Rubber Processing Chemicals Market

Rubber Processing Chemicals Market Outlook (2022-2032)

Sales of rubber processing chemicals were valued at US$ 5.15 Billion in FY 2022, and is likely to exhibit a Y-o-Y expansion rate of 3.1% to reach US$ 5.31 Billion in 2022. Overall, the market is forecast to register a CAGR of over 3%.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 5.15 Billion
Expected Market Value (2022)	US$ 5.31 Billion
Projected Forecast Value (2032)	US$ 7.14 Billion
Global Growth Rate (2022-2032)	3% CAGR
Expected Growth Rate of the U.S Market (2022-2032)	3.3% CAGR
Anticipated Growth Rate of China (2022-2032)	5%
Major Rubber Processing Chemicals Providers	BASF SE Arkema Group Behn Meyer Holding AG China Petroleum & Chemical Corporation (SINOPEC) Eastman Chemical Company Emerald Kalama Chemical LLC Emery Oleochemicals Group Kumho Petrochemical Co. Ltd. (KKPC) LANXESS AG Merchem Limited Sinochem Group Co. Ltd.

2015-2021 Revenue Analysis of Rubber Processing Chemicals vs. Future Outlook 2022-2032

Rubber processing chemical sales increased at a CAGR of more than 2% between 2015 and 2021, with applications primarily focused on automotive tire manufacturing. Further research into the rubber processing chemicals industry reveals that the market surpassed US$ 5 Billion at the start of the historical period.

Rubber processing chemicals are being driven by the growing demand for rubber in industries such as footwear, construction and manufacturing. Over the forecast period, Rubber's increasing use in floor coverings, sound insulation, roofing materials, and sealants in the construction industry will drive product demand. Rubber processing chemical revenue will grow at over 3% CAGR over the forecast period (2022-2032).

Prominent Growth Drivers Influencing Rubber Processing Chemicals Deployment

Rubber Processing Chemicals Sales Are Influenced by the Automotive Industry

With rapid urbanization, automotive ownership is rising dramatically in all regions. As a result, sales of automotive tires with superior road grip, increased abrasion resistance, reduced friction, and improved elasticity are increasing. As a result, the use of specialty chemicals to impart these characteristics is increasing.

The rubber processing sales forecast appears bright, particularly in the developing world, due to rising demand for both commercial and private vehicles. India, China, Japan, and other East Asian and South Asian countries are expected to be the most opportunistic markets.

The rubber processing chemical market in the United States is booming. Overall, the United States ranks second in the world in terms of vehicle sales and production. The automotive industry in the country is at the forefront of innovation. According to the Auto Alliance, the United States has spent nearly one-fifth of global R&D spending in the automotive industry.

Increased Use of Synthetic Rubber Products is a Significant Growth Opportunity

According to Fact.MR's projections, the rubber processing chemicals industry is reliant on extensive deployment of styrene-butadiene, nitrile, and neoprene synthetic rubbers. This widespread reliance creates significant growth opportunities for rubber processing chemicals sales in the coming decade.

When compared to natural rubber, manufacturers are focusing on synthetic rubber as it is more durable and long-lasting. It is more resistant to chemicals, extreme temperature, ozone, sunlight, and weathering damage and degradation. It is also extremely flexible and has excellent insulation properties. The market is experiencing high demand due to the use of various properties of rubber-based products, such as resilience, hardiness, heat and abrasion resistance, and tensile strength. They also help to prevent oxidation damage and dynamic stress, which are driving the market growth.

As a result of these advantages, these chemicals are widely used in the manufacture of conveyor belts, tires, linings and coatings, gaskets, seals, and hoses, among other things.

Factors likely to Impede Market Growth of Rubber Processing Chemicals

Rubber chemicals used in the manufacturing process emit harmful VOCs. Stringent government regulations governing VOC emissions are expected to impede the market growth.

Because of the massive amount of pollution caused by rubber processing, the government has imposed stringent regulations on the industry. This factor may stifle market growth in the coming years.

Country-wise Analysis

How will the Rubber Processing Chemicals Industry Grow in China?

In the last decade, China's demand for Rubber Processing Chemicals has increased rapidly. Production and demand will continue to rise over the next decade. Rubber processing chemical sales in China are expected to grow at a rate of more than 5%, reaching more than US$ 1 Billion by 2022. Growth is being fueled by the extensive development of China's chemical industry, as well as a burgeoning automotive aftermarket as a result of rising automobile sales.

According to the International Council of Chemical Associations (ICCA), the chemical industry in China emerged as one of its primary manufacturing industries in 2019, while a BASF study concludes that chemical production is likely to rise by 6.3% through 2021 and beyond.

As a result, government policies are being developed to accommodate the entry of prominent rubber processing chemical manufacturers, which will result in significant market expansion in the future.

How will the Rubber Processing Chemicals Industry Grow in the United States?

The market for rubber processing chemicals in the United States is expected to exceed US$ 1.2 Billion by 2022, owing to widespread adoption in the automotive industry. The United States is expected to grow significantly due to an increase in construction activity and demand for flooring and roofing applications. Consumers are spending more on tire maintenance as vehicle ownership rises in order to improve vehicle performance through reduced abrasion resistance and superior road grip.

Furthermore, due to its ability to adhere to metals, manufacturers are incorporating synthetic rubber, making it an excellent option for rubber gaskets, seals, tires, and other products. As a result, the demand for synthetic rubber processing chemicals is increasing significantly.

Category-wise Insights

Demand for Rubber Flame Retardants Remain Elevated in the Long Run

According to Fact.MR’s forecast, sales of flame retardants will increase at a CAGR greater than 3% between 2022 and 2032. Sales are expected to increase due to the growing need to prevent automotive tires from overheating while in motion.

Furthermore, there are numerous applications in other rubber processing areas, such as silicone rubber production, wire and cable manufacturing, roofing, and my belting. Huber, for example, provides a diverse range of halogen-free flame and smoke retardants for rubber processing applications.

Rubber Processing Chemicals Sales Forecast Promising in Tire Manufacturing

Demand for rubber processing chemicals in tire manufacturing is skyrocketing, accounting for more than 40% of global demand by 2032. Demand is being driven by increased demand for improved abrasion resistance, superior road grip, and high load-bearing capacity.

The primary cash cows are expected to be antioxidants, anti-ozonants, and curing systems, which are widely used to prevent excessive wear and tear of rubber tires. Brenntag SE, for example, provides stabilizers such as AMINOX® and BLE® 65.

Competitive Landscape

To expand their market footprints, prominent rubber processing chemical manufacturers use new product launches, R&D activities, collaborations, mergers, and acquisitions, as well as collaborations, mergers, and acquisitions.

• BASF invested 16 Million Euros in Pyrum Innovations Inc., which specializes in pyrolysis of waste tires, in October 2020. The oil from the waste tires will be extracted and used to manufacture new products by the company.
• Eastman Chemical Company completed the de-bottlenecking of its St. Gabriel Diethyl hydroxylamine (DEHA) production facility in June 2019. DEHA is primarily used in the manufacture of styrene-butadiene rubber (SBR), and the new development is expected to meet the growing needs of customers in the western hemisphere.
• Eastman Chemical Company announced plans in June 2021 to sell its rubber additives business, including the CrystexTM insoluble sulphur and SantoflexTM anti-degradants, to an affiliate of One Rock Capital Partners LLC for US$ 800 million in order to streamline its Additives & Functional Products business.

Key Segments Covered in Market Study

• By Product :

  • Anti-Degradant 
  • Accelerators
  • Rubber Flame Retardant Chemicals
  • Aids/Promoters
  • OtherS

• By Application :

  • Tire Applications
  • Non-Tire Applications

• By Regions :

  • North America 
  • Latin America 
  • Europe 
  • East Asia 
  • South Asia 
  • Oceania 
  • Middle East & Africa