Changing Consumer Preferences for Non- Synthetic Products to Proliferate the Global 1,3 Butanediol Market
The prominent players in the 1,3 butanediol market are involved in the expansion of production facilities, new product development and advancement in technology to cater to the growing demand for 1,3 butanediol. The global 1,3 butanediol market is consolidated with very few manufacturers; however various manufacturers are involved in research activities to develop efficient production technologies and are soon going to commercialize 1,3 butanediol in the market. For instance, Jiangsu Huachang Chemical Co., Ltd., a Chinese manufacturer of basic chemicals, fine chemicals and biochemical has invested in a 200-ton pilot plant of 1,3 butanediol.
Fact.MR’s study envisages the global 1,3 butanediol market to witness a compound annual growth of around 4.8% during the long-term forecast. The market continues to witness amplified growth owing to the high demand for cosmetics & personal care applications, specifically skin care and hair care products. The global cosmetic & personal care industry is the fastest growing consumer industry driven by an increase in consumer awareness, growth in emerging markets, rise in per capita spending on cosmetics & personal care products and growing online sales channels.
Increased Consumption of 1,3 Butanediol in Cosmetics & Personal Care Industry to Bolster the Global Sales
As per FACT.MR estimates, the global cosmetics & personal care industry accounts for the lion’s share of the global 1,3 butanediol market. Market growth is attributed to the increase in demand for emollients and humectants in cosmetics & personal care products. Furthermore, the increasing penetration rates of 1,3 butanediol due to the growing awareness about its beneficial properties will also push for positive growth over the long-term forecast. The global market for personal care is projected to increase 4 times over the next mid-term period. The market for personal care ingredients is likely to grow faster, demonstrating a compound annual growth of 5% in the same period. Skin care is the major application for personal care products and accounts for over 45% of the global personal care market. 1,3 butanediol is majorly used as a moisturizer and viscosity decreasing agent in the skin care products. However, the consumption of 1,3 butanediol is not as much as other ingredients like 1,4 butanediol or propanediol but is steadily growing in the global market. Moreover, major cosmetic brands are using 1,3 butanediol in their day creams, serums and anti-aging creams formulations.
Advent of Bio-based 1,3 Butanediol to Propel the Global 1,3 Butanediol Market
The rising concerns over environmental degradation and the rising trend of natural personal care products, has led to the emergence of bio-based 1,3 butanediol. Currently, natural ingredients represent only 7% of the overall market. However, they are expected to grow with a healthy CAGR in the coming years. With the rising trend of natural ingredients, manufacturers have introduced bio-based 1,3 butanediol derived from natural, plant-based sugar using fermentation process technology. This innovative approach has a strong demand in cosmetic & personal care industry owing to the growing need for natural ingredients. This bio-based technology helps in reducing global warming and carbon footprint. Manufacturers have successfully commercialized their products in the market.
- For instance, Genomatica, a bio-engineering company produces Brontide butylene glycol from sustainable fermentation process technology. The company has recently supplied 600 tons of Brontide in European market.
- Godavari Biorefineries, a bio-refining company produced bio-based 1,3 butylene glycol “NaturoBG” from renewable resource. NaturoBG has been certified by USDA for 100% bio-based carbon content. The company is also COSMOS (Cosmetic Organic and Natural standard) certified.
Shift Toward Online Sales Channels is Shaping the Cosmetics & Personal Care Market
Fact.MR has identified a massive growth in e-commerce and direct-to-consumer shipping methods. Consumers are turning towards online platforms for personal care products. Besides, they also get the advantage of reviews and ratings for a particular product. Thus, online sales of personal care products are increasing rapidly. According to a survey in 2018 in the U.S., the online sales of personal care products grew by 24%, and the overall growth in sales of personal care products was 3% - 4%. This shows that a majority of the consumers have moved to online platforms for shopping of personal care products in the U.S. Moreover, the recent digital developments in the Asia-Pacific region, especially in India and Indonesia, will further boost the market for 1,3 butanediol market. The penetration of internet and smart marketing strategies by e-commerce retailers will help in increasing the demand for cosmetic products. Online platforms can provide an option of customization of the product as well. Hence, the shift towards online sales channel worldwide is presenting enormous growth opportunities within the 1,3 butanediol market over the forecast period.
Capacity Expansion and Acquisitions Top Strategies of Key Market Players
Owing to the growing demand for 1,3 butanediol, key players are strategically expanding their production capacity to meet the growing needs of the market. Manufacturers have expanded their R&D facility to cope up with the growing needs of consumers and remain competitive in the ever-increasing global market. The companies are also entering into a long-term partnership with end-use industries, raw material suppliers, and global players, to have a strong presence in the worldwide market. Manufactures such as Godavari bio refineries Ltd. and Genomatica are involved in the production of natural bio-based 1,3 butanediol specifically for cosmetics & personal care industry.
Some of the major expansions and acquisition in the market includes:
- In June 2019, Daicel corporation, a Japan based chemical company, announced that it will expand its production facility of 1,3-butylene glycol cosmetics grade at Aboshi, Japan plant.
- In March 2017, Oxea Gmbh, a leading producer of oxo intermediates and derivatives, has started capacity increase project of 1,3 butylene glycol in Bishop, U.S.
- In July 2019, Godavari Biorefineries Ltd., an Indian based bio refinery company received USDA certified biobased product label for NaturoBG, biobased 1,3 butylene glycol
Genomatica, a biotechnology company has partnered with numerous industry giants such as Covestro, Novamount, Viachem, and Daicel Corporation for the distribution of its bio-based 1,3 butanediol across the globe.
Few of the other companies in the 1,3 butanediol market are also involved in the product innovation, expansion of product line, and collaboration with industry giants and end users to hold a strong position in the market.
1,3 Butanediol Market – Regional Developments in the Market
Manufacturers of 1,3 butanediol are majorly concentrated in North America and Asia Pacific region. North America dominates the global 1,3 butanediol market owing to presence of advanced technologies and production facilities in the region. Moreover, the consumption of the end-product is high in this region. Almost 35% of the overall consumption of 1,3 butanediol is from North America. Moreover, U.S. based manufacturer Genomatica has recently launched its bio-based 1,3 butanediol in the market. Natural products comprise of about 6% of the overall personal care products in North America.
Moreover, the penetration of natural products is high in North America and the European region owing to stringent regulations on cosmetic ingredients and more awareness about the adverse effects of synthetic products. Europe accounts for around 25% of the global cosmetics & personal care market, taking the second position after Asia Pacific. However, the demand for 1,3 butanediol in Europe is moderate owing to limited production of 1,3 butanediol in the region. The demand is majorly driven by strong skin care and hair care products in the region.
Asia Pacific represents the largest share in global personal care products market, with sales fueled mainly by population growth, urbanization and rising per capita spending of consumer. With an increasing working population and awareness about personal appearance and hygiene, the demand for personal care products is increasing in the region. The majority of the demand for 1,3 butanediol is from China, owing to a large population and rapid development of the economy. However, the demand is completely import driven. Manufacturers form China are focusing on research and development activities and running trials to commercialize the 1,3 butanediol in the region. On the other hand, Japan is one of the major producers and exporters of 1,3 butanediol with the presence of prominent players such as Daicel Corporation and K H Neochem in the region. Moreover, the demand in the developing economies in South Asia such as India and Indonesia has witnessed spurring growth in the coming future.
In Latin America, the demand for 1,3 butanediol has witnessed a steady growth in the coming forecast period owing to a rise in the middle class population and a strong desire for personal grooming. Moreover, the rising economy and growing per capita spending on personal care products of Mexico and Brazil has further boosted the overall demand of 1,3 butanediol. In addition to this, Brazil represents the fourth largest market of global personal care market. The country accounts for around 10% of the global market and penetration of 1,3 butanediol is shallow in the region bringing profitable opportunities for the manufacturers.
In Middle East & Africa, the demand for 1,3 butanediol is progressing owing to the growing demand for natural and premium products, majorly in GCC Countries. In addition to this, UAE represents the largest consumer of personal care industry in the region spurring the growth of 1,3 butanediol.
1,3 Butanediol Market- Global Industry Analysis
The recent study by Fact.MR on 1,3 butanediol offers a 10-year forecast between 2019 and 2029. The study analyzes crucial trends that are currently determining the growth of the 1,3 butanediol market. This report explicates on vital dynamics, such as drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with the manufacturing of 1,3 butanediol. The study also provides dynamics that are expected to influence the future status of the 1,3 butanediol market over the forecast period.
A detailed assessment of 1,3 butanediol value chain analysis, business execution, and supply chain analysis across the regional markets has been covered in the report. A list of prominent companies operating in the 1,3 butanediol market, enhances the reliability of this comprehensive research study.
1,3 Butanediol Market: Report Summary
The study offers a comprehensive analysis on diverse features including demand, product developments, manufacturing process overview, revenue generation, and sales in the 1,3 butanediol market across the globe.
A comprehensive estimate on the 1,3 butanediol market has also considered the market estimates through an optimistic scenario, and a conservative scenario regarding the sales of 1,3 butanediol in the forecast period. Price point comparison by regions with global average price is also considered in the study.
1,3 Butanediol Market Segmentation
Fact.MR has studied the 1,3 butanediol market with a detailed segmentation on the basis of function, end-use industry, and key regions.
1,3 Butanediol Market: Analysis on Market Size Evaluation
1,3 Butanediol has been provided for each market segment, in terms of volume (Tons) and value (US $ Mn) analysis for 1,3 butanediol.
Market estimates at global and regional levels for 1,3 butanediol, is available in terms of “US$ Mn” for value and in “tons” for volume. A Y-o-Y growth contrast on prominent 1,3 butanediol market segments, along with the market attractiveness evaluation has been incorporated in the report. Another key feature of the 1,3 butanediol market report is the analysis of all key segments in terms of absolute dollar. Absolute dollar opportunity is critical in assessing the level of opportunity that a manufacturer can look to achieve, as well as in identifying potential resources, from a sales and delivery perspective in the 1,3 butanediol market.
1,3 Butanediol Market: Inspected Assessment on Regional Segments
Key sections have been elaborated in the 1,3 butanediol report, which helped to deliver projection on regional markets. These chapters include regional macros (political, economic, and business environment outlook), which are expected to have a momentous influence on the growth of the 1,3 butanediol market during the forecast period.
Country-specific valuation on demand for 1,3 butanediol has been offered for each regional market, along with the market scope estimate and forecast, price index, and impact analysis of dynamics of prominence in regions and countries. For all regional markets Y-o-Y growth estimates have also been incorporated in the report.
Detailed breakup in terms of value & volume for emerging countries have also been included in the report.
1,3 Butanediol Market: In-depth Analysis on the Competitive Landscape
The report sheds light on leading manufacturers of 1,3 butanediol along with their detailed profiles. Essential and up-to-date data information related to the market performers, who are principally engaged in the production of 1,3 Butanediol, has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report, permit the report readers to take preemptive steps in advancing their businesses.
Company profiles have been combined in the report, which include essentials such as product portfolio, along with an all-inclusive SWOT analysis on each player. The company presence is mapped and presented through the matrix for all prominent players thus providing readers with actionable insights, which help in thoughtfully presenting the market status, and predicting the competition levels in the 1,3 butanediol market. Prominent companies operating in the global 1,3 butanediol market, include OXEA GmbH, KH Neochem, Genomatica, Daicel Corporation, Godavari Biorefineries Ltd., Penta Manufacturing Company, and MMP Inc.
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