1,3-Butanediol Market Size, Share Global Analysis Report, 2026-2034

Industry Insights

[240+ Pages Report] According to Facts & Factors, the global 1,3-butanediol market size was estimated at USD 513 million in 2025 and is expected to reach USD 928 million by the end of 2034. The 1,3-butanediol industry is anticipated to grow by a CAGR of 6.8% between 2026 and 2034. The 1,3-butanediol Market is driven by increasing demand in cosmetics and pharmaceutical industries.

Market Overview

1,3-Butanediol is an organic compound classified as a diol, featuring two hydroxyl groups attached to a four-carbon chain. It serves as a versatile chemical intermediate and solvent in various industrial applications, known for its hygroscopic properties that make it effective in moisture retention and formulation stability. This compound is produced through both synthetic and bio-based methods, catering to diverse sectors where it enhances product performance without introducing toxicity concerns.

Key Insights

• As per the analysis shared by our research analyst, the global 1,3-butanediol market is estimated to grow annually at a CAGR of around 6.8% over the forecast period (2026-2034).
• In terms of revenue, the global 1,3-butanediol market size was valued at around USD 513 million in 2025 and is projected to reach USD 928 million, by 2034.
• The market is driven by increasing adoption in personal care products.
• Based on the product type, the synthetic segment accounted for the largest market share of 69% in 2025.
• Based on the product type, the synthetic segment dominates due to its cost-effectiveness and high production yields, making it preferable for large-scale industrial applications.
• Based on the application, the cosmetics & personal care segment accounted for the largest market share of 45% in 2025.
• Based on the application, the cosmetics & personal care segment leads because of its excellent moisturizing properties that enhance skincare formulations, driving demand in the growing beauty industry.
• Based on the end-user, the chemical segment accounted for the largest market share of 40% in 2025.
• Based on the end-user, the chemical segment is prominent owing to its widespread use as an intermediate in polymer and solvent production, supporting various manufacturing processes.
• Based on the region, the Asia Pacific region accounted for the largest market share of 42% in 2025.
• Based on the region, the Asia Pacific dominates due to rapid industrialization, presence of key manufacturers, and high demand from end-use industries like cosmetics and pharmaceuticals.

Growth Drivers

• Increasing Demand in Cosmetics and Personal Care Industry

The rising consumer preference for high-quality skincare and beauty products has significantly boosted the adoption of 1,3-butanediol as a humectant and solvent. Its ability to improve texture, stability, and moisture retention in formulations makes it indispensable for manufacturers aiming to meet evolving beauty standards. This trend is further amplified by the global expansion of the personal care sector, where innovation in product efficacy drives continuous integration of such versatile compounds.

Additionally, the shift towards multifunctional ingredients that offer both performance and safety benefits aligns with regulatory emphases on non-toxic materials. As brands focus on clean-label products, 1,3-butanediol's compatibility with natural formulations supports market growth, enabling broader application in premium and mass-market segments alike.

• Advancements in Bio-Based Production Technologies

Innovations in fermentation processes using renewable feedstocks have enhanced the sustainability profile of 1,3-butanediol, attracting environmentally conscious industries. These developments reduce dependency on fossil fuels, lowering production costs over time and appealing to sectors prioritizing green chemistry. The scalability of bio-based methods also opens new avenues for supply chain resilience.

Furthermore, collaborations between biotech firms and chemical manufacturers accelerate technology adoption, fostering efficient production with minimal environmental impact. This progress not only meets stringent emission regulations but also positions 1,3-butanediol as a preferred choice in eco-friendly applications, driving long-term market expansion.

Restraints

• Volatility in Raw Material Prices

Fluctuations in the costs of key feedstocks like propylene and bio-based sugars pose challenges to stable pricing and profitability in the 1,3-butanediol market. Such instability can disrupt supply chains, leading to increased production expenses that are often passed on to end-users, potentially dampening demand in price-sensitive sectors.

Moreover, geopolitical factors and supply disruptions exacerbate these issues, forcing manufacturers to seek alternative sourcing strategies. This uncertainty may hinder investment in capacity expansion and innovation, limiting overall market growth potential in the short term.

• Stringent Regulatory Compliance

Evolving environmental and safety regulations require continuous adaptation in production processes, increasing operational costs for compliance and certification. These standards, while promoting sustainability, can delay product launches and restrict market entry for smaller players lacking resources for rigorous testing.

In addition, regional variations in regulatory frameworks complicate global operations, necessitating tailored approaches that add complexity to supply management. This restraint could slow down the pace of market penetration in regulated industries like pharmaceuticals.

Opportunities

• Expansion in Pharmaceutical Applications

The growing use of 1,3-butanediol in drug formulations and delivery systems presents significant opportunities, driven by its solubility and stability-enhancing properties. As the pharmaceutical industry advances towards personalized medicine, this compound's role in excipients and intermediates becomes increasingly vital.

Furthermore, rising healthcare investments in emerging economies create demand for reliable chemical inputs, enabling market players to tap into new geographic segments. Strategic partnerships with pharma companies can accelerate this growth, fostering innovation in therapeutic applications.

• Rising Focus on Sustainable Chemicals

The global push for circular economy practices encourages the development of bio-based 1,3-butanediol variants, opening doors for premium pricing in green markets. Industries seeking to reduce carbon footprints are likely to adopt these alternatives, supported by incentives and consumer preferences for eco-products.

Additionally, research into novel bio-feedstocks could diversify supply sources, enhancing market resilience and attracting investment from sustainability-focused funds. This opportunity aligns with broader environmental goals, positioning the market for robust future expansion.

Challenges

• Competition from Alternative Compounds

The availability of substitute diols and solvents with similar properties challenges the market position of 1,3-butanediol, particularly in cost-driven applications. Competitors offering lower-priced options may erode market share unless differentiated through superior performance or sustainability.

Moreover, ongoing R&D in alternative materials could lead to disruptive innovations, requiring continuous improvement in 1,3-butanediol's value proposition. Adapting to these competitive pressures demands agile strategies and investment in unique applications.

• Supply Chain Disruptions

Global events such as pandemics or trade conflicts can interrupt raw material supplies and logistics, affecting production timelines and costs. These disruptions highlight vulnerabilities in concentrated manufacturing hubs, prompting the need for diversified sourcing.

In response, building resilient supply networks through localization and inventory management becomes essential, though it increases upfront costs. Overcoming this challenge is crucial for maintaining consistent market supply and customer trust.

Report Scope

Market Segmentation

The 1,3-butanediol market is segmented by product type, application, end-user, and region.

Based on Product Type Segment, the 1,3-butanediol market is divided into bio-based, synthetic, and others. The most dominant segment is synthetic, which holds the largest share due to its established production infrastructure and economic advantages in high-volume manufacturing, enabling widespread adoption across industries. The second most dominant is bio-based, gaining traction for its environmental benefits and alignment with sustainability goals, driving market growth by appealing to eco-conscious consumers and regulations that favor renewable resources, thus contributing to overall expansion through diversified offerings and reduced carbon footprints.

Based on Application Segment, the 1,3-butanediol market is divided into cosmetics & personal care, pharmaceuticals, industrial solvents, food & beverage, and others. The most dominant segment is cosmetics & personal care, leading because of its superior humectant properties that enhance product efficacy and consumer appeal in a booming beauty market. The second most dominant is pharmaceuticals, where it serves as a key intermediate and solvent, supporting drug stability and formulation innovation, thereby driving market growth through increased demand in healthcare advancements and expanding therapeutic applications.

Based on End-User Segment, the 1,3-butanediol market is divided into healthcare, chemical, food & beverage, and others. The most dominant segment is chemical, prevailing due to its role as a versatile intermediate in polymer and coating production, bolstered by industrial growth. The second most dominant is healthcare, utilized for its compatibility in medical formulations, aiding market drive via rising health expenditures and the need for safe, effective excipients in drug development.

Recent Developments

• In Q1 2024, Genomatica partnered with a global skincare brand to supply cosmetic-grade bio-based 1,3-butanediol for mass production, emphasizing sustainable sourcing to meet rising demand for eco-friendly ingredients in personal care products.
• In 2023, Kokyu Alcohol received ISO 16128 certification for its cosmetic-grade butanediol, expanding exports across Southeast Asia and enhancing its market position through verified natural origin compliance.
• In December 2023, Biosynth acquired VIO Chemicals, strengthening its chemical R&D capabilities and global manufacturing network to better serve the life sciences sector with advanced 1,3-butanediol derivatives.

Regional Analysis

• Asia Pacific to dominate the global market

Asia Pacific stands out as the leading region in the 1,3-butanediol market, primarily driven by its robust manufacturing ecosystem and rapid economic development. China, as the dominating country, benefits from extensive chemical production facilities and a large consumer base in cosmetics and pharmaceuticals. The region's focus on industrialization, coupled with investments in bio-based technologies, fosters innovation and cost efficiencies. Additionally, supportive government policies promoting sustainable chemicals enhance market penetration, while the growing middle class boosts demand for personal care products, solidifying Asia Pacific's influential role in global supply chains.

North America exhibits strong growth in the 1,3-butanediol market, fueled by advanced research and technological integrations in key industries. The United States dominates this region, leveraging its innovation hubs and stringent quality standards to drive applications in pharmaceuticals and high-performance materials. Emphasis on sustainability and regulatory compliance encourages the adoption of bio-based variants, aligning with environmental initiatives. Moreover, collaborations between academia and industry accelerate product development, while a mature consumer market for cosmetics supports steady demand, positioning North America as a hub for premium and specialized uses.

Europe maintains a significant presence in the 1,3-butanediol market, characterized by its commitment to green chemistry and circular economy principles. Germany leads as the dominating country, with its strong chemical engineering expertise and focus on eco-innovations in manufacturing. The region's rigorous environmental regulations propel the shift towards bio-based production, enhancing competitiveness in pharmaceuticals and coatings. Strategic partnerships among European firms foster technological advancements, while consumer preferences for sustainable products in personal care drive market dynamics, ensuring Europe's role in setting global standards for quality and sustainability.

Latin America is emerging in the 1,3-butanediol market, supported by expanding industrial activities and natural resource availability. Brazil dominates this region, capitalizing on its biofuel expertise to advance bio-based production methods. Growing investments in chemical infrastructure and increasing demand from cosmetics and food sectors contribute to market evolution. Regional trade agreements facilitate access to international technologies, while a focus on sustainable practices aligns with global trends, enabling Latin America to build a competitive edge in eco-friendly chemical applications.

The Middle East & Africa region shows potential in the 1,3-butanediol market, driven by diversification efforts beyond oil-based economies. Saudi Arabia emerges as the dominating country, utilizing its petrochemical strengths to integrate downstream productions. Investments in industrial parks and partnerships with global players enhance capacity building in chemicals and pharmaceuticals. The region's strategic location aids export opportunities, while growing awareness of sustainable materials in emerging markets supports gradual adoption, positioning Middle East & Africa for future growth in specialized applications.

Competitive Analysis

The global 1,3-butanediol market is dominated by players:

• OXEA GmbH
• Daicel Corporation
• KH Neochem Co., Ltd.
• Godavari Biorefineries Ltd.
• Haihang Industry
• Genomatica, Inc.
• OQ Chemicals
• Tokyo Chemical Industry Co., Ltd.
• And Others

The global 1,3-butanediol market is segmented as follows:

By Product Type

• Bio-Based
• Synthetic
• Others

By Application

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

By End-User

• Healthcare
• Chemical
• Food & Beverage
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America