Natural Rubber Market - Forecast(2023 - 2028)

Natural Rubber Market Overview

The Natural Rubber Market size is estimated to reach US$21.4 billion by 2027 after growing at a CAGR of around 6.2% from 2022 to 2027. Natural rubber is a type of rubber which is extracted from the latex of rubber tree and consists of organic compound like isoprene, which is classified as elastomers. Such polymer has high elasticity, flexibility, resistance to water, abrasion and electricity. It has various applications across automotive & aircraft tyres, shock absorbers, adhesives, cement, friction tapes and insulation materials. Hence, due to such high applicability, natural rubber is used in sectors like automotive, construction, aerospace, textile & footwear, medical and oil industry. Factors like growing production of automotive, increase in construction activities, high consumption of footwear and increase in aircraft production are driving Natural Rubber Markett growth. However, serious health and environment issues caused by natural rubber can limit its production volume. This can hamper the growth of global natural rubber industry.

COVID-19 Impact

Natural rubber has due to its rich chemical properties and high elastic nature is majorly used in sectors like automotive, construction and footwear. In automotive sector it is used to make tires & rubber mats, in construction sector it is used in cements & adhesives while in footwear sectors it is used to make shoe soles. 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. For instance, according to International Organization of Motor Vehicle Manufacturer, in 2020, global vehicle production was 77.7 million showing 15.6% decrease compared to 92.1 million units made in 2019. Also, according to Office for National Statistics, in 2020, total new work construction output decreased by 16.3% with percentage reduction of 17.2% in public construction and 16% in private construction. Further, according to World Footwear Yearbook released by Portuguese Footwear Association, in 2020, global footwear production fell by 15.8% while exports fell by 19% compared to 2019. Such decrease in productivity of automotive, construction and footwear sector reduced the usage of natural rubber in them, resulting a negative impact on growth of global natural rubber industry.

Report Coverage

The report: “Natural Rubber Market Report – Forecast (2022 – 2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Natural Rubber industry.

By Form – Sheets, Creeps, Block Rubber, Preserved Latex Concentrates, and Others.
By Grade – Technically Specified, Ribbed Smoked Sheets, Thick Pale Creep, and Others.
By Application – Adhesives, Cement, Friction Tapes, Tires, Conveyor Belts, Insulation Material, Shoe Sole, Shock Absorbers, Cables, and Others.
By End Use Industry – Automotive (Passenger Vehicles, Light Commercial Vehicles, and Heavy Commercial Vehicles), Construction (Residential, Commercial, and Industrial), Aerospace (Commercial Aviation, General Aviation, and Military Aviation), Medical, Electronic & Electrical, Footwear, Printing, Oil & Gas, and Others.
By Geography - North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle East, Africa)

Key Takeaways

Figure: Asia-Pacific Natural Rubber Market 2021-2027 (US$ Billion)

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Natural Rubber Market Segment Analysis – By Grade

Technically specified rubber held a significant share in Natural Rubber Market in 2021 with a share of over 36%. Technically specified rubber is light and soft rubber derived from latex of rubber tree and have rich chemical properties. Such rubber is majorly used for making automotive & aircraft tires and construction cement. Rapid development in these sectors has positively impacted the usage of natural rubber in them. For instance, according to European Automobile Manufacturer Association, from January to April 2021, EU demand for passenger cars increased by 24.4% to reach 3.4 million units registered in total. Also, according to General Aviation Manufacturer Association, in 2021, total airplane shipment was 2,630 units compared to 2,408 units in 2020 showing 9.2% increase. Further, according to Canada Mortgage and Housing Corporation, in Q4 of 2021, housing construction increased to 68,958 units compared to 63,741 units in Q4 of 2020 showing 8.1% increase. Increase in production level of automotive, aerospace and construction sector will demand more usage of natural rubber in them, resulting positive growth of global natural rubber industry.

Natural Rubber Market Segment Analysis – By End Use Industry

Automotive sector held a significant share in Natural Rubber Market in 2021 with a share of over 21%. Natural rubber containing isoprene compound has rich elasticity can be molded in different shapes and sizes. Hence, due to high elasticity and flexibility, natural rubber is used to manufacture tire for different vehicles types such as passengers and light commercials vehicles. Moreover, besides tire making, natural rubber is also used in making window sealant, automotive mat, engine mounts and wiper blades. The growing advancements in automotive and high demand for new vehicles has increased the productivity of automotive sector. For instance, according to International Organization of Motor Vehicle Manufacturer, in 2021, global production volume of light commercial vehicle was 18.6 million units compared to 17.2 million units in 2020, showing 8% increase. Further, according to European Automobile Manufacturer Association, in March 2021, new passenger car registration in EU increased by 87.3% with 1,062,446 new cars being sold, compared to 567,253 sold during the same month in 2020. The increase in production and consumption of passenger and light commercial vehicles will create more usage of natural rubber in automotive sector for tire other accessories making. This will positively impact the growth of global natural rubber industry.

Natural Rubber Market Segment Analysis – By Geography

Asia-Pacific held the largest share in Natural Rubber Market in 2021 with a share of over 35%. The region consists of major end user countries of natural rubber such as China and India as such economies have well established automotive, footwear and construction sector. Hence the economic development in these nations has increased their industrial level of production and consumption. For instance, according to International Organization of Motor Vehicle Manufacturer, in 2021, from 80.1 million units globally produced, Asia held 50% share with China producing 26 million units and India 4.4 million units. Also, according to World Footwear Yearbook published by Portuguese Footwear Association, in 2020, China held the leading share of 20.8% in global footwear consumption followed by India with 10.6% share. Further, according to China’s National Bureau of Statistics, in Q2 of 2021, construction sector of China registered growth of 1.8% while its cumulative growth was 8.6% in first half of 2021. Rapid increase in automotive, footwear and construction sector will demand more usage of natural rubber for making automotive tires, cement and shoe sole. This will boost the growth of global natural rubber industry.

Natural Rubber Market Drivers

Growing Production of Automotive

Natural rubber polymer has high elasticity, flexibility and resistance to abrasion makes it an efficient raw material for making automotive tires, floor mat, window sealants and shock absorbers. The increase in production volume of automotive on account of growing advancements and high demand for passenger vehicles, has positively impacted the usage of natural rubber in automotive industry. For instance, according to International Organization of Motor Vehicle Manufacturer, in 2021, global production volume of passenger vehicles was 57 million units showing 2% increase compared to 55.9 million units made in 2020. Such increase in global production volume of passenger vehicles will increase the usage of natural rubber polymer for making tires and other automotive accessories. This will boost global natural rubber industry growth.

Increase in Construction Activities

Natural rubber polymer consisting of isoprene compounds is used for preparing bonding agents which are added to cement for repairing concrete and plastered surfaces. The rapid increase in residential and commercial construction on account of high demand for residential units and infrastructure developments has positively impacted the usage of natural rubber in construction sector. For instance, according to Germany’s Federal Statistical Office, in January 2022, the construction of 29,951 dwelling was permitted in Germany, showing an increase of 8.3% compared to 2021 same month. Also, according to Eurostat, in October 2021, building construction in EU increased by 4.6% while civil construction showed an increase of 3.3%. Such increase in residential and commercial construction will lead to more usage of natural rubber in cements and plasticizers. This will boost the growth of global natural rubber industry.

Natural Rubber Market Challenge

Negative Impact on Health and Environment

Natural rubber proves to be harmful to people who have serious latex allergy. Exposure to natural latex can cause anaphylactic shock which is a serious allergic reaction that can cause death. Hence, besides health impact, natural rubber processing consumes large volume of water, energy and chemicals which when discharges as waste and effluents creates environmental issues like wastewater containing chemicals and thermal emission. Such negative effects of natural rubber on health and environment can limit the its production volume. This can hamper the growth of global natural rubber industry.

Global Natural Rubber Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In the Natural Rubber Market report, the global natural rubber top 10 companies are:

1. Sinochem Corporation
2. Sri Tang-Agro Industry
3. China Hainan Rubber
4. Von Bundit
5. Thai Rubber Latex Group
6. Hanna Rubber Company
7. American Phoenix Inc.
8. Cooper Standard ISG
9. Halcyon Agri Corporation Limited
10. Southland Rubber Group

Recent Developments

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