Published October 2022
1,4-Butanediol (BDO) is a bifunctional, primary alcohol that is produced by a variety of methods, mainly from petrochemicals. The major uses are in the production of tetrahydrofuran (THF) (an intermediate of spandex and other performance polymer products) and polybutylene terephthalate (PBT) resins for engineering plastics. It is also used in the manufacture of gamma-butyrolactone (GBL) and polyurethane elastomers. In addition, BDO is the starting material for polybutylene adipate terephthalate (PBAT), polybutylene succinate (PBS), and polybutylene succinate adipate (PBSA), which are synthetic biodegradable plastics.
Mainland China continues to be the world’s largest producer and consumer of BDO and has added the majority of new capacity in recent years.
The following pie chart shows world consumption of 1,4-butanediol:
Global 1-4, butanediol (BDO) consumption is concentrated in Northeast Asia (including mainland China); in 2022, it accounted for more than three-quarters of total consumption. In mainland China, BDO consumption has increased dramatically with the rapid growth of spandex and PBT production; these markets will continue to expand in the forecast period.
World consumption is expected to grow at an average rate of nearly 9% annually during the forecast period, and will continue to be driven by the mainland Chinese market. Robust demand growth is expected during 2022– 27 in mainland China as a result of increased PBAT and PBS production. In other regions, more moderate growth is expected.
THF is the primary derivative of BDO, accounting for nearly half of consumption in 2022, with the majority of THF used for PTMEG production (for spandex); PBT production is the next-largest market segment, followed by GBL production. By 2027, the market share of the three segments—THF, PBT, and GBL—will change, with GBL production becoming the second-largest market after THF. GBL production growth is driven by increased demand in its end-use product N-methyl-2-pyrrolidone (NMP), which is used in electrodes for lithium-ion battery manufacturing, among other applications.
The 1,4-butanediol industry has attracted significant investment in the development of biosuccinic acid and the production of bio-based BDO that is commercially viable from sustainable sources. Although the firstgeneration industrial-scale plant has been completed and is in operation, several other projects have been cancelled following financial issues within the companies or shifts in focus from production to research and development. Although the commercial production of bio-based BDO is currently small, the situation is expected to improve in the coming years fueled by government determination for low-carbon economies.
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