Natural Rubber Market Overview
The global demand for natural rubber is predicted to grow at a CAGR of 4.8 % (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.
The natural rubber market witnessed a lack of strong growth catalysts from 2019 to H1 2020, with a decline in sales of auto and tires. Further, the weakness in key downstream automobile and tire operations combined with a downtrend in oil prices and buying momentum due to the COVID-19 crisis, US-China trade war and other macroeconomic factors, demand had waned down in 2020.
Natural Rubber Market Analysis & Forecast
- Thailand, with a supply share of 37%, is estimated to supply 4.65 million MT of natural rubber at a CAGR of 4.5% by 2022.
- Only 14% 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 natural rubber owing to the increase in yielding area and the average yield in top producing countries including Thailand, Malaysia, and India.
- Emerging natural rubber producers, such as Ivory Coast, and Cambodia, among others, 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 natural rubber market share.
- Challenge: Shortage in supply, post-2020, on account of the 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 the 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
Natural Rubber Market Trends
The demand for natural rubber is surging owing to its characteristic properties such as resistance to abrasion and adhesion to metals, making it suitable for manufacturing tyres, seals, and others.
The high vibration dampening, tensile strength, and tear resistance of natural rubber are making it perfect and more preferable over synthetic rubber for its usage in the automobile and construction industries.
Moreover, natural rubber is finding immense use in footwear production given its umpteen slip resistance, durability, and tensile resistance. The footwear sector leverages natural rubber to make various kinds of footwear such as formal, casual, and protective footwear.
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
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, and Korea are expected to support the global natural rubber demand. However, a decline in auto and tire sales has 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 witnessed a lack of strong growth catalysts in 2019 to H1 2020, with a decline in sales of auto and tires.
- The weakness in key downstream automobile and tire operations combined with downtrend in oil prices and buying momentum due to COVID-19, US-China trade war and other macro economic factors, demand had waned down in 2020.
- Asia continues to be the dominant supplier of NR, due to the increase in yielding area, and the average yield in the 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
Natural Rubber Market - Drivers and Constraints
Drivers
High Demand in Industrial Use Cases
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In industrial applications, natural rubber is majorly utilized to produce different material handling equipment including seismic bearings, hoses, elevator belts, and tubes.
Development of New Products
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Reinforced products, including conveyor belts, air-brake diaphragms, and drive belts, are developed from coated or calendered rubber on a stationary or revolving drum.
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When amalgamated with various chemicals and polymers, natural rubber delivers strong results in manufacturing pacemakers, respirators, and surgical supplies.
Constraints
Availability of Alternatives
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The natural rubber industry market size is getting severely affected by the presence of substitutes such as polymers, plastics, and vinyl, which are relatively cheaper and are produced on a large scale across the world.
Why you Should Buy This report
This industry report on the natural rubber market offers quantitative and qualitative insights and a comprehensive assessment of market size and growth rate for all segments. In tandem with this, the research study offers a detailed evaluation of natural rubber price and competitive landscape. Different important data presented in the industry report include market dynamics, ongoing trends, Porter’s Five Forces analysis, macro and microeconomic factors, and company profiles.
