N-Butylene Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Sales Channel (Direct, Indirect), By End Use (Polymers, Synthetic Rubber & Elastomer, Chemicals, Surfactant, Detergents), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 4.75 Billion
CAGR (2026-2031)	3.91%
Fastest Growing Segment	Chemicals
Largest Market	Asia Pacific
Market Size (2031)	USD 5.98 Billion

Market Overview

The Global N-Butylene Market will grow from USD 4.75 Billion in 2025 to USD 5.98 Billion by 2031 at a 3.91% CAGR. The Global N-Butylene Market encompasses the trade of this linear alpha-olefin, primarily utilized as a co-monomer for high-density and linear low-density polyethylene. This sector is propelled by the expanding packaging and automotive industries, which rely heavily on these polymer derivatives. Additionally, the production of synthetic rubber and industrial solvents supports steady consumption. Illustrating this downstream demand, the American Chemistry Council reported that U.S. production of major plastic resins totaled 8.5 billion pounds in November 2025. Such consistent manufacturing output underscores the critical need for reliable N-Butylene supplies to sustain the value chain.

However, market expansion is threatened by the volatility of crude oil prices, which creates unpredictability in feedstock costs and profit margins. Manufacturers must also contend with stringent environmental regulations that necessitate significant capital investment in sustainable technologies. These regulatory and economic pressures constitute a major hurdle, potentially stalling capacity additions and complicating the operational landscape for global producers.

Key Market Drivers

Escalating demand for polyethylene co-monomers in the flexible packaging industry serves as a primary catalyst for the Global N-Butylene Market. N-Butylene, specifically 1-butene, is extensively utilized as a co-monomer in the production of Linear Low-Density Polyethylene (LLDPE) and High-Density Polyethylene (HDPE) to enhance the polymer's tensile strength and tear resistance. These properties are critical for flexible packaging applications, such as food wrapping and industrial liners, which are witnessing sustained consumption growth. Validating this upward trend, according to Plastics Europe, October 2025, in the 'Plastics – the Fast Facts 2025' report, global plastics production increased by 4.1% in 2024, driven largely by the resilience of the packaging sector. This production volume necessitates a parallel increase in high-purity alpha-olefin availability to maintain polymer performance standards and meet the stringent specifications of modern packaging converters.

Simultaneously, the expansion of the automotive sector is propelling synthetic rubber consumption, thereby intensifying the need for N-Butylene derivatives. This olefin acts as a vital precursor for butadiene and other intermediates used in the manufacturing of synthetic rubber for tires, hoses, and sealing systems. The recovery of the global automotive industry, particularly in emerging markets, has reignited demand for these elastomers. According to the China Association of Automobile Manufacturers, November 2025, vehicle production in China reached 27.69 million units in the first ten months of 2025, marking a 13.2% year-on-year increase. To support such robust downstream applications, major petrochemical players are advancing significant infrastructure projects. For instance, according to S-Oil, February 2025, in a corporate project update, the company's $7 billion Shaheen petrochemical complex is on track for completion in the first half of 2026, ensuring a reliable long-term supply of essential feedstocks for the synthetic rubber and polymer value chains.

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Key Market Challenges

The volatility of crude oil prices presents a formidable barrier to the growth of the Global N-Butylene Market by destabilizing feedstock costs. Since N-Butylene is primarily produced as a derivative of crude oil refining and cracking processes, its production economics are intrinsically tied to global oil valuations. Rapid fluctuations in crude oil prices lead to unpredictable raw material expenses, which severely complicates financial planning and squeezes profit margins for manufacturers. This unpredictability creates a hesitant investment climate, where producers are reluctant to commit to the long-term capacity expansions necessary to meet rising demand.

Consequently, the industry faces a notable slowdown in infrastructure development as companies prioritize liquidity over new projects. This hesitation limits the market's ability to scale operations in response to downstream requirements. According to the American Chemistry Council, in 2025, capital spending on chemical industry projects in the United States grew by only 2.4%, reflecting a cautious approach amidst prevailing market uncertainties. This constrained investment directly hampers the supply chain's ability to sustain the consistent output levels required by the packaging and automotive sectors.

Key Market Trends

The adoption of on-purpose ethylene dimerization technologies is accelerating as manufacturers seek to decouple 1-butene production from the volatility of steam cracker C4 yields. This technological shift is primarily driven by the rising requirement for high-purity alpha-olefins, which are essential for the synthesis of advanced metallocene-catalyzed polyethylene. By utilizing ethylene as a dedicated feedstock, producers can ensure a consistent supply of polymer-grade N-Butylene that meets stringent downstream specifications, independent of broader refinery operating rates. Highlighting this advancement, according to Axens, August 2025, in the 'AlphaButol Technology Model' update, the company released enhanced process specifications for its dimerization technology, reaffirming its status as a benchmark for producing high-purity 1-butene to support premium polymer value chains.

Simultaneously, the expansion of coal-to-olefins (CTO) production capacities in emerging markets, particularly China, is fundamentally reshaping the global N-Butylene supply landscape. Driven by national energy security mandates and the abundance of local coal reserves, these integrated petrochemical complexes are rapidly scaling operations to diversify feedstock sources away from imported crude oil. This infrastructure boom not only mitigates raw material cost risks but also substantially increases the availability of C4 co-products within the domestic market. Illustrating this scale-up, according to the Centre for Research on Energy and Clean Air, August 2025, in the 'China's emissions fall but growing coal-to-chemicals sector raises concern' analysis, coal consumption within the coal-to-chemicals industry increased by 20% in the first half of 2025 compared to the same period in the previous year.

Segmental Insights

The Chemicals segment is characterized as the fastest-growing category in the Global N-Butylene Market due to the rising consumption of key intermediates such as secondary butyl alcohol and methyl ethyl ketone. These derivatives are essential for manufacturing solvents used extensively within the paints, coatings, and adhesive industries. Furthermore, the expansion of the automotive and construction sectors has accelerated the requirement for n-butylene based plasticizers and antioxidants. This sustained demand for diverse chemical precursors drives the rapid expansion of the Chemicals segment, distinguishing it from fuel or refinery applications.

Regional Insights

Asia Pacific holds the leading position in the Global N-Butylene Market, driven primarily by extensive manufacturing activities in the petrochemical sector. The region benefits from substantial demand for polyethylene production in China and India, where n-butylene is utilized as a key chemical intermediate. This consumption is supported by the expanding packaging and construction industries that require high-density polymers for infrastructure and consumer goods. Consequently, the established industrial base for plastic processing ensures that Asia Pacific remains the central hub for market demand and supply chain activities.

Recent Developments

• In December 2025, Mitsui Chemicals provided an update on the status of its new Tafmer polyolefin elastomer production facility on Jurong Island, Singapore, confirming that the plant was in trial operation. The company indicated that commercial operations were expected to commence in the second half of the fiscal year ending March 2026. The new plant, with a planned capacity of 120,000 tonnes per year, was designed to meet growing global demand for high-performance elastomers used in solar panel encapsulants and automotive applications. This capacity addition highlighted the strategic importance of 1-butene derivatives in the company’s portfolio amid evolving market dynamics.
• In September 2025, multiple engineering firms submitted bids to Borouge for a major expansion project designed to increase the production capacity of butene-1 at its petrochemical complex in Ruwais, UAE. The project targeted an output of 60,000 tonnes per year of butene-1 from the existing olefins conversion unit at the Borouge 2 plant. This development was part of Borouge's wider strategy to enhance its downstream capabilities and secure a reliable supply of high-quality comonomers for its growing polyethylene production. The expansion underscored the company's commitment to optimizing asset utilization and strengthening its position in the global polyolefins market.
• In November 2024, Sinopec successfully started up a new 1.2 million tons per year ethylene complex in the Nangang Industrial Zone of Tianjin, China. The facility, which is integrated with the company's existing refinery, includes significant downstream capabilities such as a new polyolefin elastomer (POE) plant and a linear low-density polyethylene (LLDPE) unit. These derivatives are key consumers of N-Butylene (1-butene) as a comonomer. The project, partially powered by solar energy, represented a major expansion of Sinopec's high-end chemical production capacity, aiming to supply advanced materials for the automotive, medical, and packaging sectors while reducing the site's overall carbon footprint.
• In January 2024, LyondellBasell entered into a strategic partnership agreement with MSI Technology, LLC to expand the reach of its Polybutene-1 (PB-1) resin line in the North American consumer packaging market. This collaboration leveraged MSI Technology’s specialized technical sales capabilities and existing product portfolio to deliver enhanced solutions for applications such as easy-open packaging and film modification. The initiative aimed to optimize seal-peel performance and processability for customers in the region, aligning with LyondellBasell’s broader strategy to deliver innovative, sustainable material solutions for everyday living while maximizing the market potential of its high-performance PB-1 resins.

Key Market Players

• Chevron Philips Chemical Company
• Saudi Basic Industries Corporation
• Evonik Industries AG
• CNOOC and Shell Petrochemicals Company Limited
• Shell Chemical LP
• Inner Mongolia China Coal Mengda New Energy and Chemical Co., Ltd.
• Zhonghua Quanzhou Petrochemical Co., Ltd.
• Qinghai Damei Coal Industry Co., Ltd.
• Taizhou Donglian Chemical Co., Ltd.
• PTT Global Chemical Public Company Limited

By Sales Channel	By End Use	By Region
Direct Indirect	Polymers Synthetic Rubber & Elastomer Chemicals Surfactant Detergents	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• N-Butylene Market, By Sales Channel:

• Direct
• Indirect

• N-Butylene Market, By End Use:

• Polymers
• Synthetic Rubber & Elastomer
• Chemicals
• Surfactant
• Detergents

• N-Butylene 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