Market Overview
The Global 1,4 butanediol (BDO) market reached US$ XX million in 2023 and is expected to reach US$ XX million by 2031, growing at a CAGR of XX% during the forecast period (2024-2031).
1,4 Butanediol (1,4 BD) is a viscous liquid from butane by placing alcohol groups at every end of the molecular chain and is among one of four stable isomers of butanediol. 1,4 BDO has widespread industrial applications. It is used to produce urethane elastomers, spandex fibers, and copolyester ethers. Sizable quantities of 1,4 BDO are also utilized to make gamma-butyrolactone (GBL), which has outlets in pharmaceuticals, electronics and agrochemicals, and high-performance polymers. Miscellaneous uses include its usage in solvents, coating resins, and as intermediates. Worldwide production capacity for 1,4 BDO is estimated in the millions of metric tons/year.
1,4 Butanediol is an essential commodity chemical used to manufacture over a million tons of useful polymers annually. Currently, the majority of production is through petrochemistry. Additionally, like many commodity chemicals, it is highly reduced compared to carbohydrates, making its biosynthesis even more improbable.
Market Summary
| Metrics | Details |
| Market CAGR | High |
| Segments Covered | By Type, By Process, By Application, By End-User, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Source: DataM Intelligence Analysis (2023)
Market Dynamics
The market is expected to boost with the growing use of renewable feedstocks for manufacturing 1,4 butanediol.
The growing use of renewable feedstocks for manufacturing 1,4 butanediol
Sugars generated from biomass are an important platform for a variety of applications. Among these, 1,4 Butanediol is a high-volume chemical with a global market, utilized in various applications ranging from automobile plastics to electronics. Four major energy-intensive technologies now create 1,4 BDO from fossil feedstocks (coal, oil, or natural gas), responsible for large greenhouse gas emissions. Growing environmental concerns and variable fossil energy prices prompted the development of a more sustainable BDO production process based on renewable feedstocks that are lower in cost, use less energy and emit fewer greenhouse gases. Bio-BDO is mostly utilized in plastics, but it will increasingly be employed in textiles, automotive, and consumer goods in the future.
Popular plastic applications are packaging, tableware, and shopping bags, and could be used in molded industrial and consumer goods.
With consumers demanding sustainable products, brands are looking for more innovative, environmentally-friendly solutions and need supplier capabilities to consistently meet those expectations. In 2023, Cargill and HELM formed a joint venture, Qore, to support leading brands that substitute fossil-based chemistries with bio-based intermediates, allowing them to reduce greenhouse gas emissions (GHG).
As part of the agreement, companies have invested US$ 300 million to build the commercial-scale renewable BDO facility. Bio-based intermediates give the apparel, electronics, automotive and packaging industries the ability to improve their environmental footprint without altering their existing downstream manufacturing processes. The Qore joint venture will produce QIRA, the next-generation 1,4 Butanediol. Made through plant-based sugar fermentation, QIRA can save up to 93% of GHG when replacing chemical intermediates manufactured from traditional fossil sources.
Health concerns related to gamma-hydroxybutyric acid
When 1,4 Butanediol is consumed, two alcohol metabolism enzymes convert it to gamma-hydroxybutyric acid (GHB). GHB is a nervous system depressant classified as a Schedule I-restricted chemical by the Drug Enforcement Administration. Euphoria, drowsiness, decreased anxiety, confusion, and memory impairment are among the side effects of GHB. Because human bodies can convert 1,4 Butanediol to GHB, it is also regulated. GHB causes the brain to slow down, resulting in loss of consciousness and dangerously slowed respiration and other essential functions. It also enhances the production of growth hormones.
When consumed by mouth, 1,4 Butanediol is dangerous. Breathing issues, coma, memory loss, combativeness, confusion, agitation, vomiting, seizures, and a very slow heartbeat are all major adverse effects. People who use 1,4 Butanediol regularly and then stop may experience withdrawal symptoms such as insomnia, tremors, and anxiety.
COVID-19 Impact on Market
COVID-19 negatively impacted the 1,4 butanediol market as several countries forced lockdown, which led to the shutdown of manufacturing facilities of the majority of its end-user industry worldwide for a specified time. 1,4 butanediols, which are majorly used in polybutylene terephthalate manufacturing, declined due to the downfall in the automotive sector. The other major end-user sectors affected by the pandemic were leather, textiles, and sporting goods.
The prices of 1,4 butanediol also fluctuated during the COVID. In 2023, butanediol prices declined by over 30% in May and reached US$ 3320/MT in May in China. While in India, BDO prices decreased effectively during May and settled at US$ 2886/MT due to the second wave of the pandemic in the country, as the market reduced to a level that compelled traders to sell their stocks at a cheaper rate.
Market Segment Analysis
The global 1,4 butanediol (BDO) market is segmented based on type, process, application, end-user, and region.
The use of 1,4 Butanediol in polyurethanes is boosting as chains extenders and polyester polyols
Based on application, the global 1,4 butanediol (BDO) market is segmented into polyurethane, tetrahydrofuran, gamma-butyrolactone, polytetramethylene ether glycol, polybutylene terephthalate, N-methyl-2-pyrrolidone, and others.
The properties of polyurethane(PU) greatly depend on the structure of the molecular backbone and chain extenders play a special role in enhancing the final mechanical properties of PU. In PU, BDO is used as a urethane chain extender and an intermediate for polyester polyols.
Most processors' chain extender of selection for MDI systems is 1,4 BDO. Functioning in this role, BDO reacts with MDI-based prepolymers and H12 MDI systems to create polyurethanes' "hard segment" domains. 1,4 Butanediol yields crystalline urethane domains that microphase separates to afford tough elastomeric networks. In thermoplastic polyurethane compositions, uncrosslinked BDO-MDI domains can melt and flow at elevated temperatures to process thermoplastic. The associated networks reform when cooled to make tough elastomeric compositions.
1,4 Butanediol serves as an intermediate for polyester polyols. BDO polyester polyols, such as poly polyols, help create the "soft segment" domains in polyurethane elastomers. Using BDO polyester polyol, formulators produce polyurethanes with excellent mechanical properties over a broad temperature range. The polyurethanes exhibit good abrasion resistance, cut and chip resistance; excellent oil, grease, and chemical resistance; and weatherability.
Because of BDO's durability, consistency and other performance attributes, end-use applications for 1,4 Butanediol in polyurethanes are wide-ranging as chains extenders and polyester polyols.
The major polyurethanes produced using BDO are cellular and solid elastomers. The major applications include a vast array of performance cast urethane parts, such as pipe linings and pipeline products; wheels, rollers, and belts; recreational equipment; pump liners and parts; hydro cyclones and conveyor belts.
Source: DataM Intelligence Analysis (2023)
Market Geographical Share
Expanding automotive sales will boost the demand for 1,4 Butanediol market in Asia-Pacific
Asia-Pacific holds a significant share with 38% in the 1,4 Butanediol Market. The 1,4 Butanediol market is driven by the increasing demand from various end-use industries. Many countries across the region stand out as competitors in the automotive sector. Japan, China, and South Korea boast impressive car manufacturing industries. Current applications of 1,4 BDO based urethane elastomers include front and rear-end fascia, bumpers, fenders, and spoilers. China continues to be the major vehicle market by annual sales and manufacturing output globally, with domestic production expected to attain 35 million vehicles in 2025. The Ministry of Industry and Information Technology data shows that over 25 million vehicles were sold in 2020, including over 19.99 million passenger vehicles. Commercial vehicle sales reached around 5.23 million units, an increase of 20% from 2019.
Moreover, in 2020, India was the fifth-largest auto market, with ~3.49 million units sold in passenger and commercial vehicles. Domestic automobile production increased at 2.36% CAGR between FY16-20, with 26.36 million vehicles being manufactured in FY20. Domestic automobile sales increased at 1.29% CAGR between FY16-FY20, with 21.55 million vehicles sold in FY20.
In 2023, Indian Oil Corp announced a mega-scale Maleic Anhydride Plant to manufacture chemical products at its Panipat refinery and petroleum complex in Haryana. The plant will manufacture 20,000 tonnes a year of 1,4 Butanediol that finds applications in Poly Urethanes and Poly Butylene Terephthalates, engineering-grade plastic, and biodegradable fibers.
Source: DataM Intelligence Analysis (2023)
Companies and Competitive Landscape
The global 1,4 butanediol (BDO) market is extremely competitive due to its broad range of applications in numerous industries. Players in the market include Shanxi Sanwei Group, Ashland Global Holdings Inc, BASF SE, Dairen Chemical Corp, Xinjiang Tianye Co. Ltd, Sigma Aldrich, Nan Ya Plastics Corporation, Mitsubishi Chemicals, International Specialty Products, and Invista, among others.
The players in the market are known to incorporate numerous market strategies to achieve growth in the global 1,4 butanediol market; these include product launches, mergers, acquisitions, and collaborations.
Ashland Global Holdings Inc.
Overview: Ashland Global Holdings Inc. is a leading global specialty materials company serving customers in consumer and industrial markets, including adhesives, automotive, architectural coatings, construction, energy, food & beverage, nutraceuticals, personal care, and pharmaceutical. The company has 4,200 employees, from scientists and chemists to engineers and plant operators in more than 100 countries. The company’s intermediates business unit is a leading producer and supplier of 1-4 butanediol, Tetrahydrofuran, n-methyl-pyrrolidone, and gamma-butyrolactone, in addition to other downstream products.
Product Portfolio: BDO - 1,4 Butanediol: The company offers BDO products for various electronics applications.
Key Development: In 2023, Ashland has increased the prices of 1,4 Butanediol and several derivative products. 1,4 butanediol was increased by US$ 0.45/lb. N-methyl-pyrrolidone, 2-pyrrolidone, and Tetrahydrofuran were increased by US$ 0.50/lb and Gamma-butyrolactone was increased by US$ 0.60/lb.
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- To visualize the global 1,4 butanediol (BDO) market segmentation by type, process, application, end-user, and region and understand key commercial assets and players.
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The global 1,4 butanediol (BDO) market report would provide approximately 69 tables, 73 figures, and almost 180 pages.
