Bio-Butadiene Market size was registered a profitable valuation of USD 55.5 million in 2024 and is projected to register USD 208.3 million by 2037 expanding at a CAGR of 10.7% during the forecast period, i.e., 2025-2037. In 2025, the industry size of bio-butadiene is evaluated at USD 61.5 million.
The market’s growth is driven by rising demands for sustainable materials in industries such as chemical and automotive. Bio-butadiene is used in polymerization to form larger polymer chains such as styrene-butadiene rubber (SBR), polybutadiene rubber (PBR), and acrylonitrile butadiene styrene (ABS) and is preferred because it is derived from renewable sources such as agricultural waste or biomass. With growing investments to make manufacturing supply lines sustainable, the application of bio-butadiene is poised to increase.
The market benefits from a global shift in consumer preferences for eco-friendly products and growing demands on businesses to invest in sustainable supply chains. Strict enforcement of stringent environmental regulations benefits the global bio-butadiene sector as the adoption rate increases since bio-butadiene is a greener alternative to petrochemical-based butadiene. Major market players are investing in bio-based chemicals to reduce carbon emissions and promote circular economy initiatives by various governments. For instance, in February 2022, Synthos announced a major milestone in the development of bio-butadiene technology to produce sustainable rubber and committed to building a plant with a capacity of 40,000 metric tons of bio-butadiene annually. As the demand for green tires picks steam globally, the bio-butadiene sector is positioned to benefit and increase its revenue share.
Major players in the global bio-butadiene sectors can find opportunities in regions with favorable regulatory ecosystems supporting bioplastic adoption. Advancements in fermentation processes and biotechnologies provide opportunities for scalable and cost-effective bio-butadiene production. For instance, in April 2021, the French Institute of Petroleum published a study that explored alternative solutions to butadiene produced in steam cracker units by using the Ostromislensky process of a sequence of two catalytic reaching taking place in a dedicated reactor, and the study is targeted to optimize production of bio-butadiene. Additionally, industries such as packaging, adhesives, textiles, etc., are expanding bio-based product portfolios that fuel the growth of the bio-butadiene market. The global bio-butadiene industry is positioned to leverage favorable trends and maintain a robust growth curve by the end of the forecast period.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
10.7% |
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Base Year Market Size (2024) |
USD 55.5 million |
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Forecast Year Market Size (2037) |
USD 208.3 million |
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Regional Scope |
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Grade (Industrial Grade, Laboratory Grade)
Industrial grade segment is projected to account for more than 72.2% bio-butadiene market share by the end of 2037 owing to growing demands for sustainable materials in manufacturing applications for rubber, resin, plastic, etc. Industrial-grade bio-butadiene is estimated to witness larger commercial applications by industries seeking to curb carbon footprints without compromising on the quality of raw materials for manufacturing. For instance, in Additionally, the shift in demands for renewable materials in manufacturing marks a burgeoning trend of industrial decarbonization that is set to assist the robust growth of this segment.
Laboratory grade bio-butadiene is poised to increase its share in the global bio-butadiene market by the end of the forecast period. The growth of the segment is attributed to demands in specialized applications and small-scale chemical synthesis. Laboratory grade bio-butadiene is used in academic and industrial research institutions. The increasing research and development activities on bio-butadiene benefit the robust growth of this segment. For instance, in April 2021, Trinseo and ETB signed a letter of intent to collaborate on the development of purified bio-based 1,3-butadiene.
Source (Biomass-based, Bio-based Feedstocks, Waste-based feedstocks)
By source, the biomass-based segment held the largest revenue share in the global bio-butadiene market. The robust growth of the segment is owed to advancements in biomass conversion technologies, allowing greater production of bio-butadiene from renewable sources. The rising demand for sustainable end-products as well as calls to invest in sustainable supply chains is poised to maintain the growth curve of the biomass-based segment. Additionally, biomass-based bio butadiene offers an eco-friendly alternative to petrochemical butadiene. For instance, in December 2021, Riken published a study on using genetically engineered bacteria, i.e., Escherichia coli to convert glucose to bio-butadiene.
Our in-depth analysis of the market includes the following segments:
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Grade |
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Source |
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End use Industry |
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North America Market Forecast
North America in bio-butadiene market is projected to dominate over 33.8% revenue share by 2037. The growth is attributed to the region’s advanced bio-refinery ecosystem and investments in sourcing feedstock from non-food biomass such as agricultural residue. The robust biotechnological infrastructure in the region benefits the scalability of bio-butadiene production and advancements in fermentation improve yield efficiency. The U.S. and Canada are leading the revenue surge in North America and the market is poised to maintain its robust growth curve by the end of the forecast period.
The U.S. leads the revenue share in the bio-butadiene sector of North America. The sector’s profitable growth is attributed to a favorable regulatory ecosystem that supports renewable chemicals. The government has actively supported the plans to build a bioeconomy in the U.S. For instance, in March 2024, the U.S. Department of Agriculture release an action plan for building a resilient biomass supply in the country. The plan is poised to increase biomass availability and build a robust supply chain, that is projected to increase commercial production of bio-butadiene. The Department of Energy (DOE) released the 2023-billion-ton report that highlights the country’s ability to sustainably triple biomass production to more than 1 billion tons annually, which will be vital to completely decarbonize sectors such as aviation. The bio-butadiene sector in the U.S. is poised to leverage the favorable trends to increase its profit share by the end of 2037.
Canada is projected to increase its revenue share in the bio-butadiene market by the end of the forecast period. The market in Canada benefits from the commitment to fostering a circular economy and curbing greenhouse gas emissions. Additionally, the government is investing to strengthen the bioeconomy and benefit the agricultural sector by boosting biomass production. For instance, in August 2023, the government investments worth USD 5.3 million in BioFuelNet in a bid to boost the country’s bioeconomy. As the nation strives to increase biomass production, the trends are favorable to boost the production of bio-butadiene and open new avenues for adoption in various sectors that are seeking to decarbonize.
Europe Market Analysis
Europe is projected to register the fastest market growth during the forecast period profiting from the stringent environmental regulations of the region. For instance, in 2020, the European Green Deal was approved to make the European Union carbon-neutral by 2050. In 2021, the European Climate Law mandated greenhouse gas emissions to be 55% lower by 2030 in comparison to 1990. Additionally, the market in Europe benefits from the robust bioeconomy framework and increasing investments in research and development.
France holds a profitable revenue share in the bio-butadiene sector in Europe. The domestic market in France is projected to increase its revenue share by the end of the forecast period. The market’s growth is owed to increasing investments in the use of biomass. For instance, in April 2024, the European Commission approved approximately USD 984.5 million for the French biomass scheme. Additionally, a favorable regulatory environment in the country, such as the National Low-Carbon National Strategy boosts production of bio-butadiene, by creating short-term carbon budgets that must not be exceeded over 5 years. Companies in France are investing in a portfolio of circular-based chemicals benefiting the bio-butadiene sector. For instance, in June 2022, Borealis introduced Borvida, a range of sustainable base chemicals comprising Borvida B, from non-food waste biomass, and Borvida C, from chemically-recycled waste.
Germany accounts for a large share of the bio-butadiene sector of Europe. The surge in the profit share of the market in Germany is attributed to the presence of an advanced automotive manufacturing hub in the country that is leading in demand for bio-based synthetic rubber. Research Nester estimated Germany to be a leading market for green tires driving the demand for bio-butadiene production and adoption in manufacturing. Additionally, the National Bioeconomy Strategy of 2020 provides a favorable ecosystem in the country to foster a sustainable bio-based economy. For instance, in June 2021, Siemens announced that it will electrify its biorefinery in Germany and the industrial-scale facility will produce green biochemicals without the use of raw materials from fossil fuels. The trends bode well for the production of bio-butadiene in the country at an industrial scale boosting the sector’s growth curve.
The global bio-butadiene market is poised to register a profitable growth curve by the end of the forecast period. Key players are investing in research and development to increase scalability and develop advanced catalysts to increase yield.
Here are some key players in the market:
Author Credits: Radhika Pawar
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