based and sustainable ingredients in personal care and industrial applications. Consumers are shifting toward natural and eco-friendly products, pushing manufacturers to adopt bio-based production methods for 1,3-Butanediol.

This trend is further supported by regulatory bodies such as the U.S. Food and Drug Administration (FDA) and the European Chemicals Agency (ECHA), which emphasize the safety and sustainability of ingredients used in consumer products.

Future growth opportunities in the 1,3-Butanediol market lie in expanding its applications across emerging industries such as biodegradable plastics, advanced coatings, and functional foods. The rise of biodegradable and sustainable packaging solutions, driven by environmental regulations and consumer preferences, could further boost demand for 1,3-Butanediol-based polymers and coatings.

Key Takeaways

• 1,3-Butanediol (CAS 107-88-0) Market size is expected to be worth around USD 927.9 Mn by 2034, from USD 480.6 Mn in 2024, growing at a CAGR of 6.8%.
• Chemical Synthesis held a dominant market position in the 1,3-Butanediol (CAS 107-88-0) market, capturing more than a 69.2% share.
• Cosmetics segment held a dominant market position in the 1,3-Butanediol (CAS 107-88-0) market, capturing more than a 46.4% share.
• Personal Care industry held a dominant market position in the 1,3-Butanediol (CAS 107-88-0) market, capturing more than a 45.5% share.
• Asia Pacific (APAC) region dominates the market, holding a commanding 42.1% share, which translates to approximately USD 202.3 million in revenue.

By Type

In 2024, Chemical Synthesis held a dominant market position in the 1,3-Butanediol (CAS 107-88-0) market, capturing more than a 69.2% share. This method’s popularity stems from its established industrial applications and the robustness of the chemical processes involved. Chemical synthesis of 1,3-Butanediol is highly favored in large-scale production settings due to its cost-effectiveness and high yield outcomes, essential for meeting the high demands of industries such as plastics, cosmetics, and pharmaceuticals.

On the other hand, the Fermentation method, although it held a smaller share in 2024, is witnessing growing interest due to its environmental benefits and the shifting preferences towards sustainable manufacturing practices. Fermentation is increasingly regarded as an eco-friendly alternative to chemical synthesis because it uses renewable resources and produces fewer byproducts. As more companies aim to reduce their environmental footprint, the adoption of fermentation techniques for producing 1,3-Butanediol is expected to rise.

By Application

By End-User Industry

In 2024, the Personal Care industry held a dominant market position in the 1,3-Butanediol (CAS 107-88-0) market, capturing more than a 45.5% share. This leading position is primarily due to the compound’s superior hydrating and texturizing properties, which are highly valued in the formulation of skincare and haircare products. Personal care manufacturers leverage 1,3-Butanediol to create products that offer enhanced moisture retention, improved skin absorption, and overall better consumer sensory experiences.

The Healthcare sector also significantly utilizes 1,3-Butanediol, particularly in medical formulations where its solvent properties enhance the delivery and effectiveness of pharmaceutical products. Its application extends to creating more stable and effective formulations for topical, injectable, and oral drugs, underpinning critical healthcare treatments and innovations.

In the Food & Beverage industry, 1,3-Butanediol serves as a flavor enhancer and food additive, helping manufacturers improve the taste profiles and preservation properties of various food products. While this segment represents a smaller portion of the market, the ongoing innovations in food technology and safety are likely to enhance its growth prospects.

The Chemical industry, another key end-user, employs 1,3-Butanediol in the production of industrial solvents and chemicals. Its attributes such as low toxicity and high solvency make it a preferred choice for environmentally safer and more effective chemical applications, ranging from paint formulations to cleaners.

Key Market Segments

By Type

• Chemical Synthesis
• Fermentation

By Application

• Cosmetics
• Pharmaceuticals
• Food & Beverage
• Industrial Solvents
• Others

By End-User Industry

• Personal Care
• Healthcare
• Food & Beverage
• Chemical
• Others

Drivers

Growing Demand in Eco-Friendly Personal Care Products

A significant driving factor for the 1,3-Butanediol (CAS 107-88-0) market is the escalating demand within the eco-friendly personal care products sector. Consumers are increasingly favoring green and sustainable products due to growing environmental awareness and concerns about the impact of chemicals on health and the planet. As a key ingredient in skincare and haircare formulations, 1,3-Butanediol is prized for its effectiveness in enhancing product texture and moisture retention, making it ideal for eco-friendly product lines.

The trend towards natural and organic personal care products is not just a consumer fad but is becoming entrenched due to the support of government policies and regulations encouraging sustainable practices in the beauty industry. For instance, the European Union’s regulations on cosmetic products stress reducing environmental impact, which encourages manufacturers to reformulate products with bio-based and less environmentally damaging substances.

This demand is further bolstered by technological advancements in green chemistry, which are making the extraction and processing of bio-based chemicals more efficient and cost-effective. These advancements ensure that the production of 1,3-Butanediol can meet the rising market demand without compromising on environmental values.

In summary, the significant shift towards eco-friendly personal care products represents a major growth opportunity for the 1,3-Butanediol market. This shift is not only a reflection of changing consumer preferences but also aligns with global efforts to promote sustainability in product manufacturing. As more consumers opt for products that promise benefits for both personal health and the environment, the demand for ingredients like 1,3-Butanediol that can deliver these benefits is expected to rise, driving substantial growth in this market sector.

Restraints

Regulatory and Supply Chain Challenges in the 1,3-Butanediol Market

A major restraining factor for the growth of the 1,3-Butanediol (CAS 107-88-0) market is the stringent regulatory environment and the complexity of supply chain management. These challenges are particularly pronounced in the chemical industry, where compliance with global and regional regulations can significantly impact production costs and market accessibility.

Regulatory pressures come from various governmental agencies that enforce strict guidelines on the production, handling, and disposal of chemical substances. For instance, the European Chemicals Agency (ECHA) under REACH (Registration, Evaluation, Authorisation, and Restriction of Chemicals) imposes rigorous assessment and registration processes for chemicals sold in the EU. Such regulations aim to ensure that chemicals are safe for human health and the environment but can pose significant compliance costs and operational hurdles for manufacturers of 1,3-Butanediol.

In addition to regulatory compliance, supply chain issues also pose significant challenges. The raw materials required for the production of 1,3-Butanediol, such as crude oil derivatives, are often subject to price volatility and geopolitical tensions that can disrupt supply chains. For example, fluctuations in crude oil prices directly impact the cost of raw materials, affecting the overall profitability and economic feasibility of 1,3-Butanediol production.

Furthermore, the global nature of the chemical market means that supply chain disruptions, such as those caused by the COVID-19 pandemic, can have far-reaching effects. The pandemic demonstrated how quickly and severely supply chains could be disrupted, leading to shortages and delays that ripple across industries. Such disruptions highlight the vulnerability of the 1,3-Butanediol market to external shocks and underscore the need for robust supply chain management practices.

These combined factors of regulatory burdens and supply chain complexities not only increase the operational costs but also limit the agility of 1,3-Butanediol producers to respond to market demands quickly. This can restrain market growth as manufacturers may be hesitant to expand production capacity amid such uncertainties.

Opportunity

Expansion into Bio-based Product Lines as a Growth Opportunity for 1,3-Butanediol

As environmental sustainability becomes a more pressing global issue, industries across the board are shifting towards greener alternatives. For 1,3-Butanediol, this means capitalizing on its potential in bio-based formulations, which are gaining traction due to their reduced environmental impact compared to petroleum-based counterparts.

The increasing implementation of government regulations that favor environmentally friendly practices offers a strong incentive for this shift. For example, initiatives like the European Union’s Green Deal aim to promote sustainability across all sectors, encouraging the development and use of bio-based chemicals. These regulatory frameworks are not just limited to Europe; similar policies are being adopted globally, reflecting a worldwide push towards sustainability.

Bio-based 1,3-Butanediol is derived from renewable resources such as sugars, which can significantly lower the carbon footprint associated with its production. This not only aligns with the growing consumer demand for sustainable products but also opens new market opportunities in industries such as cosmetics, pharmaceuticals, and food and beverage, where consumers are increasingly aware of the ingredients used in products they purchase.

Moreover, advancements in biotechnology are making the production of bio-based 1,3-Butanediol more cost-effective. Improved fermentation processes and genetically engineered microorganisms are enhancing yields and reducing production times, making bio-based options increasingly viable from an economic standpoint.

The shift towards bio-based 1,3-Butanediol also offers competitive advantages in terms of market differentiation and potential for premium pricing strategies. Products that incorporate sustainable ingredients are often able to command higher prices in the market, appealing to a segment of consumers willing to pay extra for environmentally friendly products.

Trends

Rising Demand for Natural and Clean Label Products in the Food Industry

A significant and emerging trend in the 1,3-Butanediol (CAS 107-88-0) market is the rising consumer demand for natural and clean label products within the food industry. This trend is largely driven by a growing consumer awareness of health and wellness, which has shifted preferences towards food products that are free from synthetic additives and chemicals. 1,3-Butanediol, primarily used as a flavoring agent and food additive, is poised to benefit from this shift as food manufacturers look for natural alternatives to meet consumer expectations.

Governments and regulatory bodies are supporting this trend through initiatives and regulations that promote food safety and transparency. For instance, the U.S. Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA) are increasingly stringent about food labeling and the use of artificial ingredients, which encourages food manufacturers to reformulate their products. These regulatory pressures align with consumer demands for ingredient transparency and cleaner labels, which can influence the broader adoption of naturally derived 1,3-Butanediol.

Moreover, the push for clean label products is not just a niche market trend but is becoming mainstream as major food corporations commit to reformulating their products with fewer artificial ingredients. This movement is bolstered by marketing campaigns that highlight the benefits of natural ingredients and by the positive reception from consumers who are more health-conscious than ever before.

Additionally, advancements in extraction and processing technologies have made it easier and more cost-effective for manufacturers to incorporate natural ingredients like 1,3-Butanediol into their food products. These technological improvements help in maintaining the sensory attributes and shelf life of food products, which are crucial factors for consumer satisfaction.

Regional Analysis

In 2024, the Asia Pacific (APAC) region dominates the market, holding a commanding 42.1% share, which translates to approximately USD 202.3 million in revenue. This dominance is driven by robust manufacturing sectors, especially in countries like China, India, and South Korea, where there is a high demand for chemical intermediates used in industrial and personal care applications.

In North America, the market is characterized by advanced technological adoption and stringent regulatory standards, which drive the demand for high-quality and sustainable chemical products. North American companies are at the forefront of developing bio-based alternatives, aligning with the region’s push towards reducing environmental impact and promoting sustainability in chemical manufacturing.

Europe follows a similar pattern with strong emphasis on regulatory compliance, environmental sustainability, and innovation in chemical processes. European manufacturers focus on improving product formulations in the cosmetics and pharmaceutical sectors, ensuring high performance while adhering to strict EU regulations.

The Middle East & Africa and Latin America, while smaller in market share, are emerging as potential growth areas. These regions are experiencing gradual industrial growth and urbanization, with increasing investments in local manufacturing capabilities. The demand in these areas is driven by the expanding economic activities and the gradual shift towards higher-value chemical products for various industrial applications.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The 1,3-Butanediol (CAS 107-88-0) market is supported by a diverse array of key players that drive innovation and competitiveness across the global landscape. Prominent companies such as BASF SE, Eastman Chemical Company, and Evonik Industries AG represent significant pillars in the market due to their expansive geographic presence and broad product portfolios.

These companies are recognized for their continued investment in research and development, focusing on sustainable and advanced chemical solutions to meet the evolving demands of industries ranging from cosmetics to industrial solvents. BASF SE, for example, leverages its global network to enhance the production capabilities of high-quality 1,3-Butanediol, ensuring supply stability and innovation in applications.

In addition to traditional chemical giants, specialized firms like Genomatica, Inc., and Reverdia (a joint venture between DSM and Roquette) are crucial in driving the shift towards bio-based 1,3-Butanediol, aligning with the increasing market demand for sustainable products. These companies focus on leveraging biotechnological advancements to produce 1,3-Butanediol from renewable resources, reducing environmental impact and offering more sustainable alternatives to conventional petrochemical-derived products.

Their efforts are complemented by regional players such as Shandong Yuanli Science and Technology Co., Ltd. in Asia and Sipchem in the Middle East, which are expanding their production capacities to cater to regional demands and exploring new applications and markets.

Companies like LyondellBasell Industries N.V. and Mitsubishi Chemical Corporation underline the chemical industry’s commitment to innovation in both product development and process efficiency. With a strong focus on operational excellence and market expansion, these companies are pivotal in maintaining the supply chain’s resilience and efficiency, ensuring the 1,3-Butanediol market’s robust growth trajectory across various applications and regions.

Top Key Players

• Ashland Global Holdings Inc.
• BASF SE
• DAICEL
• Daicel Corporation
• Eastman Chemical Company
• Evonik Industries AG
• Genomatica, Inc.
• Godavari Biorefineries Ltd.
• KH Neochem Co., Ltd.
• LyondellBasell Industries N.V.
• Merck KGaA
• Mitsubishi Chemical Corporation
• Novamont S.p.A.
• OXEA
• Perstorp Holding AB
• Reverdia
• Shandong Yuanli Science and Technology Co., Ltd.
• Sipchem (Saudi International Petrochemical Company)
• Solvay S.A.
• Toray Industries, Inc.

Recent Developments

In 2024, Ashland Global Holdings Inc. continues to play a significant role in the 1,3-Butanediol (CAS 107-88-0) market, leveraging its expertise in specialty chemicals to cater to a diverse range of applications.

In 2024, BASF SE continues to solidify its position as a leader in the 1,3-Butanediol (CAS 107-88-0) market, building on its reputation for high-quality chemical production and innovation.

Report Scope