Market Overview
Butadiene Market is expected to grow at a significant CAGR during the forecast period 2024-2031
Butadiene is a non-corrosive, flammable gas smelling faintly of petrol, obtained from the C4 fraction in the cracking process of naphtha. It is soluble in commoner organic solvents, such as acetone, benzene, ether, and cyclohexane. The main applications of butadiene are synthetic rubber (SBS, SBR, thermoplastic rubber, etc.), widely used in producing shoe soles, tires, and other parts for the car industry, sealants and adhesives, asphalt and polymer modification and compounds for eternal purposes.
The synthetic rubber created by 1,3-butadiene is used to make various consumer products such as rubber gloves used for protection from chemicals when using cleaning products or working with oils and solvents. Workers often use neoprene gloves to protect against exposure to gasoline, alcohol, hydraulic fluids, and organic acids in an industrial setting.
Rubber has flexibility and impermeability and is resistant to water and weak acids. Its properties make it a good electrical insulator, glue, and coating. Rubber may float because it traps air. It is ideal for goods like inner tubes and rafts used on or beneath the water. Elevator belts, hoses, and tubes are also made from 1,3-butadiene.
Market Scope
| Metrics | Details |
| Market CAGR | High |
| Segments Covered | By Product, By Source, By Application, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Market Dynamics
The global butadiene market is expected to boost with the rising production of automotive tires.
Rising production of automotive tires
The U.S. Tire Manufacturers Association projects total U.S. tire shipments in 2022 are expected to reach 340.2 million units, compared to 335.2 million in 2022 and 332.7 million in 2019. Compared with 2022, Original Equipment shipments for passenger, light truck, and truck tires are expected to grow by 6.2%, 4.4%, and 6.3%, respectively, with an increase of 2.9 million units. Replacement passenger and truck tire shipments are projected to rise by 0.9% and 1.0%, respectively. The total unit addition for replacement shipments is projected to be 2.2 million units. Polybutadiene offers high resistance to wear and is employed especially in manufacturing tires, which consume about 70% of the production. Tire manufacturers are also calling to expand styrene-Butadiene rubber, which is required to produce high-performance tires, with strong demand for which is projected in the coming years.
In 2022, Trinseo and ETB signed a letter of intent to collaborate on developing purified bio-based 1,3-butadiene. The companies combine their technology and process expertise to accelerate the development of renewably sourced material solutions. Under the partnership, the companies will explore opportunities to scale up ETB's unique single-stage process to make bio-based 1,3-butadiene from ethanol using polyfunctional catalyst technology. The collaboration will initially demonstrate the viability of sustainable ethanol-based synthetic rubber in the asset of green tire production.
Anti-dumping duties on the butadiene related products
The U.S. International Trade Commission determined a reasonable indication that a U.S. industry is materially injured because of imports of acrylonitrile-butadiene rubber from Korea, France, and Mexico that are allegedly sold in the U.S. at less than fair value. As a result of the Commission's affirmative determinations, the Department of Commerce will continue its investigations of acrylonitrile-butadiene rubber imports from France, Korea, and Mexico, with its preliminary anti-dumping duty determinations due on or about December 7, 2022.
Moreover, in 2022, The Indian commerce ministry recommended imposing an anti-dumping duty on a certain type of rubber imported from the European Union, China, Japan, and Russia to guard domestic manufacturers against cheap inbound shipments. Directorate General of Trade Remedies has suggested the duty after concluding that "Acrylonitrile Butadiene Rubber" from these areas has been exported at dumped prices into India, which has been exported at dumped prices and impacted the domestic industry.
COVID-19 Impact on Market
COVID-19 negatively impacted the global butadiene market in 2020 because of limited demand from end-user sectors. The automotive manufacturing units and building construction projects have been temporarily paused due to the current pandemic scenario. As a result, the demand for styrene-butadiene and polybutadiene rubber, which are used in tires, concrete additives, building crack fillers, and other applications, impacted the demand for the butadiene market. The spread of COVID-19 in 2020 has suppressed mobility and economic activity and changed the landscape for industry and transportation. The pandemic has influenced the global economy, collapsing vehicle and equipment production sales, usage, tire production, and trade. However, in the current circumstances, the use of protective gloves made of nitrile rubber has surged, driving demand for butadiene.
Disposable gloves made of nitrile butadiene rubber are used for contact with foodstuffs rather than PVC gloves containing DEHP because endocrine-disruptive effects are suspected for phthalate diesters, including DEHP. The demand for latex gloves has grown due to awareness regarding sanitation in the Covid-19 environment. Over 80 million gloves used by health workers each month are made from synthetic rubber.
The companies are expanding their production capacities in response to the rising demand for latex gloves. For instance, In 2022, LG Chem Ltd. added 100,000 tons of nitrile butadiene latex (NBL) plant in Ningbo, China, where expansion is projected for next year to play as the company's third production base after Korea and Malaysia and respond to surging demand for the core material utilized in latex gloves in the infectious virus danger period.
Ningbo LG Yongxing Chemical Co. has recently begun operations of NBL, a synthetic rubber material with butadiene as the main ingredient. NBL is a core substance of nitrile gloves, a latex glove that is recognized as a replacement for existing natural rubber gloves utilized for medical, industry, and cooking purposes.
Market Segmentation Analysis
The global butadiene market is segmented based on product, source, application, and region.
A significant number of companies looking for the replacement of fossil-based raw materials will boost the demand for the bio-based butadiene market
The global butadiene market is segmented into petroleum-based and bio-based based on the source.
To meet the UN sustainable development goals to solve environmental concerns, biorefinery processes in which renewable nonfood feedstocks are employed as raw materials instead of petrochemical refinery processes to stop fossil fuel depletion. With recent advances in genome-editing technology, synthetic biology has gained the ability to produce desired compounds via engineered microorganisms. Bio-based butadiene is considered a critical component in the value chain for replacing fossil-based raw materials with renewable sources, thereby lowering the environmental footprint of consumer products, such as performance tires, throughout their lifecycle.
The amount of research on biobased 1,3-butadiene synthesis has expanded in recent years. Chemically manufactured products from biobased ethanol, 1- or 2-butanol, 1,3- or 2,3-butanediol, or tetrahydrofuran are available. Although three distinct methods for producing 1,3-butadiene from glucose have been proposed (through crotonyl-CoA, erythrose-4-phosphate, and malonyl-CoA19), no direct 1,3-butadiene biosynthesis from glucose as a renewable carbon source has been realized.
Apart from the disruptions of naphtha-derived butadiene supply, rising demand for tires and polymers in emerging economies and the instability of the natural rubber market will continue to push biobased butadiene activities. The majority of the industry's top developers are already working together on projects.
In 2022, Lummus Technology announced that its Green Circle business and Synthos S.A. had reached a major milestone in developing advanced bio-butadiene technology. After completing a feasibility study in 2022, Lummus and Synthos have figured that the bio-butadiene technology is ready for implementation. The companies have agreed to move into the engineering and design phase of the project. Synthos has dedicated itself to building a plant with 40,000 metric tons of bio-butadiene capacity per year, twice as much as the companies had originally planned.
Market Geographical Share
Significant butadiene manufacturing facilities in Asia-Pacific due to raw material availability, cheap labor, and emerging industries will boost the market demand
Asia-Pacific is expected to lead the butadiene market in the forecast period. China and India are mostly responsible for the market expansion. China and India are mostly responsible for the market expansion. With around 60% of the world's vehicles, the region's demand for automobiles will be the largest globally, owing to the world's highest population proportion and two densely populated nations, China and India. In addition, low labor costs and economic production conditions in ASEAN countries are also among a few reasons behind the aftermarket's current growth.
Butadiene demand has been weak in Asia, partially due to oversupply conditions and partly due to the fall of orders from the downstream ABS and SBR in North America. With the current trend, the prices are expected to fall in the near term until the demand for the downstream SBR and ABS rises in the region and the exports, which would release the excess supply in the region.
Typically, China's butadiene exports move to South Korea. According to the statistics by Korea Customs, South Korea's butadiene imports from China stood at 31,738 mt for January to April 2022, more than 10 times compared to 1,911 mt a year earlier. The data showed that South Korea's butadiene imports for January-April in 2022 are already higher than those in 2020 at 25,232 mt.
Butadiene Companies and Competitive Landscape
The global butadiene market is fragmented and competitive with regional and global companies. Major players in the market include Synthos S.A., China Petroleum & Chemical Corporation, LyondellBasell Industries Holdings B.V, China National Petroleum Corporation, TPC Group, Royal Dutch Shell PLC, Exxon Mobil Corporation, LG Chem, Evonik Industries AG, INEOS, among others. The major players in the market are known to incorporate numerous market strategies to achieve growth in the global butadiene market; these include product launches, R&D, and collaborations.
Synthos S.A.
Overview: Synthos S.A. is a chemical manufacturer and a significant player in the synthetic rubber market. Synthos S.A. Capital Group's business includes producing chemical products used as raw materials and intermediates in various industries, particularly in the tire, construction industry, and packaging. The company manufactures and supplies synthetic rubbers, styrene plastics, plant protection products, dispersions, and latexes to companies worldwide. Synthos S.A. has production plants located in the Czech Republic, Poland, Netherlands, Germany, and France.
Product Portfolio:
- Styrene-Butadiene Rubber (SSBR): The company manufactures various standard and functionalized solution polymerized SBRs that provide an excellent balance between low rolling resistance, wet grip, and abrasion resistance in silica and carbon black tire tread compounds. It is also used for high-quality industrial rubber goods.
- Key Development: In 2022, Synthos SA announced to build of a new butadiene extraction unit with logistic infrastructure in Plock, in central Poland. Scheduled for commissioning and the first production in 2024, the unit will have a butadiene capacity of 120 metric kilotons per year.
Why Purchase the Report?
- To visualize the global butadiene market segmentation by product, source, application, and region and understand key commercial assets and players.
- Identify commercial opportunities in the global butadiene market by analyzing trends and co-development.
- Excel data sheet with numerous data points of butadiene market-level with four segments.
- PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
- Product mapping available in excel consists of key products of all the major market players
The global butadiene market report would provide approximately 61 tables, 58 figures, and almost 210 pages.
Target Audience 2024
- Service Providers/ Buyers
- Industry Investors/Investment Bankers
- Raw Material Providers
- Tire Manufacturers
- Rubber Manufacturers
- Education & Research Institutes
- Research Professionals
- Emerging Companies
- Logistics companies
- Distributors
