Natural Rubber Category Intelligence
Report Coverage
- Global Trade Dynamics
- Regional Market Outlook- Thailand, Malaysia, Indonesia
- Cost Structure Analysis
- Price Forecast
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macro-economic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advise
- This report incorporates various trade dynamics from countries such as Thailand, Malaysia, and Indonesia
Natural Rubber Market Overview
The global demand for natural rubber is predicted to grow at a CAGR of 4.8 percent (2019–2023) and the production is set to touch ~17 MMT (Million Metric Tons) by 2022, from the current level of 12.43 million MT. The automobile market is anticipated to increase the demand for natural rubber production in Thailand and Indonesia. On the other hand, the natural rubber market in Malaysia is set to grow due to the rise in latex products such as condoms and gloves.
Natural Rubber Market Analysis & Forecast
- Thailand, with a supply share of 37 percent is estimated to supply 4.65 million MT of natural rubber at a CAGR of 4.5 percent by 2022
- Only 14 percent of natural rubber is consumed domestically in Thailand, but it continues to be one of the most suitable sourcing regions as the area provides good quality rubber with a sufficient supply and low costs
- Asia will continue to be the dominant supplier of NR(Natural Rubber) due to the increase in yielding area and the average yield in top producing countries like Thailand, Malaysia, and India
- Emerging NR producers, such as Ivory Coast, Cambodia, etc., are likely to showcase competition in the future
- Opportunities: Shift of the tire industry toward low-cost production countries is expected to open new avenues of tire growth, thereby increasing the NR market share.
- Challenge: Shortage in supply, post 2020, on account of decrease in plantations post 2014, would pose concerns of limited output in supply
- The natural rubber price forecast shows that with the weakening downstream demand, losses in TOCOCM markets, as well as end of the ITRC export curb scheme; the ongoing supply limitations may curb further declines in prices.
Natural Rubber - Top Manufacturers
- Sri Trang Agro
- Southland Rubber
- Thai Rubber Latex
- Von Bundit
- Halcyon Agri
Methodology for writing this Report
Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.
Natural Rubber Market Trends
Category Intelligence on Natural Rubber covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Want a more detailed personalised report?
Industry Outlook & Drivers
Natural Rubber Global Demand by Application
The major demand drivers, such as automobiles, tires and latex sectors, are expected to witness an optimistic outlook as 2017 progresses
The automobile production rise in developed regions, such as the US and Europe, and improved demand for passenger cars in India, China, Korea, etc.,are expected to support the global Natural Rubber demand. However, decline in auto and tire sales have been witnessed in 2018 and H1 2019.
- Emerging markets, such as China and India, are driving the total tire demand growth, as well as tire production.
- The tire industry is shifting to low-cost production countries.
- Latex products, such as gloves, dipped goods, are predominant in the Southeast Asian market, due to their strong R&D, sufficient supply and quality, like Malaysia and Thailand.
- The latex demand is quite high in Malaysia to meet the rise in demand; being a producer, the region still imports from Thailand.
- Other NR segments portray a modest market share, in terms of demand and growth, compared to other major end uses. These sectors are impacted by technology, economies of scale, efficient operational costs, etc.
- In India, based on the above factors, imported non-tire products are cheaper than domestic products
Natural Rubber Global Market Size
- The NR market is expected to come out of the lackluster market sentiments, portrayed from 2014 to early 2016
- This positive outlook would align with strong support from limited supply concerns, demand from automobiles, tires and latex sectors, and the positive macroeconomic factors, such as rebound in the Chinese manufacturing activity
- The natural rubber industry market size had witnessed a decreasing trend from 2014 to early 2016, due to lack of support from downstream demand from major consumers, such as China, the US, etc
- Prices declined sharply to a 34 percent difference from January 2014 to January 2015
- During the second half of 2016, the industry witnessed a rebound in market sentiments, leading to supply shortages and high prices
- Major demand drivers, such as automobiles, tires, and latex sectors, are expected to witness an optimistic outlook, thereby providing a strong revival market support, in terms of rise in consumption trends
- The NR market witnessed a lack of strong growth catalysts in 2018 to H1 2019, with a decline in sales of automobiles and tires
- Market participants expected a slow recovery in auto demand (amidst changes related to e-vehicles and tariffs). Positive outlook would be supported by the continuously improving demand from latex sector goods, such as gloves, condoms, other dipped goods & industrial durables
- Price hikes from supply crunch and volatility in crude oil prices are expected to impact the market
- This may support TOCOM market shares, rebound in Chinese manufacturing activities, firm boost from the downstream sectors, etc.,as the year progresses
Natural Rubber Market Frequently Asked Questions
- Who are the major players in the natural rubber industry?
- The key players in the global natural rubber market are Thailand with a market share of 37%, Malaysia with a market share of 6%, and Indonesia with a market share of 27%. As it can be seen, Asia dominates the global rubber market.
- What are the latest trends in the natural rubber market?
- According to Beroe’s rubber market analysis report, the market is expected to grow at a CAGR of 4.8%. The rubber industry outlook report also states that the production amount is set to reach 17 MMT (million metric tonnes) by 2020. Moreover, the automobile industry is expected to increase the demand for rubber production in Thailand and Indonesia. The rubber price forecast shows that there may be a decline in prices due to losses in TOCOCM markets as well as the termination of the ITRC export curb scheme.
- What will be the expected growth of the natural rubber industry?
- The global rubber industries are expected to witness a 4.8% growth by 2023.
- What are the key drivers of the natural rubber market?
- The key demand drivers for the global rubber market are tyres and associated products, gloves, condoms, catheters, belts, etc.
