Bio-based 1,4-Butanediol Market

The global bio‑based 1,4‑butanediol (bio‑BDO) market is emerging as a strategically important segment within green chemicals, driven by the shift from fossil feedstocks to renewable raw materials. Bio‑BDO is typically produced from sugars, starch, or other biomass via fermentation and subsequent chemical conversion. It serves as a drop‑in alternative to petro‑based BDO in applications such as tetrahydrofuran (THF), polybutylene terephthalate (PBT), gamma‑butyrolactone (GBL) and polyurethane (PU).

Over the next decade, the bio‑based 1,4‑butanediol market is expected to expand at a significantly faster pace than conventional BDO, supported by:

• Rising sustainability and carbon‑reduction targets across automotive, textiles, electronics and packaging.
• Technological progress in fermentation routes and catalysts, which helps narrow the cost gap vs. fossil‑based BDO.
• Capacity additions by leading chemical producers and joint ventures focusing on bio‑BDO and its derivatives.

By 2032, global demand for bio‑BDO is projected to reach around several hundred kilotons, representing a growing share of the total 1,4‑butanediol market, which is itself projected to be worth around USD 11 billion by 2031 according to several industry assessments of the broader BDO market (covering both synthetic and bio‑based grades). Within this landscape, bio‑BDO stands out as a critical building block for low‑carbon spandex, engineering plastics and high‑performance polyurethanes.

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Bio-based 1,4-Butanediol Market Drivers and Emerging Trends

1. Sustainability and Regulatory Tailwinds

Governments in Europe, North America and parts of Asia are tightening climate and resource‑efficiency regulations. Carbon border mechanisms, renewable‑content mandates and incentives for low‑carbon chemicals are encouraging brand owners and converters to switch from fossil BDO to bio‑based alternatives.

Policies targeting lower lifecycle greenhouse gas (GHG) emissions and increased use of renewable feedstocks are particularly influential in:

• Europe, where climate‑neutrality targets and green‑chemicals strategies are pushing the transition away from coal‑ and naphtha‑based intermediates.
• North America, where incentives under clean‑energy and industrial‑decarbonisation frameworks support investment in bio‑based chemical plants.
• Asia‑Pacific, where long‑term “dual carbon” commitments and industrial upgrading agendas favour newer, lower‑emission processes.

These regulatory drivers are reinforcing the business case for bio‑BDO even when feedstock and energy prices remain volatile for conventional petro‑routes.

2. Brand‑Owner Net‑Zero and Scope 3 Focus

Global apparel, footwear, automotive and consumer electronics brands have committed to net‑zero or deep decarbonisation timelines. A large share of their emissions sits in Scope 3 (supply chain), where raw materials such as spandex, PBT engineering plastics and polyurethane foams are major contributors.

Bio‑BDO enables:

• Renewable spandex and elastane via bio‑based THF and PTMEG.
• Low‑carbon PBT for connectors, housings and under‑the‑hood parts.
• Bio‑based polyurethanes used in seats, panels, footwear and high‑performance coatings.

As brand‑owner procurement policies increasingly specify minimum bio‑content or maximum product‑carbon‑footprint thresholds, demand for certified and traceable bio‑BDO is expected to grow steadily.

3. Technological Advances and Cost Improvements

Biotechnology companies and chemical majors have made notable progress in:

• High‑titer fermentation strains for producing intermediate molecules from sugars.
• Process intensification in downstream purification and hydrogenation steps.
• Flexible plants that can handle multiple carbohydrate feedstocks (corn, sugarcane, cellulosic streams, etc.).

These developments are gradually narrowing the cost premium between bio‑BDO and fossil BDO. While synthetic BDO remains dominant in volume terms today, bio‑based capacity is expanding through new projects and long‑term offtake agreements between technology licensors, chemical producers and major end‑users.

4. Demand Growth in Key Downstream Segments

• Spandex and textiles: Growing athleisure, sportswear and performance apparel markets are lifting spandex consumption, underpinning strong demand for THF and PTMEG based on bio‑BDO.
• Automotive: Lightweighting, electric‑vehicle architectures and more demanding thermal environments support higher use of PBT and PU systems, where bio‑BDO can be used as a direct or near‑drop‑in precursor.
• Electronics & electricals: Miniaturisation, 5G infrastructure and data‑center expansion favour engineering plastics with superior dielectric and thermal properties. Bio‑based PBT grades address both performance and sustainability.

Together, these trends create a robust, multi‑sector demand foundation for bio‑based 1,4‑butanediol.

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Bio-based 1,4-Butanediol Market Segmentation

The bio‑based 1,4‑butanediol market can be viewed through two primary segmentation lenses: by application and by end‑use industry.

1. By Application

1. Tetrahydrofuran (THF)

   • Represents one of the largest application segments for BDO, and a leading outlet for bio‑BDO.
   • THF is mainly used to produce poly(tetramethylene ether glycol) (PTMEG), which is subsequently used in spandex fibers and elastomeric polyurethanes.
   • Growth is supported by rising consumption of flexible textiles, stretch denim, intimate apparel, sportswear and technical textiles.
   • Bio‑based THF derived from bio‑BDO enables spandex producers to market lower‑carbon, renewable‑content fibers.

2. Polybutylene Terephthalate (PBT)

   • PBT is a high‑performance thermoplastic polyester valued for mechanical strength, heat resistance and electrical insulation properties.
   • Automotive applications include connectors, sensor housings, under‑the‑hood components and structural parts where weight reduction is critical.
   • Electrical and electronics uses span connectors, switches, plug housings and casings in high‑temperature or high‑frequency environments.
   • Bio‑BDO can be polymerised with terephthalic acid to yield PBT with similar material performance but a lower lifecycle carbon footprint.

3. Gamma‑Butyrolactone (GBL)

   • A versatile intermediate used in specialty solvents, agrochemical formulations and high‑value derivatives such as N‑methyl‑2‑pyrrolidone (NMP).
   • Bio‑based GBL derived from bio‑BDO offers an alternative route for customers seeking to decarbonise solvent portfolios and intermediate chains.

4. Polyurethane (PU)

   • Bio‑BDO functions as a chain extender and polyol component in various polyurethane systems, including elastomers, coatings, adhesives, sealants and foams.
   • Applications range from automotive seats, steering wheels and interior trim to industrial rollers, footwear soles, insulation foams and specialty coatings.
   • As green‑building certifications and low‑VOC standards become more stringent, bio‑based PU systems are gaining attention.

5. Other Applications

   • Include plasticisers, specialty polyesters and niche derivatives tailored for specific performance requirements in industrial, pharmaceutical or electronics uses.
   • These smaller but higher‑margin segments often favour bio‑routes where customers are willing to pay a premium for renewable and differentiated performance attributes.

2. By End‑Use Industry

1. Textile and Apparel

   • One of the fastest‑growing consumer segments for bio‑BDO via bio‑based THF and PTMEG.
   • The combination of comfort, stretch and durability in spandex‑containing fabrics aligns well with demand for athleisure, yoga wear and performance sportswear.
   • Leading brands increasingly disclose the share of recycled and renewable materials in their collections, helping pull renewable PTMEG and, by extension, bio‑BDO into the value chain.

2. Automotive

   • Emphasis on lightweighting, improved fuel efficiency and EV range is pushing higher use of engineering plastics and structural polyurethanes.
   • Bio‑based PBT and PU components provide OEMs with tangible ways to lower vehicle‑level embedded emissions without compromising performance.
   • Interior applications (seat cushions, instrument panels, trim) and functional parts (connectors, housings) are priority areas for integrating bio‑derived materials.

3. Electrical & Electronics

   • Rapid expansion of consumer electronics, 5G infrastructure and data‑center hardware boosts demand for flame‑retardant PBT and high‑performance plastics.
   • Bio‑based BDO derivatives are increasingly evaluated in connectors, sockets, high‑frequency components and device housings subject to stricter environmental regulations.

4. Industrial and Other End‑Uses

   • Include adhesives, coatings, industrial belts, rollers, specialty films and selected packaging applications.
   • In these segments, bio‑BDO is positioned as part of a portfolio shift toward low‑carbon, bio‑based intermediates, often in tandem with recycled content.

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Key Players in the Bio‑based 1,4‑Butanediol Market

The competitive landscape in bio‑based 1,4‑butanediol is moderately concentrated, with a mix of large diversified chemical companies, biotechnology firms and integrated joint ventures. Companies active in bio‑BDO technologies, capacity development or long‑term sourcing strategies include:

• BASF SE – Expanding access to bio‑based 1,4‑butanediol through long‑term agreements and integrating bio‑BDO into derivative portfolios such as polytetrahydrofuran and THF.
• Genomatica Inc. – A key technology provider for fermentation‑based BDO production, partnering with chemical majors and textile players to scale bio‑BDO and its downstream uses.
• Cargill, Incorporated – Active in bio‑based intermediates and joint‑venture models that integrate agricultural feedstocks, biotechnology and chemical processing.
• Novamont S.p.A. – A pioneer in bio‑based chemicals and materials, with established capabilities in producing bio‑derived building blocks such as BDO and related intermediates.
• DSM (including legacy activities in performance materials and bio‑based chemistry) – Engaged in evaluating bio‑BDO and its polymers, including PBT and other high‑performance materials.
• Hyosung TNC – Investing in large‑scale projects for bio‑based 1,4‑butanediol production aimed at supplying renewable spandex feedstocks.
• Qore LLC (Cargill & HELM joint venture) – Developing significant bio‑BDO capacity integrated with corn‑based feedstocks, supporting long‑term offtake by major downstream customers.

In addition, several established BDO producers, including large Asian chemical and petrochemical companies, are exploring hybrid portfolios that combine conventional and bio‑based BDO to serve different customer segments and regulatory environments.

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Research & Development Hotspots of Bio-based 1,4-Butanediol Market

R&D activity in the bio‑based 1,4‑butanediol domain is concentrated around a few key themes:

1. Advanced Fermentation Pathways

   • Development of high‑yield microbial strains capable of fermenting glucose, sucrose and potentially second‑generation lignocellulosic sugars.
   • Process intensification to increase product titers and reduce separation energy, thereby improving overall economics.

2. Flexible Feedstock Strategies

   • Integration of agro‑industrial side streams and waste biomass to reduce dependence on food‑grade sugars.
   • Exploration of region‑specific feedstocks (e.g., corn in North America, sugarcane in Latin America and Asia, forestry residues in parts of Europe) to optimise supply chains.

3. Catalytic Upgrading and Downstream Integration

   • Improved catalysts and reactor designs for hydrogenation and dehydration steps that transform fermentation intermediates into BDO and its derivatives.
   • Integrated process design covering sugar conversion, BDO production and onsite derivative manufacturing (THF, PTMEG, PBT, etc.) to capture additional value.

4. Lifecycle Assessment and Certification

   • Detailed lifecycle analysis (LCA) of bio‑BDO vs. fossil BDO to quantify GHG reductions, energy use and land‑use implications.
   • Certification schemes such as ISCC‑type mass‑balance approaches to provide auditable proof of renewable content throughout the value chain.

5. Application‑Specific Material Innovation

   • Development of PBT and PU formulations that fully leverage the properties of bio‑based BDO while meeting or exceeding conventional performance benchmarks.
   • Tailor‑made grades of spandex, coatings and adhesives designed to offer both functional differentiation and sustainability benefits for brand owners.

Collectively, these R&D hotspots are aimed at enhancing scalability, lowering costs, strengthening sustainability credentials and broadening the application window of bio‑based 1,4‑butanediol.

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Regional Market Dynamics of Bio-based 1,4-Butanediol Market

1. Europe

   • Currently one of the leading regions in terms of bio‑BDO consumption and policy support for low‑carbon chemicals.
   • Strong presence of automotive, engineering plastics and specialty chemicals industries that are early adopters of renewable raw materials.
   • Climate targets and mechanisms such as carbon‑pricing and border adjustments are expected to keep Europe at the forefront of bio‑BDO deployment.

2. North America

   • Experiencing rapid growth in bio‑BDO capacity and demand, supported by abundant agricultural feedstocks and supportive policy frameworks.
   • Large textile, automotive and consumer‑goods markets are increasingly incorporating renewable materials as part of corporate sustainability strategies.
   • Joint ventures integrating agri‑processing, biotechnology and chemical manufacturing are emerging as key supply models.

3. Asia‑Pacific

   • Dominates global demand for total BDO and derivatives due to its large automotive, textiles and electronics base.
   • Bio‑BDO production projects in countries such as China, Korea and Vietnam are gaining traction, often linked directly to regional spandex and engineering‑plastics capacity.
   • Cost‑competitive feedstocks and large‑scale investments position Asia‑Pacific as both a key producer and consumer of bio‑based 1,4‑butanediol.

4. Rest of the World (Latin America, Middle East & Africa)

   • Latin America offers strong agricultural and bio‑feedstock potential, particularly sugarcane, which can be leveraged for future bio‑BDO projects.
   • Selected Middle Eastern and African economies may focus on downstream consumption in textiles, automotive assembly and packaging, often relying on imported bio‑BDO and derivatives from other regions.

Overall, while Asia‑Pacific and Europe currently anchor most of the volume and policy momentum, North America is emerging as a dynamic growth node, and other regions present attractive long‑term feedstock and demand opportunities.

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Bio-based 1,4-Butanediol Market - Strategic Recommendations for Industry Stakeholders

1. Secure Long‑Term Feedstock and Technology Partnerships

   • Establish agreements with agricultural and sugar processors to ensure stable, competitively priced carbohydrate inputs.
   • Collaborate with biotechnology licensors and research institutions to access high‑performance fermentation strains and process know‑how.

2. Develop Integrated Value Chains

   • Consider co‑locating bio‑BDO plants with derivative units (THF, PTMEG, PBT) to capture margin across the chain and reduce logistics costs.
   • Engage closely with spandex manufacturers, engineering‑plastics compounders and polyurethane formulators to design product portfolios aligned with end‑market requirements.

3. Prioritise Certification, Traceability and LCA

   • Invest in robust certification and tracking systems to credibly demonstrate renewable content and GHG reductions.
   • Use transparent lifecycle data to support brand‑owner disclosures, eco‑labels and regulatory compliance.

4. Target High‑Value, Sustainability‑Sensitive Segments First

   • Focus initial commercialisation on segments where customers place a premium on sustainability, such as premium sportswear, EV components and green‑building products.
   • These niches can absorb a moderate price premium while volumes ramp up and unit costs decline.

5. Monitor Regulatory and Trade Developments

   • Track carbon‑pricing schemes, trade measures and environmental regulations that may alter the relative economics of fossil vs. bio‑based BDO.
   • Position capacity and offtake agreements to respond quickly to shifts in policy or tariffs that affect regional competitiveness.

6. Differentiate Beyond “Bio‑Based”

   • Combine renewable content claims with performance enhancements (e.g., durability, flexibility, thermal stability) to avoid purely cost‑driven competition.
   • Work with downstream partners on co‑branding, shared marketing narratives and joint product launches that emphasise both sustainability and functionality.

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Conclusion

The bio‑based 1,4‑butanediol market is transitioning from a niche opportunity to a strategically important component of the global chemicals landscape. Driven by strong sustainability imperatives, brand‑owner commitments and favourable policy signals, demand for bio‑BDO and its derivatives is expected to grow steadily across textiles, automotive, electronics and industrial applications.

While cost competitiveness relative to synthetic BDO remains a key challenge, ongoing R&D, process improvements and scale‑up of fermentation technologies are steadily reducing this gap. At the same time, lifecycle benefits, regulatory drivers and reputational gains provide strong non‑price incentives for adoption.

This market offers a compelling area for continued monitoring, scenario analysis and strategic advisory. Stakeholders that move early to establish feedstock security, technology partnerships, integrated derivative chains and credible sustainability credentials are likely to be best positioned as bio‑based 1,4‑butanediol moves into its next phase of global commercialisation.

Table of Contents

1. Executive Summary

• Market Snapshot and Key Highlights
• Growth Trajectory and Market Value (2022–2032)
• Critical Trends Shaping the Bio‑based 1,4‑Butanediol Landscape
• Strategic Imperatives for Stakeholders

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2. Research Methodology

• Scope and Definitions
  • Definition of Bio‑based 1,4‑Butanediol
  • Market Boundaries and Inclusions/Exclusions
  • Base Year (2025) and Forecast Period (2022–2032)
• Data Sources and Validation
  • Primary Research: Industry Interviews and Expert Consultations
  • Secondary Research: Industry Reports, Company Filings, Trade Publications
  • Data Triangulation and Quality Assurance

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3. Market Overview

• Market Size and Forecast (2022–2032) with Base Year 2025
  • Historical Trends (2022–2024)
  • Current Market Valuation (2025)
  • Projected Growth and Volume Estimates (2026–2032)
• Value Chain Analysis
  • Feedstock Sourcing (Sugars, Starches, Lignocellulosic Biomass)
  • Fermentation and Biotechnology Platforms
  • Chemical Conversion and Purification
  • Derivative Production (THF, PBT, GBL, PU)
  • End‑Use Integration and Distribution
• Technology Roadmap
  • Evolution of Fermentation and Catalytic Processes
  • Emerging Pathways and Next‑Generation Strains
  • Process Intensification and Cost‑Reduction Trajectories

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4. Market Drivers, Restraints, and Opportunities

• Drivers
  • Sustainability and Regulatory Tailwinds
  • Brand‑Owner Net‑Zero and Scope 3 Commitments
  • Technological Advances and Cost Improvements
  • Demand Growth in Key Downstream Segments (Spandex, PBT, PU)
• Restraints
  • Price Gap Versus Fossil‑Based 1,4‑Butanediol
  • Limited Large‑Scale Fermentation Capacity Outside Asia‑Pacific
  • Feedstock Availability and Price Volatility
  • Strain IP Litigation and Technology Access Barriers
• Opportunities
  • Expansion into Second‑Generation and Waste‑Based Feedstocks
  • Strategic Partnerships and Joint Ventures
  • Integration with Circular Economy and Bio‑Refinery Models
  • Emerging Applications in High‑Performance and Specialty Polymers

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5. In‑Depth Market Segmentation

5.1 By Application

• Tetrahydrofuran (THF)
  • Market Share and Growth Outlook
  • Role in PTMEG and Spandex Production
  • Key End‑Use Sectors: Textiles, Elastomers, Specialty Polymers
• Polybutylene Terephthalate (PBT)
  • Market Share and Growth Outlook
  • Automotive, Electrical & Electronics Applications
  • Performance Advantages and Sustainability Benefits
• Gamma‑Butyrolactone (GBL)
  • Market Share and Growth Outlook
  • Specialty Solvents and Agrochemical Intermediates
  • Niche and High‑Value Derivatives
• Polyurethane (PU)
  • Market Share and Growth Outlook
  • Elastomers, Coatings, Adhesives, Foams
  • Green‑Building and Low‑VOC Trends
• Other Applications
  • Plasticisers, Specialty Polyesters, Pharmaceutical Intermediates

5.2 By End‑Use Industry

• Textile and Apparel
  • Spandex and Performance Fabrics
  • Athleisure, Sportswear and Technical Textiles
  • Brand‑Owner Sustainability Mandates
• Automotive
  • Lightweighting and EV Component Demand
  • Interior Trim, Connectors, Under‑the‑Hood Parts
  • OEM Carbon‑Reduction Targets
• Electrical & Electronics
  • Connectors, Housings, High‑Frequency Components
  • 5G Infrastructure and Data‑Center Expansion
  • Flame‑Retardant and High‑Performance Plastics
• Industrial and Other End‑Uses
  • Adhesives, Coatings, Specialty Films
  • Packaging, Rollers, Industrial Belts
  • Emerging Applications in Green Chemistry

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6. Regional Market Dynamics

6.1 North America

• Market Size, Growth Rate and Key Trends
• Feedstock Availability (Corn, Agricultural Residues)
• Policy Support and Incentive Frameworks
• Major Projects and Capacity Additions
• Leading Players and Strategic Partnerships

6.2 Europe

• Market Size, Growth Rate and Key Trends
• Climate Targets and Carbon‑Pricing Mechanisms
• Automotive, Textiles and Specialty Chemicals Demand
• Certification and Mass‑Balance Approaches
• Leading Players and Innovation Hubs

6.3 Asia‑Pacific

• Market Size, Growth Rate and Key Trends
• Dominance in Total BDO and Derivatives Consumption
• Feedstock Diversity (Corn, Sugarcane, Cassava, Cellulosic)
• Large‑Scale Capacity Investments and Joint Ventures
• Leading Players and Regional Supply Chains

6.4 Middle East & Africa

• Market Size, Growth Rate and Key Trends
• Downstream Consumption in Textiles and Automotive Assembly
• Import Dependence and Future Feedstock Potential
• Emerging Opportunities and Strategic Outlook

6.5 Latin America

• Market Size, Growth Rate and Key Trends
• Sugarcane and Agricultural Feedstock Advantages
• Textile and Packaging Demand Drivers
• Future Bio‑Refinery and Export Potential

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7. Key Players in the Market

7.1 Company Profiles

• BASF SE
  • Company Overview and Strategic Focus
  • Bio‑based 1,4‑Butanediol Portfolio and Capacity
  • Recent Developments and Partnerships
• Genomatica Inc.
  • Company Overview and Technology Platform
  • Licensing Model and Strategic Collaborations
  • Recent Developments and Commercial Milestones
• Cargill, Incorporated
  • Company Overview and Bio‑Intermediates Strategy
  • Joint Ventures and Integrated Feedstock‑to‑Chemical Models
  • Recent Developments and Capacity Expansions
• Novamont S.p.A.
  • Company Overview and Bio‑Based Chemicals Leadership
  • Production Capabilities and Product Portfolio
  • Recent Developments and Sustainability Initiatives
• DSM (Royal DSM N.V.)
  • Company Overview and Performance Materials Focus
  • Bio‑based BDO and Derivatives Evaluation
  • Recent Developments and Strategic Partnerships
• Hyosung TNC
  • Company Overview and Spandex Integration Strategy
  • Large‑Scale Bio‑BDO Investment Projects
  • Recent Developments and Capacity Timelines
• Qore LLC (Cargill & HELM Joint Venture)
  • Company Overview and Integrated Bio‑BDO Platform
  • Feedstock Integration and Offtake Agreements
  • Recent Developments and Commercial Launch

7.2 Competitive Landscape and Market Positioning

• Market Share Analysis
• Strategic Initiatives: Capacity Expansion, M&A, Partnerships
• Technology Differentiation and IP Landscape

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8. Research & Development Hotspots

• Advanced Fermentation Pathways and High‑Titer Strains
• Flexible Feedstock Strategies and Second‑Generation Biomass
• Catalytic Upgrading and Downstream Integration
• Lifecycle Assessment and Certification Frameworks
• Application‑Specific Material Innovation (PBT, PU, Spandex)

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9. Regulatory and Sustainability Framework

• Global and Regional Climate Policies
• Carbon‑Pricing, Border Adjustments and Renewable‑Content Mandates
• Certification Schemes (ISCC, REDcert, Mass‑Balance Approaches)
• Industry Standards and Eco‑Labels
• Corporate Sustainability Commitments and Scope 3 Reporting

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10. Strategic Recommendations

• Secure Long‑Term Feedstock and Technology Partnerships
• Develop Integrated Value Chains and Co‑Location Strategies
• Prioritise Certification, Traceability and Lifecycle Analysis
• Target High‑Value, Sustainability‑Sensitive Segments First
• Monitor Regulatory and Trade Developments
• Differentiate Beyond "Bio‑Based" with Performance and Co‑Branding

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11. Appendix

• Glossary
  • Key Terms and Definitions (Bio‑based 1,4‑Butanediol, THF, PBT, GBL, PTMEG, etc.)
• List of Abbreviations
  • BDO, THF, PBT, GBL, PU, PTMEG, LCA, GHG, EV, OEM, etc.
• Contact Information – Global Infi Research