1,4-Butanediol Market Outlook - Supply and Demand Analysis 2026-2035

1,4-Butanediol Market

1,4-Butanediol is a straight-chain glycol with versatile applications as a raw material in the production of high-performance polyester and polyurethane resins, which are essential in various manufacturing applications. Additionally, 1,4-butanediol is a key precursor in the synthesis of industrial chemicals such as tetrahydrofuran, which is used as a solvent, and gamma-butyrolactone, which is utilized in pharmaceuticals and agrochemicals.

Global Supply/Demand Outlook

The 1,4-butanediol market stood at a volume of 2928.80 Kilo Tons in 2025 & estimated to grow at a CAGR of 4.60% to reach a volume of 4592.05 Kilo Tons by 2035. The market is driven by the growing demand from downstream application sectors, including the production of the solvent oxolane, also known as THF or tetrahydrofuran, as a raw material for polybutylene terephthalate resins, and as a chain extender for polyurethane resins, among others. The production of tetrahydrofuran (THF) represents the leading application of 1,4-butanediol, accounting for almost 50% of the market share. It is followed by gamma-butyrolactone (GBL).

The growing production of bio-based 1,4-butanediol presents substantial opportunities in the market. As environmental concerns escalate and the focus shifts towards sustainability, bio-based alternatives provide a compelling solution.

The global capacity of 1,4-butanediol was about 4,000 Kilo Tons in the year 2025. It is estimated to reach 5,300 Kilo Tons by 2035. Asia Pacific holds the major share of 1,4-butanediol capacities, representing around 80% of the global production capacity. Within the Asia Pacific, China is the leading contributor with an estimated 62% capacity. Nearly 90% of this Chinese capacity is based upon the historical acetylene-based Reppe route. The plant capacity utilization of 1,4-butanediol stood at 73% in 2025.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Regional Market Analysis

In terms of consumption, the Asia Pacific dominates the market for 1,4-butanediol with an estimated 78% market share. The market growth in the region can be attributed to the rapid growth of industrial and manufacturing sectors and the subsequent demand for 1,4-butanediol from various end use industries, including automotive, electronics, and pharmaceuticals.

Key Market Players

The top 3 players in the 1,4-butanediol market are BASF SE, Dairen Chemical Corporation, and LyondellBasell Industries N.V. These companies together make nearly 40% of the global LDPE capacity.

BASF produces around 670,000 metric tons of 1,4-butanediol annually (including its Geismar site), with its production plants located in Kuantan, Malaysia; Ludwigshafen, Germany; Chiba, Japan; and Caojing, China. Additionally, a JV between BASF and Xinjiang Markor is responsible for operating the BDO facility in Korla, China.

Other significant manufacturers of 1,4-butanediol are XinJiang Markor Chemical Co. Ltd., Sinopec, Xinjiang Tianye (Group) Co. LTD., Xinjiang Guotia Xinhua Mining Co. Ltd., Shanxi Sanwei Group Co. Ltd., and Inner Mongolia Dongyuan Technology Co. LTD.

Key Questions Answered in the Report:

• What are the high-growth opportunities and markets for 1,4-butanediol by application and region?

• What are the types of 1,4-butanediol available by region?

• Which segments and regions are projected to grow at a faster pace and why in the 1,4-butanediol market?

• What is the nameplate capacity of 1,4-butanediol by region from 2019 to 2035?

• How does the plant capacity utilisation of 1,4-butanediol vary by region between 2019 and 2035?

• Who are the major players in the 1,4-butanediol market by capacity and region?

• What major plant shutdowns and expansions have occurred in the 1,4-butanediol market in the last year and the last quarter?

• What major plant shutdowns and expansions are planned in the 1,4-butanediol market over the next year and quarters?

• How did export and import dynamics of 1,4-butanediol vary by region in terms of value between 2019 and 2025?

• How did export and import dynamics of 1,4-butanediol vary by region in terms of volume between 2019 and 2025?

• What impacts have shutdowns, force majeure events, and plant closures had on demand and pricing of 1,4-butanediol?

• What are the environmental considerations and regulatory impacts affecting the 1,4-butanediol market?

• What technological innovations are having an impact on the production and application of 1,4-butanediol?

• What are the key trends and innovations in the 1,4-butanediol market?

• What are the challenges and opportunities faced by 1,4-butanediol manufacturers?

• What are the potential risks and barriers to entry for new players in the 1,4-butanediol market?

• What strategic investments and expansions have major players made in the 1,4-butanediol market?

• How are geopolitical factors and international trade policies affecting the global 1,4-butanediol market?

• What are the price trends for 1,4-butanediol, and how are they expected to change?

• How does the supply chain of 1,4-butanediol operate, and what are its key components?