1,4 Butanediol Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Volume (2025) | 2.56 Million tons |
| Market Volume (2030) | 3.05 Million tons |
| Growth Rate (2025 - 2030) | 3.55% CAGR |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
1,4 Butanediol Market Analysis by Mordor Intelligence
The 1,4 Butanediol Market size is estimated at 2.56 Million tons in 2025, and is expected to reach 3.05 Million tons by 2030, at a CAGR of 3.55% during the forecast period (2025-2030). Output expansion rests on the interplay of incremental demand for tetrahydrofuran (THF) in spandex yarns, rising interest in polybutylene terephthalate (PBT) for electric-vehicle (EV) connectors, and the emergence of bio-fermentation routes that lower carbon intensity. Competitive intensity is rising as biotechnology licensors strike alliances with producers seeking greener capacity, while incumbent petrochemical players counter by debottlenecking Reppe-process assets. Government incentives in North America and Europe, combined with rising sustainability targets among automotive, electronics, and apparel brands, are accelerating investment in bio-based capacity even as conventional acetylene routes remain cost-competitive in coal-rich regions. At the same time, price volatility for calcium-carbide-derived acetylene and stricter health-and-safety regulations are pushing producers to diversify feedstocks.
Key Report Takeaways
- By production process, the Reppe route held 70% of global output in 2024; bio-fermentation is forecast to grow at a 7.40% CAGR to 2030.
- By derivative, THF led with a 52% share in 2024; PBT is advancing at a 3.72% CAGR through 2030.
- By end-user industry, textiles accounted for 39% share of the 1,4 butanediol market size in 2024, while electrical and electronics is the fastest-growing segment at 4.07% CAGR.
- By geography, Asia-Pacific commanded 76% of the 1,4 butanediol market share in 2024, and is projected to expand at a 3.87% CAGR through 2030.
Global 1,4 Butanediol Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rising Demand for Tetrahydrofuran (THF) and Spandex Fibers | +1.20% | Asia-Pacific, North America | Medium term (2-4 years) |
| Lightweighting Drive in EVs Fueling PBT Adoption in Auto Connectors | +0.80% | North America, Europe, China | Long term (≥ 4 years) |
| Expansion of Polyurethane Applications | +0.60% | Global | Medium term (2-4 years) |
| Pharma-grade GBL Demand for Solvent-Based API Synthesis | +0.40% | North America, Europe | Short term (≤ 2 years) |
| Government Subsidies for Bio-based BDO Plants in US and EU | +0.90% | North America, Europe | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Rising Demand for Tetrahydrofuran (THF) and Spandex Fibers
THF remains the pivotal derivative, feeding PTMEG for spandex yarns that underpin performance apparel, medical textiles, and automotive interiors. Spandex consumption is shifting from basic athleisure to high-function garments requiring enhanced stretch and recovery. Producers are therefore scaling catalytic upgrades such as biochar-supported Ru-Re systems that cut hydrogen usage and improve selectivity, helping stabilize margins amid recent Asian price swings[1]Younghyun Lee et al., “Biochar as a Catalytic Material for the Production of 1,4-Butanediol,” ScienceDirect, sciencedirect.com . Apparel brands’ push for recyclability is prompting THF suppliers to explore circular feedstocks, aligning with downstream mills that target lower scope-3 emissions. These converging dynamics keep the 1,4 butanediol market closely tied to the health of the synthetic-fiber chain.
Lightweighting Drive in EVs Fueling PBT Adoption in Auto Connectors
Automakers prioritizing energy-density gains are redesigning high-voltage architectures around PBT housings that trim system weight by 15–30% while preserving dielectric strength. Component makers report faster cycle times via injection molding versus legacy materials, enabling higher line speeds as EV demand accelerates. The North American supply base is responding with new compounding lines that pair bio-circular 1,4-butanediol with recycled polyesters, cutting product carbon footprints by over 30% and satisfying domestic content incentives. This structural tilt toward engineering thermoplastics cements a durable pull for the 1,4 butanediol market through the decade[2]ResourceWise Editorial, “Engineering Thermoplastics: The Future of High-Performance Materials in the Chemical Value Chain,” resourcewise.com .
Expansion of Polyurethane Applications
Chain-extension flexibility allows formulators to tailor hardness, abrasion resistance, and low-temperature performance, opening niches in medical devices, advanced coatings, and specialty adhesives. Automotive OEMs adopt these polyurethane systems to meet fleet emissions caps without sacrificing durability. Parallel advances in bio-based polyols create drop-in solutions that pair with 1,4 butanediol for reduced life-cycle greenhouse-gas profiles. As a result, demand is migrating from commodity foams to higher-margin specialty grades, reinforcing volume stability and value capture for producers.
Pharma-grade GBL Demand for Solvent-Based API Synthesis
API manufacturers favor high-boiling, low-vapor-pressure solvents such as GBL to navigate complex synthetic pathways in oncology and antiviral drugs. The shift to continuous-flow reactors further compounds solvent purity requirements, allowing premium pricing. Novel fullerene-based sensors now provide real-time GBL detection, tightening process control and regulatory compliance. This technology assurance feeds back into rising offtake for pharmaceutical-grade 1,4 butanediol market volumes, offsetting volatility in more cyclical derivative chains.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Health and Safety Concerns | –0.7% | Global (higher in Europe) | Medium term (2-4 years) |
| Raw Material Price Volatility | –0.5% | Global | Short term (≤ 2 years) |
| Competition from Alternative Materials | –0.4% | North America, Europe | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Health and Safety Concerns
Global regulators tighten exposure limits as 1,4 butanediol shows acute toxicity affecting the central nervous system. Europe’s REACH and CLP frameworks require extensive documentation, triggering higher compliance costs and risking market exit for smaller formulators lacking advanced EHS infrastructure. Large producers mitigate this restraint via closed-loop handling and operator-training programs, yet downstream personal-care and consumer-product sectors face heightened hurdles. These dynamics temper growth in certain high-value applications and necessitate continuous investment in safety management systems across the 1,4 butanediol market.
Raw Material Price Volatility
Feedstock swings in calcium carbide, natural gas, and bio-fermentation substrates compress margins and complicate long-term capacity planning. Integrated players hedge positions through multi-feedstock flexibility and derivative balancing, whereas standalone Reppe-process operators are more vulnerable to cost shocks. Price risk ultimately feeds into downstream contract structures, encouraging customers to diversify supply and prompting producers to pursue index-linked formulas that pass through volatility.
Segment Analysis
By Production Process: Bio-fermentation Disrupts Traditional Methods
The 1,4 butanediol market size tied to the Reppe process stood at a commanding 70% share in 2024, underpinned by mature acetylene-based assets and favorable coal economics in China. Yet bio-fermentation volumes are scaling quickly at a 7.40% CAGR, propelled by metabolic-engineering breakthroughs that convert PET-waste-derived ethylene glycol into high-purity BDO. Commercial deployments such as the forthcoming 50,000 ton/yr Vietnamese unit highlight how licensors bridge laboratory titers with industrial purification technologies that now achieve more than 99% recovery at competitive unit costs.
Continued environmental levies on coal-based acetylene and prospective carbon-border adjustments in key export markets raise the cost bar for the Reppe route. Davy and butadiene-based syntheses offer process diversity where propylene-oxide co-product economics or regional butadiene surpluses prevail. The 1,4 butanediol market therefore reflects a portfolio approach in which producers hedge regulatory and feedstock risk by allocating capital across multiple routes while optimizing life-cycle emissions.
Note: Segment shares of all individual segments available upon report purchase
By Derivative: THF Dominance Challenged by PBT Growth
THF maintained 52% share of the 1,4 butanediol market size in 2024, a testament to its central role in spandex and polyurethane elastomers. Supply balance, however, tightened on the back of Asian maintenance turnarounds, exposing textile mills to feedstock swings. Concurrently, PBT advances at a 3.72% CAGR through 2030, driven by EV and electronics demand that values dimensional stability and electrical insulation. Sustainability mandates reinforce this shift as compounders launch bio-circular grades, reducing cradle-to-gate emissions by more than 30% compared with fossil incumbents.
GBL finds premium niches in pharmaceutical synthesis, where solvent performance and regulatory approval underpin stable margins. Specialty polyurethanes and niche chemical intermediates round out the derivative slate, allowing producers to diversify exposure across value chains and capture margin upside in higher-value formulations within the 1,4 butanediol market.
By End-user Industry: Electronics Outpacing Traditional Textiles
Textiles retained a 39% revenue share in 2024, yet growth moderates as apparel demand shifts and recycling initiatives cap virgin fiber requirements. In contrast, the electrical and electronics sector displays a 4.07% CAGR through 2030, buoyed by miniaturization trends and tighter fire-safety norms that favor PBT circuit housings. The 1,4 butanediol market share within automotive aligns closely with EV penetration rates, as lightweight thermoplastic components replace metal counterparts across battery enclosures and charging systems.
Healthcare and pharmaceuticals deliver steady, high-margin business anchored in GBL purity standards. Construction, packaging, and broader consumer goods represent complementary outlets that smooth cyclical swings, ensuring balanced portfolio exposure for integrated producers.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Asia-Pacific dominates the 1,4 butanediol market with a 76% share in 2024 and a projected 3.87% CAGR to 2030. China anchors this leadership through vast Reppe-route capacity supported by coal-derived acetylene, while new projects such as BASF’s Zhanjiang Verbund site broaden regional production of engineering plastics. India and South Korea are scaling downstream elastomer, textile, and electronics plants, deepening regional integration and raising intra-Asian trade flows.
North America accounts for a meaningful share of global demand, supported by PBT usage in autos and rising bio-BDO investments. Qore’s Iowa plant, scheduled to produce 66,000 tons annually from 2025, leverages corn-based dextrose and captures federal tax incentives, establishing a domestic low-carbon supply that resonates with brand-owner procurement policies. Canada and Mexico add incremental growth through automotive parts and technical-textile exports.
Europe exhibits slower headline expansion but leads in sustainability-led innovation. Novamont’s Italian bio-BDO unit and multiple compounding facilities for bio-circular PBT illustrate regional alignment with circular-economy objectives[3]Envalior, “Sustainable Pocan PBT Compounds Based on Bio-Circular BDO,” envalior.com . Stricter CLP compliance elevates entry barriers, encouraging specialty-grade production where premium pricing offsets higher operating costs. South America, the Middle East, and Africa contribute modest but rising demand, with Brazil’s textile sector and Saudi Arabia’s petrochemical clusters offering new pull for the 1,4 butanediol market.
Competitive Landscape
The global 1,4 butanediol market exhibits moderately fragmented concentration, with the top five producers controlling around 46% of installed capacity. Companies like BASF, LyondellBasell, and Dairen Chemical Corporation leverage vertically integrated operations, debottlenecking, and portfolio enhancements to maintain leadership while exploring bio-feedstocks to meet carbon targets. Technology licensors such as Genomatica disrupt the market with bio-fermentation solutions, enabling agro-industrial players to enter chemicals through partnerships like those with Hyosung TNC and Qore. Chinese incumbents benefit from cost-efficient acetylene chemistry but face emission reduction pressures, driving renewable pathway ventures. Forward and backward integration, along with factors like patents, energy costs, and financing, shape capacity decisions. As sustainability gains prominence, competitive advantage will depend on life-cycle data, secure feedstock sourcing, and the ability to supply both conventional and bio-based grades.
1,4 Butanediol Industry Leaders
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BASF SE
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LyondellBasell Industries Holdings B.V.
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NAN YA PLASTICS CORPORATION
-
DCC
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Mitsubishi Chemical Group Corporation
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- April 2024: Hyosung TNC committed USD 1 billion to bio-BDO plants in Vietnam, targeting 50,000 tons per year by 2026 using Genomatica technology.
- September 2023: BASF signed a long-term agreement to source QIRA bio-based 1,4-BDO from Qore LLC, widening its sustainable derivative slate.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the 1,4-butanediol market as all merchant-grade and captive volumes of 1,4-butanediol (BDO) sold or consumed worldwide, regardless of production route, for use in downstream derivatives such as tetrahydrofuran, polybutylene terephthalate, γ-butyrolactone, and polyurethane.
Scope exclusion: Other butanediol isomers (1,3-BDO, 2,3-BDO) and internal transfer pricing inside fully integrated sites are not counted.
Segmentation Overview
- By Production Process
- Reppe Process
- Davy Process
- Butadiene-Based Process
- Propylene Oxide-Based Process
- Bio-fermentation Route
- By Derivative
- Tetrahydrofuran (THF)
- Polybutylene Terephthalate (PBT)
- Gamma-Butyrolactone (GBL)
- Polyurethane (PU)
- Other Derivatives
- By End-user Industry
- Automotive
- Textile
- Electrical and Electronics
- Healthcare and Pharmaceuticals
- Other End-user Industries
- By Geography
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Rest of Asia-Pacific
- North America
- United States
- Canada
- Mexico
- Europe
- Germany
- United Kingdom
- France
- Italy
- Rest of Europe
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East and Africa
- Saudi Arabia
- South Africa
- Rest of Middle East and Africa
- Asia-Pacific
Detailed Research Methodology and Data Validation
Primary Research
Mordor analysts interviewed procurement heads at spandex fiber mills in China, resin compounders in Europe, and distribution partners in North America. These discussions helped us validate average contract prices, derivative split ratios, and regional demand swings that desk sources only hint at.
Desk Research
We began with trade-code filtered customs data from UN Comtrade, China Customs, and USITC, which show cross-border BDO tonnage and average export prices. Those flows were matched with production statistics from organizations such as the American Chemistry Council and the National Bureau of Statistics of China. Cost curves, plant capacities, and shutdown dates were pulled from industry journals like ICIS Chemical Business, while patent trends around bio-fermentation routes were reviewed in Questel. Financial filings, press releases, and investor decks of leading producers were downloaded through D&B Hoovers and Dow Jones Factiva to benchmark derivative uptake in textiles, automotive plastics, and solvents. Many other secondary sources were consulted for clarification and cross-checks, though they are not exhaustively listed here.
Market-Sizing & Forecasting
A top-down reconstruction starts with global BDO output, derived from plant nameplate capacity, typical utilization, and net trade balances. This is then corroborated through selective bottom-up checks on sampled supplier volumes and channel price sheets. Variables such as spandex yarn production, PBT molding-compound output, announced capacity additions, average quarterly BDO contract price, and bio-BDO penetration were fed into a multivariate regression and ARIMA overlay to project demand. Bottom-up gaps, especially for captive consumption, were bridged using respondent-verified conversion ratios.
Data Validation & Update Cycle
Before sign-off, results pass a multi-step peer review where outliers versus historical series or trade statistics trigger re-contacts. The model is refreshed annually, and interim revisions are issued when major capacity, regulatory, or price shocks occur. Clients therefore receive the latest vetted view.
Why Mordor's 1,4 Butanediol Baseline Stands Resilient
Published estimates often diverge because firms choose different functional scopes, price bases, and refresh cadences, which creates confusion for decision-makers.
Key gap drivers include whether captive volumes are counted, if bio-based output is modeled with separate elasticities, and how rapidly analysts escalate average selling prices. Our team reports a balanced base case, while other publishers sometimes apply aggressive price inflation or exclude smaller Asian plants, leading to sizable spread.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 7.68 billion (2024) | Mordor Intelligence | |
| USD 7.68 billion (2024) | Global Consultancy A | counts only merchant sales; assumes uniform 3 % annual price rise |
| USD 7.8 billion (2024) | Global Consultancy B | excludes bio-BDO; uses higher synthetic-to-bio price premium |
| USD 8.1 billion (2024) | Industry Analysis C | aggregates BDO isomers; projects derivative demand with optimistic spandex growth |
In short, Mordor Intelligence anchors its baseline on verified production and trade signals, applies transparent price-volume logic, and revisits every assumption yearly, giving stakeholders a dependable, reproducible starting point for strategy.
Key Questions Answered in the Report
What is driving recent growth in the 1,4 butanediol market?
Lightweighting in electric vehicles, rising demand for spandex fibers, and government subsidies for bio-based plants underpin a projected 3.55% CAGR through 2030.
Which derivative segment is expanding the fastest?
Polybutylene terephthalate (PBT) is advancing at a 3.72% CAGR as automakers and electronics firms specify the polymer for high-voltage connectors and housings.
How significant is bio-based production today?
Bio-fermentation routes presently account for a small share but are scaling at 7.40% CAGR, backed by commercial projects in the United States, Vietnam, and Europe.
Why does Asia-Pacific dominate the 1,4 butanediol market?
A deep base of coal-derived acetylene capacity, integrated textile and electronics value chains, and ongoing capacity expansions give the region a 76% market share.
What are the key restraints facing producers?
Health-and-safety regulations, feedstock price volatility, and the emergence of alternative materials reduce the forecast CAGR by a combined 1.6 percentage points.
How concentrated is global supply?
The top five producers hold roughly 46% of installed capacity, resulting in a moderately fragmented market concentration.
What is the current market size of 1,4 Butanediol market?
The 1,4 Butanediol Market size is estimated at 2.56 Million tons in 2025, and is expected to reach 3.05 Million tons by 2030, at a CAGR of 3.55% during the forecast period (2025-2030).
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