Butadiene Market Report 2026

The butadiene market size has grown rapidly in recent years. It will grow from $17.58 billion in 2025 to $20.84 billion in 2026 at a compound annual growth rate (CAGR) of 18.6%. The growth in the historic period can be attributed to expansion of automotive and tire manufacturing, growth in petrochemical production capacity, increasing demand for synthetic elastomers, availability of c4 feedstock streams, industrialization of polymer processing.

The butadiene market size is expected to see rapid growth in the next few years. It will grow to $41.1 billion in 2030 at a compound annual growth rate (CAGR) of 18.5%. The growth in the forecast period can be attributed to increasing adoption of sustainable rubber materials, rising demand from electric vehicle tires, expansion of bio-based chemical production, growing investments in downstream polymer applications, increasing focus on supply chain optimization. Major trends in the forecast period include rising demand for synthetic rubber production, increased focus on bio-based butadiene routes, expansion of abs and polymer applications, growing use in tire manufacturing, enhanced process efficiency in butadiene extraction.

The expansion of the automotive industry is expected to boost the growth of the butadiene market. The automotive industry involves the design, development, manufacturing, sale, and maintenance of motor vehicles. Butadiene-based materials offer high durability, flexibility, and resistance to heat, chemicals, and mechanical stress, making them suitable for automotive components such as seals, gaskets, hoses, belts, and under-the-hood parts. For instance, in January 2024, according to the Society of Motor Manufacturers and Traders (SMMT), a UK-based trade association, total vehicle production in the UK reached about 1,025,474 units in 2023, representing a 17% increase from the previous year. Therefore, the expansion of the automotive industry is driving the growth of the butadiene market.

Major companies operating in the butadiene market are focusing on innovative products such as expanded polystyrene (EPS) to enhance sustainability and strengthen their market position. EPS containing post-consumer recycled (PCR) material helps reduce reliance on virgin raw materials, conserve resources, and divert plastic waste from landfills. For instance, in April 2023, Epsilyte LLC, a US-based advanced materials manufacturer, launched 124LR expandable polystyrene (EPS), designed for molded products requiring a smooth finish and primarily used in packaging applications. Made with at least 50% PCR material, 124LR performs on par with reactor-made virgin products, supporting both performance and sustainability goals.

In May 2024, KCC Corporation, a chemicals company based in South Korea, acquired Momentive Performance Materials for an undisclosed amount. This acquisition is intended to establish a more robust and integrated entity that emphasizes long-term growth and innovation in the silicones market. Momentive Performance Materials, a US-based chemicals corporation, specializes in high-performance silicones and specialty products that contribute to creating solutions for a more sustainable future.

Major companies operating in the butadiene market are BASF SE, LyondellBasell Industries N.V., Saudi Basic Industries Corporation (SABIC), Exxon Mobil Corporation, Shell Chemicals (Royal Dutch Shell plc), China Petroleum And Chemical Corporation (Sinopec), LG Chem Ltd., INEOS Group Limited, Formosa Plastics Corporation, Braskem S.A., PetroChina Company Limited, TotalEnergies SE, Mitsubishi Chemical Group Corporation, Reliance Industries Limited, Versalis S.p.A., Kumho Petrochemical Co., Ltd., LANXESS AG, Chevron Phillips Chemical Company LLC, Asahi Kasei Corporation, SK Geo Centric Co., Ltd.

Asia-Pacific was the largest region in the butadiene market in 2025. The Middle East and Africa are expected to be the fastest-growing regions in the forecast period. The regions covered in the butadiene market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the butadiene market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The butadiene market consists of sales of polychloroprene and 1,3 butadiene, synthetic rubber, polybutadiene, elastomer. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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