Natural Fiber Reinforced Composites Market - Forecast(2023 - 2028)

Natural Fiber Reinforced Composite Market Overview

Natural Fibre Reinforced Composites market size is estimated to reach US$ 12.6 billion by 2027 after growing at a CAGR of 10.5% from 2022-2027. Natural fibre reinforced composites are materials that are a combination of natural fibres and composite polymers which specifically uses fibre material. Hence the natural fibre is of two types i.e., wood fibre composite & non-wood fiber composites, while the polymers consist of thermoplastics and thermosets polymers. The basic advantage of natural fibre reinforced composites is that it is eco-friendly since it is bio-based, low-cost, is sustainable and reduce energy consumption. Hence due to such properties, the composites have high industrial application in sectors like automotive, building & construction, aerospace, sportswear etc. The drivers that positively impact the growth of the natural fibre reinforced composites market are an increase in demand for sustainable material by industries, rapid growth in the construction sector and rapid growth of the e-vehicles sector. However, certain composite wood products like plywood create residue waste during their manufacturing process. Hence regulation laid by government organizations like U.S Environment Protection Agency for such residue creation has hampered the demand for wood fibre composite in the wood products industry, thereby negatively impacting the growth of the natural fibre reinforced composites industry.

COVID-19 Impact

The unfavorable effects left by COVID-19 harmed the functionality of various industrial sectors like automobile, building & construction, textile, electronics etc. As there was a lockdown and other social restrictions implemented by governments across the world, so this caused a reduction in productivity of such industrial sector which led to high loss incurring and job cutting. Since natural fibres reinforced composites have various industrial applications in the aerospace & automobile sector, it is used to manage the bodyweight of vehicles and fuel management, in the construction sector, it is used in cement paste, mortar. Hence with the reduction in productivity in such sectors the demand for such natural fibre composites also decreased in them. For instance, as per International Construction and Infrastructure Surveys, the construction and infrastructure activities across all regions went down in Q1 of 2020 with China in the Asia-Pacific region having the sharpest workload contraction, in the North America region, U.S and UK saw the sharpest downturn. Also, the International Organization of Motor Vehicle Manufacturing, in 2020 there was a 16% global decline in vehicles production with all major producing regions like the U.S, Brazil, Germany having a sharp decline of 11% to 44% and Europe saw a drop of 21% on average.

Report Coverage

The report: “Natural Fiber Reinforced Composites Market – Forecast (2022 – 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Natural Fibre Reinforced Composites Industry.

By Fibre Type – Wood Fiber Composites (Hardwood, Softwood), Non-Wood Fibre Composites (Kenaf, Jute, Cotton, Bamboo, Flax, Others (Sisal, Coir, Hemp)
By Polymer Type – Thermoplastics (Polyethylene, Polypropylene, Polyvinyl Chloride), Thermosets (Epoxy, Silicone, Polyurethane, Phenolic, Others)
By End-User – Aerospace, Automotive, Building & Construction, Electrical & Electronics, Sports-wear, 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

• Asia-Pacific dominated the natural fibre reinforced composites market owing to increasing industrial activity in the region. China and India are increasing their  construction activity by issuing new infrastructure projects and also expanding the automobile sector.
• Since natural fibre reinforced composites are environment friendly and are less toxic, their demand in the packaging industry for food packaging is also gaining traction thereby increasing their industrial applicability in that sector. 
• Recent advancements like fibre modification, fibre hybridization and conventional processing technique have added more growth opportunities for the natural fibre reinforced composites market.

Figure: Asia-Pacific Natural Fibre Reinforced Composites Market Revenue, 2021-2027

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Natural Fibre Reinforced Composites Market Segment – By Fibre Type

Wood fibres composites held the largest share in the natural fibre reinforced composites market in 2021, with a share of over 35%. This owns to factor like wood composite fibres are non-abrasive, has low density, high specific strength and besides that these fibres have low cost compared to glass & carbon fibres. With such factors, these fibres are gaining traction in various industries like automotive, furniture, packaging, but they are majorly used in the construction industry as concrete, joists and beams for residential as well as commercial buildings. With the construction sector rapidly advancing and its activity scale is increasing, hence this would positively impact the demand for natural fibre reinforced composites like wood fibres, which would be used as reinforced concrete in buildings. For instance, as per the 2021 report of the U.S Census Bureau, construction activities in the U.S have steadily increased, with residential construction showing an increase of 4.1% in November, up by 1% from 2020 same month. Moreover, as per the December 2021 report of the European Union, building construction increased by 4.6% from last year and civil engineering by 3.3%.

Natural Fibre Reinforced Composite Market Segment – By Polymer Type

Thermoplastics held the largest share in the natural fibre reinforced composites market in 2021 with a share of over 30%. This owns to factor like Polypropylene is a commonly used thermoplastic with natural fibre reinforced composites in industries like packaging, automotive and building & construction. In the automobile sector, it is used for interior lining, and the mixture of polypropylene with natural fibre reinforced composites creates reinforced fibre concrete which is used in the construction sector. For instance, as per the 2020 report of Plastic Europe, Polypropylene was the major polymer used in industries and major users were the packaging industry having 40% share, followed by the construction & automotive industry with 20.4% and 8.8% share. Also, as per the 2019 report of the European Association of Plastic Recycling and Recovery Organization (EPRO), plastic production in Europe was 51.2 million tones with polypropylene with 19.3% share being the primary plastic manufactured. Hence as the production of polypropylene and its demand in sectors like construction, automotive and packaging is rapidly increasing, so this will positively impact the demand for natural fibre reinforced composites as their mixture with polypropylene has high applicability in such sectors.

Natural Fibre Reinforced Composite Market Segment – By End User

The automotive segment held the largest share in the natural fibre reinforced composites market in 2021 with a share of over 40%. This owns to factor like natural fibres like hemp, kenaf, jute etc. are heavily used in making lightweight composites which are used in automotive interior lining like a roof, rear wall, side panel lining. Hence with the rapid development in the automotive sector and increase in production of electric vehicles in major regions, the demand for lightweight natural fibres reinforced composites will also increase as it is used for the interior lining of electric vehicles. For instance, as per the International Organization of Motor Vehicle Manufacturing, the global production volume of vehicles increased to 57 million in 2021 from 52 million in 2020, with Asia accounting for 50% of production. Also, as per European Automobile Manufacturing Association, the production for e-vehicles increased up to 11% in 2020 from 3% in 2019 in the EU, and as per the International Energy Agency, electric car registration increased by 41% in 2020 globally, with China and Europe being the largest electric vehicle market. Hence such an increase in vehicle production and rising demand for electric vehicles will create demand for natural fibre reinforced composites to be used in them.

Natural Fibre Reinforced Composite Market Segment – By Geography

Asia-Pacific held the largest share in the natural fibre reinforced composites market in 2021 with a share of over 45%. This owns to factor like region being a hub to several end-user industries with construction and automotive industries being main ones, moreover, there has been an increase in investment in such sectors. For instance, as per the Indian Brand and Equity Foundation, the automobile sector in India attracted FDI worth US$30.51 billion between April 2000 and June 2021. Also, as per the 2021 report of the European Automobile Manufacturers Association on global vehicle production, China produces the maximum share i.e., 32% of 74 million cars manufactured worldwide while Japan & Korea produced 16%. Also, as per National Investment Promotion & Facilitation Agency, the construction sector in India will grow the third largest globally by 2025, and construction output will grow on an average of 7.1% each year, and infrastructure activities stood at $24.72 between April 2000 and March 2021 Hence as the natural fibre reinforced composites are used in the automotive sector in the interior lining and in as cement paste in the construction sector. Hence the rapid development in the construction & automobile sector in China and India and the automobile sector in Japan & Korea has led to an increase in demand for natural fibre reinforced composites in these sectors in the Asia Pacific region. 

Natural Fibre Reinforced Composites Drivers

Rapid Growth in the construction sector

Emerging economies, rapid urbanization and various infrastructural developments undertaken by countries have increased the scale of construction activity. For instance, as per China Electronic Information Industry Development, the country is expected to spend US$1.4 trillion on new infrastructure projects between 2020-2025, including investments in renewable energy and residential buildings. Also, as per the 2020 report of the Association of Professional Builders, over 1000 residential building companies across the U.S, Canada, Australia, New Zealand experienced growth in their residential construction and renovation business with 46.5% of them signing more contracts worldwide than last year. Since the natural fibre reinforced composites mixed with thermoplastics creates composite concrete which has high tensile strength, shear strength, toughness and energy abruption capacity. Hence with an increase in construction activity, the demand for such sustainable material to be used as concrete has also increased

Increase in industrial demand for sustainable material

Industrial activity is considered one of the major environmental pollutants as the various raw material used in them are toxic as they emit volatile organic compounds. Hence due to rising environmental concern, people have shifted towards green consumerism and various industrial sector has started replacing some of their conventional raw materials with sustainable ones. Hence this has increased the demand for natural fibres in various industrial sectors. For instance, in 2021 automobile companies like Porsche, Tesla, Volvo has started using vegan leather which is 100% made from plants for their interiors. Moreover, in October 2021 fashion brand H&M launched its womenswear, menswear and kidswear clothing item made from a wildflower and plant-based fibres. Hence with the growing awareness and industrial shift towards sustainable materials, the demand for natural fibre reinforced composites will also increase.

Natural Fibre Reinforced Composites Market Challenges

Stringent regulations on wood composite products

Plywood and composites wood products like dry veneer and kilns are prepared by bonding wood material which consists of veneer, strand, wood fibres. Hence manufacturing of such products creates residue relating to methanol, phenol, acrolein etc. Hence to prevent the creation of such residues, certain guidelines have been laid down by government organizations. For instance, in June 2020 the finalized amendments made by U.S Environment Protection Agency to 2004 National Emission Standards for Hazardous Air Pollutants under Plywood and Composite Wood Products category restricts the residue establishment in one or multiple products. Hence such regulations will hamper the demand for natural fibre reinforced composites like wood fibres in the wood products industry.

Natural Fibre Reinforced Composites Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. Some of the major players in this market are as follows:

1. FlexForm Technologies
2. AZEK Company LLC
3. Fiberon Technologies Inc.
4. Trex Company Inc.
5. UPM Biocomposites
6. MoistureShield
7. Polymera Inc
8. Greencore Composites Inc.
9. Weyerhaeuser Company
10. Procotex SA Corporation NV

Recent Developments

In 2021, Bast Fibre Technologies a specialty manufacturer of natural fibres for the global non-woven industry acquired German company Faser Veredlung Tonisvorst. Hence such acquisition would enable the company to increase its natural fibre production capacity. 

In 2021, UPM Biocomposites launched UPM BioMotion Renewable Functional Fillers. Hence such sustainable renewable products would replace fossil-based carbon-black, precipitated silica in rubber & plastic application.

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