Butadiene Market By Product Type (Extracted Butadiene, Synthetic Butadiene), By Derivative Type (Styrene-Butadiene Rubber (SBR), Polybutadiene Rubber (PBR), Acrylonitrile Butadiene Styrene (ABS), Nitrile Butadiene Rubber (NBR), SB Latex (Styrene-Butadiene Latex), Adiponitrile, Chloroprene Rubber, Other), By Application (Tires and Footwear, Adhesives & Sealants, Golf Balls, Medical Gloves, Hoses & Tubing, Electrical Insulation, Carpet Backing, Plastic Casings, Synthetic Fibers, Other), By Production Process (Steam Cracking of Hydrocarbons, Dehydrogenation of Butane, Bio-based Butadiene, Oxidative Dehydrogenation), and By End-user (Automotive Industry, Construction Industry, Consumer Goods Manufacturers, Industrial & Chemical Industry, Healthcare & Medical Sector), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Butadiene Market accounted for USD 12.7 Billion in 2024 and is expected to reach USD 26.32 Billion by 2035, growing at a CAGR of around 6.85% between 2025 and 2035. The Butadiene Market is an essential petrochemical sector because it is the primary substance for making synthetic rubbers and polymers. The fuel refining operations produce butadiene, which is a fundamental component in manufacturing numerous industrial products. The market demand for Butadiene directly relates to the functioning performance of downstream industries which include automotive production and construction applications and healthcare products together with consumer goods manufacturing. Current developments in polymer science together with material technologies maintain butadiene as an essential factor for contemporary industrial production.

Global economic performance determines the industry together with raw material supply and the government's regulations for chemical manufacturing along with emissions. Industrial production methods currently rule the market but increasing attention toward environment-friendly biobased materials exists to solve environmental challenges. Participating in market actors' work to increase production effectiveness as well as supply chain reliability along with searching for new utility sectors to keep making competitive gains. Industry prospects maintain their dynamic nature from industrial requirements along with continuous technological improvements alongside governmental regulations.

Report Scope:

Market Dynamics

Rising Automotive Demand for High-Performance Synthetic Rubber in Tire and Rubber Manufacturing to Enhance Durability and Fuel Efficiency

Public demand for butadiene heavily depends on the expanding automotive production of rubber components alongside tires. The manufacturing industry utilizes butadiene to produce Styrene-Butadiene Rubber (SBR) and Polybutadiene Rubber (PBR) which serve as essential materials for tire fabrication because these rubber types provide exceptional resistance against heat and wear and aging effects. Global vehicle manufacturing volumes enhance steadily and this expansion especially within emerging markets drives continuous increases in synthetic rubber demand.

Automakers focus on developing fuel-efficient durable tires because of strict environmental regulations and this has created increased market demand for rubber products based on butadiene. EVs have caused demand for better high-performance tires that combine improved traction with longer lifespan and low resistance to rolling. Butadiene serves as a fundamental component in the production of tires because the evolving automotive market demands its use to ensure performance standards and safety requirements.

Rapid Industrial Growth Driving Increased Butadiene Consumption Across Various Sectors, Including Construction, Packaging, and Consumer Goods Production

Different industries that perform manufacturing and construction as well as healthcare and electronics work together to raise demand for butadiene-derived materials. The building materials gain durability and flexibility from their applications of butadiene-based derivatives chloroprene rubber and SB latex in construction-related adhesives, sealants, and coatings. Medical gloves along with protective equipment in healthcare institutions depend on Nitrile Butadiene Rubber (NBR) derived from butadiene because of its excellent resistance to chemical fluids and punctures.

Butadiene serves as a critical substance for electronics products which allows manufacturers to create durable plastic casings along with insulation materials and synthetic fibers that enable various electronic appliance implementations. The industrial demand for powerful materials drives continuous butadiene consumption since it remains a critical element for current industrial applications. The essential nature of butadiene in industrial-development applications will continue because evolving manufacturing processes necessitate its usage.

Volatility in Raw Material Prices Significantly Impacting Production Costs and Profit Margins of Butadiene Manufacturers and End-Users

One of the largest issues of the butadiene industry is the volatility in raw material prices, which is directly correlated with production prices and market stability. Butadiene is largely obtained from natural gas and crude oil through various processes like butane dehydrogenation and steam cracking of hydrocarbons. The price of crude oil is affected by geopolitical tensions, supply and demand situations, OPEC policies, and economic conditions. Hence, the price of butadiene production is volatile. Whenever there is any increase in oil prices, feedstock prices increase and hence the manufacturers' margins are squeezed and the market becomes susceptible to price shocks.

Apart from that, supply chain disruption, i.e., logistics issues, refinery shutdowns, and raw material shortages, also contributes to price volatility. Producers typically bear uncertain procurement expenses, and therefore sustainable long-term production planning becomes impossible. Such volatility is transmitted to downstream industries like automotive, construction, and consumer goods, where butadiene-derived products like synthetic rubber and plastics are essential. To offset these risks, producers are exploring alternative feedstocks, bio-butadiene, and newer production technologies to de-risk dependence on petroleum-based feedstocks. Until producers can do this, price volatility in raw materials will remain a significant dampener in the Butadiene Market.

Development of Bio-Based Butadiene for Sustainable Production and Reduced Carbon Footprint in the Global Petrochemical Industry

The increasing focus on sustainability and the decreasing dependence on fossil fuels has led to increasing research in the production of bio-based butadiene. Butadiene is traditionally produced from petroleum-based processes and is carbon carbon-emitting and polluting processes. In reaction, industries and research centers are looking into renewable feedstocks such as biomass, ethanol, and plant sugars to produce bio-based butadiene. It is a step towards the development of a sustainable option with lower carbon emissions and a more stable supply chain that is not dependent on crude oil prices. 

In addition, governments and environmental organizations worldwide are encouraging the application of green chemistry and sustainable manufacturing processes through policy and incentives. Major chemical producers are testing schemes and collaborations to industrialize the production of bio-based butadiene for commercial use. Innovation, if it proves successful, could revolutionize the butadiene industry by providing a greener and less costly alternative and create new opportunities for the development of environmentally friendly businesses and industries.

Technological Advancements Enhancing Efficiency, Process Optimization, and Cost-Effectiveness in Butadiene Production and Polymer Manufacturing

Best known, perhaps as of late, butadiene production is continuously evolving around the development of newer technologies that can be applied to the improvement of efficiency, cost-effectiveness, and quality. Optimizing well-known production routes such as steam cracking and oxidative dehydrogenation is finding the way from innovations in catalysts, process automation, and energy savings techniques. These advancements lead to higher yield production at the least possible energy consumption and greenhouse gas emission, hence making production more economically and environmentally viable.

Research is also underway in alternative production routes such as on-purpose butadiene production (from butane) and bio-based methods that have broadened the scope of the market. State-of-art refinery technologies now render even better feedstock utilization, waste reduction, and increase of cost-benefit. The future lies clearly in the fields of industries seeking sustainable and efficient solutions; in turn, these next-generation technologies adopted in butadiene production work toward the advancement of competitiveness, innovation, and the long-term sustainable growth of the market.

Industry Experts Opinion

“1,3-Butadiene is a ubiquitous environmental pollutant because it is formed as a product of incomplete combustion of fossil fuels and biomass.”

• Wan Qi Chen, Researcher.

“EPA preliminarily determined that 1,3-butadiene presents an unreasonable risk of injury to human health for workers and the general population.”

• Environmental Protection Agency

Segment Analysis

Based on the Application segment, the Butadiene Market is categorized into Tires and Footwear, Adhesives & Sealants, Golf Balls, Medical Gloves, Hoses & Tubing, Electrical Insulation, Carpet Backing, Plastic Casings, Synthetic Fibers, and Others. The Tires and Footwear business domain is therefore highly dominated due to the extensive use of Styrene-Butadiene Rubber (SBR) and Polybutadiene Rubber (PBR) in tire manufacturing, with properties such as durability, abrasion resistance, and fuel economy. Higher automobile output together with expanding market needs for performance tires, especially in electric vehicles, serves to fuel this segment. The production growth of footwear products, especially sports footwear and casual wear, works to increase demand for synthetic rubbers derived from butadiene in the industry.

Based on the Production Process segment, the Butadiene Market is classified into Steam Cracking of Hydrocarbons, Dehydrogenation of Butane, Bio-based Butadiene, and Oxidative Dehydrogenation. Bio-based Butadiene is the fastest-growing segment, driven by increasing environmental regulations and the push toward sustainable and renewable chemical production. The increasing priority for fuel-independent technologies alongside green tire development within automakers speeds up funding for bio-based alternative products. Efficient bio-butadiene production is made possible through the advancement of fermentation and catalytic conversion methods, which support its adoption as a sustainable alternative throughout the rubber, plastic, and adhesive industries.

Regional Analysis

The largest share of the Butadiene Market is held by the Asia-Pacific region, which has a large industrial base, high demand from the automotive sector, and developed petrochemical infrastructure. With an increased production of synthetic rubber, tires, and ABS plastics in economies such as China, India, Japan, and South Korea, butadiene consumption is set to grow. Increased investments in refining-petrochemical complexes and capacity expansion projects keep the steady flow of butadiene. Meanwhile, rapid urbanization in the region, coupled with increased construction activities and a thriving consumer goods sector, is boosting demand for butadiene-based products more. Growing manufacturing sectors and concomitant government initiatives emphasize industrial growth, thus fortifying the preferential position of Asia-Pacific as the Butadiene Market.

The Butadiene Market in the Asia-Pacific area displays the highest growth rate because of increasing car manufacturing and expanding synthetic rubber needs together with fast-paced industrial development. Electric vehicle development has stimulated both tire and lightweight plastic use requirements, which increases the butadiene market. Emerging economies such as India and Southeast Asian countries are witnessing massive infrastructure development coupled with consumer goods manufacturing growth, which consequently drives market expansion. Investments in bio-based butadiene production and sustainability initiatives will shape the future of the industry, placing Asia-Pacific in a position as the most dynamic and fast-evolving market.

Competitive Landscape

Major petrochemical companies are centralizing their operations in the global Butadiene Market, investing time in expanding their production capacity, employing advanced technologies, and building cooperative strategic partnerships to cement their position in the marketplace. The leaders include LyondellBasell Industries, BASF SE, Dow, and ExxonMobil Corporation, all of which have an integrated supply chain and capable refineries that guarantee a steady supply of butadiene for global markets. These top players from Asia like China National Petroleum Corporation (CNPC), Sinopec, LG Chem, Formosa Plastics Corporation, and others exactly as Reliance Industries Limited benefit from less-costly production, increasing local demand, and infrastructures underwritten by the government.

Some companies such as INEOS Group AG, ENEOS Materials Corporation, and LANXESS are investing heavily in sustainability technologies and advanced manufacturing processes to increase efficiency. Meanwhile, TPC Group, Braskem, SABIC, and ARLANXEO are investing in research and innovations of synthetic rubber applications to meet fast-growing global demand from the automotive and industrial sectors. Companies like LOTTE Chemical Titan Holding Berhad and Repsol are busy extending their presence in the region via developing new projects and joint ventures, while Evonik Industries AG and Shell PLC are moving ahead with bio-based avenues for butadiene to catch up on sustainability trends.

Butadiene Market, Company Shares Analysis, 2024

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Recent Developments:

• In February 2025, Zeon Corporation and Yokohama Rubber collaborated to install a bench facility aimed at synthesizing butadiene from ethanol. This initiative, in partnership with RIKEN, sought to achieve highly efficient production of butadiene using sustainable materials.
• In December 2024, The EPA released its draft risk evaluation for 1,3-butadiene under TSCA, preliminarily determining that the chemical presents an unreasonable risk of injury to human health for workers and the general population due to inhalation exposure.
• In October 2024, Bridgestone received a grant from the U.S. Department of Energy to design, build, and operate a pilot plant focused on converting ethanol to butadiene. The project aimed to evaluate the economic and commercial viability, as well as the carbon footprint, of producing butadiene from non-fossil-based resources.

Report Coverage:

By Product Type

• Extracted Butadiene
• Synthetic Butadiene

By Derivative Type

• Styrene-butadiene rubber (SBR)
• Polybutadiene Rubber (PBR)
• Acrylonitrile Butadiene Styrene (ABS)
• Nitrile Butadiene Rubber (NBR)
• SB Latex (Styrene-Butadiene Latex)
• Adiponitrile
• Chloroprene Rubber
• Other

By Application

• Tires and Footwear
• Adhesives & Sealants
• Golf Balls
• Medical Gloves
• Hoses & Tubing
• Electrical Insulation
• Carpet Backing
• Plastic Casings
• Synthetic Fibers
• Other

By Production Process

• Steam Cracking of Hydrocarbons
• Dehydrogenation of Butane
• Bio-based Butadiene
• Oxidative Dehydrogenation

By End-User

• Automotive Industry
• Construction Industry
• Consumer Goods Manufacturers
• Industrial & Chemical Industry
• Healthcare & Medical Sector

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• LyondellBasell Industries
• TPC Group
• BASF SE
• Braskem
• China National Petroleum Corporation (CNPC)
• China Petroleum & Chemical Corporation (Sinopec)
• Dow
• ENEOS Materials Corporation
• Evonik Industries AG
• Exxon Mobil Corporation
• Formosa Plastics Corporation
• INEOS Group AG
• LG Chem
• LOTTE Chemical Titan Holding Berhad
• Reliance Industries Limited
• Repsol
• Shell PLC
• SABIC
• ARLANXEO
• LANXESS

Frequently Asked Questions (FAQs)