Global Bio-based 1,3-Butanediol Market By Source (Sugarcane, Corn, Glucose, Others), By Application (Cosmetics, Personal Care, Pharmaceuticals, Industrial, Others), By Distribution Channel (Direct Sales, Distributors and Wholesalers, Online Platforms, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034
- Published date: Feb 2025
- Report ID: 138764
- Number of Pages: 214
- Format:
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Report Overview
The Global Bio-based 1,3-Butanediol Market size is expected to be worth around USD 712.7 Mn by 2034, from USD 295.6 Mn in 2024, growing at a CAGR of 9.2% during the forecast period from 2025 to 2034.
The bio-based 1,3-Butanediol (bio-BDO) market is poised for steady growth, driven by rising demand for sustainable and eco-friendly alternatives to traditional petrochemical-based products. Produced from renewable sources like plant sugars and glycerol, bio-BDO offers significant environmental benefits and helps reduce reliance on fossil fuels.
Key drivers of growth in the bio-based 1,3-Butanediol (bio-BDO) market include the increasing demand for bio-based chemicals across various sectors such as personal care, automotive, textiles, and plastics. The rise in demand for biodegradable plastics, particularly bioplastics like polybutylene succinate (PBS) and polyurethane foams, is boosting bio-BDO adoption.
Growing Investments in research and development (R&D) are accelerating the growth of the bio-based 1,3-butanediol (bio-BDO) market. Companies are focusing on developing cost-effective and efficient production methods, such as advanced fermentation technologies and engineered microbes, to lower production costs.
Governments worldwide are setting stringent regulations to reduce carbon emissions and promote sustainable production processes. For example, the European Union has implemented policies that mandate the use of renewable raw materials in chemical manufacturing, providing a favorable environment for bio-based alternatives like 1,3-butanediol.
Key Takeaways
- Bio-based 1,3-Butanediol Market size is expected to be worth around USD 712.7 Mn by 2034, from USD 295.6 Mn in 2024, growing at a CAGR of 9.2%.
- Sugarcane held a dominant market position, capturing more than a 53.2% share of the bio-based 1,3-butanediol market.
- Cosmetics held a dominant market position, capturing more than a 44.2% share of the bio-based 1,3-butanediol market.
- Direct Sales held a dominant market position, capturing more than a 49.5% share of the bio-based 1,3-butanediol market.
- Asia Pacific (APAC) region is poised to dominate the bio-based 1,3-butanediol market, holding a significant share of 43.8%, equating to $127.7 million.
By Source
In 2024, Sugarcane held a dominant market position, capturing more than a 53.2% share of the bio-based 1,3-butanediol market. Sugarcane has long been a popular source for bio-based chemicals due to its high sugar content, which is ideal for fermentation processes used to produce 1,3-butanediol.
Corn followed as another significant source, holding a substantial market share in 2024. The corn-based 1,3-butanediol market benefitted from the widespread availability of corn, particularly in the U.S. and other agricultural economies. Corn’s high starch content makes it an ideal candidate for the fermentation process needed to produce bio-based 1,3-butanediol.
Glucose, often derived from starches like corn or wheat, also plays a crucial role in the bio-based 1,3-butanediol market. In 2024, glucose represented a smaller but still notable share of the market. Its flexibility as a source, combined with advancements in fermentation technology, has increased its appeal.
By Application
In 2024, Cosmetics held a dominant market position, capturing more than a 44.2% share of the bio-based 1,3-butanediol market. The increasing demand for natural, sustainable ingredients in cosmetic formulations has significantly contributed to this growth. 1,3-butanediol, with its moisturizing and skin-conditioning properties, is an ideal ingredient for a wide range of cosmetics, including skin creams, lotions, and serums.
Personal care products, closely linked to cosmetics, also represent a large portion of the market. In 2024, the personal care segment saw steady demand for bio-based 1,3-butanediol, driven by its use in hair care products, deodorants, and other personal hygiene goods. While not as dominant as the cosmetics sector, personal care applications are increasingly adopting bio-based ingredients as part of broader sustainability initiatives.
In the pharmaceuticals sector, bio-based 1,3-butanediol is used primarily as a solvent and stabilizer in drug formulations. In 2024, the pharmaceutical segment accounted for a smaller share of the market compared to cosmetics and personal care but is still significant due to the growing demand for more sustainable pharmaceutical ingredients.
The industrial application of bio-based 1,3-butanediol is diverse, including its use in the production of plastics, resins, and solvents. In 2024, this sector made up a notable share of the market. Industrial applications benefit from the versatility and renewable nature of bio-based 1,3-butanediol, which is being increasingly used as an alternative to petrochemical-derived chemicals.
By Distribution Channel
In 2024, Direct Sales held a dominant market position, capturing more than a 49.5% share of the bio-based 1,3-butanediol market. Direct sales have remained the preferred method for many manufacturers and suppliers due to the personalized service and control over pricing and distribution. For large-scale producers of bio-based 1,3-butanediol, direct sales provide a direct link with customers, allowing for efficient order fulfillment and strong relationships with key industry players.
Distributors and wholesalers also play a crucial role in the bio-based 1,3-butanediol market. In 2024, this segment held a significant portion of the market, though not as large as direct sales. Distributors and wholesalers offer bio-based 1,3-butanediol to a wider range of smaller businesses that may not have the same purchasing volume as large manufacturers. They act as intermediaries, facilitating the movement of products across various regions and industries.
Online platforms, though still an emerging channel for bio-based 1,3-butanediol, have been gaining attention in recent years. In 2024, online sales accounted for a growing share of the market as more companies and buyers move toward e-commerce for convenience, transparency, and easier access to pricing information. Online platforms allow smaller businesses and start-ups in industries such as cosmetics and personal care to access bio-based 1,3-butanediol more easily.
Key Market Segments
By Source
- Sugarcane
- Corn
- Glucose
- Others
By Application
- Cosmetics
- Personal Care
- Pharmaceuticals
- Industrial
- Others
By Distribution Channel
- Direct Sales
- Distributors & Wholesalers
- Online Platforms
- Others
Drivers
Government Initiatives and Sustainability Goals
One of the major driving factors behind the growth of the bio-based 1,3-butanediol market is the increasing push for sustainability, fueled by government initiatives and global environmental goals. As governments around the world set ambitious targets to reduce carbon emissions and promote renewable resources, the demand for bio-based chemicals like 1,3-butanediol is rapidly increasing. Bio-based 1,3-butanediol offers a promising alternative to petroleum-derived chemicals, which have significant environmental and health impacts. Governments, environmental organizations, and industries are all aligning toward a cleaner, more sustainable future, and bio-based 1,3-butanediol fits right into this picture.
One of the standout aspects of bio-based 1,3-butanediol is its potential to significantly reduce carbon footprints. According to the Environmental Protection Agency (EPA), the production of bio-based chemicals results in a much lower carbon emission rate compared to conventional petroleum-based counterparts. For instance, a study by the National Renewable Energy Laboratory (NREL) found that using bio-based feedstocks for the production of 1,3-butanediol can cut carbon emissions by up to 50% when compared to traditional methods. This reduction is a crucial selling point for industries aiming to meet sustainability targets set by international agreements such as the Paris Climate Agreement.
In line with these initiatives, major corporations and industries are also stepping up to meet the growing demand for sustainable chemicals. For instance, Cargill, one of the leading agricultural companies, has been heavily involved in the bio-based 1,3-butanediol market, investing in bio-based chemical production technologies. They have partnered with various organizations to enhance the production of bio-based chemicals and have committed to sustainability goals, such as achieving zero deforestation by 2030. This aligns with the global trend where companies are facing increasing pressure from governments, investors, and consumers to adopt sustainable practices.
The food and beverage industry, which is one of the largest sectors globally, has also been instrumental in pushing the demand for bio-based chemicals. According to the Food and Agriculture Organization (FAO), agriculture is responsible for about 25% of global greenhouse gas emissions, and the shift to bio-based chemicals is seen as a way to reduce emissions from this sector. By moving toward bio-based alternatives like 1,3-butanediol, food-related industries can significantly lower their environmental impact, especially in packaging and processing.
Restraints
High Production Costs and Economic Viability
One of the significant restraining factors for the growth of the bio-based 1,3-butanediol market is the high production costs associated with its manufacture. While bio-based alternatives to petrochemical products are gaining traction for their environmental benefits, they still face economic challenges, particularly in terms of cost competitiveness. Producing bio-based 1,3-butanediol often involves complex fermentation processes that require substantial investment in infrastructure, technology, and raw materials.
In fact, a report from the National Renewable Energy Laboratory (NREL) highlighted that the production cost of bio-based 1,3-butanediol is still 30% to 50% higher than its fossil-based counterpart. This price gap is due to several factors, including the cost of biomass feedstocks (like sugarcane, corn, or glucose), the energy-intensive fermentation process, and the scale at which these bio-based products are currently being produced. The higher raw material costs are particularly challenging because bio-based feedstocks, such as agricultural crops, can be subject to fluctuations in price based on weather conditions, crop yields, and other external factors.
Moreover, while governments are pushing for more sustainable production methods through various initiatives, the subsidies or incentives offered to bio-based industries often do not completely offset the higher production costs. Although there are programs like the U.S. Department of Agriculture’s BioPreferred Program, which promotes the use of bio-based products, the financial support is still limited in many regions. For instance, bio-based chemicals such as 1,3-butanediol are often competing with petroleum-based alternatives that benefit from economies of scale and established production technologies.
The food industry, which has historically been a major consumer of bio-based chemicals, also faces significant pressure when it comes to pricing. According to the Food and Agriculture Organization (FAO), food companies are under constant scrutiny to control costs, especially given the rising prices of raw materials and labor. If bio-based 1,3-butanediol continues to be priced higher than traditional alternatives, food and beverage manufacturers may be hesitant to make the switch, particularly in times of economic uncertainty or when profit margins are tight.
Opportunity
Expanding Demand for Sustainable Packaging
The food and beverage industry, one of the largest consumers of packaging materials, is at the forefront of this shift. According to the Food and Agriculture Organization (FAO), the global food packaging market is expected to reach $500 billion by 2026, with a significant portion of this growth driven by demand for sustainable and recyclable packaging solutions. Consumers are increasingly looking for products with environmentally friendly packaging, which is pushing brands to seek out renewable alternatives to traditional plastics.
A survey conducted by the International Food Information Council (IFIC) found that nearly 74% of U.S. consumers are willing to pay more for products that use environmentally sustainable packaging. This growing consumer preference is creating a lucrative market for bio-based chemicals, including 1,3-butanediol, which can be used to create bioplastics and packaging materials that are both biodegradable and sourced from renewable feedstocks.
Bio-based 1,3-butanediol, when combined with other bio-based materials, can be used to produce a range of packaging products such as bottles, containers, and films. The European Union’s Single-Use Plastics Directive, which aims to ban single-use plastic products and promote the use of biodegradable materials by 2025, is one such regulation that is driving the demand for bio-based alternatives like 1,3-butanediol. Additionally, many countries have begun introducing taxes or levies on plastic packaging, further incentivizing industries to adopt more sustainable practices.
The potential growth of bio-based 1,3-butanediol in the packaging market is not just limited to food and beverages. Industries such as cosmetics and personal care are also increasingly adopting sustainable packaging. As consumers continue to prioritize eco-conscious products, cosmetics companies are turning to bio-based alternatives to meet these expectations. This shift presents another opportunity for 1,3-butanediol to gain traction in a market that values sustainability and innovation.
Furthermore, the global push for a circular economy is another driver for the adoption of bio-based materials. Governments and organizations worldwide are working to reduce waste and promote the reuse and recycling of materials. According to the World Economic Forum (WEF), the circular economy could generate $4.5 trillion in economic benefits by 2030. By integrating bio-based 1,3-butanediol into the packaging supply chain, companies can contribute to the reduction of plastic waste and carbon emissions, aligning with both consumer preferences and government goals for sustainable development.
Trends
Shift Toward Clean and Green Beauty
Bio-based 1,3-butanediol is particularly valued for its ability to act as a moisturizer, humectant, and solvent in cosmetic formulations. Unlike traditional petrochemical-based alternatives, 1,3-butanediol is derived from renewable resources, such as sugarcane or corn, making it a more sustainable option. It is also biodegradable, meaning it breaks down more easily in the environment, reducing its long-term impact. These properties make it an attractive ingredient for companies that are looking to meet consumer demands for products that align with sustainability goals and environmental responsibility.
Leading cosmetic brands are increasingly incorporating bio-based ingredients into their products as part of their sustainability commitments. For example, L’Oréal, one of the largest beauty companies globally, has committed to making 100% of its packaging recyclable or compostable by 2025 and sourcing all of its raw materials sustainably. L’Oréal has been focusing on the use of renewable resources and bio-based chemicals like 1,3-butanediol to create safer, eco-friendly products that align with these goals.
Moreover, regulatory frameworks are also helping to propel the demand for bio-based ingredients in the beauty industry. The European Union’s Cosmetics Regulation (EC) No. 1223/2009 ensures that only safe ingredients are used in cosmetic products, driving companies to prioritize non-toxic, environmentally friendly substances. In the U.S., the FDA and other regulatory bodies are encouraging companies to adopt more sustainable and transparent ingredient sourcing practices. This is creating a favorable environment for the growth of bio-based 1,3-butanediol as an ingredient that meets both safety and sustainability standards.
The growing demand for natural and sustainable products is not limited to cosmetics but extends to personal care products as well. The personal care market, including deodorants, shampoos, body washes, and oral care, is increasingly turning to bio-based ingredients as consumers look for products that are not only effective but also aligned with their ethical values. According to a report by Euromonitor, sales of natural and organic personal care products grew by 9.6% in 2021, a clear indicator that more consumers are willing to invest in eco-friendly alternatives.
This consumer shift is being supported by government initiatives and industry standards that are pushing for cleaner, greener products. In the U.S., for instance, the Environmental Protection Agency (EPA) has supported initiatives like the Sustainable Materials Management Program, which promotes the use of renewable resources in manufacturing. The European Union has also introduced the Green Deal with ambitious goals to reduce carbon emissions and transition to a more circular economy by 2050. These initiatives not only help regulate and support the clean beauty movement but also drive industry players to innovate and find alternatives like bio-based 1,3-butanediol to meet evolving consumer demands.
Regional Analysis
In 2024, the Asia Pacific (APAC) region is poised to dominate the bio-based 1,3-butanediol market, holding a significant share of 43.8%, equating to $127.7 million. The rapid growth in APAC can be attributed to increasing industrialization, the rising demand for sustainable chemicals, and significant government support for green technologies.
North America holds a strong position as a key market, driven by the presence of major manufacturers and favorable government policies supporting sustainable development. The United States and Canada are actively promoting bio-based products through incentives such as the BioPreferred Program and renewable energy mandates, boosting the adoption of bio-based 1,3-butanediol.
Europe is another significant region, with countries like Germany, France, and the UK focusing heavily on sustainability through initiatives like the EU Green Deal and the Circular Economy Action Plan. These initiatives are accelerating the shift to renewable-based chemicals, including bio-based 1,3-butanediol. Europe’s strong regulatory environment also encourages the development of green technologies, contributing to market growth.
In the Middle East & Africa and Latin America, the market remains nascent, but these regions are gradually embracing bio-based alternatives due to rising environmental awareness and sustainable development goals. Although the share in these regions is smaller, the demand for bio-based products is expected to grow steadily as more industries focus on reducing their carbon footprint.
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 bio-based 1,3-butanediol market features a competitive landscape with key players such as Genomatica Inc., BASF SE, and Mitsubishi Chemical Corporation leading the way in innovation and production. Genomatica Inc., a frontrunner in sustainable chemicals, has developed proprietary technology to produce bio-based 1,3-butanediol from renewable feedstocks.
BASF SE and Mitsubishi Chemical Corporation leverage their vast resources and established industrial networks to scale up the production of bio-based chemicals. Their deep expertise in the chemical industry, along with strategic collaborations, positions them as major players in the global bio-based 1,3-butanediol market.
Toray Industries Inc. and Novamont S.p.A. are also contributing to the growth of the market with their advancements in renewable material production and strong regional presences. Arkema S.A., Evonik Industries AG, and Royal DSM N.V. bring expertise in chemical production and sustainability, fostering the use of bio-based 1,3-butanediol across various sectors, including personal care, automotive, and packaging.
Corbion N.V. and Amyris, Inc. focus on the biotechnological advancements that drive the commercialization of bio-based 1,3-butanediol, positioning them as leaders in the shift toward a more sustainable and circular economy. Together, these companies are shaping the future of the bio-based 1,3-butanediol market by leveraging cutting-edge technologies, strategic partnerships, and increasing sustainability efforts.
Top Key Players
- Genomatica Inc.
- BASF SE
- Mitsubishi Chemical Corporation
- Eastman Chemical Company
- Toray Industries Inc.
- Cargill, Incorporated
- DuPont Tate & Lyle Bio Products Company, LLC
- Novamont S.p.A.
- Arkema S.A.
- Evonik Industries AG
- Royal DSM N.V.
- Solvay S.A.
- Lanxess AG
- Perstorp Holding AB
- Reverdia
- Global Bio-chem Technology Group Company Limited
- Myriant Corporation
- Corbion N.V.
- Amyris, Inc.
- Metabolix, Inc.
Recent Developments
In 2024, Eastman continues to advance its bio-based product portfolio, leveraging its expertise in chemical manufacturing to produce bio-based 1,3-butanediol through innovative processes.
In 2024, Reverdia introduced new bio-BDO-based applications aimed at the automotive industry, focusing on lightweight components that reduce vehicle weight and improve fuel efficiency.
Report Scope
Report Features Description Market Value (2024) USD 295.6 Mn Forecast Revenue (2034) USD 712.7 Mn CAGR (2025-2034) 9.2% Base Year for Estimation 2024 Historic Period 2020-2023 Forecast Period 2025-2034 Report Coverage Revenue Forecast, Market Dynamics, Competitive Landscape, Recent Developments Segments Covered By Source (Sugarcane, Corn, Glucose, Others), By Application (Cosmetics, Personal Care, Pharmaceuticals, Industrial, Others), By Distribution Channel (Direct Sales, Distributors and Wholesalers, Online Platforms, Others) Regional Analysis North America – US, Canada; Europe – Germany, France, The UK, Spain, Italy, Rest of Europe; Asia Pacific – China, Japan, South Korea, India, Australia, Singapore, Rest of APAC; Latin America – Brazil, Mexico, Rest of Latin America; Middle East & Africa – South Africa, Saudi Arabia, UAE, Rest of MEA Competitive Landscape Genomatica Inc., BASF SE, Mitsubishi Chemical Corporation, Eastman Chemical Company, Toray Industries Inc., Cargill, Incorporated, DuPont Tate & Lyle Bio Products Company, LLC, Novamont S.p.A., Arkema S.A., Evonik Industries AG, Royal DSM N.V., Solvay S.A., Lanxess AG, Perstorp Holding AB, Reverdia, Global Bio-chem Technology Group Company Limited, Myriant Corporation, Corbion N.V., Amyris, Inc., Metabolix, Inc. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Bio-based 1,3-Butanediol MarketPublished date: Feb 2025add_shopping_cartBuy Now get_appDownload Sample -
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- Genomatica Inc.
- BASF SE Company Profile
- Mitsubishi Chemical Corporation
- Eastman Chemical Company
- Toray Industries Inc.
- Cargill, Incorporated
- DuPont Tate & Lyle Bio Products Company, LLC
- Novamont S.p.A.
- Arkema S.A.
- Evonik Industries AG
- Royal DSM N.V.
- Solvay S.A.
- Lanxess AG
- Perstorp Holding AB
- Reverdia
- Global Bio-chem Technology Group Company Limited
- Myriant Corporation
- Corbion N.V.
- Amyris, Inc.
- Metabolix, Inc.
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