Bio-based 1,4-Butanediol Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The market is segmented by application (Tetrahydrofuran (THF), Polybutylene Terephthalate (PBT), Gamma-Butyrolactone (GBL), Polyurethane (PU), and other applications), end-user industry (automotive, electrical and electronics, textile, and other end-user industries), and geography (Asia-Pacific, North America, Europe, and rest of the world). The report offers market size and forecasts for bio-based 1,4-butanediol in terms of volume (kilotons) for all the above segments.

Bio-based 1,4-Butanediol Industry Overview

Bio-based 1,4-Butanediol Market Summary
Study Period: 2018- 2028
Fastest Growing Market: North America
Largest Market: Europe
CAGR: > 9 %

Major Players

Bio-based 1,4-Butanediol Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Bio-based 1,4-Butanediol Market Analysis

The bio-based 1,4-butanediol market is expected to reach 35.48 kilotons by the end of this year and witness a CAGR of more than 9% during the forecast period.

The COVID-19 pandemic affected the bio-based 1,4-butanediol market because of quarantined workforces, general businesses shut down, and disrupted supply chains. During the pandemic, many factories responsible for bio-based 1,4-butanediol production were shut down. The closure of these manufacturing plants dampened bio-based 1,4-butanediol sales. Sections like automobile, electrical and electronics, and textile were temporarily held. However, in the present scenario, the market growth recovered.

  • The major factors driving the market's growth are the increasing polybutylene terephthalate (PBT) demand from various industries and stringent government regulations.
  • On the flip side, massive competition from fossil fuel-based products remains a concern for the market studied.
  • The shift in focus toward eco-friendly products will likely provide opportunities for the market studied during the forecast period.
  • Europe dominated the market across the world. The demand in the region is driven by the growing usage of bio-based 1,4-butanediol in industries such as automotive, electronics, and consumer appliances.

Bio-based 1,4-Butanediol Industry Segments

Bio-based 1,4-butanediol, majorly manufactured using sugar fermentation, is polymerized with terephthalic acid to produce polybutylene terephthalate (PBT). PBT is a semi-crystalline, white, or off-white thermoplastic polyester with higher impact strength, better electrical resistance, and exceptional chemical resistance. Such PBT properties make it widely suitable for applications in the electrical and electronics, telecommunications & IT, and automotive industries.​ The Bio-based 1,4 Butanediol market is segmented based on application, end-user industry, and geography. By application, the market is segmented into tetrahydrofuran (THF), polybutylene terephthalate (PBT), gamma-butyrolactone (GBL), polyurethane (PU), and other applications. By end-user industry, the market is segmented into automotive, electrical and electronics, textile, and other end-user industries. The report also covers the market size and forecasts for the bio-based 1,4 butanediol market in 11 countries across major regions. For each segment, the market sizing and forecasts have been done based on volume (kilotons).

Tetrahydrofuran (THF)
Polybutylene Terephthalate (PBT)
Gamma-Butyrolactone (GBL)
Polyurethane (PU)
Other Applications
End-user Industry
Electrical and Electronics
Other End-user Industries
South Korea
Rest of Asia-Pacific
North America
United States
United Kingdom
Rest of Europe
Rest of the World
South America
Middle East and Africa

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Bio-based 1,4-Butanediol Market Trends

Increasing Demand in the Textile Market

  • 1,4 BDO is used as an adhesive in leather, plastics, polyester laminates, and polyurethane footwear. 1,4-butanediol is an immediate chemical used in thermoplastic polyurethane (TPU) production, further used in making synthetic leather sole material.
  • However, 1-4 BDO produces tetrahydrofuran (THF), used to make spandex fiber captured in the garment industry. Spandex is a lightweight, soft, smooth synthetic fiber with a unique elasticity. Due to its elastic property, it is used in making stretchable clothing.
  • Spandex fibers, consisting of 80% polytetramethyleneether glycol (PTMEG or PolyTHF), can be stretched to between 500% and 700% of their original length and durably retain their shape.
  • The growth rates for spandex fiber are estimated to be around 10%, much higher than those for textiles. The trend toward comfortable clothing with high wearing comfort is driving demand in this area.
  • In September 2022, Lycra Company announced the world’s first large-scale commercial manufacturing of bio-derived spandex using QIRA bio-based 1,4-BDO as one of its key ingredients. The company collaborated with Qore to manufacture next-generation bio-derived LYCRA. This manufacturing involves 70% of the LYCRA fiber content sourced from renewable feedstock, helping to reduce the carbon footprint of LYCRA fiber by nearly 44%. The first renewable LYCRA fiber made using QIRA bio-based 1,4-BDO will be produced at the LYCRA Company’s production facility in Tuas, Singapore, by 2024. The LYCRA Company is seeking commitments with various brands and retail customers ready to pursue bio-derived solutions for their apparel.
  • Moreover, according to the Ministry of Finance Japan, the inward foreign direct investment (FDI) in the Japanese textile manufacturing industry accounted for USD 56 million in 2021, compared to USD 39 million in 2020.
  • Such factors depict that the market will observe stagnant growth from the textile industry during the forecast period.
Bio-based 1,4-Butanediol Market - Inward Foreign Direct Investment (FDI) Textile Manufacturing Industry, in USD Million, Japan, 2012-2021

Europe is Expected to Dominate the Market

  • The European region dominated the global market share. The demand in the market studied is driven by the growing demand from industries such as automotive, electronics, and consumer appliances.
  • Germany includes the most significant electronic and automobile industry in Europe. The German electrical and electronics market is Europe's largest and the 5th largest worldwide.
  • According to the ZVEI, Germany's electro and digital industry turnover accounted for EUR 200.4 billion (USD 218.19 billion) in 2021, witnessing a growth rate of 10.2% compared to EUR 181.9 billion (USD 198.05 billion) in 2020. Furthermore, the production from the electro and digital industry accounted for EUR 162.9 billion (USD 177.36 billion) in 2021, registering a growth rate of 8.8% compared to EUR 149.6 billion (USD 162.88 billion) in 2020. Such trends in the industry have enhanced the demand for bio-based 1,4 butanediol for electronics and semiconductor applications in the country.
  • Also, Germany leads the European automotive market, with 41 assembly and engine production plants contributing to one-third of Europe's total automobile production. In the overall 2021, the country produced 3,096,165 vehicles which declined by 12% compared to 3,742,454 cars in the same period in 2020. The declining automotive industry is likely to affect the market studied. However, the automotive industry is estimated to recover and grow later in the forecast period.
  • The United Kingdom is the largest European market for high-end consumer electronics products, with about 18,000 UK-based electronics companies. The demand for technologically-advanced electronic devices registered significant growth in the consumer electronics market in the country. This increase in demand is expected to drive electronics production in the country, leading to the need for bio-based 1,4-Butanediol for electronic applications.
  • The France automobile industry fared much better when compared to other major economies in Europe in the past few years. In overall 2021, the country produced about 917,907 units of vehicles, which increased by 3% in comparison to 2020.
  • Besides, with the increasing population income, consumer appliance demand, such as air-conditioners, fridges, washing machines, microwaves, etc., noticeably increased, further driving the consumer appliances market growth.
  • Hence, all such favourable market trends are expected to drive the demand for bio-based 1,4-butanediol for raw material applications in the region during the forecast period.
Bio-based 1,4-Butanediol Market - Growth Rate by Region, 2023-2028

Bio-based 1,4-Butanediol Market Competitor Analysis

The global bio-based 1,4 butanediol market is an oligopoly, where Novamont SpA holds the dominant production capacity share. Some of the noticeable players in the market include Novamont SpA, Shandong Landian Biological Technology, DSM, BASF SE, and Global Bio-chem Technology Group Company Limited (not in a particular order), among others.

Bio-based 1,4-Butanediol Market Top Players

  1. Novamont SpA

  2. Shandong LanDian Biological Technology Co. Ltd

  3. DSM

  4. BASF SE

  5. Global Bio-chem Technology Group Company Limited

*Disclaimer: Major Players sorted in no particular order

Bio-based 1,4-Butanediol Market Concentration

Bio-based 1,4-Butanediol Market Recent Developments

  • September 2022: QIRA collaborated with LYCRA, a textile and apparel brand. LYCRA will use Qira bio-based BDO for spandex manufacturing. It will result in 70% of the LYCRA fiber content being derived from renewable feedstock.
  • May 2022: Yuanli Science and Technology launched bio-based 1,4 BDO in 2021. Along with dealing in the Asia region, the company started exporting to the European Union market in May 2022. The product is used in different end-use products and industries, such as spandex, biodegradable plastics, polyurethane, shoe materials, new energy batteries, etc. It helped the company in increasing its customer base and geographical presence.

Bio-based 1,4-Butanediol Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand for Polybutylene Terephthalate (PBT)

      2. 4.1.2 Stringent Government Regulations

    2. 4.2 Restraints

      1. 4.2.1 Huge Competition From Fossil Fuel-based Products

      2. 4.2.2 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Patent Analysis

  5. 5. MARKET SEGMENTATION (Market Size in Volume)

    1. 5.1 Application

      1. 5.1.1 Tetrahydrofuran (THF)

      2. 5.1.2 Polybutylene Terephthalate (PBT)

      3. 5.1.3 Gamma-Butyrolactone (GBL)

      4. 5.1.4 Polyurethane (PU)

      5. 5.1.5 Other Applications

    2. 5.2 End-user Industry

      1. 5.2.1 Automotive

      2. 5.2.2 Electrical and Electronics

      3. 5.2.3 Textile

      4. 5.2.4 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      2. 5.3.2 North America

        1. United States

        2. Canada

        3. Mexico

      3. 5.3.3 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Italy

        5. Rest of Europe

      4. 5.3.4 Rest of the World

        1. South America

        2. Middle East and Africa


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%) Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 BASF SE

      2. 6.4.2 DSM

      3. 6.4.3 Genomatica Inc.

      4. 6.4.4 Global Bio-chem Technology Group Company Limited

      5. 6.4.5 Novamont S.p.A

      6. 6.4.6 Qira

      7. 6.4.7 Shandong LanDian Biological Technology Co. Ltd

      8. 6.4.8 Yuanli Science and Technology

    5. *List Not Exhaustive

    1. 7.1 Shift in Focus toward Eco-friendly Products

    2. 7.2 Other Opportunities

**Subject to Availability
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Bio-based 1,4-Butanediol Market Research FAQs

The Bio-based 1,4-Butanediol Market market is studied from 2018 - 2028.

The Bio-based 1,4-Butanediol Market is growing at a CAGR of >9% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2022.

Novamont SpA, Shandong LanDian Biological Technology Co. Ltd, DSM, BASF SE, Global Bio-chem Technology Group Company Limited are the major companies operating in Bio-based 1,4-Butanediol Market.

Bio-based 1,4-Butanediol Industry Reports

In-depth industry statistics and market share insights of the Bio-based 1,4-Butanediol sector for 2020, 2021, and 2022. The Bio-based 1,4-Butanediol research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Bio-based 1,4-Butanediol report PDF.

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