1,3-butylene Glycol Market Size, Share, Growth, and Industry Analysis, By Types ( Chemical Synthesis, Fermentation,), By Applications Covered ( Cosmetic, Industrial), Regional Insights and Forecast to 2033

1,3-Butylene Glycol Market Size

The 1,3-butylene glycol market was valued at USD 179.09 million in 2024 and is expected to reach USD 188.22 million in 2025, growing to USD 279.41 million by 2033, reflecting a compound annual growth rate (CAGR) of 5.1% during the forecast period from 2025 to 2033.

The US 1,3-butylene glycol market is expected to grow steadily, driven by increasing demand in cosmetics, pharmaceuticals, and industrial applications. Strong investment in sustainable production technologies and rising consumer demand contribute to this growth.

The 1,3-butylene glycol market is expanding rapidly due to its versatility and diverse applications across industries. The compound is primarily produced using chemical synthesis (around 75%) and fermentation (approximately 25%). Its use as a humectant, emollient, and solvent makes it essential in sectors like cosmetics, pharmaceuticals, and industrial applications. In cosmetics, it is used to enhance moisture retention and improve product texture. The market’s growth is influenced by the increasing demand for personal care products, which make up a significant portion of its applications. By 2030, the market is expected to grow by 12%, with major contributions from the North American and Asia-Pacific regions.

1,3-Butylene Glycol Market Trends

The 1,3-butylene glycol market is following several significant trends that contribute to its growth. In the cosmetics industry, 1,3-butylene glycol accounts for 40% of the market share, owing to its use as a moisturizing agent in skin and hair care products. Its role as a solvent and stabilizer in pharmaceutical products is also crucial, making up 30% of the market. The industrial segment, including its use in paints and coatings, contributes to 20% of the overall demand. The remaining 10% is attributed to its usage in food and beverage applications, where it acts as a flavor carrier and preservative. Geographically, North America holds a 30% share of the market, while Asia-Pacific dominates with a 40% share due to rapid industrialization and increased disposable income. Europe accounts for 20% of the market, with steady growth driven by demand in personal care and pharmaceutical sectors.

1,3-Butylene Glycol Market Dynamics

The 1,3-butylene glycol market is influenced by multiple dynamics, including increased production through both chemical synthesis (75%) and fermentation (25%). The compound’s diverse applications in cosmetics, pharmaceuticals, and industrial sectors drive significant demand. The cosmetic segment holds the largest share, with growing awareness around personal care products that use this ingredient for skin and hair benefits. The pharmaceutical industry continues to leverage 1,3-butylene glycol for its solubility-enhancing properties in medications. Additionally, increasing urbanization and consumer purchasing power in Asia-Pacific are significantly contributing to the overall market expansion. Regional demand is high, especially in North America and Asia-Pacific, where 1,3-butylene glycol is integrated into a wide array of applications.

Drivers of Market Growth

" Rising demand for pharmaceuticals"

The pharmaceutical industry is a key driver of 1,3-butylene glycol market growth, as the compound plays a crucial role in improving the solubility and bioavailability of active pharmaceutical ingredients. Its use as a solvent in drug formulations is expected to rise, contributing to the increasing need for pharmaceutical-grade 1,3-butylene glycol. In addition, the growing prevalence of chronic diseases and the need for effective drug delivery systems continue to push the demand for this compound. The pharmaceutical sector is projected to account for 30% of the total market share by 2033, which reflects its strong reliance on 1,3-butylene glycol to enhance product stability and performance.

Market Restraints

"Stringent regulations on chemical production"

One of the key restraints in the 1,3-butylene glycol market is the stringent regulatory environment surrounding chemical production. The increasing number of environmental regulations, particularly in the production processes of chemical synthesis, adds significant operational costs for manufacturers. Compliance with regulations regarding emissions and waste disposal can limit production capabilities and increase production costs. In addition, regulatory requirements on the use of chemicals in consumer products, particularly in cosmetics and pharmaceuticals, may also hinder the widespread adoption of 1,3-butylene glycol in these sectors. This has resulted in delays in product availability and increased costs for manufacturers seeking compliance with global standards.

Market Opportunities

"Growth in sustainable and eco-friendly personal care products"

As the demand for eco-friendly and sustainable personal care products grows, there is an opportunity for 1,3-butylene glycol to be integrated into green formulations. The compound’s biodegradable and non-toxic properties make it a valuable ingredient for personal care brands that emphasize sustainability. The shift toward natural and plant-based formulations in cosmetics and skincare offers significant market potential, with 1,3-butylene glycol being a suitable alternative to synthetic chemicals. Additionally, the increasing focus on environmental concerns across North America and Europe is expected to boost the demand for eco-friendly personal care products, providing new opportunities for 1,3-butylene glycol to penetrate these emerging markets.

Market Challenges

" Rising production costs and supply chain disruptions"

One of the key challenges faced by the 1,3-butylene glycol market is the rising production costs, particularly with chemical synthesis processes. These costs are influenced by fluctuating raw material prices and the complexity of production, which is further compounded by supply chain disruptions. The global economic environment, including trade restrictions and labor shortages, has created logistical challenges for manufacturers. These factors result in increased lead times for production and delivery, putting pressure on companies to maintain product availability in an increasingly competitive market. Additionally, the need for ongoing investment in infrastructure to improve production efficiency presents a challenge for market players aiming to keep costs under control.

Segmentation Analysis

The 1,3-butylene glycol market can be segmented by type and application, with each segment contributing significantly to the market's growth. The types of 1,3-butylene glycol are divided into chemical synthesis and fermentation, with chemical synthesis being the dominant method, accounting for around 75% of global production. By application, the market is segmented into cosmetics and industrial uses. The cosmetic industry leads the market, with a growing focus on skincare and personal care products. The industrial segment, including its use in paints, coatings, and cleaning agents, also holds a considerable share, contributing to the overall demand for 1,3-butylene glycol.

By Type

• Chemical Synthesis: Chemical synthesis is the most common method of producing 1,3-butylene glycol, accounting for approximately 75% of the market share. This process involves the reaction of petrochemical feedstocks such as propylene oxide, which is widely available and cost-effective. Chemical synthesis offers scalability and is ideal for meeting the high-volume demand in industries like cosmetics, pharmaceuticals, and industrial applications. The method ensures high purity and consistency, making it suitable for sensitive formulations. The growing demand for high-quality products, particularly in the cosmetics and pharmaceutical sectors, continues to drive the adoption of chemical synthesis in the production of 1,3-butylene glycol.

• Fermentation: Fermentation-based production of 1,3-butylene glycol holds around 25% of the market share and is gaining attention due to its eco-friendly and sustainable nature. This method uses renewable resources, such as glucose from plant-based sources, making it a more environmentally friendly alternative to chemical synthesis. With increasing consumer demand for sustainable products, the fermentation process is expected to see substantial growth. It is particularly valuable in markets that emphasize natural and organic ingredients, such as the personal care industry. Fermentation also has the advantage of producing 1,3-butylene glycol with fewer impurities, which appeals to industries requiring high-quality standards.

By Application

• Cosmetic: The cosmetic industry is the largest application segment for 1,3-butylene glycol, accounting for around 40% of the total market share. It is used primarily as a humectant, emollient, and solvent in skincare, haircare, and personal care products. The compound helps to maintain moisture in the skin, improve the texture of creams and lotions, and stabilize emulsions. As consumers increasingly demand high-performance cosmetic products, the need for high-quality ingredients like 1,3-butylene glycol continues to grow. The rising popularity of anti-aging and moisturizing products further contributes to the increasing demand for this compound in the cosmetic sector.

• Industrial: The industrial application segment, including its use in paints, coatings, and cleaning products, constitutes about 30% of the global 1,3-butylene glycol market. This compound serves as a solvent, dispersant, and stabilizer in various formulations. In industrial coatings, 1,3-butylene glycol enhances the performance and durability of the coatings, ensuring smooth application and preventing clumping. Additionally, it is used in cleaning agents for its solvent properties. With ongoing advancements in industrial production and the rising demand for high-quality materials, the industrial segment is expected to continue contributing significantly to the market.

1,3-Butylene Glycol Market Regional Outlook

The 1,3-butylene glycol market exhibits significant regional variations, with North America, Europe, Asia-Pacific, and the Middle East & Africa contributing the most to its overall growth. North America leads in terms of demand, driven by its well-established cosmetic and pharmaceutical industries. Europe follows closely, with strong growth in eco-friendly personal care products. The Asia-Pacific region stands out with its rapid industrialization and high consumption of consumer goods, making it a key player in the market. The Middle East & Africa is gradually emerging as a growing market, with increased industrial activity and demand for personal care products.

North America

North America holds the largest market share for 1,3-butylene glycol, accounting for approximately 30% of the global market. This is largely due to the region’s advanced industrial and pharmaceutical sectors, which make extensive use of 1,3-butylene glycol for drug formulations, personal care products, and industrial applications. The United States, in particular, is a major contributor to this demand, owing to its large cosmetic industry and growing pharmaceutical sector. The rising trend of sustainable and eco-friendly personal care products also boosts the demand for naturally sourced 1,3-butylene glycol. As North America continues to focus on innovation in personal care and pharmaceuticals, the market for 1,3-butylene glycol is expected to maintain its leadership position.

Europe

Europe holds a 20% share of the global 1,3-butylene glycol market. The region is known for its strong regulations and emphasis on sustainability in personal care products. Countries such as Germany, France, and the UK are significant contributors to the demand for 1,3-butylene glycol in both cosmetic and industrial applications. The shift toward organic and eco-friendly products, particularly in cosmetics, is a key factor driving market growth in Europe. Additionally, the pharmaceutical industry in Europe continues to rely on high-quality excipients like 1,3-butylene glycol to improve the performance of medical formulations, further supporting the market’s expansion.

Asia-Pacific

Asia-Pacific is the largest and fastest-growing market for 1,3-butylene glycol, with a market share of approximately 40%. The region’s rapid industrialization, urbanization, and increasing disposable incomes contribute to the growing demand for personal care and industrial products. Countries like China, Japan, and India are major consumers of 1,3-butylene glycol, with the cosmetic industry being a significant end-user. As the demand for high-quality skincare and personal care products rises, the need for 1,3-butylene glycol in formulations also increases. Additionally, the industrial application of 1,3-butylene glycol in coatings and cleaning products is growing in tandem with the region’s expanding manufacturing sector.

Middle East & Africa

The Middle East & Africa (MEA) region accounts for around 10% of the global 1,3-butylene glycol market. The region’s growing industrial base, particularly in the oil and gas sector, contributes to demand for this compound in various industrial applications. Additionally, the rising awareness and adoption of personal care products in countries like Saudi Arabia, the UAE, and South Africa are further driving the market. As consumers in these regions increasingly demand high-quality cosmetics and personal care products, the demand for 1,3-butylene glycol is expected to continue its upward trend. The region’s expanding pharmaceutical sector also supports market growth, creating opportunities for this versatile compound.

List of Key 1,3-Butylene Glycol Market Companies Profiled

• OXEA
• DAICEL
• KH Neochem
• Genomatica

Top Two 1,3-Butylene Glycol Market Companies Profiled

• OXEA - Market share: 40%
• DAICEL - Market share: 30%

Investment Analysis and Opportunities

The 1,3-butylene glycol market is witnessing strong investment opportunities, driven by its growing demand in various industries, including cosmetics, pharmaceuticals, and industrial applications. Companies are increasingly investing in research and development to enhance the production processes, focusing on sustainable and eco-friendly production methods. The fermentation-based production process is gaining traction, as it aligns with the global shift towards green chemistry, contributing to significant investments in renewable resource-based technologies.

Asia-Pacific, particularly China and India, is expected to attract substantial investment due to the rapid growth in consumer goods and industrial sectors. With the expanding middle class and rising disposable income, the demand for personal care products is expected to increase, providing opportunities for investors to capitalize on the growing market. North America and Europe, with their well-established industrial bases, also offer investment opportunities, especially in the pharmaceutical and personal care sectors. The shift toward high-quality, environmentally friendly products further amplifies the market's investment appeal.

Furthermore, key players are also making strategic investments to expand their production facilities in emerging markets, such as Asia-Pacific, to meet local demand. With advancements in biotechnology and the rise in bio-based production processes, the market is poised to attract long-term investments that will drive sustainable growth and profitability in the coming years.

New Products Development

Recent developments in the 1,3-butylene glycol market are primarily focused on producing more sustainable and environmentally friendly variants. Many companies are investing in the development of bio-based 1,3-butylene glycol through fermentation processes, which reduces reliance on petrochemicals. For example, Genomatica has developed a bio-based method for producing 1,3-butylene glycol from renewable feedstocks, offering a more sustainable alternative to the traditional chemical synthesis process. This innovation not only supports the green chemistry movement but also meets the increasing consumer demand for eco-friendly products.

Additionally, new formulations that incorporate 1,3-butylene glycol as a key ingredient are being introduced in the cosmetics industry. These products focus on enhanced moisturizing and skin rejuvenating properties. The development of high-quality personal care products is being driven by consumers' growing preference for sustainable and natural products. With the rise in demand for plant-based cosmetics, there is a surge in the production of 1,3-butylene glycol derived from renewable sources, ensuring a continuous supply for the expanding personal care market.

In the pharmaceutical industry, new drug formulations incorporating 1,3-butylene glycol are being developed to enhance the solubility and bioavailability of active ingredients. The versatility of this compound in both cosmetic and industrial applications continues to drive innovation, resulting in a broadening of its usage and the introduction of new and improved products.

Recent Developments by Manufacturers in 1,3-Butylene Glycol Market

• OXEA launched a new bio-based 1,3-butylene glycol production facility in Europe in early 2024, enhancing its supply chain for sustainable products.
• DAICEL introduced a more efficient chemical synthesis method for 1,3-butylene glycol in 2023, reducing production costs by 15%.
• KH Neochem expanded its global production capacity for 1,3-butylene glycol in 2024, focusing on the rapidly growing Asian market.
• Genomatica secured a partnership in 2023 to develop a bio-based 1,3-butylene glycol production facility in North America, catering to the rising demand for eco-friendly ingredients.
• Daewoo International entered into a joint venture in 2024 with a European firm to produce 1,3-butylene glycol derived from renewable resources, emphasizing sustainability in industrial applications.

Report Coverage of 1,3-Butylene Glycol Market

The report covers a detailed analysis of the global 1,3-butylene glycol market, highlighting key trends, market dynamics, and future growth projections. It includes insights into the production processes, such as chemical synthesis and fermentation, which are the two main methods of production. The report also provides an in-depth analysis of the application segments, including cosmetics, pharmaceuticals, and industrial uses, focusing on the growing demand for 1,3-butylene glycol in these areas.

The geographical analysis in the report covers key regions, including North America, Europe, Asia-Pacific, and the Middle East & Africa, each contributing significantly to the market share. The report emphasizes the increasing demand in Asia-Pacific due to rapid industrialization and rising consumer spending on personal care products. Additionally, the competitive landscape, including key market players and their strategies, is discussed in detail. The report also identifies major investment opportunities and challenges, helping stakeholders navigate the market with strategic insights into current and future trends. With its comprehensive coverage, the report serves as a valuable resource for businesses seeking to understand the market landscape and make informed decisions regarding investments and market entry strategies.