Bio-Based 1,3-Butanediol Market Size, Share, Growth, and Industry Analysis, By Types (Industrial Grade,Cosmetic Grade), By Applications Covered (Cosmetic,Polyester Resins,Plasticizers,Aerospace,Food,Others ), Regional Insights and Forecast to 2033

Bio-Based 1,3-Butanediol Market Size

The Global Bio-Based 1,3-Butanediol Market was valued at USD 362.64 million in 2024 and is projected to reach USD 381.61 million in 2025, growing to USD 573.77 million by 2033. This steady expansion, reflecting a CAGR of 5.23% during the forecast period [2025–2033], is driven by increasing demand for sustainable and bio-based chemicals, rising adoption in cosmetics and personal care products, and growing preference for eco-friendly alternatives in industrial manufacturing processes.

The U.S. Bio-Based 1,3-Butanediol Market is witnessing steady growth, fueled by rising demand in personal care and cosmetic formulations, increasing shift toward bio-based chemicals, and growing focus on sustainable and environmentally friendly manufacturing practices.

Key Findings

• Market Size: Valued at 381.61M in 2025, expected to reach 573.77M by 2033, growing at a CAGR of 5.23%.
• Growth Drivers: 48% clean beauty product launches, 44% demand for fermentation-based chemicals, 39% glycols substitution, 35% green chemistry incentives, 32% bio-manufacturing support.
• Trends: 41% rise in cosmetic-grade use, 38% monomer application in bioplastics, 34% purity-focused formulations, 29% modular bioreactors, 26% regulatory certifications.
• Key Players: Godavari, Novamont, LanzaTech, Genomatica, Kokyu Alcohol
• Regional Insights: 39% North America, 28% Europe, 24% Asia-Pacific, 9% Middle East & Africa based on 2023 market distribution.
• Challenges: 42% fermentation yield issues, 36% raw material volatility, 33% tech scaling hurdles, 30% limited supply, 27% infrastructure gaps.
• Industry Impact: 45% cost savings in clean labels, 38% fossil substitution, 33% shelf-life extension, 29% solvent replacement, 25% emission reduction.
• Recent Developments: 43% pilot expansions, 37% purity optimization launches, 33% pharma-grade rollouts, 30% AI fermentation use, 26% export growth.

The Bio-Based 1,3-Butanediol market is witnessing steady growth due to rising demand for sustainable and bio-derived alternatives across cosmetics, pharmaceuticals, and specialty chemicals. Bio-based 1,3-butanediol, derived from renewable feedstocks such as sugarcane, glucose, and glycerol, is used as a multifunctional ingredient offering moisturizing, solvent, and humectant properties. With growing consumer preference for clean-label and eco-friendly products, manufacturers are adopting bio-based 1,3-butanediol as a safer, non-irritating replacement for petroleum-based glycols. In 2023, more than 45% of newly developed skincare products incorporated bio-based 1,3-butanediol, signaling an upward trend in its global adoption across the personal care industry.

Bio-Based 1,3-Butanediol Market Trends

The Bio-Based 1,3-Butanediol market is evolving rapidly, supported by the booming clean beauty segment, sustainable manufacturing initiatives, and global bioeconomy policies. A key trend is the increasing use of bio-based 1,3-butanediol as a natural humectant in skincare and personal care products. In 2023, 49% of new natural cosmetic formulations included bio-based 1,3-butanediol due to its ability to improve skin hydration and texture without harmful side effects.

Another emerging trend is its rising role in biopolymer production, where bio-based 1,3-butanediol acts as a monomer or intermediate in producing biodegradable plastics and polyesters. With more than 34% of bioplastic producers integrating 1,3-butanediol into formulation processes, its relevance in the green packaging market is expanding.

In the nutraceutical and pharmaceutical industries, bio-based 1,3-butanediol is gaining traction for its high purity and reduced toxicity compared to petroleum-based versions. About 27% of pharmaceutical firms in North America and Asia-Pacific included bio-based solvents and intermediates in their product development pipelines in 2023.

Additionally, fermentation-based production technologies are reducing production costs and improving scalability. Companies are leveraging genetically engineered microbes to achieve high-yield production. Nearly 31% of manufacturers reported process optimization using CRISPR-edited strains in 2023, boosting both yield and purity of the final product.

Bio-Based 1,3-Butanediol Market Dynamics

The Bio-Based 1,3-Butanediol market is driven by eco-conscious consumer demand, innovation in biotechnology, and regulatory shifts favoring biodegradable and non-toxic chemicals. This bio-based chemical serves multiple industries, from cosmetics and personal care to industrial solvents and food-grade applications. Advancements in microbial fermentation and sugar conversion techniques have improved yields and lowered production costs, making bio-based alternatives more competitive. Regulatory policies in Europe and North America are discouraging petrochemical derivatives in cosmetics, pushing companies to seek bio-based replacements. However, challenges like inconsistent raw material supply and scalability hurdles continue to influence market competitiveness and pricing dynamics.

OPPORTUNITY

Expanding Use in Biopolymer and Packaging Industries

The increasing demand for biodegradable and compostable packaging is opening new opportunities in the bio-based 1,3-butanediol market. In 2023, over 32% of green packaging manufacturers incorporated bio-based 1,3-butanediol as a monomer for producing polyesters and polyurethanes. The growing pressure on FMCG companies to reduce plastic usage has led to a 28% increase in collaborations between chemical manufacturers and packaging firms focused on biopolymer development. Moreover, initiatives in Japan, South Korea, and the EU are providing tax incentives and R&D grants for bio-based plastic innovation, supporting long-term demand for 1,3-butanediol in packaging applications.

DRIVERS

Increasing Demand for Sustainable Personal Care Ingredients

Rising awareness about sustainable beauty products is a major driver for the bio-based 1,3-butanediol market. In 2023, 53% of personal care brands across the U.S., South Korea, and Germany shifted toward naturally derived ingredients. Bio-based 1,3-butanediol, offering excellent moisture retention and compatibility with active ingredients, is now used in over 47% of natural serums and creams. Clean-label product launches increased by 39%, and product developers are increasingly substituting synthetic glycols with plant-based alternatives to meet eco-labeling requirements. Additionally, regulatory approvals such as COSMOS and ECOCERT certification further enhance product acceptance across Europe and Asia.

RESTRAINT

"High Production Costs and Limited Commercial-Scale Plants"

Despite its environmental benefits, one of the major restraints in the bio-based 1,3-butanediol market is the high cost of production. In 2023, the average production cost of bio-based 1,3-butanediol was reported to be 2.3 times higher than its petroleum-based counterpart. Only a limited number of commercial-scale production plants are currently operational, with most facilities based in North America and East Asia. Around 36% of manufacturers cited raw material volatility and inconsistent supply of fermentation feedstocks like glucose and glycerol as key challenges affecting production continuity and cost-efficiency. Limited downstream infrastructure and long product development cycles further constrain market penetration.

CHALLENGE

"Technological Barriers in Yield Optimization and Scale-Up"

A critical challenge facing the bio-based 1,3-butanediol market lies in the technical complexity of achieving industrial-scale fermentation yields. In 2023, over 41% of bio-manufacturers reported yield losses during the fermentation-to-distillation process, affecting overall efficiency and pricing. High sensitivity of microbial strains to temperature, pH, and contamination continues to pose risks. Furthermore, only a few biotech firms have achieved high-purity (>99%) production suitable for pharmaceutical or food-grade use. Companies face bottlenecks in strain development and fermentation optimization, especially when transitioning from lab-scale to pilot-scale reactors. Limited access to modular bioreactor infrastructure and skilled fermentation specialists also hampers rapid commercialization.

Segmentation Analysis

The Bio-Based 1,3-Butanediol market is segmented based on type and application, allowing for a deeper understanding of product functionality and end-user demands across various sectors. The two main product types include Industrial Grade and Cosmetic Grade, each catering to specific purity standards, regulatory needs, and commercial uses. On the application side, bio-based 1,3-butanediol finds its presence in cosmetics, polyester resins, plasticizers, aerospace, food, and other specialty markets. In 2023, cosmetic and industrial sectors jointly contributed to over 78% of the market share. This segmentation helps manufacturers and formulators align production strategies with performance demands and safety regulations across multiple industries.

By Type

• Industrial Grade: Industrial grade bio-based 1,3-butanediol accounted for nearly 54% of the global market volume in 2023. This type is used primarily in non-personal care applications such as bioplastics, polyesters, and specialty solvents. Industrial grade variants do not require the ultra-pure specifications needed for topical applications, making them more cost-effective for large-volume processing. In 2023, around 36% of the industrial-grade output was utilized in biopolymer manufacturing, while 22% went into plasticizer production. Demand was particularly strong in China, Germany, and the U.S. where large-scale chemical plants adopted the material as a greener alternative to fossil-derived glycols in composite materials and resins.
• Cosmetic Grade: Cosmetic grade bio-based 1,3-butanediol holds a significant share, especially in Asia-Pacific and Europe, where demand for clean beauty ingredients is surging. In 2023, this segment represented approximately 46% of the total market, with over 61% of its usage concentrated in moisturizers, toners, and serums. It is prized for its purity, safety profile, and skin-conditioning properties, which make it ideal for leave-on skincare products. Brands seeking COSMOS and ECOCERT certification often favor cosmetic-grade bio-based 1,3-butanediol due to its natural sourcing. Demand surged 33% in South Korea and Japan last year as local brands expanded their sustainable cosmetic portfolios.

By Application

• Cosmetic: The cosmetics segment dominates the bio-based 1,3-butanediol market, accounting for over 41% of total application-based demand in 2023. It is commonly used as a natural humectant, solvent, and viscosity reducer in facial creams, toners, and hair care products. Consumer demand for green and non-toxic cosmetics drove a 28% increase in the incorporation of bio-based 1,3-butanediol in product formulations. Major beauty brands across the U.S., Germany, and South Korea reformulated their bestsellers with this bio-based alternative to comply with “clean label” requirements. Its excellent skin compatibility and moisture-locking ability make it an essential ingredient in the expanding clean beauty trend.
• Polyester Resins: Polyester resin manufacturers are increasingly using bio-based 1,3-butanediol as a monomer to develop sustainable alternatives to petrochemical-based resins. In 2023, this application accounted for around 21% of the market share. It is favored in applications that require flexibility, high-temperature resistance, and biodegradability. Countries such as China, Brazil, and India have seen a 24% uptick in biopolymer production using bio-based intermediates. These resins are used in paints, adhesives, and coatings with improved environmental compliance. Growing government restrictions on VOC emissions and plastic recycling targets continue to drive its integration into eco-friendly polyester systems.
• Plasticizers: Plasticizers represent a growing segment where bio-based 1,3-butanediol is used as an alternative to phthalate-derived compounds. In 2023, around 14% of global 1,3-butanediol consumption was directed toward bio-based plasticizer manufacturing. These plasticizers are used in soft PVC, medical devices, and flexible packaging. Europe and North America are leading markets, driven by strict bans on endocrine-disrupting chemicals. A 19% increase in green plasticizer demand was observed last year among toy and food-grade packaging manufacturers. Bio-based 1,3-butanediol improves material flexibility without toxic leaching, making it ideal for compliance with REACH and FDA regulatory frameworks.
• Aerospace: Though niche, the aerospace sector is adopting bio-based 1,3-butanediol in advanced composites and adhesives due to its mechanical resilience and lower environmental footprint. In 2023, the sector contributed about 6% of application-based demand. Lightweight biopolymer materials made using 1,3-butanediol were tested in structural panel manufacturing and thermal insulations. Major aerospace OEMs in the U.S. and France initiated pilot projects incorporating bio-resins with renewable intermediates. Its ability to withstand temperature fluctuations and maintain dimensional stability makes it a promising candidate for aerospace-grade sustainable materials.
• Food: In the food industry, bio-based 1,3-butanediol is gaining use as a flavor carrier, humectant, and metabolic intermediate. In 2023, this application accounted for nearly 9% of total market share. It is used in sugar substitutes and keto-friendly formulations due to its low glycemic index and safe metabolic breakdown. Approved for use in several countries, including the U.S. and Japan, the demand grew by 17% in the health snack and supplement sector. Its water-binding ability also extends shelf life in baked goods and protein bars, making it a valuable additive in clean-label nutritional products.
• Others: Other applications for bio-based 1,3-butanediol include its use as an industrial solvent, performance fluid, and intermediate in agricultural formulations. These accounted for approximately 9% of usage in 2023. It is used in high-performance lubricants and eco-solvents where biodegradability is critical. Additionally, agricultural firms in Latin America and Southeast Asia are exploring its use in crop protection sprays and slow-release fertilizers. Demand for low-toxicity alternatives in manufacturing and environmental remediation is also driving niche applications, with usage in textile processing chemicals growing by 12% last year alone.

Regional Outlook

The Bio-Based 1,3-Butanediol market exhibits diverse regional dynamics shaped by green chemistry policies, consumer trends, and industrial development. North America dominates due to advanced biotech infrastructure and clean beauty adoption. Europe follows closely, backed by strong sustainability legislation and personal care innovation. Asia-Pacific is emerging as the fastest-growing region, driven by large-scale fermentation facilities and natural ingredient trends in countries like South Korea, Japan, and China. The Middle East & Africa region is slowly progressing, supported by food-grade and agricultural applications. Each region has unique demand patterns and regulatory pressures influencing the growth and investment landscape of bio-based 1,3-butanediol.

North America

North America accounted for nearly 39% of the global bio-based 1,3-butanediol market share in 2023. The United States remains the largest contributor, with key players like Genomatica and DuPont driving innovation through fermentation-based technology. More than 57% of natural cosmetic brands in the U.S. used bio-based 1,3-butanediol in at least one skincare product. The region also has multiple pilot plants and biotech accelerators supporting commercial-scale production. Canada is witnessing moderate growth, particularly in the clean-label food and industrial solvent sectors. Federal funding and clean energy programs are encouraging bio-based chemical adoption across multiple verticals.

Europe

Europe held a market share of approximately 28% in 2023, largely led by countries such as Germany, France, and the Netherlands. Stringent REACH and ECHA regulations have accelerated the replacement of petrochemical ingredients in cosmetics and industrial applications. Around 61% of COSMOS-certified beauty brands in Europe formulated products containing bio-based 1,3-butanediol. Novamont, based in Italy, plays a major role in developing sustainable monomers for biopolymers, contributing significantly to the regional supply. In France, a 2023 government grant supported a 10,000-ton annual capacity plant focused on food- and pharma-grade 1,3-butanediol, highlighting the region's investment commitment to low-toxicity materials.

Asia-Pacific

Asia-Pacific is the fastest-expanding region, capturing 24% of the global market share in 2023. China and South Korea are at the forefront, leveraging large-scale fermentation capacity and robust cosmetic manufacturing ecosystems. In South Korea, 46% of new skincare product launches in 2023 used bio-based 1,3-butanediol. Japanese firms are investing in fermentation-based food ingredients, while India is advancing industrial applications through Godavari Biorefineries. Thailand and Singapore are emerging as production hubs, offering bio-refinery zones and favorable investment terms. Regional governments are also promoting domestic sourcing of raw materials, reducing dependency on petrochemicals and supporting the circular bioeconomy.

Middle East & Africa

The Middle East & Africa region accounted for a modest 9% market share in 2023. Growth is supported by rising demand for bio-based food ingredients, personal care, and agricultural applications. In the UAE, several wellness and skincare brands introduced eco-certified products with bio-based 1,3-butanediol sourced from Europe and Asia. In South Africa, over 12% of nutraceutical companies adopted bio-based fermentation intermediates. However, the region faces infrastructure and feedstock challenges, limiting commercial production. Despite this, trade partnerships and government-led biotech programs are gradually boosting awareness and product trials across Morocco, Egypt, and Kenya, especially in the agri-food and cosmetics industries.

List of Key Bio-Based 1,3-Butanediol Market Companies Profiled

Investment Analysis and Opportunities

The bio-based 1,3-butanediol market is attracting strong investment, particularly in regions focused on decarbonization, clean beauty, and food-grade fermentation. In 2023, global investments in 1,3-butanediol production exceeded $430 million, with 47% allocated to the Asia-Pacific region. South Korean and Japanese manufacturers expanded fermentation capacity to meet growing demand from cosmetics and nutraceutical sectors. In the U.S., Genomatica secured funding from private equity firms to increase fermentation output for both industrial and cosmetic applications.

India’s Godavari Biorefineries received government-backed funding to scale biobased monomer production for industrial polymers. In Europe, green chemistry startups received over €100 million in cumulative R&D and infrastructure grants. Investors are particularly attracted to high-margin applications such as cosmetic-grade and food-grade variants. Strategic partnerships between raw material suppliers, fermentation tech providers, and formulation labs are also fueling product development. The increasing cost of fossil-derived glycols is further incentivizing brand owners to commit to bio-based alternatives. This positive investment climate is likely to continue as governments push for zero-carbon chemical pathways and as brands commit to bio-based supply chains.

New Products Development

Innovation is a major growth driver in the bio-based 1,3-butanediol market, with multiple new products launched in 2023 and early 2024 targeting high-purity, eco-safe, and multifunctional uses. Genomatica introduced a bio-purified 1,3-butanediol ingredient for ultra-sensitive skincare, receiving positive traction among U.S.-based clean beauty brands. DuPont unveiled a multi-grade product line catering to food-safe and industrial-grade customers, offering custom purity and viscosity levels.

Novamont developed a polyester-compatible version of bio-based 1,3-butanediol, enhancing polymer flexibility for bioplastic packaging. Kokyu Alcohol in Japan launched a cosmetic humectant product with over 99.8% purity and exceptional moisturizing capability. LanzaTech is piloting CO₂-to-butanediol fermentation using synthetic biology, targeting carbon-negative production pathways. These product innovations are addressing growing demands for specialized formulations, improving performance in food emulsifiers, coatings, and pharma-grade humectants. Additionally, AI-powered bio-reactor systems introduced by European startups helped reduce energy costs and improve yield by 21%. New product development continues to shift toward multi-functionality, compliance with global certifications, and integration into sustainable consumer goods.

Recent Developments

• In Q1 2024, Genomatica partnered with a global skincare brand to supply cosmetic-grade bio-based 1,3-butanediol for mass production.
• In 2023, DuPont opened a new fermentation facility in Illinois, increasing annual output capacity by 3,000 metric tons.
• Novamont launched a pilot project for integrating bio-based 1,3-butanediol into compostable packaging for European retailers.
• In 2023, Kokyu Alcohol received ISO 16128 certification for its cosmetic-grade butanediol, expanding exports across Southeast Asia.
• LanzaTech developed a proof-of-concept system to convert CO₂ into 1,3-butanediol using engineered bacteria in Q4 2023.

Report Coverage

This Bio-Based 1,3-Butanediol Market Report offers a detailed and strategic overview of industry trends, market size, growth drivers, challenges, and opportunities across key regions and segments. It provides segmentation by type (Industrial Grade, Cosmetic Grade) and application (Cosmetics, Polyester Resins, Plasticizers, Aerospace, Food, Others), covering the scope of demand across consumer and industrial use cases.

The report profiles leading companies including Genomatica, DuPont, Godavari, and Novamont, highlighting product innovations, expansion plans, and regional strategies. It presents quantitative insights into market share by geography and application, alongside qualitative evaluations of competitive trends, regulatory influence, and customer adoption. Investment activity, product development roadmaps, and regional demand shifts are analyzed with up-to-date data and expert commentary. This comprehensive report serves as a valuable tool for manufacturers, investors, R&D teams, and sustainability-focused businesses seeking to understand or enter the bio-based chemical sector.