Butanediol (BDO) demand in India grew at a CAGR of about 4% during 2015-2020 and is anticipated to achieve a healthy CAGR through 2030. Although Indian Butanediol industry is still in its nascent phase, the increasing demand in chemical industry for manufacturing derivatives such as THF(Tetrahydrofuran), PTMEG (Poly-tetramethyl-Ether-Glycol) and GBL(Gamma-butyrolactone) is likely to drive the overall BDO market. Butanediol demand/supply balance plays a crucial role in deciding domestic BDO prices which remained lower in 2015 due to world overcapacity but have declined since then due to increase in feedstock prices. China is currently the largest manufacturer satisfying the country’s majority of BDO demand which produces more than 50 percent of the commodity. Hence, India’s Butanediol prices follow the trend set by China.

Increasing use of Butanediol in manufacturing engineering plastics, polybutylene terephthalate and its applications in manufacturing polyurethane are set to fuel 1,4- Butanediol’s global demand. Additionally, 2,3-Butanediol is used as a precursor to manufacture methyl ethyl ketone which is majorly used as food additive. Increased production cost is one of the major factors which hinders domestic players from entering the Butanediol market. This opens the way for development of cost-effective methods for production of the commodity. As the demand for products from natural sources continues to grow, 2,3-Butanediol produced through fermentation of natural products has a vast potential in its manufacturing sector with variety of applications in pharmaceuticals, fragrance and food industry. India’s overall Butanediol demand is anticipated to grow in future considering the lack in domestic manufacturing units and innovations in the manufacturing techniques which are still being evaluated by major players into this sector.

New capacity for BDO and derivatives in the APAC could stimulate the market and encourage new investment in derivatives. India has a strong history of polyester fibre production and could emerge as a major PBT and spandex producer.

Years Considered for this Report:
Historical Years: 2015 – 2019
Base Year: 2020
Estimated Year: 2021
Forecast Period: 2022 – 2030

Objective of the Study:

  • The primary objective of the study was to evaluate and forecast Butanediol capacity, production, demand, inventory, and demand – supply gap in India.
  • To categorize Butanediol demand based on end use, region and sales channel.
  • To study trade dynamics and company share in India Butanediol market.
  • To identify major customers of Butanediol in India.
  • To evaluate and forecast Butanediol pricing by grade in India Butanediol market.
  • To identify and profile major companies operating in India Butanediol market.
  • To identify major news, deals and expansion plans in India Butanediol market.


Major players operating globally in this market include Germany-based BASF, Taiwan-based Dairen Chemical Corporation (DCC), U.S. based LyondellBasell and others. No domestic manufacturers are currently operating in the Indian market; hence the entire demand is being met through imports.
Butanediol prices were assessed at INR XXX per MT on bulk contract basis, down by about more than 6 per cent due to decline in product demand.

To extract data for India Butanediol market, primary research surveys were conducted with Butanediol manufacturers, suppliers, distributors, wholesalers and end users. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various end user segments and projected a positive outlook for India Butanediol market over the coming years.

ChemAnalyst calculated Butanediol demand in India by analyzing the historical data and demand forecast was carried out considering acetylene prices. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.

Key Target Audience:

  • Butanediol manufacturers, suppliers and other stakeholders
  • Organizations, forums and alliances related to Butanediol distribution
  • Government bodies such as regulating authorities and policy makers
  • Market research and consulting firms


The study is useful in providing answers to several critical questions that are important for industry stakeholders, such as Butanediol manufacturers, distributors and policy makers. The report also provides useful insights about which market segments should be targeted over the coming years to strategize investments and capitalize on growth opportunities.

Report Scope:
In this report, the India Butanediol market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Market, by End Use- Process Chemicals, Plastics, Food Additives, Cosmetics, Pesticides & Others
Market, by Application- Thinner, Solvents, Stripper, Supplements, GBL, GHB & Others
Market, by Sales Channel- Direct/Institutional Sales, Retail Sales, Other Channel Sales
Market, by Region- North, West, East and South

Competitive Landscape
Competition Outlook: Outlook of leading 10 players based on product portfolio, market pricing, average selling price, sales footprint, etc.
Company Profiles: Detailed analysis of the major companies operating in the India Butanediol market.

Available Customizations:
With the given market data, ChemAnalyst offers customizations according to a company’s specific needs.