Carbon Black Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Furnace Black, Channel Black, Thermal Black, Acetylene Black, Others), By Application (Tire, Non-Tire Rubber, Plastics, Inks & Coatings, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 23.96 Billion
CAGR (2026-2031)	3.98%
Fastest Growing Segment	Furnace Black
Largest Market	Asia Pacific
Market Size (2031)	USD 30.28 Billion

Market Overview

The Global Carbon Black Market will grow from USD 23.96 Billion in 2025 to USD 30.28 Billion by 2031 at a 3.98% CAGR. Carbon black is a paracrystalline carbon material produced through the incomplete combustion of heavy petroleum products and is characterized by its high surface area to volume ratio. It serves as a critical reinforcing filler in the manufacturing of tires and industrial rubber goods, significantly enhancing their durability and strength, while also functioning as a pigment and conductive agent in plastics, inks, and coatings. The market is primarily propelled by the robust demand from the automotive sector, where tire production remains the dominant consumer of this material. Supporting this trend, according to the European Tyre and Rubber Manufacturers' Association, in 2024, the replacement consumer tire segment grew by 5% to reach approximately 223 million units, indicating a sustained requirement for raw materials in vehicle maintenance and manufacturing.

Despite this steady demand, the industry faces a significant challenge regarding stringent environmental regulations and sustainability mandates. Manufacturers are increasingly pressured to reduce sulfur and nitrogen oxide emissions during production and are compelled to invest heavily in emission control technologies to comply with evolving global standards. This regulatory landscape compels companies to balance operational costs with the need for greener production methods, potentially hindering profit margins and delaying capacity expansion projects in certain regions.

Key Market Drivers

Rising global automotive production and replacement tire demand acts as the primary catalyst for the carbon black industry, given the material's indispensable role as a reinforcing filler in tires. As vehicle ownership expands worldwide, particularly in developing regions, the requirement for durable, high-performance tires directly correlates with increased consumption of carbon black grades designed to improve tread wear and fuel efficiency. The replacement segment is particularly vital, providing a consistent revenue stream independent of new vehicle sales cycles. This volume-driven growth is evident in major markets; 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, representing a 2.1% increase compared to the previous year. To capitalize on this sustained industrial demand, major players maintain robust financial operations, as evidenced when, according to Cabot Corporation, August 2024, in the 'Third Quarter Fiscal 2024 Results', the company reported net sales of $1.016 billion for the quarter, highlighting the sector's continued economic scale.

Simultaneously, the regulatory push for sustainable materials and recovered carbon black (rCB) adoption is reshaping market dynamics by compelling manufacturers to transition toward circular economy models. Stringent environmental mandates and aggressive corporate net-zero targets are driving the industry to reduce its reliance on fossil-fuel-based feedstocks in favor of materials derived from end-of-life tires. This shift has triggered significant strategic moves aimed at commercializing pyrolysis technologies to produce high-quality rCB that meets the rigorous standards of tire manufacturers. Exemplifying this trend, according to Orion S.A., May 2024, in a press release regarding its sustainability initiatives, the company announced a strategic investment in Alpha Carbone to upgrade a facility in France, aiming to scale up the production of tire pyrolysis oil and recovered carbon black to meet growing commercial demand.

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Key Market Challenges

Stringent environmental regulations and sustainability mandates impose significant financial and operational burdens that directly impede the expansion of the Global Carbon Black Market. Compliance with tightening global standards for sulfur and nitrogen oxide emissions requires producers to direct substantial capital toward expensive emission control technologies. This necessary reallocation of financial resources increases the cost of goods sold and restricts the funds available for capacity expansion or facility modernization, effectively compressing profit margins. Furthermore, these regulatory pressures create a ripple effect throughout the supply chain, forcing automotive and tire manufacturers to adjust their production volumes to manage their own compliance costs and sustainability targets, which weakens demand for raw materials.

This dampening effect on the manufacturing ecosystem is evident in recent industry performance metrics regarding the primary end-user. According to the European Tyre and Rubber Manufacturers' Association, sales of original equipment consumer vehicle tires declined by 8% in 2024. This reduction in the original equipment segment signals a tangible contraction in the immediate demand for carbon black from its largest consumer base. Consequently, the market struggles to sustain volume growth as the combined weight of high regulatory adherence costs and reduced downstream uptake limits industrial output.

Key Market Trends

Manufacturers are aggressively developing and scaling high-purity, conductive carbon black specifically engineered as additives for lithium-ion battery electrodes to enhance the range, charge speed, and lifespan of electric vehicles. This pivot addresses the critical need for robust conductive networks within battery chemistries, prompting major suppliers to secure government backing and invest heavily in domestic supply chains to support the energy transition. Illustrating this commitment to the electric vehicle sector, according to Cabot Corporation, September 2024, in the press release 'Cabot Corporation Selected for Award Negotiation', the company was selected for a grant of up to $50 million from the U.S. Department of Energy to establish a new commercial-scale facility for producing battery-grade carbon nanotubes and conductive dispersions.

Simultaneously, the market is executing a strategic transition from standard commodity blacks toward specialized grades designed for high-performance non-rubber applications, such as UV stabilization and conductivity in coatings, inks, and plastics. This shift allows producers to decouple from the cyclical volatility of the tire industry and capture higher profit margins associated with performance-critical materials. The success of this diversification strategy is evident in recent volume metrics; according to Orion S.A., August 2024, in the 'Second Quarter 2024 Financial Results', the company reported that its Specialty Carbon Black segment achieved a significant volume increase of 17.4% year-over-year, driven by broad demand recovery across global industrial markets.

Segmental Insights

The Furnace Black segment is currently the fastest-growing category in the Global Carbon Black Market, driven by its extensive utilization in reinforcing rubber for tires and industrial goods. This production method is increasingly preferred over alternatives like the channel black process because it offers superior yield efficiency and greater control over particle properties. Furthermore, stringent environmental guidelines from organizations such as the United States Environmental Protection Agency regarding emission standards have effectively curbed the use of less eco-friendly techniques. Consequently, manufacturers prioritize furnace black to ensure compliance while meeting robust demand from the automotive sector.

Regional Insights

Asia Pacific holds the leading position in the Global Carbon Black Market due to the robust expansion of the automotive and construction sectors within the region. This dominance is largely attributed to the high volume of tire manufacturing in China and India, which creates substantial demand for carbon black as a reinforcing agent. Additionally, the growing industrial base supports the consumption of this material in plastics, coatings, and rubber goods. Consequently, major tire producers continue to establish facilities in this area to capitalize on the sustained demand from both domestic and international automotive markets.

Recent Developments

• In December 2024, PCBL Limited successfully commissioned the second and final phase of its specialty chemical capacity expansion at the Mundra plant in Gujarat, India. This strategic development added 20,000 tonnes per year to the facility's output, elevating the total specialty chemical capacity at this location to 40,000 tonnes per year. Consequently, the company's combined manufacturing capability reached 790,000 tonnes per year. This expansion was undertaken to address the escalating global demand for specialty carbon black and to strengthen the company's market position. The firm aims to leverage this increased capacity to meet the rising requirements of international markets for high-margin specialty products.
• In October 2024, Birla Carbon inaugurated its first Asia Post Treatment (APT) Plant at its Patalganga unit in Maharashtra, India. This brownfield facility was established to utilize advanced treatment technology, ensuring high levels of precision and efficiency in producing high-performance carbon black grades. The plant was specifically designed to cater to the growing requirements of the coatings and inks sectors within the region. The Director of Birla Carbon noted that the strategic location and cutting-edge capabilities of the new unit would foster innovation and improved service for customers in emerging Asian markets, reinforcing the company's commitment to sustainable solutions.
• In June 2024, the board of CSRC approved a joint venture involving Continental Carbon Company and Eco Infinic Co. to invest in a recovered carbon black business at a former plant site in Phenix City, Alabama. The project aimed to develop one of the largest recovered carbon black facilities in North America, with a planned annual capacity of 30,000 tons. This initiative was designed to support the net-zero emission targets of major tire manufacturers and advance the circular economy. The new plant was scheduled to commence production in 2026, utilizing tire pyrolysis oil and steel wire as additional outputs.
• In May 2024, Orion S.A. announced a strategic investment in Alpha Carbone, a tire recycling company based in France. This collaboration was established to scale up the production of tire pyrolysis oil and recovered carbon black, which are essential components for creating sustainable circular carbon black grades. The partnership included a long-term supply agreement making Orion the exclusive customer for the tire pyrolysis oil produced by the French entity. The CEO of Orion stated that this initiative would enable the company to deliver large-scale volumes of sustainable materials to the rubber and tire industries, aligning with the sector's transition toward a circular economy.

Key Market Players

• Birla Carbon
• Cabot Corporation
• Orion Engineered Carbons S.A.
• Phillips Carbon Black Limited
• China Synthetic Rubber Corporation
• Omsk Carbon Group
• OCI Company Ltd.
• Himadri Speciality Chemicals Ltd.
• Longxing Chemical Industry Co., Ltd.
• Tokai Carbon Co., Ltd.

By Type	By Application	By Region
Furnace Black Channel Black Thermal Black Acetylene Black Others	Tire Non-Tire Rubber Plastics Inks & Coatings Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Carbon Black Market, By Type:

• Furnace Black
• Channel Black
• Thermal Black
• Acetylene Black
• Others

• Carbon Black Market, By Application:

• Tire
• Non-Tire Rubber
• Plastics
• Inks & Coatings
• Others

• Carbon Black 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