Global 1,3-Butanediol (BDO) Market - 2024-2031

Overview

Global 1,3-Butanediol (BDO) Market reached US$ 188.2 million in 2023 and is expected to reach US$ 251.7 million by 2031, growing with a CAGR of 3.7% during the forecast period 2024-2031.

Globally, the 1,3-butanediol product market is fueled by rapid growing demand from a variety range of end-use sectors, as well as an increasing emphasis on the sustainability. A research study indicates Geno's functional ketogenic component, Avela (R). 1,3-Butanediol efficiently increases beta-hydroxybutyrate (BHB), which is related to improved mental clarity and endurance. As an effective ketogenic raw material ingredient, 1,3-butanediol gives food and beverage manufacturers an innovative approach to meet consumer demand for nutritional ketosis. It also has the potential to partially disrupt the functional food and beverage industry.

China is one of the leading manufacturers of 1,3-butanediol, accounting for a sizable portion of the Asia-Pacific market. The country has a large production capacity and infrastructure for BDO manufacturing, which is aided by a strong chemical sector and a favorable regulatory environment. As a result, China accounts for the majority of market share in the regional marketplace.

Dynamics

Increasing Adoption of Bio-Based Butanediol

Companies that use bio-based 1,3-butanediol might differentiate their products on the market by emphasizing their sustainability credentials. Offering of bio-based alternatives can also help boost brand reputation and competitiveness, especially in areas where sustainability is a major purchase consideration. As customer preferences evolve towards ethical and ecologically responsible products, companies can gain an edge over competitors by adhering to these trends.

By using agricultural waste products and biomass as feedstock, bio-based chemicals contribute significantly to the advancement of the circular economy. Bio-refineries help to reduce waste, increase resource efficiency and manage resources sustainably by turning organic waste into useful chemical compounds like bio-derived 1,3-butanediol. The adoption of bio-based chemicals is fueled by this circular approach, which is consistent with sustainability standards.

Rising Demand for Sustainable Beauty Products

1,3-butanediol is used as a component in several personal care products, including skincare, haircare and dental care. It has several roles, including moisturizing, solubilizing and viscosity regulation. With increased knowledge of personal grooming and skincare routines, there is an increased demand for products containing 1,3-butanediol.

The demand for eco-friendly and sustainable beauty products is rising in the cosmetics industry, which presents significant growth prospects for the companies that are committed to this concern. Consumers are searching more and more for products that align with their moral and ecological values, opening up a market for companies that put sustainability first. Furthermore, bio-based butanediol is useful in cosmetic formulations, which drives the global 1,3-butanediol market.

Competition from Substitute Products

Multiple alternative products on the market may cause consumer and producer options to become more diverse and fragmented. The diversification may dilute 1,3-butanediol's market share, making it more difficult to take the industry lead. The availability of a wide range of substitute products further impedes the growth of the 1,3-butanediol market, increasing competition and putting pressure on costs.

For instance, the advent of bio-based or eco-friendly replacements that have equal or superior qualities to 1,3-butanediol can constitute a serious competitive threat to its market dominance, particularly in industries where sustainability is a top priority.

Segment Analysis

The global 1,3-butanediol (BDO) market is segmented based on type, function, end-user and region.

Solvent and Humectants Driving Innovation in Cosmetics and Personal Care Industries

A 1,3-butanediol solvent acts as a humectant function and is a viscosity agent for a wide range of formulations, including skin and hair care products, perfumes and color cosmetics, which explains its appeal in the cosmetics and personal care sectors. It also acts as a humectant, supplying moisture to the skin and hair, thereby hydrating and preserving moisture balance. Its capability of improving product texture and viscosity increases its applicability in formulations.

As consumer concerns about synthetic chemicals that may have negative effects on health and the environment grow, manufacturers globally are concentrating on producing organic cosmetic products. In April 2023, the Body Shop company launched its 'activist' product line across India. The new range of the launched products, which consists of skin products and color cosmetics will only be a continuation of the brand's long term commitment to the country. Therefore, cosmetics & personal care segment dominates the global market with majority of the market share.

Geographical Penetration

Rapid Growth in the Regional Beauty & Personal Care Industries

As the industries grow due to reasons such as urbanization, increase in disposable income and industrialization, the requirement of 1,3-butanediol as a major chemical intermediate for various applications increases. There is a significant growth of industries like beauty & personal care in the region, which is the main end-user of 1,3-butanediol. As reported by L'Oreal, one of the world's major beauty and personal care product brands, Asia-Pacific accounted for about 43% of the global cosmetics market in 2020.

The International Trade Administration estimates that Vietnam's beauty and personal care market was worth US$ 2.3 billion in 2021, growing at a CAGR of 5.9% through 2025. Due to the increased demand for beauty & personal care products in the region, there will be a significant driver of the 1,3-butanediol market. Therefore, Asia-Pacific captures the majority of the market shares in global product market.

COVID-19 Impact Analysis

The pandemic severely affected the global supply chains, causing delay in procurement of raw material, labor shortages and transportation delays. Manufacturers producing 1,3-butanediol encountered difficulties in obtaining necessary inputs and delivering final products, resulting in production schedule interruptions and supply chain inefficiencies.

Additionally, pandemic has boosted the need for the sanitization products such as hand sanitizer and other cleaning and hygiene products. In order to decrease the risk of the illness and other threats during pandemic, companies across variety of industries and individuals were preferring hygiene products, which further fueled the demand for the 1,3-butanediol's in the global product market.

Russia-Ukraine War Impact Analysis

The global supply chain of 1,3-butanediol can be disrupted by factors such as including trade prohibitions, transportation difficulties or production halts caused by conflict. It can cause shortages in the market, which would affect manufacturers further down the supply chain who depend on the chemical.

Market dynamics may be impacted by the conflict's unpredictability and instability, which could result in shifting patterns of supply and demand. Players in the market might take a cautious stance, which would alter their future investments plans and product development. In order to reduce risks, companies could also search for different suppliers and supply chain avenues, which could eventually change the dynamics of the market.

By Type

• Bio-based
• Petro-based

By Function

• Humectant
• Emollient
• Stabilizer
• Intermediate
• Others

By End-User

• Cosmetics & Personal Care
• Plastics & Polymers
• Paint & Coatings
• Food
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In 2023, Cargill and HELM established Qore as a joint venture to assist companies that employ bio-based intermediates instead of fossil-based chemistries in order to lower their greenhouse gas emissions. Under the terms of the deal, companies have contributed US$ 300 million to the construction of the commercial-scale renewable BDO project.
• In December 2023, BASF plans to launch PolyTHF and BDO as LowPCF products in the first part of 2024. The carbon footprints of each of the two chemical products have been computed by the chemical major.
• In September 2023, BASF has received long-term access to Qore LLC, a joint venture between Cargill and HELM AG, for QIRA bio-based butanediol (BDO).

Competitive Landscape

The major global players in the market include KH Neochem, Godavari Biorefineries, Haihang, Genomatica, OQ Chemicals, Daicel Corporation, Merck KGaA, LobaChemie Pvt. Ltd., Tokyo Chemical Industry Co., Ltd. (TCI), Central Drug House and Otto Chemie Pvt. Ltd.

Why Purchase the Report?

• To visualize the global 1,3-butanediol (BDO) market segmentation based on type, function, end-user and region, as well as understands key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of 1,3-butanediol (BDO) market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global 1,3-butanediol (BDO) market report would provide approximately 61 tables, 55 figures and 194 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies