Bio-Butadiene Market by Type (SBR, SBL, NBR, ABS, PB), Application (Synthetic Rubber, Fine Chemicals, Plastics), Grade (Industrial Grade), End-Use Industry (Automotive And Transportation, Chemical Processing), and Region - Global Forecast to 2029
The Bio-butadiene market is projected to reach USD 94 million by 2029, at a CAGR of 10.1% from USD 58 million in 2024. The bio-butadiene market is driven by several key factors, including the growing emphasis on sustainability and environmental responsibility, which fuels demand for renewable and eco-friendly alternatives to petrochemical-based products. Regulatory pressures and government policies aimed at reducing carbon emissions and promoting the use of bio-based chemicals further boost the market. Technological advancements that enhance the efficiency and cost-effectiveness of bio-butadiene production are also crucial, making it a viable competitor to traditional butadiene. Additionally, the automotive industry's increasing demand for sustainable materials, particularly in tire manufacturing, and the volatility of fossil fuel markets prompting a shift towards more stable, renewable sources, significantly contribute to the growth of the bio-butadiene market.
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Attractive Opportunities in the Bio-Butadiene Market
Market Dynamics
Driver: Driving Forces Behind the Global Surge in Bio-Butadiene Demand are Regulatory Impact, Consumer Preferences, and Economic Advantages"
One key driver propelling the global bio-butadiene market is the increasing imposition of stringent environmental regulations and the advancement of sustainability initiatives by governments across the world. These regulations are designed to mitigate climate change impacts by decreasing greenhouse gas emissions and diminishing the dependency on finite fossil resources. Governments are implementing policies that encourage the development and integration of renewable materials, effectively catalyzing a shift away from traditional petrochemical derivatives.
Green Deale, the European Union, under its comprehensive climate strategies, including the European Green Deal, has set ambitious targets to reduce emissions and achieve climate neutrality by 2050. Such policies promote the use of sustainable and renewable resources, including bio-based chemicals like bio-butadiene. This regulatory landscape compels industries to revise their raw material sourcing strategies, transitioning from conventional butadiene, which is derived from crude oil and natural gas to bio-butadiene, which is produced from renewable biomass sources such as non-food crops and agricultural waste.
The automotive industry has been a significant adopter of bio-butadiene, utilizing it primarily in the production of synthetic rubbers for tires and various automotive components. This shift is not solely regulatory driven but is also influenced by consumer preferences. Modern consumers are increasingly environmentally conscious, seeking products that are sustainably sourced and manufactured. This consumer trend is pushing automotive manufacturers to prioritize sustainability across their supply chains, further amplifying the demand for bio-based materials.
Additionally, the inherent volatility in oil and gas markets often affects the price stability of petrochemicals, making the economics of sourcing petrochemically derived butadiene unpredictable. Bio-butadiene offers an attractive alternative due to potentially more stable pricing and supply, not directly tied to oil and gas market fluctuations.
Restraint: Technology and Infrastructure Challenges in Bio-Butadiene Production
Bio-butadiene production faces significant technological and infrastructure challenges that contribute to its high costs and limited scalability. One major issue is that the production processes for bio-butadiene are still in their early stages of development. Unlike petrochemical methods, which have been refined and optimized over decades, bio-butadiene technologies are relatively new and less efficient. For instance, biochemical conversion processes require multiple steps, including pretreatment of biomass, enzymatic hydrolysis, fermentation, and subsequent chemical conversion. Each of these steps is complex, often resulting in lower yields and higher energy consumption compared to the more straightforward process of cracking naphtha to produce butadiene in petrochemical plants.
Moreover, the infrastructure required for bio-butadiene production is not as well-developed as that for conventional petrochemical plants. Large-scale biomass processing and biorefining facilities are needed, but these are currently limited. Building and maintaining such infrastructure demands substantial capital investment. This includes the cost of constructing new facilities, developing supply chains for biomass feedstocks, and implementing technologies that can efficiently convert biomass into butadiene. Additionally, existing infrastructure for petrochemical production benefits from established logistics, economies of scale, and a mature market, which are yet to be realized in the bio-based sector.
The lack of optimized processes and the underdeveloped infrastructure mean that bio-butadiene producers face higher capital and operational expenditures. These costs are passed on to the end products, making bio-butadiene less competitive compared to its petrochemical counterpart. To overcome these challenges, significant investment in research and development is needed to improve process efficiencies and scalability. Additionally, government policies and incentives could help bridge the gap by supporting the development of bio-butadiene infrastructure and technologies.
Opportunity: The Role of Bio-Butadiene in Advancing Sustainable Automotive Manufacturing
The automotive industry is increasingly turning to bio-butadiene as a crucial component in the production of synthetic rubber for tires, driven by the growing demand for electric vehicles (EVs) and sustainable automotive components. As the world transitions towards a greener future, the need for eco-friendly materials in automotive manufacturing is becoming more pronounced. Bio-butadiene, a renewable alternative to traditional petroleum-based butadiene, offers a promising solution to meet these demands. Its application in synthetic rubber production is vital for EV tires, which face unique performance requirements due to higher torque and different weight distributions compared to traditional internal combustion engine vehicles.
The advantages of bio-butadiene extend beyond its environmental benefits. The production of bio-butadiene involves advanced biotechnological processes that convert renewable feedstocks into valuable industrial chemicals. These processes, which include fermentation and catalytic conversion, are becoming more efficient and cost-effective, due to continuous research and development. As a result, the scalability of bio-butadiene production is improving, making it a more viable option for large-scale industrial applications. Companies like Braskem, Genomatica, and Global Bioenergies are at the forefront of this technological innovation, investing heavily in the development and commercialization of bio-butadiene production methods.
Moreover, regulatory support plays a pivotal role in promoting the adoption of bio-based materials in the automotive industry. Governments worldwide are implementing policies that incentivize the use of renewable resources and penalize excessive carbon emissions. For instance, the European Union’s Green Deal and various state-level initiatives in the United States are pushing the automotive industry towards greater sustainability. These regulations create a favorable environment for the adoption of bio-butadiene, encouraging automakers to integrate sustainable practices into their manufacturing processes. The alignment of regulatory frameworks with environmental goals underscores the importance of bio-butadiene in the future of automotive manufacturing.
Challenge: Opportunities in the Bio-Butadiene Market Amid Increasing Demand for Sustainable Alternatives
One significant opportunity in the bio-butadiene market is driven by the increasing global emphasis on sustainability and the transition away from fossil fuels. Bio-butadiene, sourced from renewable materials like biomass or agricultural waste, presents a compelling alternative to its petroleum-based counterpart, commonly used in the production of synthetic rubbers, plastics, and latexes. As environmental regulations tighten and consumer preferences shift towards eco-friendly products, industries such as automotive, which uses synthetic rubber in tires, and construction, which utilizes plastics and adhesives, are under pressure to reduce their environmental footprints.
The transition to bio-butadiene not only helps companies comply with stringent environmental regulations but also aligns with growing consumer demand for sustainable products. Additionally, leveraging bio-based sources can potentially reduce dependency on volatile fossil fuel markets and enhance supply chain sustainability. This shift is bolstered by technological advancements and increased investment in biochemical research, making the production of bio-butadiene more efficient and cost-effective. Hence, companies investing in bio-butadiene production are well-positioned to capture market share in a rapidly evolving market prioritizing sustainability, ultimately driving growth in this sector.
Market Ecosystem
The market ecosystem for Bio-butadiene is composed of a diverse array of entities and stakeholders that collectively contribute to the development, implementation, and advancement of Bio-butadiene materials. At the core of this ecosystem are material providers who focus on research, development, and manufacturing of electronic wet chemicals. They continuously innovate and produce novel materials and their applications to meet the evolving demands of the market.
The key players in this market are SABIC (Saudi Arabia), Michelin (France), Zeon Corporation (Japan), Biokemik (Spain), ETB Catalytic Technologies (Netherlands), Trinseo (US), Genomatica (US), Braskem (Brazil), Versalis (Italy), Synthos (Poland), Lummus Technology (US), INVISTA (US), LanzaTech (US), Michelin (France), IFPEN (France), Zeon Corporation (Japan), Global Bioenergies (France), Evonik Industries (Germany), Axens (France) etc.
Bio-Butadiene Market: Ecosystem
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
"Styrene-butadiene rubber is the largest sub-segment amongst the type segment in the Bio-butadiene market in 2024, in terms of value."
Styrene Butadiene Rubber (SBR) holds the position as the largest segment in the bio-butadiene market due to several key factors. Firstly, SBR is widely used in various industries such as automotive, construction, and consumer goods for its versatile properties, including high durability, abrasion resistance, and flexibility. These properties make SBR a preferred material for manufacturing tires, conveyor belts, shoe soles, and other rubber products. Additionally, the transition to bio-based SBR offers significant environmental benefits over its petroleum-based counterpart. As consumers and industries increasingly prioritize sustainability, bio-based SBR presents an attractive alternative that reduces reliance on finite fossil fuel resources and decreases carbon emissions. This aligns with global efforts to combat climate change and reduce environmental impact. Moreover, advancements in technology and manufacturing processes have made the production of biobased SBR more cost-effective and scalable. This has encouraged greater adoption among manufacturers looking to meet sustainability goals while maintaining product performance and quality.
“Industrial grade accounted for the largest by material share of the Bio-butadiene market in 2024” in terms of value.
The industrial grade segment is the largest market for bio-butadiene due to several key reasons. Firstly, bio-butadiene finds extensive use in industrial applications, such as the production of synthetic rubbers, plastics, adhesives, and coatings. These industries require large volumes of butadiene-derived materials for various manufacturing processes, making the industrial grade segment a significant consumer of bio-butadiene.
Moreover, the demand for bio-based alternatives in industrial applications is growing rapidly as companies seek to reduce their environmental footprint and meet sustainability targets. Bio-butadiene, derived from renewable sources such as biomass or agricultural waste, offers a greener alternative to petroleum-based butadiene, aligning with the increasing global emphasis on sustainability.
Furthermore, advancements in technology and manufacturing processes have made the production of bio-butadiene more efficient and cost-effective, driving its adoption in industrial applications. As a result, manufacturers are increasingly incorporating bio-butadiene into their products to enhance their environmental credentials and appeal to environmentally conscious consumers.
"Europe is the largest market for Bio-butadiene Market in 2024, in terms of value."
Europe's prominence as the largest segment in the bio-butadiene market can be attributed to several factors. Firstly, Europe has been at the forefront of environmental sustainability initiatives, with stringent regulations aimed at reducing carbon emissions and promoting the use of renewable resources. This regulatory environment has created a favorable market landscape for bio-based products like bio-butadiene. Additionally, European industries, particularly automotive and construction, have shown a strong commitment to sustainability and reducing their environmental footprint. As a result, there is significant demand for bio-based materials, including bio-butadiene, to meet the requirements of eco-conscious consumers and comply with regulatory standards. Moreover, Europe has made substantial investments in research and development aimed at advancing bio-based technologies and improving the efficiency of bio-butadiene production processes. This has helped drive down costs and increase the competitiveness of bio-based products in the market.
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Key Market Players
The key players in this market are SABIC (Saudi Arabia), Michelin (France), Zeon Corporation (Japan), Biokemik (Spain), ETB Catalytic Technologies (Netherlands), Trinseo (US), Genomatica (US), Braskem (Brazil), Versalis (Italy), Synthos (Poland), Lummus Technology (US), INVISTA (US), LanzaTech (US), IFPEN (France), Global Bioenergies (France), Evonik Industries (Germany), Axens (France). etc. Continuous developments in the market—including new product launches, mergers & acquisitions, agreements, and expansions—are expected to help the market grow. Leading manufacturers of Bio-butadiene have opted for new product launches to sustain their market position.
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Report Metric |
Details |
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Years considered for the study |
2020-2029 |
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Base Year |
2023 |
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Forecast period |
2024–2029 |
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Units considered |
Value (USD Billion/Million), Volume (Tons) |
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Segments |
Type, end-use industry, application, grade and region.
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Regions |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
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Companies |
SABIC (Saudi Arabia), Michelin (France), Zeon Corporation (Japan), Biokemik (Spain), ETB Catalytic Technologies (Netherlands), Trinseo (US), Genomatica (US), Braskem (Brazil), Versalis (Italy), Synthos (Poland), Lummus Technology (US), INVISTA (US), LanzaTech (US), IFPEN (France), Global Bioenergies (France), Evonik Industries (Germany), Axens (France). |
Segmentation
This report categorizes the global bio-butadiene market based on type, end-use, application, grade and region.
On the basis of type, the market has been segmented as follows:
- Styrene-Butadiene Rubber (SBR)
- Styrene-Butadiene Latex (SBL)
- Polybutadiene (PB)
- Acrylonitrile-Butadiene-Styrene (ABS) Resins
- Styrene-Butadiene Block Copolymers (SBS & SEBS)
- Nitrile Butadiene Rubber (NBR)
On the basis of application, the market has been segmented as follows:
- Synthetic Rubber
- Fine Chemicals
- Thermoplastic Elastomers
- Plastics
- Others
On the basis of end-use industry, the market has been segmented as follows:
- Automotive And Transportation
- Consumer Goods (Footwear)
- Chemical Processing
- Building And Construction
- Medical
- Textile
On the basis of grade, the market has been segmented as follows:
- Laboratory Grade
- Industrial Grade
On the basis of region, the market has been segmented as follows:
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
Recent Developments
- In March 2022 SABIC, a leading player in the chemicals industry, is providing certified renewable butadiene sourced from its TRUCIRCLE portfolio to Kraton, a manufacturer of engineering plastics. Kraton utilizes this renewable butadiene in its certified renewable styrenic block copolymers.
- In April 2021 Trinseo and ETB have entered into a letter of intent to collaborate on advancing the development of purified bio-based 1,3-butadiene. This collaboration will leverage the combined technology and process expertise of both companies to expedite the creation of sustainable material solutions.
- In December 2023 ETB Global secured a subsidy exceeding 4.4 million euros (4.761 USD Million) from the European Just Transition Fund.
- In December 2022 Genomatica Inc., a frontrunner in sustainability, secured $118 million USD in Series C funding to expedite the worldwide commercialization and growth of sustainable materials, aiming to potentially decrease greenhouse gas emissions by 100 million tons annually.
- In December 2023 OMV and Synthos have entered into a Memorandum of Understanding (MoU) to collaborate on sustainability initiatives, particularly concerning the provision of sustainable butadiene for synthetic rubber. This partnership extends until 2030 and underscores the commitment of both companies to sustainability. Initially, the raw materials for producing sustainable butadiene will include palm fatty acid distillate (PFAD) and used cooking oil. The production of sustainable butadiene will take place at the Burghausen refinery in Germany, which obtained full ISCC PLUS certification in March 2022. The successful delivery of the first batch of sustainable butadiene to Synthos occurred in 2023.
Frequently Asked Questions (FAQ):
What is the expected growth rate of the Bio-butadiene market?
This study's forecast period for the Bio-butadiene market is 2023-2028. The market is expected to grow at a CAGR of 10.1% in terms of value, during the forecast period.
Who are the major key players in the Bio-butadiene market?
The key players in this market are SABIC (Saudi Arabia), Michelin (France), Zeon Corporation (Japan), Biokemik (Spain), ETB Catalytic Technologies (Netherlands), Trinseo (US), Genomatica (US), Braskem (Brazil), Versalis (Italy), Synthos (Poland), Lummus Technology (US), INVISTA (US), LanzaTech (US), Michelin (France), IFPEN (France), Zeon Corporation (Japan), Global Bioenergies (France), Evonik Industries (Germany), Axens (France) are the leading manufacturers and service provider of Bio-butadiene market.
What are the emerging trends in the Bio-butadiene market?
Emerging trends in the bio-butadiene market indicate a shift towards sustainability and renewable resources, driven by increasing environmental concerns and regulatory pressures. One notable trend is the growing demand for bio-based materials across various industries, including automotive, construction, and consumer goods.
What are the drivers and opportunities for the Bio-butadiene market?
The bio-butadiene market is propelled by several key drivers and opportunities. Firstly, increasing environmental concerns and stringent regulations aimed at reducing carbon emissions drive the demand for sustainable alternatives to petroleum-based products, positioning bio-butadiene as a viable solution. Moreover, the convergence of environmental concerns, market demand, technological progress, and collaborative initiatives creates a favorable landscape ripe with opportunities for the bio-butadiene market to flourish.
What are the restraining factors in the Bio-butadiene market?
The complex and costly nature of bio-based production processes compared to conventional petroleum-based methods. While advancements in technology have improved the efficiency of bio-butadiene production, challenges remain in scaling up these processes to meet commercial demand while maintaining cost competitiveness. .
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The study involved four major activities in estimating the market size of the Bio-butadiene market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakdown and data triangulation procedures were used to estimate the market size of the segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information for this study. These secondary sources include annual reports, press releases, investor presentations of companies, white papers, certified publications, trade directories, articles from recognized authors, the gold standard and silver standard websites, and databases.
Secondary research has been used to obtain key information about the value chain of the industry, the monetary chain of the market, the total pool of key players, market classification, and segmentation according to industry trends to the bottom-most level and regional markets. It was also used to obtain information about the key developments from a market-oriented perspective.
Primary Research
The bio-butadienemarket comprises several stakeholders in the value chain, which include feedstock providers, bio-butadiene manufacturers, distribution and end users. Various primary sources from the supply and demand sides of the Bio-butadiene market have been interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders in end-use sectors. The primary sources from the supply side include manufacturers, associations, and institutions involved in the bio-butadiene industry.
Primary interviews were conducted to gather insights such as market statistics, data on revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to type, application, end-use, grade and region. Stakeholders from the demand side, such as CIOs, CTOs, and CSOs, were interviewed to understand the buyer’s perspective on the suppliers, products, fabricators, and their current usage of bio-butadiene material and the outlook of their business, which will affect the overall market.
The breakdown of profiles of the primary interviewees is illustrated in the figure below:
Note: Tier 1, Tier 2, and Tier 3 companies are classified based on their market revenue in 2023, available in the public domain, product portfolios, and geographical presence.
Other designations include consultants and sales, marketing, and procurement managers.
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Company name |
Designation |
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Lummus Technology (US) |
Piping & Layout Engineer |
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Genomatica Inc, |
Polymer Expert |
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Michelin (France) |
R&D Manager |
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Biokemik (Spain) |
Sales Manager |
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ETB Catalytic Technologies (Netherlands) |
Technology Expert |
Market Size Estimation
The top-down and bottom-up approaches have been used to estimate and validate the size of the bio-butadiene market.
- The key players in the industry have been identified through extensive secondary research.
- The industry's supply chain has been determined through primary and secondary research.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of the key market players, along with extensive interviews for opinions with leaders such as directors and marketing executives.
Bio-Butadienemarket: Bottum-Up Approach
Note: All the shares are based on the global market size.
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
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Bio-Butadienemarket: Top-Down Approach
Data Triangulation
After arriving at the total market size from the estimation process explained above, the overall market has been split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments, the data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size has been validated by using both the top-down and bottom-up approaches and primary interviews. Hence, for every data segment, there have been three sources—top-down approach, bottom-up approach, and expert interviews. The data was assumed correct when the values arrived from the three sources matched.
Market Definition
The bio-butadiene market refers to the commercial landscape encompassing the production, distribution, and application of bio-butadiene, a sustainable alternative to conventional butadiene derived from fossil fuels. Bio-butadiene is produced from renewable resources such as biomass, including agricultural residues, sugarcane, and corn. This market represents an essential segment of the broader bio-based chemicals industry, which aims to reduce the environmental footprint associated with traditional petrochemicals by leveraging renewable feedstocks.
The bio-butadiene market is driven by several factors, including the growing global emphasis on sustainability and environmental stewardship. Governments worldwide are implementing stringent regulations to curb carbon emissions and promote the use of eco-friendly materials, thereby creating a favorable regulatory environment for bio-based products. In response, numerous industries such as automotive, construction, and consumer goods are increasingly adopting bio-butadiene to meet their sustainability goals and reduce dependency on fossil-based raw materials.
Overall, the bio-butadiene market is poised for significant growth, driven by environmental regulations, technological innovations, and the increasing demand for sustainable alternatives across various industries. As the market matures, it is expected to play a pivotal role in the transition towards a more sustainable and circular economy.
Key Stakeholders
- Bio-butadiene suppliers
- Manufacturing Facilities
- Environment friendly product manufacturers
- Research organizations
- Governments and research organizations
- Regulatory bodies
- Environment support agencies
- End-users
Report Objectives
- To define, describe, and forecast the size of the bio-butadiene market, in terms of value and volume.
- To provide detailed information regarding the major factors (drivers, opportunities, restraints, and challenges) influencing the growth of the market
- To estimate and forecast the market size based on product type, end-use, application, grade and region.
- To forecast the size of the market with respect to major regions, namely, Europe, North America, Asia Pacific, Middle East & Africa, and South America, along with their key countries.
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contribution to the overall market.
- To analyze opportunities in the market for stakeholders and provide a competitive landscape of market leaders.
- To track and analyze recent developments such as expansions, new product launches, partnerships & agreements, and acquisitions in the market.
- To strategically profile key market players and comprehensively analyze their core competencies.
Available Customizations
Along with the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Regional Analysis
- Further breakdown of a region with respect to a particular country or additional application
Company Information
- Detailed analysis and profiles of additional market players
Growth opportunities and latent adjacency in Bio-Butadiene Market