1,3-Butanediol (1,3-BG, also known as 1,3-butylene glycol) is a versatile, high-purity, clear, odorless, and water-soluble organic liquid, classified as a natural diol. It functions as a crucial multifunctional ingredient across several industries, primarily recognized in cosmetics for its superior humectant, solvent, and antimicrobial boosting properties. It is also a key intermediate in the chemical industry for specialty polymer and coating manufacturing.
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The market for 1,3-BG is distinguished by two defining characteristics:
- Dominance of the Personal Care Sector: The market is overwhelmingly driven by the cosmetics and personal care industry, which accounts for over 85% of consumption. 1,3-BG is highly valued for its ability to moisturize, condition, enhance fragrance stability, reduce viscosity, and aid in the preservation of cosmetic products against microbial spoilage.
- Technological Dualism and Sustainability Shift: The market is supplied by both Synthetic 1,3-BG (petrochemical-based) and the rapidly emerging Bio-1,3-BG (fermentation-based). The shift towards bio-based sourcing, utilizing non-food biomass, is a major secular trend driven by consumer demand for sustainable and natural ingredients in cosmetics.
Type and Application Analysis
The choice between Synthetic and Bio-1,3-BG is crucial, largely dictated by sustainability goals and the stringent requirements of the cosmetics sector.Product Type: Synthetic vs. Bio-1,3-BG
- Synthetic 1,3-BG:
- Features & Trends: Produced from petrochemical feedstocks like ethylene and acetaldehyde, typically via steam crackers using raw materials such as ethane (e.g., OXEA) or naphtha (e.g., Daicel and KH Neochem). The process across major companies is generally consistent. Total capacity from key synthetic producers is approximately 48,000 tonnes.
- Key Trend: Benefits from established technology and scale, offering cost-competitive supply. However, it faces increasing pressure from brands seeking non-fossil-fuel-derived ingredients.
- Bio-1,3-BG:
- Features & Trends: Produced via advanced biological fermentation and green synthesis technology, utilizing non-food biomass (agri-products) as feedstock, followed by condensation, hydrogenation, and rectification. Total announced and existing capacity for key bio-producers is over 40,000 tonnes. Key additions include Wanhua's 30,000 tonnes plant commissioned in 2025.
- Key Trend: High growth due to significant market pull from the cosmetics sector. It allows final products to be marketed with "natural" or "sustainable" claims, providing a distinct premium and competitive advantage.
Applications
- Cosmetics & Personal Care (Over 85% of consumption):
- Features & Trends: The primary use is as a moisturizer, viscosity-decreasing agent, and solvent in a vast range of products, including moisturizers, cleansers, serums, sunscreens, and sheet masks. Its best characteristic is its ability to stabilize volatile compounds like fragrances and flavors, minimizing aroma loss, and aiding in microbial preservation.
- Key Trend: Accelerated adoption in premium and "clean label" products due to its mild, non-irritating profile and dual functionality, driving demand for the Bio-1,3-BG variant.
- Polymer:
- Features & Trends: Used as a chemical intermediate in the manufacture of polyester plasticizers, unsaturated polyester resins, and polyurethane resins.
- Key Trend: Demand is stable, linked to the general growth of specialty plastics and the need for plasticizers that provide durability and flexibility in manufactured goods.
- Paints & Coatings:
- Features & Trends: Used primarily as a stabilizer in various paint and coating formulations, including polyurethane paints. It is also a precursor for 1,3-BG Dimethacrylate (BGDMA), which is used in acroletic coatings, pressure-sensitive adhesives, and plastic improvers.
- Key Trend: Driven by the automotive, electrical, and electronics manufacturing industries, which demand enhanced industrial paints and coatings for protection and performance.
- Food:
- Features & Trends: Allowed by regulatory bodies (e.g., FDA) for use as an indirect food additive (e.g., in polymeric coatings in contact with food). It functions as a preservative and helps keep products well-formed and moist.
Regional Market Trends
Consumption and production are heavily weighted toward Asia, driven by its integrated chemical manufacturing base and the world's largest consumer market for personal care.- Asia-Pacific (APAC): APAC is the largest production and consumption region, accounting for over 40% of the global market, and projected to achieve the strongest growth rate, estimated at a CAGR in the range of 5%-7.5% through 2030. This dominance is driven by the massive chemical capacity from players like Wanhua (30,000 tonnes Bio-BG), Daicel, KH Neochem, and Dongying Hebang Chemical Co. Ltd. (6,000 tonnes Bio-BG). The rapidly expanding middle class and the high per-capita use of personal care products (especially face masks and serums) in China, Japan, and Korea fuel robust consumption.
- North America: North America is a mature, high-value consumption market, projected to grow at a moderate CAGR in the range of 3.5%-5.5% through 2030. It is driven by the strong "clean beauty" trend and the demand for sustainable, bio-based ingredients, supported by technology developers like Genomatica.
- Europe: Europe is a strong, high-value market, projected to grow at a moderate CAGR in the range of 3%-5% through 2030. Strict cosmetic regulations and a strong consumer focus on natural and sustainable ingredients create a firm pull for Bio-1,3-BG.
- Latin America and Middle East & Africa (MEA): These regions represent smaller, growing markets, projected to grow at a moderate CAGR in the range of 3%-5% through 2030, with demand tied to local cosmetic and industrial production growth.
Company Profiles
The market consists of established petrochemical majors and innovative bio-technology companies.- OXEA, Daicel, and KH Neochem: The dominant players in the Synthetic 1,3-BG market, collectively accounting for an estimated 48,000 tonnes of capacity. They leverage their integrated petrochemical operations (using ethane/naphtha crackers) and long-standing reputation for high purity and stable supply in industrial and cosmetic applications.
- Wanhua and Dongying Hebang Chemical Co. Ltd.: Major Chinese manufacturers focusing on the high-growth Bio-1,3-BG segment. Wanhua's 30,000 tonnes plant is a significant global capacity addition in 2025, demonstrating the commitment of major chemical firms to sustainable production routes using non-food biomass.
- Genomatica (2,000 tonnes) and Godavari Biorefineries Limited (2,400 tonnes): Key innovators and producers of Bio-1,3-BG. Genomatica is a biotechnology firm licensing its fermentation technology, and Godavari Biorefineries is an integrated Indian bio-refinery, specializing in agricultural feedstock utilization. These companies capture value through proprietary, green synthesis technology.
Value Chain Analysis
The 1,3-BG value chain is bifurcated, with the synthetic route relying on oil & gas and the bio-route relying on agricultural biomass, with value-add shifting towards green technology.- Upstream: Feedstock Sourcing:
- Synthetic Route: Sourcing of ethylene and acetaldehyde (petrochemical derivatives).
- Bio Route: Sourcing of non-food biomass/agricultural products (e.g., sugar sources) for fermentation.
- Value-Add: For the synthetic route, access to low-cost petrochemicals; for the bio-route, efficient conversion of low-cost, sustainable biomass into fermentable sugars.
- Midstream: Synthesis and Purification (Core Value-Add):
- Synthetic Activity: Catalytic synthesis, often involving high-pressure/high-temperature reactions of petrochemical intermediates.
- Bio Activity:*● Proprietary microbial fermentation (e.g., Genomatica's technology), followed by chemical synthesis (condensation, hydrogenation) and final high-purity rectification.
- Value-Add:*● Technology differentiation - specifically, efficient, high-yield Green Synthesis technology for the Bio-BG (e.g., Wanhua's process). This stage captures a high premium for certified bio-based material.
- Downstream: Cosmetic Formulation and Branding:
- Activity: Selling high-purity 1,3-BG to cosmetic brands, polymer manufacturers, and coating formulators.
- Value-Add:*● Certification and Green Branding. Marketing the product as "natural" or "bio-based" to high-end cosmetic brands, providing regulatory documentation, and ensuring consistent cosmetic-grade purity, which is critical for the over 85% consumption market.
Opportunities and Challenges
1,3-BG is poised for significant growth, especially in its bio-based form, but faces challenges related to raw material cost and competition from other glycols.Opportunities
- The "Clean Beauty" Tailwind: The strong, continuous consumer and regulatory push for mild, non-irritating, and "preservative-free" cosmetics ensures sustained, high-value demand for 1,3-BG as a superior multifunctional ingredient.
- Expansion of Bio-Based Capacity: The substantial capacity additions in the Bio-1,3-BG segment (e.g., Wanhua's 30,000 tonnes plant in 2025) will improve the scalability and cost-competitiveness of the sustainable option, accelerating its adoption into mainstream cosmetic lines.
- Fragrance Stabilization and Preservation Boost: Its proven ability to act as a fragrance stabilizer and preservation booster provides dual functional value to formulators, justifying its use over single-purpose alternatives.
- APAC Cosmetic Market Boom: The rapid growth and premiumization of domestic cosmetic brands across China and East Asia provide an expanding and dynamic core market for both synthetic and bio-based 1,3-BG.
Challenges
- Cost vs. Commodity Glycols: 1,3-BG is typically more expensive than commodity glycols like Propylene Glycol (PG) or Glycerin. It must continuously justify its price premium based on superior performance in sensory attributes (skin feel) and preservation.
- Feedstock Volatility in Both Routes: The synthetic route is exposed to petrochemical price volatility, while the bio-route is exposed to the price and availability of agricultural feedstock and complex fermentation scaling costs.
- Competition from Other Diols: The market is competitive, with other specialty diols (e.g., 1,2-Hexanediol, Caprylyl Glycol) also vying for the role of multifunctional preservative boosters and emollients, potentially limiting 1,3-BG's market share in certain formulations.
- Bio-Purity and Consistency: Maintaining the high standards of purity and color consistency required by the cosmetic industry, particularly when scaling up novel biological fermentation processes, presents a constant technical and operational challenge.
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Table of Contents
Chapter 1 Executive SummaryChapter 2 Abbreviation and Acronyms
Chapter 3 Preface
Chapter 4 Market Landscape
Chapter 5 Market Trend Analysis
Chapter 6 Industry Chain Analysis
Chapter 7 Latest Market Dynamics
Chapter 8 Trading Analysis
Chapter 9 Historical and Forecast 1,3-Butanediol Market in North America (2020-2030)
Chapter 10 Historical and Forecast 1,3-Butanediol Market in South America (2020-2030)
Chapter 11 Historical and Forecast 1,3-Butanediol Market in Asia & Pacific (2020-2030)
Chapter 12 Historical and Forecast 1,3-Butanediol Market in Europe (2020-2030)
Chapter 13 Historical and Forecast 1,3-Butanediol Market in MEA (2020-2030)
Chapter 14 Summary for Global 1,3-Butanediol Market (2020-2025)
Chapter 15 Global 1,3-Butanediol Market Forecast (2025-2030)
Chapter 16 Analysis of Global Key Vendors
List of Tables and Figures
Companies Mentioned
- OXEA
- Daicel
- KH Neochem
- Genomatica
- Godavari Biorefineries Limited
- Wanhua
- Dongying Hebang Chemical Co. Ltd.
