1,3-Butylene Glycol (CAS 107-88-0) Market Size, Share Global Analysis Report, 2026-2034

Industry Insights

[246+ Pages Report] According to Facts & Factors, the global 1,3-butylene glycol (CAS 107-88-0) market size was estimated at USD 196 million in 2025 and is expected to reach USD 330 million by the end of 2034. The 1,3-butylene glycol (CAS 107-88-0) industry is anticipated to grow by a CAGR of 5.9% between 2026 and 2034. The 1,3-butylene glycol (CAS 107-88-0) Market is driven by increasing demand in cosmetics and personal care industry.

Market Overview

1,3-Butylene glycol, also known as 1,3-butanediol, is a versatile organic compound primarily used as a humectant, solvent, and intermediate in various industries. It is a colorless, viscous liquid derived from either synthetic processes or bio-based fermentation methods, offering excellent moisturizing properties and stability in formulations. This compound plays a crucial role in enhancing product texture and efficacy across applications, serving as a key ingredient that bridges chemical synthesis with practical utility in everyday products.

Key Insights

• As per the analysis shared by our research analyst, the global 1,3-butylene glycol (CAS 107-88-0) market is estimated to grow annually at a CAGR of around 5.9% over the forecast period (2026-2034).
• In terms of revenue, the global 1,3-butylene glycol (CAS 107-88-0) market size was valued at around USD 196 million in 2025 and is projected to reach USD 330 million by 2034.
• The market is driven by rising demand from the cosmetics and personal care sector, coupled with advancements in bio-based production methods.
• Based on the product, the pharmaceutical grade segment dominated the market with a share of 60%, due to its high purity requirements in sensitive applications like skincare and pharmaceuticals.
• Based on the function, the humectant segment dominated the market with a share of 40%, as it excels in moisture retention, making it indispensable in personal care formulations.
• Based on the application, the cosmetic & personal care products segment dominated the market with a share of 50%, driven by consumer preferences for hydrating and non-irritating ingredients.
• Based on region, Asia Pacific dominated the market with a share of 45%, owing to robust manufacturing hubs and growing consumer markets in countries like China and India.

Growth Drivers

• Increasing Demand in Cosmetics and Personal Care Industry

The surge in consumer awareness regarding skincare and beauty products has significantly boosted the adoption of 1,3-butylene glycol as a preferred humectant and solvent. Its ability to improve product texture, stability, and moisture retention aligns with the trend toward multifunctional ingredients in formulations. This demand is further amplified by the expansion of the global beauty market, where innovative products require reliable compounds to meet efficacy and safety standards.

Moreover, the shift toward natural and bio-based variants of 1,3-butylene glycol is opening new avenues, as manufacturers respond to eco-conscious consumers. Investments in research for sustainable production methods are enhancing its appeal, ensuring long-term growth in this dynamic sector.

Restraints

• Price Volatility of Raw Materials

Fluctuations in the prices of key feedstocks, such as acetaldehyde or corn used in fermentation, pose a significant challenge to market stability. These variations can increase production costs, impacting profit margins for manufacturers and potentially leading to higher end-product prices. In regions dependent on imports, currency exchange rates exacerbate this issue, creating uncertainty in supply chains.

Additionally, stringent regulatory requirements for chemical handling and environmental compliance add to operational complexities. Companies must navigate these hurdles while maintaining competitive pricing, which can restrain expansion in price-sensitive markets.

Opportunities

• Advancements in Bio-Based Production Technologies

The development of cost-effective fermentation processes using renewable resources presents substantial opportunities for market players. This shift toward sustainable manufacturing not only reduces dependency on petrochemicals but also appeals to environmentally aware consumers and regulators. Innovations in biotechnology are enabling higher yields and purity, positioning bio-based 1,3-butylene glycol as a premium offering in various applications.

Furthermore, emerging markets in Asia and Latin America offer untapped potential, where rising disposable incomes and urbanization drive demand for personal care and industrial products. Strategic partnerships and investments in these regions can accelerate growth and diversification.

Challenges

• Competition from Alternative Ingredients

The presence of substitutes like propylene glycol or glycerin, which offer similar functionalities at potentially lower costs, intensifies competition. These alternatives are well-established in many formulations, making it challenging for 1,3-butylene glycol to gain market share without demonstrating superior benefits. Innovation in product differentiation is essential to overcome this barrier.

Regulatory scrutiny over chemical safety and environmental impact also presents ongoing challenges. Compliance with evolving standards requires continuous investment in testing and reformulation, which can strain resources for smaller players in the market.

Report Scope

Report Attribute	Details
Market Size 2025	USD 196 Million
Projected Market Size in 2034	USD 330 Million
CAGR Growth Rate	5.9% CAGR
Base Year	2025
Forecast Years	2026-2034
Key Market Players	Daicel Corporation, KH Neochem Co. Ltd., Genomatica Inc., Godavari Biorefineries Ltd., OQ Chemicals GmbH, Haihang Industry Co. Ltd., Shanghai Jinjin Industry Co. Ltd., Penta Manufacturing Company, MMP Inc., and Others.
Key Segment	By Product, By Function, By Application, and By Region
Major Regions Covered	North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa
Purchase Options	Request customized purchase options to meet your research needs. Explore purchase options

Market Segmentation

The 1,3-butylene glycol (CAS 107-88-0) market is segmented by product, function, application, and region.

Based on Product Segment, the 1,3-butylene glycol (CAS 107-88-0) market is divided into pharmaceutical grade, industrial grade, and others. The pharmaceutical grade emerges as the most dominant segment, holding a significant market share due to its high purity and compliance with stringent quality standards essential for cosmetics and pharmaceuticals. This dominance drives the market by enabling premium product formulations that prioritize safety and efficacy, fostering consumer trust and brand loyalty. The industrial grade follows as the second most dominant, valued for its cost-effectiveness in broader applications like paints and plastics, contributing to market growth through versatile industrial utility and scalability in production.

Based on Function Segment, the 1,3-butylene glycol (CAS 107-88-0) market is divided into humectant, emollient, stabilizer, intermediate, and others. The humectant function stands out as the most dominant, capturing a large portion of the market owing to its exceptional moisture-attracting properties that enhance hydration in personal care products. This leads market expansion by meeting the growing demand for effective skincare solutions that combat dryness and improve user experience. The emollient function ranks as the second most dominant, appreciated for its softening and smoothing effects, which support market dynamics by enabling luxurious textures in cosmetics and driving innovation in formulation development.

Based on Application Segment, the 1,3-butylene glycol (CAS 107-88-0) market is divided into cosmetic & personal care products, food products, pharmaceuticals, and others. The cosmetic & personal care products application dominates the market, driven by the compound's role in improving product stability and sensory attributes in a booming beauty industry. This segment propels overall growth through alignment with trends like clean beauty and multifunctionality. The pharmaceuticals application is the second most dominant, benefiting from its use as a solvent and stabilizer in drug formulations, aiding market advancement by supporting healthcare innovations and regulatory-compliant manufacturing.

Recent Developments

• In February 2025, Wanhua Chemical launched a groundbreaking bio-based 1,3-butylene glycol at the PCHi exhibition, designed specifically for the skincare industry to reduce carbon footprint and enhance sustainability in cosmetic formulations.
• In March 2022, OQ Chemicals announced a price increase for 1,3-butylene glycol, reflecting rising production costs and supply chain adjustments amid global market fluctuations.
• In 2024, Godavari Biorefineries expanded its market share in bio-based 1,3-butylene glycol, leveraging partnerships with industries adopting eco-friendly ingredients to meet growing sustainability demands.

Regional Analysis

• Asia Pacific to dominate the global market

Asia Pacific holds the largest share in the global 1,3-butylene glycol market, driven by rapid industrialization and a thriving cosmetics sector in countries like China and India. The region's robust manufacturing infrastructure and increasing consumer spending on personal care products fuel demand. Additionally, favorable government policies promoting chemical production and exports strengthen its position. China stands out as the dominating country, with its vast production capacities and supply chain efficiencies enabling cost-competitive offerings to global markets.

North America represents a mature market with steady growth, supported by advanced research in bio-based alternatives and stringent quality standards in pharmaceuticals and cosmetics. The United States dominates this region, benefiting from innovative companies and a strong focus on sustainable practices. Investments in green chemistry and regulatory frameworks encouraging eco-friendly ingredients contribute to its resilience. The market here emphasizes high-value applications, ensuring consistent demand despite economic variations.

Europe exhibits strong growth potential, characterized by a shift toward sustainable and natural ingredients in line with strict environmental regulations. Germany leads as the dominating country, known for its chemical engineering expertise and emphasis on innovation. The region's focus on circular economy principles drives adoption of bio-based 1,3-butylene glycol. Collaborative efforts between industry players and research institutions further enhance product development and market penetration.

Latin America is emerging as a promising market, with increasing industrialization and rising awareness of personal care products. Brazil dominates the region, supported by its growing cosmetics industry and abundant natural resources for bio-based production. Economic recovery and trade agreements facilitate market expansion. However, challenges like infrastructure limitations persist, yet opportunities in untapped rural markets offer growth avenues.

The Middle East & Africa region shows moderate growth, influenced by expanding industrial sectors and investments in chemical manufacturing. South Africa emerges as the dominating country, with its developing cosmetics market and strategic location for exports. Oil-based feedstocks provide a cost advantage, though water scarcity poses production challenges. International partnerships are key to technology transfer and market development in this diverse area.

Competitive Analysis

The global 1,3-butylene glycol (CAS 107-88-0) market is dominated by players:

• Daicel Corporation
• KH Neochem Co. Ltd.
• Genomatica Inc.
• Godavari Biorefineries Ltd.
• OQ Chemicals GmbH
• Haihang Industry Co. Ltd.
• Shanghai Jinjin Industry Co. Ltd.
• Penta Manufacturing Company
• MMP Inc.

The global 1,3-butylene glycol (CAS 107-88-0) market is segmented as follows:

By Product

• Pharmaceutical Grade
• Industrial Grade
• Others

By Function

• Humectant
• Emollient
• Stabilizer
• Intermediate
• Others

By Application

• Cosmetic & Personal Care Products
• Food Products
• Pharmaceuticals
• 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