Demand for natural rubber Market is projected to be valued at US$ 18,270.6 million in 2023 and is anticipated to grow at a CAGR of 5.4% from 2023 to 2033.
Rising application coverage of natural rubber as an economical & lightweight material is driving the demand across diverse applications in the construction, automotive, textiles, pharmaceuticals, and defense sectors. By the end of the year 2033, the consumption of natural rubber is projected to reach US$ 30,914.3 million in terms of value.
Attributes
Details
Natural Rubber Market Size (2022)
US$ 17,334.6 million
Market Size 2023
US$ 18,270.6 million
Market Size 2033
US$ 30,914.3 million
Value CAGR (2023 to 2033)
5.4%
Natural rubber is a form of rubber that is made from the isoprene-containing latex of the rubber tree and is categorized as an elastomer. This type of polymer is very elastic, flexible, and impervious to water, abrasion, and electricity. It has numerous uses in insulating materials, adhesives, cement, friction tapes, shock absorbers, and tires for cars and airplanes. As a result of its several applications, this rubber is used in sectors like the automotive, construction, chemical, aerospace, food, textile & footwear, pharmaceutical & medicinal, and oil industries.
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Historic (2017 to 2022) Vs Forecast (2023 to 2033) Market Outlook for Global Natural Rubber
During the historical period of 2017 to 2022, the natural rubber market has witnessed a CAGR of 4.7% and top a valuation of US$ 17,334.6 million by the end of 2022. The global lockdown implemented to curb the effect of COVID-19 caused a decrease in production and consumption level in the major end-users of natural rubbers. However, as per the latest estimates by Future Market Insights, the future growth outlook for natural rubber is anticipated to remain around 5.4% from 2023 to 2033.
Growth in demand is attributed to the growth in various factors like increasing production of automobiles, rising construction activities, high demand for footwear, and an increase in airplane production. Besides, natural rubber is a key raw material used in the manufacturing of a variety of end-use items such as medical equipment, industrial components, surgical gloves, vehicle tires, garments, pacifiers, toys, mattresses, and so on.
Irrespective of characteristic features and several applications, the market is expected to face certain challenges in the coming years, especially from its counterpart synthetic rubber. With the rise in the application of synthetic rubber along with the availability of various types of synthetic rubber, several end users are increasing their purchase quantity of synthetic rubber instead natural ones. This is expected to remain a key challenge for the natural rubber market over the forecast period.
Market Dynamics
Growing production of automotive across the globe will drive the demand for natural rubber
Natural rubber, which has excellent elasticity, flexibility, and resistance to abrasion, is a useful raw material for making vehicle tires, floor mats, window seals, and shock absorbers. Due to technological advancements and the high demand for passenger automobiles, there has been an increase in the volume of natural rubber used in the automotive industry.
For instance, according to the International Organization of Motor Vehicle Manufacturers, 57 million passenger vehicles will be produced worldwide in 2021, up from 55.9 million units in 2020. As the number of passenger vehicles manufactured globally rises, so will the use of natural rubber polymer in making tires and other automotive accessories. As a result, the natural rubber industry will prosper.
Increasing adoption of natural rubber in construction materials to boost sales
The growing global population and rapid rates of urbanization are driving the building and construction industry across the globe. Key players in these sectors also invest the research and development to improve the quality and reduce the cost of the materials. In view of this, natural rubber is proving worthy in the construction industry to provide strength and economic benefits.
For instance, cement is combined with bonding agents composed of natural rubber polymer and isoprene compounds while repairing concrete and plastered surfaces. Rapid growth in residential and commercial development brought on by the increased demand for housing units and infrastructural improvements is anticipated to boost the usage of natural rubber in the construction industry.
Negative impact on health and the environment may hamper the natural rubber market growth
Natural rubber is harmful to latex-allergic people. Natural latex can produce anaphylactic shock, a life-threatening allergic reaction. As a result, natural rubber production consumes a significant amount of water, energy, and chemicals, which, when released as waste and effluents, produce environmental issues such as chemical-containing wastewater and thermal emission.
Natural rubber's negative effects on human health and the environment may limit its use. This could slow the expansion of the global natural rubber business.
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Segment-wise Analysis
Which application segment has high growth prospects for natural rubber?
Footwear application of natural rubber to create lucrative growth prospects in the market
Natural rubber is also quite popular in footwear applications. Using a variety of materials, the segment creates footwear ranging from formal, and casual footwear to technical products such as safety and protective footwear.
The natural rubber has a variety of physical properties that are necessary for the manufacture of shoe soles, including durability, slip resistance, oil resistance, abrasion resistance, tensile resistance, the ability to be molded into various shapes, and tear strength resistance. A rise in footwear production to accommodate a diverse variety of customer tastes may boost natural rubber sector growth throughout the
Which end-use industry is dominating the consumption of natural rubber?
The automotive industry dominates the consumption of natural rubber, owing to the huge demand for mold components
In 2022, the automotive industry accounts for the highest share of the natural rubber market by consumption. The elastic and easy molding properties of rubber are highly favored for producing automotive components like vehicle tires, seats, mats, wiper blades, etc. Owing to the rise in the production of passenger cars, light commercial vehicles and heavy commercial vehicles tire consumption rise to bolster the demand for natural rubber in the coming years.
The automobile industry is expected to grow significantly in the forecast period, owing to the high demand from end users for passenger vehicles and EVs. Natural rubber, which is a key material for the fabrication of various automobile parts, is expected to surge in demand from the automotive sector.
Region-wise Analysis
Which region is leading the global Natural Rubber market by consumption?
South Asia region to lead the global production and consumption of natural rubber
According to the FMI analysis, the South Asia region dominates the global production and consumption of natural rubber. The suitable climate conditions in the region have boosted the growth prospects of the market. Farmers in ASEAN countries prefer high-profit rubber plantations, as a result, the ASEAN countries account for the largest share in the production of natural rubber in south Asia.
However, India and other East Asian countries such as China, Japan, and South Korea are also investing significantly to flourish natural rubber production. The growth in end-use industries like automotive and textiles are creating lucrative opportunities for the natural rubber market across these countries.
How is North America performing in the global Natural Rubber market?
Thriving end-use industries will boost the natural rubber demand across north America
North America is a key region in the global natural rubber market due to its high consumption from end-use industries. The automotive, textile, and chemical industry in the USA is highly developed and competitive. The end users in these domains invest significantly in improving the quality of their products through research-driven innovations.
Thus consumption of natural rubber from these industries has been growing for many years. In the forecast period, the USA is expected to dominate the consumption of natural rubber in North America.
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Market Competition
The Natural Rubbers market is highly competitive in the Asia-Pacific region. This is due to the huge production of latex and natural rubber in the region and the enormous value chains established by the players. Major corporations are also employing a range of corporate growth strategies to broaden their reach on a regional and international level.
Some of the key participants present in the global demand of the Natural Rubbers market include Sri Trang Agro-Industry Public Company Ltd, Southland Rubber Co., Yunnan State Farms Group Co., Num Rubber & Latex Co., Ltd, Ltd, Von Bundit Co., Hua Rubber Public Company Ltd, Halcyon Agri, Ltd, Sinochem Group Co. Ltd., Ltd, Apcotex Industries Ltd., and Firestone Natural Rubber Company, among others.
Recent Developments:
In May 2021, The BMW Group India announced to equip their cars with tires that are made from certified sustainable natural rubber. This step will boost the adoption of natural rubber for tire production.
In April 2022, The Goodyear Tire & Rubber Company today announced a multi-year, multi-million-dollar program supported by the USA Department of Defense (DoD), the Air Force Research Lab (AFRL), and BioMADE to work with Ohio-based Farmed Materials to develop a domestic source of natural rubber from a specific species of dandelion.
Scope of the Report
Attribute
Details
Growth Rate
CAGR of 5.4% from 2023 to 2033
Base Year for Estimation
2022
Historical Data
2017 to 2022
Forecast Period
2023 to 2033
Quantitative Units
Revenue in USD Million, Volume in Tons, and CAGR from 2023 to 2033
Report Coverage
Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis
Segments Covered
Type
End Use Industry
Application
Regions Covered
North America
Latin America
Europe
East Asia
South Asia & Pacific
Middle East and Africa
Key Countries Covered
USA
Canada
Mexico
Brazil
Germany
United Kingdom
France
Italy
Spain
Russia
China
Japan
India
ASIAN
GCC Countries
Australia
Turkey
South Africa
Key Companies Profiled
Sri Trang Agro-Industry Public Company Ltd
Hua Rubber Public Company Ltd
Halcyon Agri
Southland Rubber Co., Ltd
Sinochem Group Co. Ltd.
Num Rubber & Latex Co., Ltd
Yunnan State Farms Group Co., Ltd
Von Bundit Co., Ltd
Apcotex Industries Ltd.
Firestone Natural Rubber Company
Key Segments Profiled in the Natural Rubber Market Report Natural Rubber Market
By Type
Ribbed Smoked Sheet type
Solid Block Rubber type
Concentrated Latex type
Others (e.g Reclaimed Rubber, Crepe Rubber)
By End Use Industry
Chemical Industry
Textile industry
Automotive Industry
Food Industry
Pharmaceutical Industry
By Application
Automotive Components
Surgical Gloves
Conveyor Belts
Foot Wear
Latex Products
Rubber Pipes and other general products
By Region
North America
Latin America
Europe
South Asia & Pacific
East Asia
Middle East & Africa
Frequently Asked Questions
What was the value of the Natural Rubber market in 2022?
In 2022, the value of the global natural rubber market reached over US$ 17,334.6 million.
At what rate is the Global Natural Rubber market projected to expand during the forecast period?
During the forecast period, the global natural rubber market is estimated to expand at a CAGR of 5.4% from 2023 to 2033.
By 2033, what will the value of the Global Natural Rubber market be?
The global natural rubber market is projected to reach US$ 30,914.3 million by the end of 2033.
Which region/country is set to lead the Global Natural Rubber market?
South East Asia is projected to lead the global natural rubber market in the forecast period.
Which are the top players in the Global Natural Rubber market?
The key players operating in the global natural rubber market are Sri Trang Agro-Industry Public Company Ltd, Hua Rubber Public Company Ltd, Halcyon Agri, Southland Rubber Co., Ltd, and Sinochem Group Co. Ltd.
