Bio-Isobutene Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Products (Straw-Derived Bio-Isobutene, Sugar Beet Bio-Isobutene, Cane-Derived Bio-Isobutene, Others), By Application (Fuel, Butyl Rubber, Bio-Based Cosmetic Ingredients, Lubricant Additives, Others), By End Use (Automotive, Aerospace, Pharmaceuticals, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 84.97 Million
CAGR (2026-2031)	9.68%
Fastest Growing Segment	Straw-Derived Bio-Isobutene
Largest Market	North America
Market Size (2031)	USD 147.92 Million

Market Overview

The Global Bio-Isobutene Market will grow from USD 84.97 Million in 2025 to USD 147.92 Million by 2031 at a 9.68% CAGR. Bio-isobutene is a renewable gaseous alkene derived from biomass feedstocks such as agricultural residues or sugars, serving as a sustainable alternative to fossil-based isobutene in the production of synthetic rubber, lubricants, and fuels. The market is primarily supported by stringent environmental regulations mandating carbon reduction, which incentivizes the adoption of bio-based intermediates within industrial supply chains. Additionally, the demand for drop-in chemicals that can integrate into existing petrochemical infrastructure without requiring extensive facility modifications acts as a fundamental driver for market growth.

However, the sector faces a significant challenge regarding the high capital and operational costs associated with fermentation technologies compared to established conventional extraction methods. According to European Bioplastics, in 2024, the global bioplastics production capacity reached 2.47 million tonnes, underscoring the expanding industrial base for bio-derived materials that utilize intermediates like bio-isobutene. Despite this growing capacity, achieving price parity with fossil-derived counterparts remains a critical hurdle that could impede widespread commercial scalability and market penetration.

Key Market Drivers

Surging demand for Sustainable Aviation Fuel (SAF) and renewable biofuels serves as a primary catalyst for the Global Bio-Isobutene Market. As the aviation sector accelerates its transition toward net-zero emissions, bio-isobutene has emerged as a critical intermediate for producing high-performance renewable jet fuels and isooctane. This uptake is heavily reinforced by international mandates and blending obligations that require the integration of drop-in renewable fuels into existing supply chains. The urgency of this shift is underscored by the widening gap between supply and mandated targets, which drives investment into scalable feedstock technologies. According to the International Air Transport Association, December 2025, in a global market update, SAF production was projected to reach 1.9 million tonnes for the year, reflecting a crucial, albeit insufficient, increase in capacity that necessitates rapid expansion of bio-derived precursors like isobutene.

Growing adoption in high-performance green tires and automotive components further propels market expansion, particularly as manufacturers seek to decarbonize their raw material supply chains. Bio-isobutene functions as the essential renewable precursor for butyl rubber, a material indispensable for tire inner liners due to its impermeability and damping properties. Automotive OEMs and tire giants are aggressively increasing the percentage of sustainable materials in their products to meet corporate environmental goals while maintaining safety standards. According to Michelin, June 2025, in the '2024 Sustainability Report', the company increased the share of recycled or renewable materials in its tires to 31%, validating the commercial viability of bio-sourced inputs. While cost competitiveness remains a focus, major players are improving financial resilience; according to Global Bioenergies, February 2025, in the '2024 Annual Financial Statements', the company successfully reduced its net loss to €5.9 million by optimizing its industrial partnership model, signaling a maturing trajectory for the sector.

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Key Market Challenges

The growth of the Global Bio-Isobutene Market is severely hampered by the high capital and operational costs associated with fermentation technologies compared to conventional petrochemical extraction. While fossil-based isobutene is produced as a low-cost byproduct of crude oil refining, bio-isobutene manufacturing requires purpose-built bioreactors and complex downstream processing systems. These distinct production requirements result in significantly higher upfront investments and operating expenses, making it difficult for bio-based manufacturers to achieve price parity with established fossil-derived alternatives.

This economic disparity creates a substantial barrier to entry for downstream industries, which are often reluctant to absorb the green premium associated with renewable intermediates. As a result, despite the technical feasibility of drop-in solutions, market penetration remains limited to niche applications rather than achieving mass-market scalability. According to European Bioplastics, in 2024, bioplastics accounted for approximately 0.5 percent of the total global plastic production volume. This marginal market share highlights the ongoing difficulty for bio-based materials, including those utilizing bio-isobutene, to displace cost-competitive conventional chemicals within the broader industrial supply chain.

Key Market Trends

Commercialization of High-Purity Cosmetic Grades is acting as a pivotal trend, as producers prioritize high-margin personal care applications to offset the substantial capital requirements of bio-refining. This segment is driven by aggressive reformulation strategies among top beauty conglomerates seeking to replace fossil-based emollients like isododecane with renewable equivalents. This downstream pressure is validating the market for bio-isobutene derivatives even before fuel-grade production reaches maturity, creating a lucrative early-adopter niche. According to L'Oreal, March 2025, in the '2024 Annual Report', the company achieved a milestone where 66% of the ingredients in its formulas were biobased, derived from abundant minerals or circular processes, signaling a robust and growing addressable market for green chemical intermediates.

Concurrently, the Adoption of Circular Bioeconomy Production Models is fundamentally altering feedstock strategies, moving the industry beyond first-generation sugars toward non-food and circular resources. This trend addresses concerns regarding land-use competition by integrating advanced fermentation techniques capable of utilizing carbon-derived inputs. By decoupling production from agricultural volatility, manufacturers aim to secure a more sustainable and politically palatable supply chain. Highlighting this technical evolution, according to Biomass Magazine, June 2025, in the 'Global Bioenergies launches search for buyer' report, it was highlighted that the company had adapted its process to utilize acetic acid—synthesized from carbon dioxide and hydrogen—as a resource for producing bio-isobutene derivatives, effectively bridging the gap between carbon capture and chemical manufacturing.

Segmental Insights

Based on feedstock analysis, the straw-derived segment is anticipated to register the fastest growth within the Global Bio-Isobutene Market due to the increasing prioritization of second-generation biomass that avoids competition with food chains. This expansion is primarily driven by the abundance of agricultural residues like wheat straw, which offer a sustainable pathway for producing renewable chemicals and fuel additives. Furthermore, regulatory frameworks such as the European Union Renewable Energy Directive actively incentivize the use of advanced lignocellulosic feedstocks to achieve deeper decarbonization targets. Consequently, industry players are rapidly adopting straw-based conversion technologies to meet stringent environmental standards and support circular economy goals.

Regional Insights

North America holds a dominant position in the Global Bio-Isobutene Market, driven primarily by favorable government policies and a strong industrial focus on sustainability. The United States Environmental Protection Agency actively supports market growth through the Renewable Fuel Standard, which incentivizes the production and use of renewable fuels to lower carbon emissions. Furthermore, the region benefits from established infrastructure for bio-refining and high demand from the rubber and fuel additive sectors. This regulatory support and manufacturing capability ensure North America remains the leading region for bio-isobutene adoption.

Recent Developments

• In February 2025, Global Bioenergies signed a term sheet with a major international industrialist to co-develop a combined process for producing Sustainable Aviation Fuels (SAF). The collaboration aims to integrate Global Bioenergies' bio-isobutene technology with the partner's proprietary conversion process to create a more efficient and cost-effective pathway for SAF production. This joint effort is designed to reduce both capital and operating expenditures significantly compared to existing technologies. The partnership targets the emerging market for non-oil-based aviation fuels, intending to scale up production capacity to meet future regulatory mandates and industry sustainability goals.
• In October 2024, Global Bioenergies announced a strategic pivot to focus its business exclusively on the production of Sustainable Aviation Fuel (SAF) derived from bio-isobutene. The company decided to discontinue its standalone plant project dedicated to the cosmetics market due to challenges in securing financing for the facility. Instead, the company shifted its efforts toward a partnership-based model to deploy its technology for the large-scale production of SAF. This decision underscored the company's commitment to addressing the aviation industry's decarbonization needs by leveraging its certified bio-isobutene process to meet the increasing global demand for renewable jet fuel.
• In September 2024, Gevo, Inc. was granted a patent by the United States Patent and Trademark Office for a breakthrough ethanol-to-olefin process that can produce bio-based isobutylene and other olefins. This proprietary technology facilitates the conversion of renewable ethanol into drop-in chemicals and fuels, including sustainable aviation fuel and renewable diesel, with a lower carbon footprint compared to fossil-based equivalents. The patent award highlighted the company's progress in developing cost-effective routes for manufacturing renewable isobutylene, a critical building block for various industrial applications such as plastics, rubber, and high-performance fuel additives.
• In January 2024, Global Bioenergies announced a new phase in its ongoing collaboration with Shell Global Solutions to advance the development of low-carbon road fuels. The two companies signed a development contract to focus on a specific technological pathway for converting bio-based feedstocks into high-performance fuel derivatives. This agreement built upon previous research conducted since late 2022, which explored various solutions based on the company's proprietary technology. The partnership aimed to refine the production process to enable potential commercial exploitation, targeting the growing demand for sustainable mobility solutions and renewable fuel components in the road transport sector.

Key Market Players

• Global Bioenergies
• LanzaTech
• Gevo
• BASF
• Clariant
• TotalEnergies
• Evonik
• Butagaz
• Arkema
• Amyris

By Products	By Application	By End Use	By Region
Straw-Derived Bio-Isobutene Sugar Beet Bio-Isobutene Cane-Derived Bio-Isobutene Others	Fuel Butyl Rubber Bio-Based Cosmetic Ingredients Lubricant Additives Others	Automotive Aerospace Pharmaceuticals Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Bio-Isobutene Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Bio-Isobutene Market, By Products:

• Straw-Derived Bio-Isobutene
• Sugar Beet Bio-Isobutene
• Cane-Derived Bio-Isobutene
• Others

• Bio-Isobutene Market, By Application:

• Fuel
• Butyl Rubber
• Bio-Based Cosmetic Ingredients
• Lubricant Additives
• Others

• Bio-Isobutene Market, By End Use:

• Automotive
• Aerospace
• Pharmaceuticals
• Others

• Bio-Isobutene Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE