Global Synthetic and Biobased Butadiene Market By Product Type (Synthetic Butadiene, Bio-based Butadiene), By Application (Styrene Butadiene Rubber (SBR), Polybutadiene Rubber (PBR), Styrene Butadiene (SBL), Acrylonitrile Butadiene Styrene (ABS)), By End-User (Tire Manufacturing, Automotive, Footwear, Construction, Chemical Industry), By Geographic Scope And Forecast

Synthetic and Biobased Butadiene Market Size And Forecast

Synthetic and Biobased Butadiene Market size was valued at USD 25.09 Billion in 2024 and is projected to reach USD 36.19 Billion by 2031, growing at a CAGR of 5.17% from 2024 to 2031.

• Butadiene, or 1,3-butadiene, is a colorless, non-corrosive gas with a mild odor that can condense into a liquid at temperatures below -4.5°C. It is primarily produced through the crude butylene (C4) stream refining technology.
• The automotive and rubber industries are the major consumers of both synthetic and biobased butadiene, using over 75% of the global supply. In these industries, butadiene is crucial for creating rubber compounds, which involve mixing synthetic and biobased butadiene with various processing oils, and natural and synthetic elastomers.
• This blend is then heated to produce various rubber types, including polybutadiene rubber (PBR), styrene-butadiene rubber (SBR), acrylonitrile butadiene styrene (ABS), and styrene-butadiene (SB) latex, as well as adiponitrile.
• Synthetic and biobased butadiene are widely used in the production of SBR, PBR, polymers, plastics, and latex. In the tire manufacturing industry, both types of butadiene are utilized as rubber-reinforcing agents due to their ability to enhance reinforcement, resilience, tear strength, and conductivity, contributing to the overall physical properties of tires.
• Amid the growing interest in sustainable practices, green butadiene, derived from renewable sources, is emerging as an alternative to synthetic butadiene. However, the volatility in raw material prices, such as C4 mixed and oil butadiene feedstocks, impacts market dynamics.
• Additionally, the environmental concerns associated with the release of toxic chemicals during the manufacturing process of synthetic butadiene pose a significant challenge, potentially limiting its demand and boosting the appeal of more sustainable biobased options.

Global Synthetic and Biobased Butadiene Market Dynamics

The key market dynamics that are shaping the global synthetic and biobased butadiene market include

Key Market Drivers

• Growing Automotive Industry The growing automotive industry is a major driver for the butadiene market, as butadiene is a crucial component in the production of synthetic rubber used extensively in tire manufacturing. The rise in automotive production, particularly in developing economies, directly fuels the demand for butadiene. This trend is further amplified by the global shift towards larger and higher-performance tires, which require more synthetic rubber and, consequently, more butadiene.
• Expansion of Tire Manufacturing The expansion of tire manufacturing globally is leading to increased consumption of butadiene. As tire manufacturers continue to innovate and produce tires that offer enhanced performance and durability, the need for butadiene-based synthetic rubber grows. This trend is reflective of the broader shift in the automotive sector towards advanced and high-quality products.
• Rise in Construction ActivityThe rise in construction activity is positively impacting the demand for butadiene. Butadiene is utilized in the production of various construction materials, such as adhesives, sealants, and waterproofing products. As the global construction industry expands, driven by increased urbanization and infrastructure development, the demand for these butadiene-based materials rises.
• Increasing Demand for Consumer Goods The increasing demand for consumer goods also contributes to the growing butadiene market. Butadiene is an essential ingredient in the production of plastics, synthetic fibers, and other consumer products. With the global population on the rise and disposable incomes increasing, there is a heightened demand for consumer goods, which in turn boosts the need for butadiene.
• Sustainability The growing emphasis on sustainability, is influencing the butadiene market. Consumers and businesses are increasingly prioritizing environmentally friendly products, leading to a rise in the adoption of biobased butadiene. This sustainable alternative to conventional butadiene aligns with the broader trend towards reducing the environmental impact of industrial processes.
• Stringent Environmental Regulations Stringent environmental regulations are also playing a significant role in shaping the butadiene market. Governments around the world are implementing stricter regulations to curb carbon emissions and promote the use of renewable resources. These regulations are driving the adoption of biobased butadiene, as it offers a more sustainable option compared to its synthetic counterpart.
• Increasing Demand for Rubber Products The growing demand for rubber products, such as tires, belts, hoses, and seals, further drives the butadiene market. As these products are integral to various industries, including automotive and manufacturing, the increasing consumption of rubber products translates to a higher demand for butadiene.

Key Challenges

• Fluctuating Crude Oil Prices Fluctuating crude oil prices significantly impact the butadiene market, given that butadiene is a petrochemical derivative. The production of butadiene is closely tied to the cost of crude oil, and any volatility in oil prices can affect the production costs and profitability of manufacturers. When crude oil prices rise, the cost of producing butadiene also increases, which can lead to higher prices for end products and potentially reduced profit margins for manufacturers. Conversely, a decline in crude oil prices might decrease production costs but could also lead to reduced profitability if market prices drop.
• Environmental Concerns Environmental concerns are another critical challenge facing the butadiene industry. The production of synthetic butadiene relies heavily on fossil fuels, leading to significant carbon emissions and other pollutants. As environmental regulations tighten globally and public awareness of climate change grows, the industry is under increasing pressure to mitigate its environmental impact. This includes addressing emissions and seeking more sustainable production methods to align with new regulatory standards and consumer expectations.
• Competition from Biobased Butadiene The rise of biobased butadiene presents a growing competitive threat to synthetic butadiene. Biobased butadiene, derived from renewable biomass sources, offers a more sustainable alternative that aligns with environmental goals. However, this shift is not without its challenges. The production costs for biobased butadiene are currently higher than those for synthetic butadiene. This is due to the relatively undeveloped technology and the higher costs associated with biomass feedstock and production processes.
• Limited Feedstock Availability Limited feedstock availability further complicates the production of biobased butadiene. Biomass suitable for butadiene production is not only geographically constrained but also inconsistent in supply. This limitation can affect the reliability of the supply chain, making it challenging for producers to scale up biobased butadiene production.
• Technological Challenges Technological challenges also play a significant role in the development of biobased butadiene. The process of converting biomass into butadiene is complex and still in the early stages of technological advancement. Improving the efficiency and yield of these conversion processes requires substantial research and development efforts to make biobased butadiene more competitive with synthetic alternatives.
• Market Penetration Market penetration for biobased butadiene necessitates considerable investments in several areas. Establishing a robust market involves not only advancing technology but also investing in infrastructure and consumer education. Significant capital is required to develop the necessary production facilities and to educate the market about the benefits of biobased butadiene. This investment is crucial for overcoming barriers to adoption and building a viable market presence.

Key Trends

• Shift Towards On-Site ProductionMany manufacturers are now integrating butadiene production directly into their downstream operations to mitigate supply chain risks and lower costs. By producing butadiene on-site, companies can better control their production processes, reduce transportation costs, and minimize supply chain disruptions, thereby enhancing overall efficiency and cost-effectiveness.
• Increasing Focus on High-Purity ButadieneAs demand for high-performance products grows, so does the need for butadiene with superior purity levels. This trend is driving advancements in purification technologies, enabling producers to meet the stringent requirements of high-performance applications. Enhanced purification processes help in achieving the desired quality and performance characteristics essential for specialized uses in various industries.
• Integration with Petrochemical Value ChainThe integration of butadiene production with the broader petrochemical value chain is also gaining traction. Producers are exploring opportunities to link their operations with other petrochemical products to boost profitability and reduce waste. By creating a more interconnected production system, companies can optimize resource utilization, enhance operational efficiencies, and capitalize on synergies within the petrochemical sector.
• Growing Emphasis on Sustainability Sustainability has become a central focus within the industry, driven by increasing environmental concerns. There is a growing emphasis on adopting biobased butadiene as a more sustainable alternative to conventional synthetic butadiene. This shift reflects broader environmental goals and consumer preferences for greener products. As sustainability becomes a key consideration, the adoption of biobased butadiene aligns with efforts to reduce the carbon footprint and promote renewable resources.
• Advancements in Biotechnology Advancements in biotechnology are playing a crucial role in the development of biobased butadiene. Ongoing research and development are leading to improved processes for converting biomass into butadiene. These biotechnological innovations are enhancing the efficiency and yield of biobased production methods, making them more competitive with traditional synthetic butadiene.
• Development of New Feedstocks The industry is also exploring a diverse range of biomass feedstocks to support biobased butadiene production. By expanding the types of feedstocks used, producers can reduce reliance on specific crops and ensure a more sustainable and stable supply. This diversification helps address issues related to feedstock availability and contributes to a more resilient supply chain.
• Collaboration with Automotive IndustryAutomakers are increasingly interested in biobased butadiene for tire production as part of their efforts to enhance vehicle sustainability. This collaboration is driving demand for biobased butadiene and supporting its integration into the automotive supply chain, aligning with the industry’s broader sustainability goals.
• Increasing Use of Modeling and Simulation Advanced modeling and simulation tools are being utilized to optimize butadiene production processes. These tools help in refining production techniques, reducing costs, and improving product quality. By leveraging sophisticated modeling and simulation, manufacturers can better predict outcomes, streamline operations, and enhance overall efficiency in butadiene production.

Global Synthetic and Biobased Butadiene Market Regional Analysis

Here is a more detailed regional analysis of the global synthetic and biobased butadiene market

Asia Pacific

• Asia Pacific substantially dominates the global synthetic and biobased butadiene market. The rapidly expanding domestic automotive, footwear, and construction industries are significantly driving the demand for butadiene.
• As businesses strive to meet this growing demand, there is a notable shift towards providing sustainably produced styrene-butadiene rubber (SBR), reflecting a broader trend towards environmental responsibility.
• The robust automotive industry in the Asia-Pacific region, particularly in countries like China, India, and Japan, further amplifies this demand.
• These nations are home to some of the world’s largest automotive markets, with increasing vehicle production and rising demand for high-performance tires leading to higher butadiene consumption.
• Additionally, Asia-Pacific’s prominence in tire manufacturing is underscored by significant investments from global tire giants in butadiene production facilities. This strategic investment has reinforced the region’s position as a key supplier of butadiene-based synthetic rubber.
• Rapid industrialization in countries such as China and India is contributing to an increased demand for butadiene-based products across various sectors, including construction, chemicals, and consumer goods.
• The expanding middle class in the region, driven by rising disposable incomes, has further fueled demand for consumer goods, indirectly boosting butadiene consumption. Concurrently, government support for bio-based materials is gaining traction as a response to environmental concerns.
• This support is fostering the growth of the bio-based butadiene segment, reflecting a commitment to sustainability within the industry. Collectively, these factors highlight the dynamic growth and evolving landscape of the butadiene market in the Asia-Pacific region.

North America

• North America is anticipated to witness the fastest growth in the global synthetic and biobased butadiene market during the forecast period.
• The region’s strong automotive industry relies heavily on butadiene to produce high-quality tires that meet performance standards.
• Additionally, North America is a major hub for chemical production, equipped with a well-established infrastructure for both butadiene manufacturing and its various downstream applications.
• This infrastructure supports a wide range of chemical products and reinforces the region’s critical role in the global butadiene market.
• There is also a growing emphasis on sustainability within North America, which is fueling interest in biobased butadiene as a more environmentally friendly alternative to traditional synthetic butadiene.
• As environmental concerns become more prominent, the shift towards sustainable materials is gaining momentum. The region’s leadership in research and development, particularly in bio-based technologies, is expected to play a crucial role in accelerating the commercialization of biobased butadiene.
• This focus on innovation and sustainability is anticipated to drive advancements in production technologies and broaden the market for biobased alternatives, aligning with the region’s broader environmental goals.

Global Synthetic and Biobased Butadiene MarketSegmentation Analysis

The Global Synthetic and Biobased Butadiene Market is segmented based on Product Type, Application,  End-User, And Geography.

Synthetic and Biobased Butadiene Market, By Product Type

• Synthetic Butadiene
• Bio-based Butadiene

Based on Product Type, the Global Synthetic and Biobased Butadiene Market is bifurcated into Synthetic Butadiene and Bio-based Butadiene. Synthetic butadiene dominates the global synthetic and biobased butadiene market owing to its well-established production processes and lower cost compared to bio-based alternatives. Its dominance is underpinned by its extensive applications across various industries. Synthetic butadiene is a key ingredient in the production of synthetic rubber, which is essential for the automotive, tire, and construction sectors. Beyond rubber, it is also used in the manufacturing of plastics, resins, and other chemical products, highlighting its versatility and widespread industrial use.

Synthetic and Biobased Butadiene Market, By Application

• Styrene Butadiene Rubber (SBR)
• Polybutadiene Rubber (PBR)
• Styrene Butadiene (SBL)
• Acrylonitrile Butadiene Styrene (ABS)

Based on the Application, the Global Synthetic and Biobased Butadiene Market is bifurcated into Styrene Butadiene Rubber (SBR), Polybutadiene Rubber (PBR), Styrene Butadiene (SBL), Acrylonitrile Butadiene Styrene (ABS). Styrene-butadiene rubber (SBR) segment dominates the global synthetic and biobased butadiene market owing to its excellent balance of properties, such as abrasion resistance, hysteresis, and processing characteristics. Its versatility extends beyond tires, finding applications in footwear, adhesives, and various other rubber products. The growth of the automotive sector, particularly in emerging economies, is a significant driver for SBR demand. Additionally, the rising need for high-performance tires further boosts the market for this material, underscoring its importance across multiple industries.

Synthetic and Biobased Butadiene Market, By End-User

• Tire Manufacturing
• Automotive
• Footwear
• Construction
• Chemical Industry

Based on End-User, the Global Synthetic and Biobased Butadiene Market is bifurcated into Tire Manufacturing, Automotive, Footwear, Construction, and Chemical Industry. The Tire Manufacturing segment shows significant growth in the global synthetic and biobased butadiene market. Butadiene is a crucial ingredient in the production of synthetic rubber, which plays a vital role in tire manufacturing. It imparts essential properties such as elasticity, durability, and traction to the rubber. The growth of global vehicle production, particularly in developing economies, is a key driver for the tire manufacturing industry and, by extension, for butadiene demand. Additionally, the trend towards larger and higher-performance tires is further increasing consumption of butadiene, highlighting its significance in meeting the evolving needs of the automotive sector.

Synthetic and Biobased Butadiene Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

Based on Geography, the Global Synthetic and Biobased Butadiene Market is classified into North America, Europe, Asia Pacific, and the Rest of the World. Asia Pacific substantially dominates the global synthetic and biobased butadiene market. The rapidly expanding domestic automotive, footwear, and construction industries are significantly driving the demand for butadiene. As businesses strive to meet this growing demand, there is a notable shift towards providing sustainably produced styrene-butadiene rubber (SBR), reflecting a broader trend towards environmental responsibility. The robust automotive industry in the Asia-Pacific region, particularly in countries like China, India, and Japan, further amplifies this demand. These nations are home to some of the world’s largest automotive markets, with increasing vehicle production and rising demand for high-performance tires leading to higher butadiene consumption.

Key Players

The “Global Synthetic and Biobased Butadiene Market” study report will provide valuable insight with an emphasis on the global market including some of the major players such as BASF SE, Eni, Royal Dutch Shell, TPC Group, Evonik Industries AG, INEOS Group, Exxon Mobil, LyondellBasell Industries, Repsol, SABIC, Genomatica, Lanxess, Yeochun NCC.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Global Synthetic and Biobased Butadiene Market Recent Developments

• In August 2023, Evonik Industries AG announced the partnership with a leading provider of bio-based feedstock to develop a new process for producing biobased butadiene.
• In June 2023, INEOS Group Ltd. began buildi