The global 1,4 butanediol market size was estimated at USD 7,684.4 million in 2024 and is projected to reach USD 13,407.6 million by 2030, growing at a CAGR of 9.9% from 2025 to 2030. The market growth is mainly driven by the widespread applications of polybutylene terephthalate (PBT), tetrahydrofuran (THF), and polyurethane (PU) across various industrial sectors. Additionally, the increasing demand for spandex fibers in the textile industry further contributes to the growing consumption of 1,4-butanediol.

This colorless liquid is among the most stable isomers of butanediol and is typically derived from butane. The most commonly used production method is the Reppe process, which involves the reaction of acetylene with formaldehyde. This process has been adopted extensively by major global manufacturers, including DuPont and BASF, due to its reliability and efficiency. Furthermore, many 1,4-BDO suppliers are adopting a backward integration strategy, producing their own raw materials to strengthen their supply chains.

This approach helps reduce long-term logistics expenses, minimizes procurement challenges, and enhances production stability. As consumers become increasingly informed about product benefits and technological advancements, suppliers are prioritizing consistent product quality throughout manufacturing. Moreover, the growing global emphasis on green chemistry has encouraged leading companies such as BioAmber, Genomatica, and Myriant to develop innovative bio-based production technologies. These initiatives are expected to positively influence market expansion during the forecast period. Additionally, rising investments in sustainable and energy-efficient technologies are anticipated to improve existing manufacturing processes and boost overall operational efficiency, further propelling market growth.

Key Market Trends & Insights:

• The 1,4-butanediol (BDO) market in North America is projected to witness the fastest CAGR during the forecast period, driven by the rising demand for high-performance materials and the growing adoption of sustainable production technologies across various industries. Increasing investments in the automotive, electronics, and textile sectors, coupled with advancements in bio-based production methods, are expected to further support market expansion in the region. Additionally, the growing emphasis on reducing dependency on imports and enhancing domestic manufacturing capabilities is likely to boost regional market growth in the coming years.

• In Asia Pacific, the 1,4-butanediol market dominated the global industry, accounting for the largest revenue share of 81.1% in 2024. This dominance is primarily attributed to the strong presence of manufacturing hubs, the easy availability of raw materials, and the rapid industrialization in countries such as China, India, South Korea, and Japan. Furthermore, the region’s expanding textile, automotive, and electronics sectors have significantly contributed to the increasing consumption of 1,4-butanediol and its derivatives. Favorable government policies supporting industrial development and the presence of major chemical producers also reinforce the region’s leading position in the global market.

• Based on application, the tetrahydrofuran (THF) segment emerged as the leading segment, accounting for the largest revenue share of 51.6% in 2024. The dominance of this segment can be attributed to the extensive use of THF as a solvent in various industries, particularly in the production of spandex fibers, adhesives, and coatings. Its versatility and compatibility with multiple industrial processes make it one of the most critical derivatives of 1,4-butanediol. The growing demand for spandex in the apparel and textile industries, along with the expanding use of THF in polymer manufacturing, continues to drive the segment’s strong growth trajectory.

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Market Size & Forecast:

• 2024 Market Size: USD 7,684.4 Million

• 2030 Projected Market Size: USD 13,407.6 Million

• CAGR (2025-2030): 9.9%

• Asia Pacific: Largest market in 2024

• North America: Fastest growing market

Key Companies & Market Share Insights:

Some of the key players operating in the global 1,4-butanediol market include BASF SE, Ashland, and Evonik Industries AG. These companies play a crucial role in shaping market dynamics through their extensive product portfolios, advanced technologies, and strong global presence.

BASF SE is one of the world’s leading chemical production companies, with a robust network of over 340 production facilities worldwide. The company operates through subsidiaries and joint ventures in more than 80 countries, ensuring a strong international footprint. BASF provides a comprehensive range of system solutions and value-added services catering to various industries, including automotive, chemical, construction, agriculture, oil and gas, electrical and electronics, plastics, furniture, and paper. Its diversified product offerings and global operational scale enable BASF to meet the growing industrial demand for innovative and sustainable chemical solutions.

Ashland, on the other hand, specializes in the manufacturing and distribution of specialty chemicals for multiple end-use sectors such as architectural coatings, adhesives, automotive, construction, food and beverages, pulp and paper, energy, pharmaceuticals, and personal care. The company’s operations are structured across three main business segments—Specialty Ingredients, Composites, and Intermediates & Solvents. The Specialty Ingredients division is a major contributor to its revenue and includes a range of high-value products such as cellulose ethers, vinyl pyrrolidone-based polymers, and biofunctionals. These ingredients are widely used in industries requiring advanced performance materials and sustainable formulations.

Key Players

• BASF SE

• Ashland

• DCC

• Mitsubishi Chemical Group Corporation

• Evonik Industries AG

• LyondellBasell Industries Holdings B.V.

• Sipchem Company

• SINOPEC (China Petrochemical Corporation)

• Genomatica, Inc.

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Conclusion:

The market for 1,4 butanediol (BDO) is poised for strong growth over the forecast period, driven by expanding end-use applications in industries such as textiles, automotive, construction and electronics. Suppliers are increasingly embracing sustainable and bio-based production technologies to meet rising demand and regulatory pressures. Regionally, the Asia Pacific holds a dominant share of the market, while North America is expected to register the fastest growth. At the same time, health and safety concerns around BDO, as well as the cost and complexity of manufacturing, remain important considerations for stakeholders