2,3-Butanediol

Global 2,3-Butanediol Market to Reach US$374.9 Million by 2030

The global market for 2,3-Butanediol estimated at US$313.7 Million in the year 2024, is expected to reach US$374.9 Million by 2030, growing at a CAGR of 3.0% over the analysis period 2024-2030. Fermentation Synthesis, one of the segments analyzed in the report, is expected to record a 3.7% CAGR and reach US$250.6 Million by the end of the analysis period. Growth in the Conventional Synthesis segment is estimated at 1.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$85.5 Million While China is Forecast to Grow at 5.8% CAGR

The 2,3-Butanediol market in the U.S. is estimated at US$85.5 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$74.0 Million by the year 2030 trailing a CAGR of 5.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.1% and 2.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.7% CAGR.

Global 2,3-Butanediol Market - Key Trends & Drivers Summarized

What Makes 2,3-Butanediol a Chemical of Emerging Strategic Value?

2,3-Butanediol (2,3-BDO) is rapidly gaining recognition as a platform chemical with high commercial value and industrial versatility, making it a key focus area in both traditional and green chemistry sectors. It serves as a crucial intermediate in the synthesis of a variety of chemicals, including bio-butadiene for rubber production, methyl ethyl ketone (MEK) for solvents, and various esters used in manufacturing. With both petrochemical and bio-based production routes available, it offers flexibility in sourcing and manufacturing strategies. In recent years, significant attention has been given to the biological production of 2,3-BDO, utilizing engineered microbes like Klebsiella, Bacillus, and Paenibacillus, which can convert renewable feedstocks such as glucose, glycerol, and agricultural waste into high-purity product. This trend is aligned with the global shift towards carbon-neutral processes and sustainability-focused supply chains. The compound’s relatively high energy content and favorable combustion characteristics also make it a candidate for aviation fuels and fuel additives, further expanding its use case. Furthermore, advancements in catalytic conversion techniques now allow 2,3-BDO to be transformed into valuable chemicals like 1,3-butadiene and gamma-butyrolactone (GBL), increasing its attractiveness as a foundational molecule in green chemistry. Market players in regions like North America, East Asia, and Western Europe are increasingly investing in R&D and infrastructure to boost its production capacity and commercial viability. These countries benefit from strong biotech ecosystems, robust regulatory frameworks supporting green chemicals, and access to diverse feedstocks. As the global economy pivots toward circular and bio-based industrial models, 2,3-BDO stands out as a strategic molecule capable of serving multiple industries with environmentally preferable solutions.

Why Are Manufacturers Turning to Renewable Routes for Production?

The transition from petrochemical-based to renewable production routes for 2,3-butanediol is no longer an experimental venture but a strategic industrial imperative driven by both policy and market dynamics. Environmental regulations in key markets like the European Union, the United States, and Japan are becoming increasingly stringent on carbon footprints and industrial waste management, directly pressuring chemical manufacturers to adopt cleaner technologies. Renewable routes for 2,3-BDO production, especially those leveraging lignocellulosic biomass, sugar beet pulp, or industrial by-products like glycerol from biodiesel plants, present a sustainable and economically viable alternative. Companies are using advanced metabolic engineering techniques to optimize microbial strains for better substrate utilization, shorter fermentation cycles, and higher product titers, thus improving both throughput and margins. The reduction in downstream purification costs through improved selectivity and fermentation consistency has also made bio-based production more attractive. Meanwhile, rising geopolitical instability and fluctuating crude oil prices are making petroleum-based routes less reliable and cost-predictable. Renewable processes, being less exposed to fossil feedstock volatility, offer greater long-term stability for supply chain planning. Government incentives, such as green chemistry grants, bioeconomy tax credits, and preferential procurement policies, are further supporting the industrial pivot toward renewables. Additionally, public perception and demand for sustainably produced goods are influencing B2B procurement decisions, making renewable 2,3-BDO a market differentiator. Asia-Pacific countries like China, South Korea, and India are witnessing a surge in pilot and demonstration projects, with strategic support from state-backed institutions and private investors. This momentum is also aided by improvements in bioreactor design, process integration, and real-time fermentation monitoring, all of which reduce downtime and enhance scalability. As a result, renewable production of 2,3-BDO is poised not just to complement but to eventually supersede traditional methods in both volume and market share.

How Are End-Use Sectors Creating New Avenues for 2,3-Butanediol Utilization?

Across industries, 2,3-butanediol is being rediscovered as a valuable intermediate offering multiple functional benefits, creating a cascade of new demand opportunities that extend beyond its traditional applications. In the synthetic rubber industry, the conversion of 2,3-BDO to bio-butadiene has become a cornerstone in the green transformation of tire and elastomer manufacturing, which is especially relevant to automotive companies targeting carbon neutrality across their supply chains. The pharmaceutical sector is investigating 2,3-BDO’s chirality and chemical structure for use in the synthesis of therapeutic agents, APIs, and biologically active molecules, making it a subject of interest in medicinal chemistry. In the realm of cosmetics and personal care, the compound is being adopted as a safe, non-irritating humectant with moisturizing and stabilizing properties, which aligns well with the clean beauty movement and regulatory restrictions on synthetic additives. Additionally, food-grade 2,3-BDO, although still under regulatory review in some regions, has potential as a flavor enhancer and fermentation byproduct in the beverage industry. One of the most promising yet underexplored avenues is its role in aviation and marine fuels, where its high energy density and low toxicity make it an attractive blending component in biofuel formulations. The agriculture sector is also experimenting with 2,3-BDO as a plant growth stimulant and biodegradable component in crop protection products. Polymer manufacturers are evaluating its use as a monomer or co-monomer in specialty plastics and biodegradable polyesters, which could pave the way for greener consumer products and packaging materials. Chemical companies are also examining its utility in producing solvents, plasticizers, and coating agents with reduced environmental impact. In industrial cleaning, it is being tested as a safe solvent for eco-friendly formulations. The diversity in its application is matched by increasing consumer and industrial demand for sustainable, traceable, and multifunctional chemicals, positioning 2,3-BDO as a linchpin in the next wave of material innovation.

What Forces Are Fueling the Rapid Growth of the Global 2,3-Butanediol Market?

The growth in the 2,3-butanediol market is driven by several factors directly tied to technological innovation, shifting industrial preferences, and regional production dynamics. Firstly, breakthroughs in synthetic biology and metabolic engineering have significantly improved the efficiency of microbial fermentation processes, reducing the cost-per-kilogram and enhancing the purity of 2,3-BDO derived from renewable feedstocks. Secondly, a marked shift in end-user industries toward environmentally compliant inputs is driving demand for bio-based intermediates, especially in high-growth sectors like personal care, pharmaceuticals, and automotive manufacturing. Thirdly, consumer behavior is evolving, with increased scrutiny of product ingredients, traceability, and sustainability credentials, thereby pushing manufacturers to reformulate using green-certified chemicals. Fourthly, public and private investments are surging in the green chemistry space, with dedicated funding allocated to the development and scaling of bio-refineries, many of which include 2,3-BDO in their product portfolios. Fifthly, geographic trends also play a role, as Asian countries like China and South Korea ramp up domestic capacity to reduce reliance on imports and strengthen their strategic chemical inventories. Sixth, integrated bioprocessing facilities capable of producing multiple end-products from the same feedstock are now economically viable, allowing companies to produce 2,3-BDO as part of a broader chemical ecosystem. Seventh, advancements in downstream separation and purification technologies are enabling high-efficiency recovery and improving the commercial value of the final product. Eighth, increasing collaboration between academia, start-ups, and multinationals is fostering a dynamic innovation pipeline, facilitating the transfer of lab-scale breakthroughs to industrial-scale production. Ninth, regulatory pressures on the use of volatile organic compounds (VOCs) and fossil-derived intermediates are indirectly promoting the adoption of 2,3-BDO in sectors like coatings, adhesives, and sealants. Lastly, the strategic push toward achieving net-zero emissions by 2050 in many economies has embedded low-carbon chemicals like 2,3-BDO into long-term industrial policy, securing its relevance and encouraging continual market expansion.

SCOPE OF STUDY:

The report analyzes the 2,3-Butanediol market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Synthesis Route (Fermentation Synthesis, Conventional Synthesis); Function (Humectant Function, Anti-Freeze Agent Function, Solvent Function, Plant Growth Promoter Function, Flavoring Agent Function, Other Functions); Application (Fertilizers Application, Plasticizers Application, Polyurethanes Application, Printing Inks Application, Perfumes Application, Food Additives Application, Resins Application, Other Applications); End-Use (Chemical End-Use, Pharmaceutical End-Use, Cosmetics & Personal Care End-Use, Food & Beverages End-Use, Inks & Dyes End-Use, Plastics End-Use, Agrochemical End-Use, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 41 Featured) -

• BASF SE
• Cargill Incorporated
• Changchun Dacheng Industry Group
• Chengdu Institute of Organic Chemistry, CAS
• Daejung Chemicals & Metals Co., Ltd.
• Eastman Chemical Company
• Genomatica, Inc.
• Global Bio-chem Technology Group
• Godavari Biorefineries Ltd.
• INVISTA
• LanzaTech Inc.
• METabolic EXplorer
• Mitsubishi Chemical Group Corporation
• Myriant Corporation (now GC Innovation America)
• Ningxia Hypow Bio-Technology Co., Ltd.
• Novamont S.p.A
• Royal DSM (now part of dsm-firmenich)
• Shandong Lanxuan Chemical Co., Ltd.
• Shanghai Jinshan Jingwei Chemical Co., Ltd.

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