Styrene Butadiene Rubber (SBR) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Styrene Butadiene Rubber (SBR) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The styrene-butadiene rubber market is expected to grow at a CAGR of more than 4% during the forecast period.

• COVID-19 negatively impacted the market. All major industries using styrene-butadiene rubber as a raw material stopped production temporarily. All the industries, such as construction, automotive, packaging, footwear, and others, shut their production plant due to the disruption caused by the COVID-19 pandemic, which reduced the demand for styrene-butadiene rubber. However, with the recovery of firms, the investments are expected to grow and drive the demand for the market in the coming years.
• The primary factor driving the market's growth is the increasing usage of natural rubber and styrene-butadiene rubber crossover products. On the flip side, fluctuation in the prices of raw materials is expected to hinder the growth of the market studied.
• The presence of robust automotive and manufacturing industries is an opportunity for market growth. Asia-Pacific dominated the market and is expected to continue its dominance during the forecast period.

• Styrene-butadiene rubber is primarily used in the manufacture of pressure-sensitive adhesives and also in the bonding of tufted carpets. Increasing demand for tapes, labels, graphics, etc., has been driving the consumption of pressure-sensitive adhesives (PSAs) and is expected to do the same during the forecast period.
• Rubber-based PSAs are replacing traditional PSAs in a variety of applications, which has increased the consumption of styrene-butadiene rubber in the adhesive industry. In 2021, as the restrictions eased, the global demand for adhesives started recovering and outgrew the pre-pandemic levels in 2022.
• Styrene-butadiene rubber is used in tires to improve their properties of the tire. It helps in reducing rolling resistance and improves fuel economy. It also enhances the wet grip and braking performance of the tire. Additionally, it increases the life of the tire by protecting it from wear and tear.
• According to Top Tire Review, in 2021, the tire industry was valued at USD 130.54 billion. The top three companies, Michelin, Bridgestone, and Goodyear, accounted for approximately 50% of the overall tire industry revenue. Moreover, the demand for adhesive is expected to increase, with the increasing demand from the packaging industry, mainly in the Asia-Pacific region, owing to the development of the e-retail and e-commerce sectors.
• Increased adoption of structural tapes in green buildings has enhanced the performance of emerging building technologies. Adhesives for flooring systems in Europe have a long tradition of indoor air sustainability.
• Styrene-butadiene rubber is considered the main polymer for manufacturing footwear outsoles because of its availability, low cost, and high filler tolerance. In 2021, 22.2 billion pairs of footwear were produced globally. Asia is responsible for over slightly less than 90 percent of global footwear production.
• Cloth-inserted styrene-butadiene rubber is commonly used for mechanical fastening and flanged gasket applications. Its durability makes cloth-inserted styrene-butadiene rubber suitable for air, hot water, low-pressure steam, and hydraulic services.
• China is the largest textile-producing and exporting country in the world. With its rapid growth over the last two decades, the Chinese textile industry has become one of the main pillars of the country's economy. In February 2022, the Chinese textile export reached an all-time high of USD 24741 million.
• Such factors boost the demand for styrene-butadiene rubber, which helps the market's growth in the studied period.

• Asia-Pacific dominated the market with a share and will likely continue its dominance during the forecast period. Asia-Pacific, a huge consumer for both tires and adhesives industries globally, is the major region driving the demand for EPDM.
• China and India are among the major automotive industry manufacturers across the globe. The Chinese automotive manufacturing industry is the largest in the world. However, the industry witnessed a slowdown in recent years, wherein production and sales declined. According to the China Association of Automobile Manufacturers (CAAM), automotive sales in China fell 8.4% year-on-year to 2.56 million units in December 2022. In contrast, for 2022, the sales grew to 26.86 million units.
• According to India Brand Equity Foundation (IBEF), the Indian car market is expected to reach USD 54.84 billion by 2027, registering a CAGR of over 9%. Indian automotive industry is targeting to increase the export of vehicles by five times by the year 2026. In 2022, total automobile exports from India stood at 5,617,246.
• China is the world's largest producer and consumer of synthetic rubber, with production up 9.7% year-on-year to 8,117 kt in 2021. Synthetic rubber consumption in India totaled 0.72 million metric tons from April 2021 to March 2022 - an increase of 17 percent from the previous financial year. Natural rubber consumption in India totaled 1.24 million metric tons in the financial year April 2021 to March 2022.
• Approximately three billion meters of clothing fabric were produced in China in October 2022. According to the National Bureau of Statistics (NBS), the textile production volume reached an all-time high of USD 46 billion in November 2022.
• On the brighter side, robust demand from footwear applications is likely to act as an opportunity for the market.

The styrene butadiene rubber (SBR) Market studied is concentrated among the top players. The key players include Asahi Kasei Corporation, Arlanxeo, Lanxess Versalis S.p.A., and LG Chem, among others.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support