HS Code:
Butylene Glycol, classified under HS Code 290539, is a versatile chemical compound used primarily as a solvent, humectant, and viscosity-decreasing agent in cosmetics, personal care products, and industrial applications. It is a key ingredient in skincare and haircare formulations due to its moisturizing properties and ability to enhance product texture. Additionally, it finds use in the production of plastics, resins, and as an intermediate in chemical synthesis. The global trade of Butylene Glycol is driven by demand in the cosmetics and pharmaceutical industries, with significant production and consumption in Asia, Europe, and North America.
Total Trade Volume
USD 1.2 billion
Data from 2022
Source
United Nations Comtrade Database
USD 350 million
29.2% of total trade of total trade
Increasing
USD 200 million
16.7% of total trade of total trade
Stable
USD 180 million
15.0% of total trade of total trade
Increasing
USD 120 million
10.0% of total trade of total trade
Increasing
USD 100 million
8.3% of total trade of total trade
Stable
Average Rate
5.5% ad valorem
Highest Rate
10% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Rising demand for natural and bio-based Butylene Glycol
Increased investment in sustainable production methods and shift in consumer preference towards eco-friendly cosmetics
2021-2023
Growth in Asia-Pacific cosmetics market
Higher export volumes to countries like China and South Korea due to booming skincare and personal care industries
2020-2022
Supply chain disruptions due to geopolitical tensions
Price volatility and delays in raw material supply affecting production costs and trade flows
2022
The European Union updated its REACH regulations, imposing tighter controls on chemical impurities in Butylene Glycol used in cosmetics, requiring additional compliance measures for exporters.
March 2023
Increased production costs for non-EU suppliers and potential market access barriers for smaller exporters
China announced the expansion of several chemical plants to increase the production of Butylene Glycol, aiming to reduce dependency on imports and strengthen export capabilities.
July 2022
Potential oversupply in the global market, which may lead to price reductions and intensified competition
An amendment to the US-Korea Free Trade Agreement (KORUS) reduced tariffs on chemical intermediates, including Butylene Glycol, facilitating easier market access.
January 2023
Boosted trade volumes between the two countries, benefiting South Korean exporters and US importers