Butadiene Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 14.07 Billion
CAGR (2026-2031)	4.96%
Fastest Growing Segment	Styrene Butadiene Rubber
Largest Market	Asia Pacific
Market Size (2031)	USD 18.81 Billion

Market Overview

The Global Butadiene Market will grow from USD 14.07 Billion in 2025 to USD 18.81 Billion by 2031 at a 4.96% CAGR. Butadiene is a colorless industrial gas produced primarily as a co-product of ethylene steam cracking and serves as a fundamental monomer for the manufacturing of synthetic rubbers and thermoplastics. The market is principally supported by the automotive industry’s consistent requirement for high performance tires made from styrene butadiene rubber and the construction sector’s demand for durable polymer materials like acrylonitrile butadiene styrene. These core applications ensure steady consumption patterns globally and underpin the long term commercial viability of butadiene production facilities despite economic fluctuations in other manufacturing areas.

However, a significant challenge impeding market expansion is the volatility in feedstock availability caused by the petrochemical industry’s shift toward lighter feedstocks which yield less butadiene. Reflecting this strain on the derivative market, according to the International Rubber Study Group, in 2025, global synthetic rubber production declined by 3.7% in the second quarter compared to the same period in the previous year. This contraction highlights the sensitivity of the global butadiene supply chain to downstream industrial performance and broader economic headwinds.

Key Market Drivers

The Expansion of the Automotive and Tire Manufacturing Sector currently stands as the primary catalyst propelling the Global Butadiene Market, principally due to the extensive utilization of styrene-butadiene rubber (SBR) and polybutadiene rubber (PBR) in tire production. As automotive output recovers and the global fleet expands, the requirement for high-performance and replacement tires has intensified, directly bolstering the consumption of butadiene-based synthetic rubbers. This trend is particularly evident in major markets where logistics and personal mobility needs are driving substantial volume growth. For instance, according to the U.S. Tire Manufacturers Association, December 2024, total U.S. tire shipments were projected to reach 338.9 million units in 2024, reflecting a resilient demand for tire products that underpins upstream butadiene orders.

Simultaneously, the Growing Consumption of Acrylonitrile Butadiene Styrene (ABS) in Consumer Goods is significantly amplifying market potential, as ABS serves as a critical material for manufacturing durable housings in household appliances and electronics. This segment benefits from urbanization and the rising middle-class expenditure on modern conveniences, which sustains a continuous need for butadiene feedstock. Illustrating this robust downstream activity, according to the National Bureau of Statistics of China, February 2025, the retail sales of household appliances and audio-video equipment grew by 12.3% in 2024, signaling strong industrial offtake. Such sectoral gains are occurring amidst a broader recovery in the chemical industry; according to BASF, October 2024, sales in its Chemicals segment increased by 11.7% to €2.7 billion in the third quarter of 2024, driven largely by volume growth in the petrochemicals division.

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Key Market Challenges

The primary impediment to the expansion of the global butadiene market is the volatility in feedstock availability resulting from the petrochemical sector's strategic pivot toward lighter feedstocks. Steam crackers are increasingly favoring ethane over heavier fractions like naphtha to optimize costs, yet this transition fundamentally alters production yields. While naphtha cracking generates a substantial volume of butadiene as a co-product, ethane cracking yields negligible amounts. Consequently, the supply of butadiene has become inadvertently constrained and decoupled from direct demand, creating a structural deficit that leaves downstream manufacturers vulnerable to severe shortages and price instability.

This unavailability of essential raw material directly hampers the growth potential of derivative sectors such as synthetic rubber and thermoplastic manufacturing. When producers cannot guarantee a steady inflow of monomer, they are forced to scale back operations and delay expansion projects, thereby stalling overall market momentum. According to the American Chemistry Council, in 2025, global chemical production growth slowed to 1.9% from a 4.0% gain in the previous year. This deceleration evidences how supply chain rigidities and feedstock limitations ripple through the industrial ecosystem, effectively capping the commercial scalability of the global butadiene market.

Key Market Trends

Accelerating Adoption of Bio-based Butadiene Production is reshaping the market as stakeholders prioritize carbon neutrality and supply security independent of steam cracker volatility. Industry leaders are validating technologies to convert renewable feedstocks, such as bio-ethanol, into polymer-grade monomers, thereby reducing reliance on fossil-based naphtha. This transition is moving beyond pilot phases into industrial demonstration, aiming to secure sustainable supply chains for synthetic rubber. For instance, according to Hydrocarbon Processing, December 2025, the BioButterfly project partners, including Michelin and Axens, announced that their industrial-scale demonstrator successfully produced bio-butadiene for rubber synthesis, with the consortium targeting full technology homologation by mid-2026 to enable commercial deployment.

Rising Demand for Solution Styrene-Butadiene Rubber (S-SBR) in Green Tires is fundamentally altering product portfolios as tire manufacturers seek materials that offer superior rolling resistance and wet grip. This trend is heavily influenced by the electric vehicle sector, which requires high-performance tires to manage increased vehicle weight while maximizing range, driving a structural shift from commodity Emulsion-SBR to specialized S-SBR grades. To capitalize on this high-value segment, producers are actively upgrading facilities to expand output of functionalized rubber. Illustrating this capacity growth, according to Rubber Journal Asia, June 2025, Zeon Corporation announced the expansion of its Singapore operations, projecting that its combined annual S-SBR production capacity across global sites would reach 125,000 tonnes by 2026 to support fuel-efficient tire manufacturing.

Segmental Insights

Styrene Butadiene Rubber is positioned as the fastest growing segment in the global butadiene market due to substantial demand from the tire manufacturing industry. This rapid expansion is primarily driven by the recovery and growth of the global automotive sector, where this material is essential for producing durable tire treads and sidewalls. Manufacturers favor this synthetic rubber for its high abrasion resistance and aging stability compared to natural alternatives. Consequently, the continuous rise in vehicle production and the parallel need for replacement tires directly accelerate the consumption of this derivative.

Regional Insights

Asia Pacific leads the global butadiene market due to substantial demand from the automotive and construction sectors, particularly in China and India. This dominance is driven by the region's extensive manufacturing capacity for synthetic rubber, specifically styrene-butadiene rubber used in tire production. Rapid industrialization further fuels the consumption of acrylonitrile butadiene styrene for consumer appliances and infrastructure projects. Additionally, the expansion of integrated petrochemical facilities ensures a steady local supply of feedstock. These factors collectively position the region as the central hub for butadiene production and consumption.

Recent Developments

In December 2024, a prominent infrastructure and chemical processing company based in the United States completed a significant capital expansion program at its Houston facility. The project focused on debottlenecking crude C4 processing units, which directly resulted in a 20 percent increase in the site's maximum sustained daily production rate for butadiene. This upgrade raised the facility's total nameplate capacity to approximately 1.1 billion pounds annually. The company stated that this investment was driven by a commitment to support the growing butadiene market and to enhance the reliability of supply for its customers in the synthetic rubber and plastics sectors.
In September 2024, a joint venture formed by two major South Korean chemical enterprises announced that it would soon commence commercial operations of expanded butadiene production lines at its Yeosu plant. The project involved adding 90,000 tons of annual production capacity, which was projected to increase the company's total output to approximately 210,000 tons per year after full expansion. This strategic move was designed to capitalize on rising butadiene prices and recovering demand from the downstream tire and synthetic rubber industries. The expansion allows the company to strengthen its market competitiveness and secure a stable supply of raw materials for its customers.
In July 2024, a subsidiary of a state-owned Chinese energy giant initiated trial operations at a massive new ethylene refining and chemical integration complex in Yueyang, Hunan Province. This large-scale project includes a 1 million metric ton per year ethylene cracker and extensive downstream facilities, including a dedicated butadiene extraction unit. The successful startup of these facilities marks a significant expansion of the company’s petrochemical footprint in the region. By integrating refining and chemical production, the project aims to optimize resource utilization and boost the domestic supply of critical industrial feedstocks like butadiene to meet the needs of downstream manufacturers.
In January 2024, a collaborative partnership involving a leading global tire manufacturer, a public research organization, and a technology licensor successfully inaugurated an industrial-scale demonstrator plant dedicated to bio-butadiene production in Bassens, France. This facility marks a crucial milestone in the BioButterfly project, which seeks to develop a commercially viable process for converting bio-ethanol into butadiene, a key raw material for synthetic rubber. The initiative aims to reduce the carbon footprint of tire manufacturing by replacing fossil-fuel-derived feedstocks with sustainable biomass alternatives. The successful operation of this demonstrator paves the way for potential future industrial-scale bio-butadiene production facilities.

Key Market Players

China Petroleum & Chemical Corporation
Royal Dutch Shell Plc
Borealis AG.
Versalis S.p.A.
Eni S.p.A.
Evonik Industries AG
Ineos Group AG
LANXESS AG
LyondellBasell Industries Holdings B.V.
LG Chem Ltd.

By Product Type	By End User	By Region
Butadiene Rubber Styrene Butadiene Rubber Acrylonitrile Butadiene Rubber Nitrile Butadiene Rubber Styrene Butadiene Latex Hexamethylenediamine	Automobile Industries Chemical Plastics and Polymers Building & Construction Consumer Products Industries Healthcare Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

Butadiene Market, By Product Type:

Butadiene Rubber
Styrene Butadiene Rubber
Acrylonitrile Butadiene Rubber
Nitrile Butadiene Rubber
Styrene Butadiene Latex
Hexamethylenediamine

Butadiene Market, By End User:

Automobile Industries
Chemical
Plastics and Polymers
Building & Construction
Consumer Products Industries
Healthcare
Others

Butadiene 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

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Butadiene Market.

Available Customizations:

Global Butadiene Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Butadiene Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Butadiene Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Product Type (Butadiene Rubber, Styrene Butadiene Rubber, Acrylonitrile Butadiene Rubber, Nitrile Butadiene Rubber, Styrene Butadiene Latex, Hexamethylenediamine)

5.2.2. By End User (Automobile Industries, Chemical, Plastics and Polymers, Building & Construction, Consumer Products Industries, Healthcare, Others)

5.2.3. By Region

5.2.4. By Company (2025)

5.3. Market Map

6. North America Butadiene Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Product Type

6.2.2. By End User

6.2.3. By Country

6.3. North America: Country Analysis

6.3.1. United States Butadiene Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Product Type

6.3.1.2.2. By End User

6.3.2. Canada Butadiene Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Product Type

6.3.2.2.2. By End User

6.3.3. Mexico Butadiene Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Product Type

6.3.3.2.2. By End User

7. Europe Butadiene Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Product Type

7.2.2. By End User

7.2.3. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Butadiene Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Product Type

7.3.1.2.2. By End User

7.3.2. France Butadiene Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Product Type

7.3.2.2.2. By End User

7.3.3. United Kingdom Butadiene Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Product Type

7.3.3.2.2. By End User

7.3.4. Italy Butadiene Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Product Type

7.3.4.2.2. By End User

7.3.5. Spain Butadiene Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Product Type

7.3.5.2.2. By End User

8. Asia Pacific Butadiene Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Product Type

8.2.2. By End User

8.2.3. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Butadiene Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Product Type

8.3.1.2.2. By End User

8.3.2. India Butadiene Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Product Type

8.3.2.2.2. By End User

8.3.3. Japan Butadiene Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Product Type

8.3.3.2.2. By End User

8.3.4. South Korea Butadiene Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Product Type

8.3.4.2.2. By End User

8.3.5. Australia Butadiene Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Product Type

8.3.5.2.2. By End User

9. Middle East & Africa Butadiene Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Product Type

9.2.2. By End User

9.2.3. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Butadiene Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Product Type

9.3.1.2.2. By End User

9.3.2. UAE Butadiene Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Product Type

9.3.2.2.2. By End User

9.3.3. South Africa Butadiene Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Product Type

9.3.3.2.2. By End User

10. South America Butadiene Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Product Type

10.2.2. By End User

10.2.3. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Butadiene Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Product Type

10.3.1.2.2. By End User

10.3.2. Colombia Butadiene Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Product Type

10.3.2.2.2. By End User

10.3.3. Argentina Butadiene Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Product Type

10.3.3.2.2. By End User

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Butadiene Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. China Petroleum & Chemical Corporation

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Royal Dutch Shell Plc

15.3. Borealis AG.

15.4. Versalis S.p.A.

15.5. Eni S.p.A.

15.6. Evonik Industries AG

15.7. Ineos Group AG

15.8. LANXESS AG

15.9. LyondellBasell Industries Holdings B.V.

15.10. LG Chem Ltd.

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Butadiene Market in 2025?

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