Natural Rubber Market

Global Natural Rubber Market Size (2024 to 2029)

The global natural rubber market is expected to grow at a CAGR of 4.55% CAGR from 2024 to 2029 and the global market size is anticipated to be worth USD 22.53 billion by 2029 from USD 18.03 billion in 2024.

Current Scenario of the Global Natural Rubber Market

Rubber is essential to the global economy, having important uses in the automotive, consumer products, manufacturing, and medical industries.

Natural rubber is harvested from the rubber trees, processed in a crushing plant, then washed (removal of leaves, insects, dirt, etc.), mixed (to ensure consistency), dried, and pre-packaged to sell as leaves. The automotive industry (tires and tubes) is the main segment that consumes the most natural rubber. Rubber markets have historically been concentrated in the Asia-Pacific region and industry players produce and export to other countries, either as raw materials or as manufactured products. Natural rubber competes for demand with synthetic rubber due to its substitutability feature.

MARKET DRIVERS

Key factors propelling the natural rubber market growth include increased demand and use of medical gloves, especially in emerging countries, increased usage in the auto industries of natural rubber, and growth and development of vertical end-user markets.

An increasing demand for natural rubber for end-use applications is further driving the global market growth. The growing demand for natural rubber products, such as latex gloves and condoms, is the main cause of the growth rate of the natural rubber market. The increasing demand for naturally formulated rubber products due to an increase in the price of crude oil will create even more lucrative and rewarding growth opportunities for the natural rubber market. The increasing industrialization and the growing demand for natural rubber products due to the boom in the automotive industry will lead to further growth in the demand for the natural rubber market. The increased use of natural rubber in the Asia Pacific will also be an important determinant of the growth of the natural rubber market.

There is an increasing demand from various end-use industries for natural rubber products, which is driving the growth of the market. Rubber is mainly used as a raw material in the final automotive industry to produce a wide variety of products, such as tires, garbage tubes, adhesives, hoses, pipes, gaskets, and coatings. The growing demand for auto parts with and without tires is expected to influence the market growth. In addition, it is used in various applications such as footwear, industrial products, construction, textiles, and other consumer products. The fusion of rubber in the shoes protects water, chemicals, electricity, shock, and low temperatures. It is also used in a variety of consumer products, such as protective covers, and floor mats. The increasing use of textiles and industrial products is expected to be a driving force behind the growth of the natural rubber market.

MARKET RESTRAINTS

The availability of alternatives with better performance indicators hinders the adoption of the product. The market share is gaining ground thanks to the demand of industries such as automotive, consumer goods, clothing, and footwear, but faces considerable competition from materials such as polymers, plastics, and vinyl. Polymeric plastics are generally inexpensive as they are produced in massive quantities all over the world. In addition, polymers like PET, PP, and ABS have better capabilities like elasticity, stiffness, slip resistance, and durability, making them superior alternatives. In automotive and industrial applications, items such as hoses, gaskets, and pipes are preferably made of plastic and substantially substitute for rubbers. Another substitute material used to make products in place of rubber is vinyl or polyvinyl chloride (PVC). The availability of better and cheaper options other than rubber is hampering the growth of the market.

Impact of COVID-19 on the global natural rubber market

The COVID-19 pandemic has affected the market in the same way as many disrupted industries across the world. Rubber is mainly used in the automotive industry for the manufacture of tires and various components. During this pandemic, several countries, including China, India, Germany, Italy, Brazil, and Canada, have declared a total lockdown. This also resulted in the closure of production facilities and the transportation of raw materials. This epidemic has severely affected the supply chain of many manufacturing units. Since then, both the supply of raw materials and the distribution of finished products have been severely affected, causing a massive drop in income. China is a large consumer of materials and an epicenter of the coronavirus, thus inhibiting the development of the market. Restrictions on the export and import of products such as tires, and general and industrial goods act as a downward factor in the market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Natural Rubber Market By Type

Based on type, the synthetic rubber segment is expected to hold the major share of the global market during the forecast period. Due to its excellent characteristics, including abrasion resistance, high heat resistance, elasticity, and toughness, the demand for synthetic rubber is increasing in different applications such as tires, footwear, and industrial items. These properties have caused many consumers to switch from natural rubber to synthetic rubber for a wide range of commercial uses.

Global Natural Rubber Market By Application

Based on the application, the tire segment is expected to exhibit a significant CAGR in the global market during the forecast period. Rubber is in high demand among tire manufacturers due to its crucial properties, namely abrasion resistance, tear resistance, and flexibility. The tire segment would claim to hold the largest share of the rubber market due to the increase in tire production in various regions. This increase in production is associated with the growing demand for tires from the automotive industry.

KEY MARKET PLAYERS

Companies playing a key role in the global natural rubber market include Bridgestone, Sinochem Group, Ravasco, PetroChina, Thaitex, Halcyon Agri, Southland Rubber, Apcotex Industries Ltd., Sri Trang Agro-Industry, Firestone Natural Rubber Company, Von Bundit and Michelin.

RECENT HAPPENINGS IN THE MARKET

• In 2021, to establish leadership in the synthetic rubber sector Kumho Polychemical was entirely purchased by Kumho Petrochemical.
• In 2019, Trinseo finalized the acquisition of latex production facilities and related infrastructure of Dow in Germany.

DETAILED SEGMENTATION OF THE GLOBAL NATURAL RUBBER MARKET INCLUDED IN THIS REPORT

This research report on the global natural rubber market has been segmented and sub-segmented based on type, application, and region.

By Type

• RSS Grade
• Latex Concentrate
• Solid Block Rubber
• Others   

By Application

• Auto-tires sector 
• Gloves     
• Footwear
• Latex products     
• Others     

By Region

• North America
• Europe 
• Asia Pacific 
• Latin America
• Middle East and Africa