1, 4 Butanediol Global Market Report 2024

The 1, 4 butanediol market size has grown strongly in recent years. It will grow from $8.84 billion in 2023 to $9.61 billion in 2024 at a compound annual growth rate (CAGR) of 8.8%. The expansion witnessed in the historical period can be ascribed to the rising demand for polybutylene terephthalate (PBT) production, the growing utilization of the chemical in the textile industry, the expansion of the automotive sector, the escalating demand for tetrahydrofuran (THF), and its application in pharmaceutical and cosmetic products.

The 1, 4 butanediol market size is expected to see strong growth in the next few years. It will grow to $13.06 billion in 2028 at a compound annual growth rate (CAGR) of 8.0%. The anticipated growth in the forecast period can be ascribed to the increasing production of bio-based 1,4-butanediol, the broadening scope of end-use applications, a surge in demand for polyurethane, greater adoption in resin and coating formulations, and a heightened emphasis on sustainable chemical production. Noteworthy trends expected during this period encompass market expansion in the Asia-Pacific region, technological advancements in production processes, fluctuations in raw material prices, and innovations in the applications of the product.

The growth of the 1,4-butanediol market is poised to be driven by the burgeoning automotive sector in the foreseeable future. This sector encompasses various businesses engaged in the manufacture, distribution, sale, and maintenance of automobiles. Within the automotive domain, the production of essential components such as vehicle bumpers, fenders, spoilers, and front and rear fascia necessitates urethane elastomers derived from 1,4-butanediol. Consequently, the escalating demand within the automotive industry serves as a catalyst for the expansion of the 1,4-butanediol market. For example, as of March 2022, as per the report by the European Automobile Manufacturers Association - a Belgium-based consortium comprising Europe's 14 major auto, truck, van, and bus manufacturers - the production of over 6.3 million passenger automobiles took place in US automotive facilities during 2021, marking a 3.1% increase from the previous year. Thus, the upsurge in the automotive sector profoundly influences the 1,4-butanediol market.

The anticipated growth of the 1,4-butanediol market is expected to be propelled by the burgeoning textile industry in the forthcoming period. This industry represents a vital segment of the global economy, encompassing the manufacturing, processing, and production of textiles and related products. 1,4-butanediol finds its application in the production of diverse textile products such as apparel, home textiles such as bedding, upholstery, curtains, as well as industrial fabrics including conveyor belts and filters. For instance, according to the May 2023 report by Textile World - a US-based magazine dedicated to covering the textile sector - the US witnessed a notable increase in textile and apparel exports, totaling $34 billion in 2022, up from $28.4 billion in 2021. Therefore, the ascending trajectory of the textile industry plays a pivotal role in propelling the 1,4-butanediol market.

The prevailing trend dominating the 1,4-butanediol market revolves around product innovation. Leading companies operating within this market sector are heavily focused on developing pioneering products to fortify their market presence. A case in point is Yuanli Chemical Group Co., Ltd., a China-based enterprise primarily involved in the development, production, and marketing of fine chemicals, which launched bio-BDO in May 2022. Bio-BDO boasts a diverse range of potential applications, spanning Spandex, biodegradable polymers, polyurethane, shoe materials, and emerging energy storage technologies, among others. Its ecological advantages, characterized by being green, renewable, energy-efficient, and emission-reducing, position it as an environmentally friendly product that fulfills the criteria for reducing carbon emissions, thereby providing novel options for end-users.

Major entities operating within the 1,4-butanediol market are actively engaging in strategic partnerships to bolster their market profitability. These strategic collaborations involve a concerted effort by companies to leverage each other's strengths and resources, aiming for mutual benefits and shared success. For example, in September 2023, BASF SE, a German chemicals company, forged a partnership with Qore LLC (Qore), a US-based firm specializing in the production of bio-based 1,4-butanediol and bio-based BDO through their QIRA brand. This alliance is intended to enable BASF SE to diversify its portfolio by incorporating bio-based 1,4-butanediol (BDO) derivatives such as polytetrahydrofuran (PolyTHF®) and tetrahydrofuran (THF). Similarly, in July 2022, LG Chem Ltd., a South Korea-based chemicals company, entered into a partnership with GS Caltex, a South Korea-based energy and chemical firm. LG Chem Ltd. aims to harness this collaboration to develop 1,4-butanediol (BDO) organic compounds for white biotechnology, catering to the burgeoning demand for sustainable and bio-based intermediates.

In September 2021, Cargill, a US-based conglomerate operating across agriculture, industrial, and risk management sectors, completed the acquisition of Arkema S.A.'s epoxides business for $39 million. Through this strategic acquisition, Cargill strategically positions itself to meet the expanding requirements for bio-based solutions across multiple industries, including plastics and automotive sectors. This investment allows Cargill to establish a comprehensive production line for bio-based plasticizers and polyols, empowering the company to offer natural alternatives to conventional petroleum-based additives. Arkema S.A., a France-based company with divisions in adhesives, advanced materials, and coatings, was the former proprietor of the epoxides business.

Major companies operating in the 1, 4 butanediol market report are BioAmber Inc., BASF SE, Ashland Global Holdings Inc., Mitsubishi Chemical Corporation, SK Global Chemical Co Ltd., Dairen Chemical Corporation, LyondellBasell Industries NV, Dow Inc., Genomatica Inc., Xinjiang Tianye Co Ltd., ExxonMobil Corporation, Koch Industries, PTT Global Chemical Public Company Limited, Saudi International Petrochemical Company, Chemtura Corporation, Chongqing Jianfeng Chemical Co Ltd., Royal Dutch Shell plc, Mitsui & Co Ltd., DCC plc., Nan Ya Plastics Corporation, Sinopec Yizheng Chemical Fiber Company Limited, Shanxi Sanwei Group Co. Ltd, Invista S.à r.l., Nanjing Bluestar Co. Ltd., Oxea GmbH, TCC Group, Formosa Plastics Corporation, International Specialty Products, Huntsman Corporation, Myriant Corporation, Davy Process Technology.

Asia-Pacific was the largest region in the 1,4 butanediol market in 2023. The regions covered in the 1, 4 butanediol market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the 1, 4 butanediol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

There are two primary types of 1,4-butanediol such as synthetic and bio-based. The term 'synthetic' pertains to substances crafted by humans rather than derived from natural sources. The synthetic variant finds applications in tetrahydrofuran (THF), polybutylene terephthalate (PBT), gamma-butyrolactone (GBL), polyurethane (PU), and other industries, spanning chemical, sports, automotive, electronic, footwear, and more.

The 1, 4 butanediol market research report is one of a series of new reports that provides 1, 4 butanediol market statistics, including 1, 4 butanediol industry global market size, regional shares, competitors with a 1, 4 butanediol market share, detailed 1, 4 butanediol market segments, market trends and opportunities, and any further data you may need to thrive in the 1, 4 butanediol industry. This 1, 4 butanediol market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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