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
- Asia-Pacific dominates global natural rubber industry as the region consists of major natural rubber producing countries like Thailand, Malaysia and Indonesia along with countries like China & India which are major users of natural rubber.
- Natural rubber derived from latex of rubber tree is an excellent insulator due to which it is also used to manufacture handle covers of different tools and equipment used in industries and households.
- The relative gas impermeably of natural rubber polymer makes it useful in the manufacturing of articles such as air hoses and shock absorbers for specialized machinery designed to reduce vibration.
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:
- Sinochem Corporation
- Sri Tang-Agro Industry
- China Hainan Rubber
- Von Bundit
- Thai Rubber Latex Group
- Hanna Rubber Company
- American Phoenix Inc.
- Cooper Standard ISG
- Halcyon Agri Corporation Limited
- Southland Rubber Group
Recent Developments
- In 2021, GRT Rubber Technologies a leading manufacturer of engineered rubber acquired Valley Rubber a manufacturer of custom rubber solutions for tough mining and industrial applications.
- In 2021, Goodyear Tire & Rubber Company merged with Cooper Tire & Rubber Company and the combination will unite two leading tire companies with complementary product portfolios, services and capabilities to create a stronger U.S.-based leader in the global tire industry.
- In 2021, Reebok launched a new range of running shoes Reebok Floatride Energy GROW which is a high-performance running show made from eucalyptus, bloom algae and natural rubber.
Relevant Reports
Industrial Rubber Products Market – Forecast (2022 - 2027)
Report Code – CMR 0416
Synthetic Rubber Market - Industry Analysis, Market Size, Share, Trends,
Application Analysis, Growth and Forecast 2022 - 2027
Report Code – CMR 48561
Rubber Additives Market – Forecast (2022 - 2027)
Report Code – CMR 0149
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LIST OF TABLES
1.Global Natural Rubber Market, by Type Market 2023-2030 ($M)2.Global Natural Rubber Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
3.Global Natural Rubber Market, by Type Market 2023-2030 (Volume/Units)
4.Global Natural Rubber Market Analysis and Forecast by Type and Application Market 2023-2030 (Volume/Units)
5.North America Natural Rubber Market, by Type Market 2023-2030 ($M)
6.North America Natural Rubber Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
7.South America Natural Rubber Market, by Type Market 2023-2030 ($M)
8.South America Natural Rubber Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
9.Europe Natural Rubber Market, by Type Market 2023-2030 ($M)
10.Europe Natural Rubber Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
11.APAC Natural Rubber Market, by Type Market 2023-2030 ($M)
12.APAC Natural Rubber Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
13.MENA Natural Rubber Market, by Type Market 2023-2030 ($M)
14.MENA Natural Rubber Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
LIST OF FIGURES
1.US Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)2.Canada Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
3.Mexico Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
4.Brazil Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
5.Argentina Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
6.Peru Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
7.Colombia Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
8.Chile Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
9.Rest of South America Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
10.UK Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
11.Germany Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
12.France Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
13.Italy Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
14.Spain Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
15.Rest of Europe Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
16.China Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
17.India Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
18.Japan Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
19.South Korea Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
20.South Africa Global Natural Rubber Industry Market Revenue, 2023-2030 ($M)
21.North America Global Natural Rubber Industry By Application
22.South America Global Natural Rubber Industry By Application
23.Europe Global Natural Rubber Industry By Application
24.APAC Global Natural Rubber Industry By Application
25.MENA Global Natural Rubber Industry By Application