1,3-Butanediol Market Poised for Growth as Bio-Based Alternatives Emerge
Global 1,3-Butanediol Market Poised for Growth as Bio-Based Alternatives Emerge
November 28, 2025 – The global 1,3-Butanediol (1,3-BG) market is expected to experience steady growth over the next five years, fueled by its dominant use in the booming Cosmetics & Personal Care sector and the significant commercial launch of new bio-based capacity. The market size is projected to be between 160 and 300 million USD in 2025, with a projected Compound Annual Growth Rate (CAGR) of 4% to 6% through 2030.
1,3-Butanediol is a pure, clear, water-soluble organic liquid used primarily as a humectant (moisturizer) and solvent.
Market Dynamics: Cosmetics Drive Demand
The vast majority of 1,3-BG consumption is concentrated in the personal care industry due to its efficacy as a moisturizer, fragrance enhancer, and antimicrobial agent.
| Application Segment | Consumption Share (Approx.) | Primary Function |
| Cosmetics & Personal Care | >85% | Humectant (moisturizer), solvent, viscosity reducer, preservative against spoilage. |
| Polymer | Minority Share | Chemical intermediate for polyurethane and polyester plasticizers/resins. |
| Paints & Coatings | Minority Share | Stabilizer; precursor for BGDMA used in acroletic coatings and adhesives. |
| Food | Minor Share | Indirect food additive (polymeric coatings), preservative. |
The Asia-Pacific region is the largest producer and consumer of 1,3-BG, accounting for over 40% of global consumption.
The Shift to Bio-1,3-Butanediol (Bio-1,3-BG)
The most significant recent development is the substantial increase in Bio-1,3-BG capacity, driven by consumer preference for natural and non-fossil-fuel derived cosmetic ingredients.
| Production Type | Estimated Total Capacity (t/year) | Key Players | Note |
| Synthetic 1,3-BG | approx 48,000 | OXEA, Daicel, KH Neochem | Uses ethylene/acetaldehyde, derived from fossil fuels (ethane/naphtha). |
| Bio-1,3-BG | > 40,000 | Wanhua, Godavari, Dongying Hebang | Uses non-food biomass via fermentation and green synthesis. |
Major Capacity Shift:
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Wanhua's Launch: In 2025, Wanhua commissioned its 30,000 t/year Bio-1,3-BG facility, using non-food biomass. This single launch dramatically shifts the global capacity balance, making the Bio-based sector competitive in scale with the Synthetic market.
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Other Bio-Producers: Smaller producers like Godavari Biorefineries Limited (2,400 t), Dongying Hebang Chemical Co. Ltd (6,000 t), and Genomatica (2,000 t) contribute to the growing Bio-1,3-BG supply.
Market Outlook (2025-2030)
| Metric | Value/Range |
| 2025 Market Size Estimate | 160 - 300 Million USD |
| 2025-2030 CAGR | 4% - 6% |
| Largest Application Segment | Cosmetics & Personal Care (>85% share) |
The market is expected to witness rising competition between traditional synthetic producers and the rapidly scaling Bio-based sector. The Bio-1,3-BG segment is well-positioned to capitalize on the sustained, high-growth demand for premium, sustainable ingredients within the cosmetics and personal care industries, particularly in the APAC region.