1 3 Butadiene Market Outlook:
1 3 Butadiene Market size was over USD 42.08 billion in 2024 and is projected to reach USD 78.99 billion by 2034, witnessing around 6.5% CAGR during the forecast period i.e., between 2025-2034. In the year 2025, the industry size of 1, 3 butadiene is evaluated at USD 44.4 billion.
Key 1,3 Butadiene Market Insights Summary:
Asia Pacific is projected to hold the biggest revenue share of 35% by the conclusion of 2034.
Between 2025 and 2034, North America is set to experience swift revenue expansion.
The styrene butadiene rubber (SBR) segment in 1,3 butadiene market is predicted to secure the highest revenue share.
The consumer products segment in the 1,3 butadiene market is anticipated to achieve a strong CAGR during the specified period.
Key Growth Trends:
- Rapid expansion of the automotive sector
- Rising construction activities
Key Players:
- BASF S.E., Braskem S.A, Exxon Mobil Chemical Company, S&P Global Inc., Lyondell Basell Industry N.V., Royal Dutch Shell PLC., DYNASOL Group, TPC Group Incorporation, Nizhnekamskneftekhim O.A.O, Lanxess A.G.
Market Size and Growth Projections:
- 2024 Market Size: USD 42.08 billion
- 2025 Market Size: USD 44.4 billion
- Projected Market Size: USD 78.99 billion by 2034
- Growth Forecasts: 6.5% CAGR (2025-2034)
- Largest Region: Asia Pacific (35% Share by 2034)
The global production of 1,3 butadiene has rapidly increased in recent years due to its wide applications across several sectors, including automobiles, building and construction, consumer products, and healthcare. It is widely used in the manufacture of synthetic rubbers or elastomers and is highly soluble in ethanol, ether, acetone, and benzene. According to the American Chemistry Council, in 2022, approximately 38% of 1-3 butadiene was used for tire production, 21% for nylon manufacturing, and the remaining 31% for other applications. In addition, the economic impact of this compound on consumer industries is substantial, supporting more than 5,80,000 jobs and contributing to USD 229.4 billion in sales in 2022.
Many industry giants are coming up with biobased products, as governments and local bodies are pushing companies towards cleaner technologies. For instance, Trinseo, a U.S.-based company, signed a contract with a Russian catalyst, ETB, in May 2021 to develop purified bio-based 1,3 butadiene. Under this contract, the companies plan to explore opportunities to scale up ETB’s novel single-stage process to produce biobased buta-1, 3-diene from ethanol. Moreover, the pilot plant includes a purification unit to help achieve a purity target of 99.7%.
1 3 Butadiene Market Growth Drivers and Challenges:
Growth Drivers
- Rapid expansion of the automotive sector: 1,3 butadiene is a crucial raw material used in synthetic rubber and engineering plastics essential to the automotive industry. As the sales of various types of automobiles is rapidly increasing, the demand for this product is also rising. As per a study by Research Nester, global passenger car sales reached around 67.2 million units in 2023, a significant increase of 11.2% from the previous year. Several governments across the globe are enforcing fuel efficiency and low-emission tire regulations, fueling the demand for advanced synthetic rubbers, derived from butadiene. Along with this, the rising production of electric vehicles that require durable, low-rolling resistance tires is expected to boost. According to a 2024 report by the International Energy Agency (IEA), more than 14 million different types of electric vehicles were sold in 2023, 95% of which were in the U.S., Europe, and China.
- Rising construction activities: 1,3 butadiene is widely used in the infrastructure and real estate sector in the form of adhesives and sealants, synthetic rubber, and ABS plastics. The rapidly expanding construction activities and infrastructure developments across many parts of the globe is fueling the demand for 1,3 butadiene and its derivatives. In addition, rising government infrastructure investments is expected to boost 1,3 butadiene market growth during the forecast period. For instance, according to the India Brand Equity Foundation, the government of India allocated USD 132.6 billion for infrastructure development under the PM Gati Shakti Initiative 2024-25.
Challenges
- Price volatility and supply chain disruptions: Though the demand for 1,3 butadiene is rapidly increasing, fluctuations in crude oil and natural gas prices and supply imbalance can affect the overall butadiene production costs. In addition to this, geopolitical tensions, trade restrictions, logistical issues, and dependency on key suppliers, including the U.S., China, and South Korea can impact the global supply.
1 3 Butadiene Market Size and Forecast:
| Report Attribute | Details |
|---|---|
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Base Year |
2024 |
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Forecast Year |
2025-2034 |
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CAGR |
6.5% |
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Base Year Market Size (2024) |
USD 42.08 billion |
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Forecast Year Market Size (2034) |
USD 78.99 billion |
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Regional Scope |
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1 3 Butadiene Market Segmentation:
Product Segment Analysis
The styrene butadiene rubber (SBR) segment in 1,3 butadiene market is anticipated to capture the largest revenue share during the forecast period owing to its high usage across applications such as tire production, footwear coatings, adhesives, and carpet backing, and increasing export import activities across the globe. According to the Observatory of Economic Complexity, the total trade of SBR between 2021 and 2022 was USD 1.43 billion, with top exporters including Germany (USD 375 million), Japan (USD 190 million), Netherlands (USD 152 million), the U.S. (USD 144 million) and Belgium (USD 90.6 million). Factors such as rising demand for SBR from the tire industry, growing focus on exploring applications of SBR, and increasing investments in developing bio-based SBRs are expected to support segment growth during the forecast period.
End user Segment Analysis
The consumer products segment in 1,3 butadiene market is expected to register rapid CAGR throughout the stipulated timeframe. 1,3, butadiene is a crucial component used for various consumer goods, primarily due to its role in producing synthetic rubber and plastics. The growing demand for durable, lightweight, impact-resistant, appealing products, rising global sneaker culture and demand for comfortable shoes are expected to fuel the demand for butadiene. Moreover, butadiene-based polymers are used in flexible packaging, containers, and food storage solutions, contributing to overall segment growth.
Our in-depth analysis of the global 1,3 butadiene market includes the following segments:
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Type |
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Product |
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End user |
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1 3 Butadiene Market Regional Analysis:
Asia Pacific Market Insights
Asia Pacific is expected to account for the largest revenue share of 35% by the end of 2034, backed by increasing production and trade activities in China, India, and South Korea. According to the Observatory of Economic Complexity, China and South Korea were one of the top 1,3 butadiene exporters between 2021 and 2022. China, India, Japan, and South Korea are among the world’s top automobile manufacturers, driving the demand for synthetic rubber used in automotive parts. In addition, the rising government-led infrastructure projects, smart city initiatives, and growing demand for consumer goods and electronics are expected to boost 1,3 butadiene market growth in APAC.
In India, the rapidly expanding automotive industry and the rising sales of electric vehicles are expected to propel the demand for 1,3 butadiene and its derivates. The increasing construction activities in many parts of the country, growing demand for consumer goods and electronics, and rising buying capacity are expected to fuel 1,3 butadiene market growth during the forecast period.
North America Market Insights
North America is poised to register rapid revenue growth between 2025 and 2034 owing to the strong automotive and tire industry, rising adoption n of electric vehicles, and the presence of a leading tire manufacturing hub. Chemical companies such as ExxonMobil, Chevron Philips, Shell, Dow, and LyondellBasell are some of the major producers of 1,3 butadiene and its derivatives. These key players are constantly investing in R&D activities to develop products at lower prices to cater to rising demand.
The 1,3 butadiene market in the U.S. is expected to expand at a rapid pace owing to rising demand from several sectors, including automotive and tire, consumer goods, and packaging, and the presence of robust industry giants. Moreover, rising green building initiatives, housing and commercial projects, and high focus on bio-based butadiene are expected to influence the 1,3 butadiene market dynamics going ahead.
Key 1 3 Butadiene Market Players:
- BASF S.E.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Braskem S.A
- Exxon Mobil Chemical Company
- S&P Global Inc.
- Lyondell Basell Industry N.V.
- Royal Dutch Shell PLC.
- DYNASOL Group
- TPC Group Incorporation
- Nizhnekamskneftekhim O.A.O
- Lanxess A.G.
The 1,3 butadiene market is set to have influence owing to the presence of several key players who are launching various services to expand in the competitive market. The market landscape is shaped by several strategic initiatives including capitalization on government incentives, new product launches, collaborations, and R&D. The rising focus on environmental sustainability, has facilitated the development of technologies. Here is a list of key players operating in the global 1,3 butadiene market:
Recent Developments
- In April 2023, Hainan Baling Chemical New Material Co. Ltd launched production of its styrene-butadiene project in Hainan to reach an annual production capacity of 170,000 tonnes.
- In April 2022, Dynasol Group announced its plan to increase the production capacity of styrene-butadiene rubber in Santander, Spain. The investment is expected to increase the production of 20KTA of SSBR in Span and is expected to be online by Q1 of 2024.
Author Credits: Abhishek Bhardwaj
- Report ID: 447
- Published Date: Jun 13, 2025
- Report Format: PDF, PPT
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