1, 4 Butanediol Market Report 2026

The 1, 4 butanediol market size has grown strongly in recent years. It will grow from $10.22 billion in 2025 to $11.06 billion in 2026 at a compound annual growth rate (CAGR) of 8.3%. The growth in the historic period can be attributed to expansion of chemical manufacturing capacity, growth of polymer and resin industries, increasing use of synthetic solvents, availability of petrochemical feedstocks, rising industrial chemical demand.

The 1, 4 butanediol market size is expected to see strong growth in the next few years. It will grow to $14.76 billion in 2030 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to increasing investments in bio-refinery technologies, rising demand for lightweight automotive materials, expansion of sustainable polymer production, growing adoption of eco-friendly solvents, increasing focus on circular chemical processes. Major trends in the forecast period include increasing adoption of bio-based butanediol production, rising demand for thf and pbt applications, growing use in high-performance polymers, expansion of sustainable chemical synthesis, enhanced focus on process efficiency.

The growing automotive sector is expected to drive the growth of the 1,4-butanediol market in the coming years. The automotive sector includes businesses involved in the design, production, distribution, sale, and maintenance of automobiles. In this sector, the manufacture of vehicle components such as bumpers, fenders, spoilers, and front and rear fascia requires urethane elastomers made from 1,4-butanediol. Consequently, rising demand from the automotive industry is supporting the expansion of the 1,4-butanediol market. For example, in August 2024, according to the European Automobile Manufacturers' Association, a Belgium-based organization, new car registrations increased by 3.9% over the first seven months of 2024, exceeding 6.5 million units. Key markets in the region showed positive growth, with Spain (+5.6%), Italy (+5.2%), Germany (+4.3%), and France (+2.2%) all reporting increases. Therefore, the expanding automotive sector is driving the 1,4-butanediol market.

Major companies in the 1,4-butanediol market are focusing on developing sustainable solutions, such as bio-based feedstock, to reduce carbon emissions and enhance environmental performance without compromising product quality. Bio-based feedstock, produced from plant-derived sugars through fermentation, delivers the same performance as conventional fossil-based BDO while significantly lowering greenhouse gas emissions. For instance, in September 2023, BASF, a Germany-based chemical company, secured long-term access to QIRA bio-based 1,4-butanediol from Qore LLC, a joint venture between Cargill and HELM AG. The first commercial batches of QIRA are expected in Q1 2025 and will allow BASF to expand its range of BDO derivatives, including polytetrahydrofuran (PolyTHF) and tetrahydrofuran (THF), with substantially reduced carbon footprints while maintaining identical physical and technical properties compared to fossil-based alternatives. QIRA supports applications across textiles, automotive, electronics, and pharmaceuticals. Key features include corn-based fermentation, compatibility with existing production processes, up to 86% carbon footprint reduction, and scalability for PolyTHF and THF production. Through this initiative, BASF aims to strengthen its sustainable solutions portfolio and provide renewable-based chemical options to its global customers.

In March 2023, Maire Tecnimont S.p.A., an Italy-based technology and engineering group, acquired Conser for an undisclosed amount. This strategic move enables Maire Tecnimont to enter the bio-based technologies and products market. Following the completion of the transaction, NextChem Holding will hold 83.5% of Conser's shares, with an option to purchase the remaining 16.5% over the next three years, as outlined in the agreement. Conser, based in Italy, specializes in providing technologies for the production of butanediol (BDO).

Major companies operating in the 1, 4 butanediol market are BASF SE, Mitsubishi Chemical Corporation, SK Global Chemical Co. Ltd., Dairen Chemical Corporation, LyondellBasell Industries N.V., Dow Inc., Genomatica Inc., Xinjiang Tianye Co. Ltd., Koch Industries, PTT Global Chemical Public Company Limited, Saudi International Petrochemical Company, Chongqing Jianfeng Chemical Co. Ltd., Nan Ya Plastics Corporation, Sinopec Yizheng Chemical Fibre Company Limited, Shanxi Sanwei Group Co. Ltd., INVISTA S.à r.l., Nanjing Bluestar Co. Ltd., Oxea GmbH, TCC Group, Formosa Plastics Corporation, Huntsman Corporation, Myriant Corporation.

Asia-Pacific was the largest region in the 1,4 butanediol market in 2025. The regions covered in the 1, 4 butanediol market report are Asia-Pacific, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The 1,4-butanediol market consists of sales of synthetic 1,4-butanediol and biobased 1,4-butanediol. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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