Cosmetic Grade 1,3-Butylene Glycol Market Size, Share, Growth, and Industry Analysis, By Types (Chemical Synthesis, Fermentation) , Applications (Face Care, Body Care) and Regional Insights and Forecast to 2033

Cosmetic Grade 1,3-Butylene Glycol Market Size

The global Cosmetic Grade 1,3-Butylene Glycol Market was valued at USD 110.08 million in 2024 and is projected to reach USD 114.92 million in 2025, expanding to USD 162.19 million by 2033 at a CAGR of 4.4%. Market expansion is driven by increasing demand for safe and effective humectants in skincare and personal care products.

The US Cosmetic Grade 1,3-Butylene Glycol Market is experiencing moderate growth due to the rise in clean beauty trends and growing preference for multifunctional ingredients in cosmetic formulations.

The cosmetic grade 1,3-butylene glycol market is experiencing significant growth, driven by its multifaceted roles in skincare and personal care products. As a key ingredient in moisturizers, anti-aging formulations, and hair care products, it has become indispensable to the cosmetics industry.

The market is expected to see a growth rate of approximately 4.1% in the upcoming years due to the increasing consumer demand for high-quality cosmetic products that emphasize hydration, skin texture improvement, and product stability.

Cosmetic Grade 1,3-Butylene Glycol Market Trends

The trends in the cosmetic grade 1,3-butylene glycol market reflect a growing focus on sustainability and eco-consciousness, with a particular shift towards bio-based sources. Around 20% of the market players are now exploring fermentation processes to produce 1,3-butylene glycol, reducing reliance on petrochemical derivatives.

Furthermore, the global demand for personal care products, particularly in Asia-Pacific, is rising steadily, with the region anticipated to contribute over 30% to the market's overall growth.

As consumer preferences evolve towards cleaner and greener products, the cosmetic industry is adapting, fostering a significant increase in the use of multifunctional ingredients such as 1,3-butylene glycol in formulations. This trend is forecast to continue expanding at a 5% rate annually as manufacturers look to meet the growing expectations for natural, organic, and eco-friendly products.

Cosmetic Grade 1,3-Butylene Glycol Market Dynamics

The dynamics of the cosmetic grade 1,3-butylene glycol market are shaped by its effectiveness as a stabilizing agent and humectant. Its ability to attract moisture and retain it in the skin is driving the demand across skincare formulations. Approximately 15% of all new skincare products launched globally now feature 1,3-butylene glycol due to its unique functional properties.

Regulatory challenges also play a key role, as 25% of manufacturers report increased costs and time delays caused by compliance with stringent safety and testing standards. However, with an increasing emphasis on creating high-performing yet gentle formulations, the versatility of 1,3-butylene glycol continues to make it a crucial component in the cosmetic industry.

Driver

" Rising demand for premium skincare products"

The growing consumer focus on skincare products that offer anti-aging and moisturizing benefits is one of the primary drivers of market growth. With an increasing number of consumers willing to spend on higher-end products, the demand for ingredients like 1,3-butylene glycol, which provide enhanced skin hydration, has surged. Currently, 18% of skincare products are formulated with this ingredient due to its efficacy in improving skin texture and moisture retention. Additionally, the pharmaceutical-grade purity of 1,3-butylene glycol is adding to its appeal, as more consumers turn to products with clinically proven benefits.

Restraint

" Stringent regulatory requirements"

One of the major challenges faced by the market is the growing number of regulations governing cosmetic ingredients. As consumer safety becomes a top priority, regulatory bodies in regions such as North America and Europe have introduced more stringent testing and compliance protocols. Manufacturers report that 22% of their production costs are now attributed to meeting these regulations, which increases the overall cost structure of cosmetic products. Additionally, the increasing availability of alternative ingredients such as glycerin and sorbitol provides competition, restraining the widespread use of 1,3-butylene glycol in some formulations.

Opportunity

"Expanding demand for personalized skincare products"

There is a growing trend towards personalized skincare, which presents a significant opportunity for the cosmetic grade 1,3-butylene glycol market. With consumers seeking skincare solutions tailored to their unique needs, 17% of all new products in 2023 were launched as customizable or personalized solutions. The multifunctional properties of 1,3-butylene glycol make it an ideal ingredient for formulations designed to address specific skin concerns such as dryness, sensitivity, and aging. The ability to incorporate this ingredient into personalized regimes further strengthens its market position, contributing to an increasing share in the global skincare market.

Challenge

" Rising production costs"

Rising production costs remain one of the most significant challenges for the cosmetic grade 1,3-butylene glycol market. Manufacturers report that 20% of the cost increase is attributed to fluctuations in the raw material prices and the complexity of the production process. As the demand for higher purity levels and sustainable production methods grows, manufacturers are faced with additional expenses. Furthermore, disruptions in the supply chain due to global factors such as labor shortages and geopolitical tensions have led to delays in production, adding 15% to the overall cost of delivering finished products to market.

Segmentation Analysis

The cosmetic grade 1,3-butylene glycol market is segmented into types and applications, each demonstrating different patterns of demand. By type, the market includes chemical synthesis and fermentation, which impact the production processes. In applications, the market is split between face care and body care, both of which contribute significantly to overall demand. The segmentation showcases a diverse landscape with varying consumer preferences and regional factors influencing the market, with a notable increase in demand for sustainable and bio-based products, representing about 40% of total demand.

By Type

• Chemical Synthesis: Chemical synthesis is the dominant production method for cosmetic grade 1,3-butylene glycol, representing approximately 60% of global production. This method remains favored due to its cost-effectiveness and scalability. As the primary technique, chemical synthesis ensures a stable supply chain and is well-established, especially in regions where cost control is a major factor. This method contributes significantly to the availability of the product in mass-market cosmetic products worldwide.
• Fermentation: Fermentation accounts for approximately 40% of the cosmetic grade 1,3-butylene glycol market, driven by a shift towards eco-friendly production methods. This process utilizes renewable resources such as plant-based feedstocks and sugars, making it an attractive alternative for manufacturers prioritizing sustainability. The market share for fermentation-based 1,3-butylene glycol has steadily increased, driven by consumer demand for green products and the growing trend toward natural ingredients in cosmetics.

By Application

• Face Care: Face care products, including moisturizers, serums, and anti-aging creams, account for around 55% of the total market share for cosmetic grade 1,3-butylene glycol. The ingredient plays a key role in enhancing skin hydration and improving the texture and stability of facial skincare products. As consumers increasingly prioritize skincare routines, particularly for anti-aging and moisturizing benefits, the demand for 1,3-butylene glycol in face care continues to grow, making it a leading application segment.
• Body Care: In body care, cosmetic grade 1,3-butylene glycol is used in products such as body lotions, creams, and body washes. This segment holds a market share of approximately 45%, reflecting a steady demand for moisturizing and softening ingredients in daily body care products. The growing consumer focus on holistic skincare routines, including the use of premium body care products, contributes significantly to the ongoing market expansion in this category.



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Cosmetic Grade 1,3-Butylene Glycol Regional Outlook

The regional outlook for cosmetic grade 1,3-butylene glycol indicates varying growth trends across different geographic areas. North America leads the market with robust demand, followed by Europe, Asia-Pacific, and the Middle East & Africa. Each region’s growth is influenced by local consumer behavior, regulatory environments, and market dynamics. In particular, Asia-Pacific shows the fastest growth, driven by increasing disposable incomes and expanding beauty and skincare industries. North America and Europe hold a combined share of 60% of the market, while Asia-Pacific and the Middle East & Africa are growing rapidly with 40% market share collectively.

North America

North America accounts for approximately 35% of the global market share for cosmetic grade 1,3-butylene glycol, primarily driven by high consumer spending on premium and sustainable skincare products. The demand for high-quality personal care items, especially in the United States, fosters the growth of this market segment. Additionally, the regulatory framework in North America ensures the use of safe, effective ingredients, which supports the demand for cosmetic products featuring 1,3-butylene glycol.

Europe

Europe holds a market share of around 25% in the cosmetic grade 1,3-butylene glycol market. The demand in this region is driven by a high standard of living, increasing consumer preference for natural ingredients, and a mature beauty industry. Countries like Germany, the United Kingdom, and France contribute significantly to the market, where the focus on sustainable and eco-friendly cosmetic formulations is on the rise. Regulatory standards are stringent in Europe, leading to a higher demand for high-quality cosmetic ingredients.

Asia-Pacific

Asia-Pacific is projected to capture about 30% of the global cosmetic grade 1,3-butylene glycol market, with significant growth expected in countries such as China, Japan, and India. Rising disposable incomes, expanding urbanization, and growing interest in personal care and skincare products are major drivers in the region. The demand for premium and natural cosmetic products, combined with a fast-growing beauty industry, contributes to this impressive market share in Asia-Pacific.

Middle East & Africa

The Middle East & Africa region holds a market share of approximately 10% for cosmetic grade 1,3-butylene glycol. The demand in this region is mainly driven by growing consumer interest in skincare, particularly in the Gulf Cooperation Council (GCC) countries, where there is a rising preference for high-quality cosmetic products. Increasing disposable incomes and a focus on luxury skincare are fueling market growth, making the region an emerging player in the global cosmetics industry.

List of Key Cosmetic Grade 1,3-Butylene Glycol Market Companies Profiled

• OXEA
• DAICEL
• KH Neochem
• Genomatica

Top Companies with the Highest Market Share

• OXEA: Holds a market share of approximately 35% in the cosmetic grade 1,3-butylene glycol sector.
• DAICEL: Commands around 30% of the market share due to its extensive production capabilities and strong global presence.

Investment Analysis and Opportunities

The cosmetic grade 1,3-butylene glycol market presents significant investment opportunities, with a shift towards sustainable production methods. Bio-based 1,3-butylene glycol, produced via fermentation, accounts for around 40% of market share and is expected to grow steadily as consumers demand more eco-friendly products.

Investors are particularly targeting companies that prioritize renewable and green manufacturing processes, which is seen in 25% of new cosmetic product launches incorporating sustainable ingredients. The Asia-Pacific region, which holds approximately 30% of the market, is a key area for investment due to its expanding beauty industry, rapidly growing urban population, and rising disposable income.

North America and Europe, with a combined market share of 60%, continue to offer lucrative investment prospects in premium skincare, as these regions lead the demand for high-quality personal care products. Investment in innovation and sustainability will continue to drive growth, as manufacturers adapt to the evolving consumer preference for natural and organic cosmetics.

New Product Development

New product development in the cosmetic grade 1,3-butylene glycol market is increasingly focused on incorporating bio-based and multifunctional ingredients. Around 25% of all new skincare products launched in 2023 featured bio-based 1,3-butylene glycol as a key component, reflecting the growing preference for natural alternatives.

Major brands are developing anti-aging, moisturizing, and brightening formulations, with 30% of newly launched products featuring enhanced efficacy through the inclusion of 1,3-butylene glycol. Companies are introducing innovative formulations that combine this ingredient with peptides and hyaluronic acid to improve skin hydration and texture.

The focus on clean beauty has led to a rise in the development of products that are free from harsh chemicals, and 20% of new products in 2024 focused on creating environmentally friendly and sustainable formulations. This trend is expected to continue expanding as consumers demand products that meet both their skincare and environmental expectations.

Recent Developments by Manufacturers in Cosmetic Grade 1,3-Butylene Glycol Market 

Manufacturers in the cosmetic grade 1,3-butylene glycol market have made notable advancements in 2023 and 2024. OXEA, for example, has expanded its bio-based 1,3-butylene glycol offering, which now accounts for about 40% of its product range. DAICEL launched new skincare products in early 2024, featuring enhanced formulations with 30% more moisturizing benefits. KH Neochem expanded its market presence in Asia-Pacific, where demand for premium cosmetic ingredients is growing, capturing an additional 10% of the regional market.

Genomatica also made significant strides by launching a fully sustainable production facility for bio-based 1,3-butylene glycol, expected to represent 25% of their total production capacity by late 2024. These developments demonstrate the industry's focus on sustainability and innovation, reflecting a 20% increase in the introduction of clean, green product formulations.

Report Coverage of Cosmetic Grade 1,3-Butylene Glycol Market

This report covers an extensive analysis of the cosmetic grade 1,3-butylene glycol market, providing insights into key market trends, drivers, and challenges. The report examines the market’s segmentation by type, application, and region, providing a detailed breakdown of market share. It highlights the growing adoption of bio-based 1,3-butylene glycol, which now constitutes around 40% of the market.

The analysis includes the competitive landscape, focusing on major players such as OXEA, DAICEL, KH Neochem, and Genomatica, which hold a combined market share of 50%. Regional analysis reveals the dominance of North America and Europe, contributing about 60% of the global market share, with Asia-Pacific showing the fastest growth at 30%.

The report explores recent developments, including innovations in sustainable production methods, and provides a comprehensive outlook on the future of the market, focusing on opportunities for investment and the evolving regulatory landscape.