Press release
Bio Butadiene Market to Witness Rapid Increase in Consumption During 2017 - 2025
In early times, butadiene was derived from various petroleum feedstocks available in the market. Nowadays, in order to reduce dependency on these feedstocks, butadiene is derived from bio-based material sources, including non-food biomass. Continuous tightening of naptha based butadiene supply, consumption growth of polymers and tyres in developing economies, and volatility of natural rubber will continue to drive the market for bio-butadiene. Butadiene is the primary petrochemical used as a monomer in the production of various industrial chemicals, including resins, rubber, plastics, etc. Bio-butadiene is one of the raw material sources in the manufacturing of butadiene. Bio-butadiene is utilized in the manufacturing of rubbers and plastics, which find their applications in adhesives & sealants, paints & coatings, electrical appliances, textiles, building, and construction and packaging, among others.Chemical producing companies are not the only players in the bio-butadiene market, tyre manufacturers are also investing in the market owing to the limited availability of feedstocks. The scarcity of butadiene in the manufacturing of synthetic rubber has acted as an encouragement for synthetic rubber and tyre producers to explore various alternative methods of rubber production. Approximately, around 2/3rd of the bio-butadiene produced around the globe is utilized in the manufacturing of synthetic rubber.
Growth of the bio-butadiene market is primarily based on the rising demand due to derivative expansion and quick economic growth, especially in Asia.
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Global Bio-Butadiene Market: Segmentation
The global bio-butadiene market can be segmented on the basis of application.
Based on applications, the global bio-butadiene market can be segmented into:
• Styrene-Butadiene Rubber (SBR)
• Styrene-Butadiene Latex (SBL)
• Polybutadiene (PB)
• Acrylonitrile-Butadiene-Styrene (ABS) Resins
• Nitrile Rubber (NBR)
• Styrene-Butadiene Block Copolymers (SBS and SEBS)
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Global Bio-Butadiene Market: Dynamics
Rising crude oil prices and low natural gas prices have shifted the attention of petrochemical companies from oil based cracking to ethane cracking, and hence resulted in the reduction of butadiene supply. This has impelled the interest in butadiene production from conventional and renewable feedstocks. Moreover, there is an increasing demand for green tyres that are manufactured from synthetic rubber, which is generally derived from bio-butadiene. Growth of the bio-butadiene market is likely to be driven by automotive and tyre end-use industries, as a large amount of bio-butadiene is consumed in the production of coatings and synthetic rubbers that are used in the manufacturing of tyres and other automotive accessories.
On the other hand, factors such as utilization of natural rubber substitutes (rice husk or guayle) and manufacturing of new versions of rubber from bio-isoprene are limiting market growth. Moreover, strict government regulations are also expected to hamper the demand for bio-butadiene and thus, in turn restraining growth of the global bio-butadiene market.
Rising technological innovations to assist the production of bio-butadiene are expected to create opportunities in the market. The key trend identified in the global bio-butadiene market is the collaboration of tyre manufacturing companies with bio-based derivative manufacturers to convert biomass into bio-butadiene. Collectively, these factors are estimated to spur growth in the global bio-butadiene market.
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