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The liquid synthetic rubber market size is estimated to increase by USD 5.39 billion, at a CAGR of 4.36% between 2023 and 2028. Market growth in the rubber industry hinges on heightened demand from the tire sector, rapid industrialization in emerging markets, and rising requirements from the medical and healthcare sectors. Challenges facing the market include the revival of the natural rubber industry, strict regulations governing rubber product manufacturing, and price instability of essential raw materials. These factors collectively shape the landscape for rubber products, influencing production dynamics and market strategies in a globally interconnected economy. As the industry navigates these challenges, innovative approaches in manufacturing and supply chain management will be crucial to sustain growth and meet evolving market demands across diverse sectors.
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The tyre segment is estimated to witness significant growth during the forecast period. Liquid synthetic variant is widely used in tire production around the world. It is used in high-performance applications for the bicycle and motorcycle tire industry. Tires manufactured with strict safety requirements provide precision and controllability in various weather and surface conditions, leading manufacturers to use them as their base material in tire production.
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The tyre segment was the largest segment and valued at USD 10.22 billion in 2018. The increase in demand for high-performance tires has raised the demand for liquid styrene-butadiene, a product variant. The demand for a greener world and increasing consumer awareness about it has driven the consumption of high-performance tires. Considering the large amount used in the manufacture of tires and tire-related products, the market relies on the automotive industry and the tire sector for growth. Hence, the growing adoption from the auto industry is expected to drive the growth of the tyre segment of the market during the forecast period.
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APAC is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In APAC, countries such as South Korea, Japan, China, and India are the key contributing countries in terms of revenue. Infrastructure and construction development in the region and China's emergence as a global manufacturing hub are the factors driving consumption in the region.
Furthermore, the demand is expected to increase mainly as end-user industries from developed countries move their bases to emerging regions of APAC, due to factors such as ease of obtaining land, presence of a cost-effective workforce, strategic location, accessibility, strong power grid, reliable transportation infrastructure, tolerant regulations and standards for chemicals and plastics. Hence, such factors will drive the growth of the market in this region during the forecast period.
The market is witnessing significant growth due to its wide application in various industries such as the beverage, dairy, and baby food industries. The functionality of liquid synthetic rubber in extending the shelf life of these products and reducing storage costs is a key factor driving market growth. In the beverage industry, it is used as a vegetable concentrate or puree, while in the dairy industry, it is used as a vegetable ingredient in the form of powders or mushroom-based products. The baby food industry also benefits from the use of liquid synthetic rubber due to its wholesome effect on the final product. The market for liquid synthetic rubber is fragmented with both local and international players. The market is expected to grow at a steady pace due to the increasing health benefits associated with the consumption of natural food additives. The hectic schedule of consumers and the rising family disposable incomes are also contributing factors. The vegetable concentrates and purees segment is expected to dominate the market due to their wide application in various food and beverage industries.
Despite the benefits, the high production costs and the availability of alternative additives may limit the market growth to some extent. The market caters to diverse sectors, including food and beverages, focusing on the quality of the product with functional ingredient such as gluten free meals and fruits and vegetables concentrates. Technological advancements enhance processing capacities for items like chillis, mushrooms, and plant based foods, meeting the demand from a vegan populace and Restaurants and hotels for ready-to-eat foods. The industry emphasizes healthy and fortified food options, but faces challenges like high storage and transportation cost. Despite these hurdles, the market continues to innovate, ensuring the delivery of high-quality liquid synthetic rubber products that align with modern dietary preferences and sustainability standards.
The market for liquid synthetic rubber experiences significant growth, propelled primarily by escalating demand from the tire industry. Particularly in the automotive sector, this market holds a predominant share in consumption. Liquid synthetic variant finds extensive application in tire manufacturing across various automotive segments, including passenger vehicles, light trucks, and heavy trucks, as well as in bicycle and airplane tires. Rising natural rubber prices have encouraged tire manufacturers to shift towards synthetic alternatives, offering enhanced durability and rolling resistance properties.
Moreover, stringent quality standards in developed nations drive the adoption of liquid synthetic rubber fillers, especially in high-performance tires, further stimulating market expansion. Additionally, the focus on low rolling resistance tires to enhance fuel efficiency augments demand, contributing to market growth.
The use of bio-based feedstock in the production is one of the rising trends. The development of renewable chemicals for production is growing rapidly for sustainability reasons. High prices and an endless supply of petroleum and natural rubber raw materials have stimulated the use of renewable raw materials for production. The major players in the global market are focusing on producing this from biological raw materials.
Moreover, sugar, glycerin, and other plant-based raw materials are evolving into economically viable alternatives to conventional raw materials, including butadiene and isoprene. The discontinuous concentration of major market participants to achieve profitability and sustainability through the development of bio-based raw materials will certainly impact the growth of the market during the forecast period.
Recovery of the natural rubber industry is the challenge that affects the growth of the market. The decision to cut crude oil supply by the Organization of the Petroleum Exporting Countries (OPEC) is one of the main factors contributing to the recovery of natural variant prices. The reduced supply led to an increase in crude oil prices, affecting the price of liquid synthetic variants. Liquid synthetic variant is a major substitute for natural variant and has increased production costs for manufacturers. this has led to speculation about the possibility of replacing the synthetic variant with the natural variant.
In addition, other factors behind the recovery of natural variant prices include renewed expectations for a rapid global economic recovery and high speculation about lower supply. The growth of the natural industry from the recovery in prices will negatively affect the demand in various applications, which will hamper the growth of the global market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ENEOS Holdings Inc: The company offers liquid synthetic rubber such as Eneos Materials NBR.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is witnessing significant growth due to its extensive application in various industries, particularly in the production of natural food additives. In the food sector, liquid synthetic rubber is used in the form of vegetable concentrates, purees, powders, and functional ingredients. The beverage industry, dairy industry, and baby food industry are the major consumers of these products. Functionality and shelf life are the two primary factors driving the demand for liquid synthetic rubber in food processing. The beverage industry uses it to enhance the flavor and nutritional value of their products, while the dairy industry employs it for its ability to improve the texture and storage costs of their offerings. Vegetables, such as zucchini, chilis, black beans, plums, and mushroom, are commonly used as vegetable ingredients in food processing. Liquid synthetic rubber plays a crucial role in the production of these ingredients, ensuring a wholesome effect and maintaining the required processing capacities.
Moreover, the market serves diverse industries like the processed and packaged food industry, soups and sauces industry, and baking products sector, focusing on enhancing the quality of products with functional ingredients. Innovations include zucchini pieces, dried zucchini shreds, and zucchini powder, catering to gluten-free meals and fortified foods. Other applications encompass fruits and vegetable concentrates, chilis, and plant-based ingredients like mushrooms. Despite a fragmented market dominated by local players and food and beverage manufacturers, demand for ready to eat foods drives growth. Challenges such as storage and transportation costs influence market dynamics, necessitating efficient logistics solutions. Overall, the market thrives on delivering healthy, innovative solutions while navigating regulatory frameworks and consumer preferences for sustainable, high-quality liquid synthetic rubber products.
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Market Scope |
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Report Coverage |
Details |
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Page number |
183 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
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Market growth 2024-2028 |
USD 5.39 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.11 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 51% |
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Key countries |
China, US, India, Germany, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Chevron Phillips Chemical Co. LLC, CSRC Investment Holdings Co. Ltd., ENEOS Holdings Inc., Eni SpA, Evonik Industries AG, Exxon Mobil Corp., H.B. Fuller Co., KURARAY Co. Ltd., Lanxess AG, LG Chem Ltd., Michelin Group, Mitsui and Co. Ltd., PJSC SIBUR Holding, Saudi Arabian Oil Co., SK Innovation Co. Ltd., Sumitomo Chemical Co. Ltd., Synthomer Plc, Ter Group, The Goodyear Tire and Rubber Co., and Zeon Corp. |
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Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period. |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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