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Market Overview

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The production of bio-based 1,4-butanediol, primarily through sugar fermentation, enables the synthesis of polybutylene terephthalate (PBT) when polymerized with terephthalic acid. PBT is a semi-crystalline thermoplastic polyester that exhibits properties such as high impact strength, excellent electrical resistance, and exceptional chemical resistance. These characteristics make PBT highly suitable for a wide range of applications in industries such as electrical and electronics, telecommunications and IT, and automotive.

The global market for bio-based 1,4-butanediol is expected to grow from 35.48 kilotons in 2023 to 55.60 kilotons by 2028, representing a compound annual growth rate (CAGR) of 9.40% during the forecast period (2023-2028).

The COVID-19 pandemic had a significant impact on the bio-based 1,4-butanediol market, with workforce quarantines, business shutdowns, and disrupted supply chains. Many manufacturing facilities responsible for bio-based 1,4-butanediol production were temporarily closed, leading to reduced sales. Industries such as automobiles, electrical and electronics, and textiles experienced temporary setbacks. However, the market has since witnessed a recovery.

The market’s growth is primarily driven by increasing demand for polybutylene terephthalate (PBT) across various industries and stringent government regulations. However, competition from fossil fuel-based products remains a major concern for the market. Nonetheless, the focus on eco-friendly products presents opportunities for the market during the forecast period.

Europe holds the dominant position in the global bio-based 1,4-butanediol market. The region’s demand is fueled by the growing usage of bio-based 1,4-butanediol in industries such as automotive, electronics, and consumer appliances.

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Market Segmentation

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The market is segmented based on various factors, including application, end user, and region.

Segmentation by Application
Tetrahydrofuran (THF)
Polybutylene Terephthalate (PBT)
Gamma-Butyrolactone (GBL)
Polyurethane (PU)
Other Applications

Segmentation by End User
Automotive
Electrical and Electronics
Textile
Other End-user Industries

Segmentation by Region
North America – United States, Canada, and Mexico
Europe – United Kingdom, Germany, France, Italy, and Rest of Europe
Asia-Pacific – China, Japan, India, South Korea, and Rest of Asia-Pacific
Latin America
Middle East and Africa

Tetrahydrofuran (THF) is the primary chemical building block used in the production of various chemicals and materials for commercial and consumer applications. It is widely used in the manufacturing of engineering plastics, polyurethanes, biodegradable polyesters, spandex, and other specialty chemicals. THF serves as a solvent for organic compounds and is commonly used as a starting material for polymer synthesis. Approximately half of the world’s 1,4-butanediol (BDO) is converted into THF, which is then utilized as a monomer to produce polytetramethylene ether glycol.

Spandex, a lightweight and highly elastic synthetic fiber, is one of the major products derived from THF. It is composed of 80% polytetramethyleneether glycol (PTMEG), which allows the fibers to stretch up to 500-700% of their original length while retaining their shape. Due to the increasing demand for comfortable and stretchable clothing, the growth rate for spandex fiber is estimated to be around 10%, surpassing that of traditional textiles.

In September 2022, the Lycra Company announced a significant development in the production of bio-derived spandex. By utilizing QIRA bio-based 1,4-BDO as a key ingredient, the company aims to manufacture renewable LYCRA fiber with 70% of its content sourced from renewable feedstock. This initiative will reduce the carbon footprint of LYCRA fiber by nearly 44%. The first batch of renewable LYCRA fiber using QIRA bio-based 1,4-BDO is set to be produced in Singapore by 2024.

The Japanese textile manufacturing industry has also witnessed inward foreign direct investment (FDI) amounting to USD 56 million in 2021, indicating potential growth in this sector.

In terms of regional market dominance, Europe holds the largest share. The demand for bio-based 1,4-butanediol is driven by industries such as automotive, electronics, and consumer appliances. Germany, known for its robust electronics and automobile sectors, leads the European market in these industries. The German electrical and electronics market recorded a turnover of EUR 200.4 billion in 2021, while the electro and digital industry’s production accounted for EUR 162.9 billion in the same year. These trends create a demand for bio-based 1,4-butanediol for electronics and semiconductor applications.

Although the German automotive industry experienced a decline in production in 2021, it is expected to recover and grow in the future. The United Kingdom boasts the largest consumer electronics market in Europe, with a significant number of UK-based electronics companies. This drives the demand for technologically-advanced electronic devices, thereby creating a need for bio-based 1,4-butanediol. The French automobile industry also performed relatively well in recent years, with an increase in vehicle production.

Additionally, the growing population income in Europe has led to increased demand for consumer appliances such as air-conditioners, refrigerators, washing machines, and microwaves. This surge in demand further propels the growth of the consumer appliances market.

Taking all these favorable market trends into account, it is expected that the demand for bio-based 1,4-butanediol for raw material applications will continue to rise in the European region throughout the forecast period.

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Competitive Landscape

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The global market for bio-based 1,4-butanediol operates as an oligopoly, with Novamont SpA being the leading producer in terms of production capacity. Notable participants in this market segment include BASF SE, Genomatica Inc., Global Bio-chem Technology Group Company Limited, Novamont S.p.A., Royal DSM N.V., Shandong Landian Biological Technology Co., Ltd., Yuanli Chemical Group Co., Ltd., among other significant players.

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Recent Industry Developments

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In September 2022, QIRA entered into a collaboration with LYCRA, a prominent textile and apparel brand. Under this partnership, LYCRA will utilize QIRA’s bio-based BDO for the manufacturing of spandex. As a result, approximately 70% of the content in LYCRA fibers will be derived from renewable feedstock, contributing to their sustainability objectives.

In May 2022, Yuanli Science and Technology successfully introduced their bio-based 1,4 BDO in 2021. In addition to catering to the Asian market, the company expanded its reach by commencing exports to the European Union market. This versatile product finds applications in various end-use sectors such as spandex, biodegradable plastics, polyurethane, shoe materials, new energy batteries, among others. This expansion strategy enabled Yuanli to broaden its customer base and establish a stronger geographical presence.

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Key Questions Answered

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What is the duration of the study period for this market analysis?
What is the growth rate of the Bio-based 1,4-Butanediol Market?
What is the size of the Bio-based 1,4-Butanediol Market?
Which region exhibits the highest growth rate in the Bio-based 1,4-Butanediol Market?
Which region holds the largest share in the Bio-based 1,4-Butanediol Market?
Who are the key players operating in the Bio-based 1,4-Butanediol Market?