1,3-Butylene Glycol Market Overview
Global 1,3-butylene glycol (1,3-BG) market size was valued at $109.0 million in 2017, and it is expected to witness a CAGR of 4.8% during the forecast period, in terms of volume. The market growth will be led by the cosmetics & personal care product, as it is the largest end-user of 1,3-BG, in terms of value.
1,3-BG, which is also widely known as butane-1,3-diol, or 1,3-dihydroxybutane) is used in the polyester plasticizers manufacturing as a chemical intermediate. It can also be converted into β-hydroxybutyrate and can also be served as a substitute for brain metabolism. It is one of the four stable structural isomers of butanediol. Some industries use it as solvent for flavorings and also as humectant in pet foods, tobacco and cosmetics. This chemical also finds its usage in pharmaceutical, resins, inks, Flavors, and food.
Cosmetic and personal care is the largest application area of the chemical, where it is used as humectant. It aids cosmetic and personal care products by forming a barrier to prevent the drying out or loss of moisture content from these products. The chemical also helps in preventing crystallization of insoluble components, which makes it a highly preferred compound for cosmetic and personal care applications.
Asia-Pacific is the largest producer as well as the consumer of 1,3-BG. During the forecast period, the market is seen to witness the fastest growth in Asia-Pacific, attributed to factors such as improving healthcare infrastructure, increasing disposable income and significant growth in the cosmetics industry. Countries such as India and China are creating huge opportunities for the growth of the 1,3-butylene glycol market in the region. The healthcare expenditure in these countries is still proportionally very low when compared to the developed economies of Europe and North America. However, the large population base and increasing disposable income exhibit strong demand for personal care products, thus increasing the demand for 1,3-butylene glycol for these products. According to the World Bank, healthcare expenditure in China, India and Korea was 4.7%, 4.2% and 5.0% respectively in 2004, which increased to 5.5%, 4.7% and 7.4% by 2014. Japanese healthcare infrastructure is at par with developed economies, as it spends significant portion of its GDP on healthcare.
1,3-Butylene Glycol Market Dynamics
Growing cosmetic products market and the growing demand of 1,3-butylene glycol in the pharmaceutical industry are the key factors driving the growth of the global market.
The increasing consciousness and awareness towards haircare and skincare among consumers, is supporting the demand for cosmetic products. Consumers are now willing to spend more on cosmetic and personal care products due to the increasing disposable income. Moreover, consumers are getting more aware regarding the ingredients used in the cosmetic and personal care products. This creates ample growth opportunities for 1,3-butylene glycol manufacturers, especially those producing it through environment friendly processes. Consumers including both male and female are more conscious towards haircare, which has significantly boosted the market for hair care products. 1,3-BG are used in the ingredients for bath products, hair products, facial makeup, personal cleanliness products, and skin care and shaving products. An increase in demand of these products leads to increase in consumption of 1,3-BG. Therefore, increasing consciousness and awareness towards haircare and skincare is expected to create ample growth opportunities in the global 1,3-butylene glycol market.
Growing cosmetic products market and the growing demand of 1,3-BG in the pharmaceutical industry are the key factors driving the growth of the global market. As regardless of the ups and downs in the cosmetics industry, the aging population is hungry for the latest skin care saviors. In cosmetics and personal care products, these ingredients are used in the formulation of hair and bath products, eye and facial makeup, fragrances, personal cleanliness products, and shaving and skin care products. 1,3-BG is used as solvents and viscosity decreasing agents in cosmetics and personal care products.
The fragmented healthcare industry and high operating margins in emerging economies make them attractive to investors when compared to developed economies. Countries such as China and India have large population base and the healthcare infrastructure in these countries is improving, thus illustrating immense market potential for the pharmaceutical industry. Manufacturing pharmaceutical products in developing regions tends to decrease the overall cost of manufacturing, thus reducing the cost of products without altering the quality. With the increasing number of diseases and increasing compliance for high quality drugs, the demand for 1,3-BG is expected to increase in these countries, thus creating ample growth opportunities for the 1,3-BG providers.
Crude oil prices are also volatile, which has created a very high impact on the global economies; thus, increasing the global economic uncertainty. These conditions are expected to negatively impact the value chain of 1,3-BG. The uncertain global economic conditions and fluctuating raw material prices hamper the growth of the global market. The fluctuating raw material prices put pressure on the entire 1,3-BG supply chain, which affects the ability of the manufacturers throughout the value chain for long term projects and product planning.
1,3-Butylene Glycol Market - Competitive Landscape
Some of the major players operating in the 1,3-butylene glycol market are OXEA GmbH, Daicel Corporation, KH Neochem Co., Ltd., Godavari Biorefineries Ltd., Hangzhou Dayangchem Co. Ltd., Haihang Industry Co., Ltd., and Genomatica, Inc.