Global natural rubber production is expected to register a CAGR of 4.3% during the forecast period (2021-2026). The global Covid-19 pandemic has influenced the natural rubber market in many ways.
New York, November 18, 2021 (GLOBE NEWSWIRE) – Reportlinker.com announces the publication of the report “Natural Rubber Market – Growth, Trends, COVID-19 Impact and Forecasts (2021 – 2026)” – https: // www.reportlinker .com / p06184953 /? utm_source = GNW
Due to lockdown restrictions, there are disruptions in the supply of raw materials. The auto industry experienced a slump that affected the rubber industry. Many leading players in the tire industry, such as Michelin, Goodyear and Continental AG, have shut down their operations during the pandemic. The delay in agricultural activities and the collection of latex further aggravated the problem. Restrictions on imports and exports have resulted in significant input shortages. The evolution of world markets has further exhausted the prospect of the industry.
Natural rubber is preferred over synthetic rubber because of its high tensile strength and vibration damping properties, as well as its tear resistance. This makes it important for the construction and automotive industries. The growth of the automotive market in the countries is expected to increase the demand for natural rubber production. Rising demand for latex products, such as catheters, gloves and belts is also a factor that is likely to contribute to the growth of the rubber market.
The increasing demand for natural rubber in China increases the growth of the studied market. China is the world’s largest importer and consumer of natural rubber, consuming about 40.0% of total global production annually. With China being one of the top three car manufacturers in the world, the increasing growth of the automotive industry has resulted in increased demand for raw materials such as natural rubber. Therefore, the increasing demand for latex products coupled with the stable growth of the automotive and construction industry will prove beneficial to the rubber market. Thus, the market is expected to register steady growth during the forecast period.
Key market trends
Growing demand from various industries
The demand for natural rubber is increasing due to its characteristic properties such as adhesion to metals and abrasion resistance which make it suitable for the manufacture of gaskets, tires, etc. The properties of natural rubber such as high tensile strength, vibration damping and tear resistance make it ideal and more preferred than synthetic rubber for its application in the automotive industry and in large constructions.
The largest end user of rubber is the auto parts industry, which uses a massive amount of rubber to make hoses, gaskets, car tires, hoses, and other parts every year. The strong growth of developing economies and the increase in per capita income among consumers in these countries are increasing the demand for automobiles. This, in turn, increases the demand for rubber in these regions. In countries like China, India, Brazil, Indonesia, Malaysia, Vietnam, etc., the growth of industrial and infrastructure industries is on the rise, which is expected to have a positive impact on the rubber market. Asia Pacific is a major rubber market due to the presence of export oriented manufacturing capabilities and strong domestic demand from various end user industries.
Another important sector that contributes to the growing demand for natural rubber is the footwear industry. Natural rubber is used in the manufacture of footwear due to its properties such as durability, slip resistance, tensile strength, etc. The footwear industry uses natural rubber to produce different types of footwear, including casual and formal protective footwear. Hence, the increased applications of natural rubber increase the demand for natural rubber, leading to the growth of the natural rubber market.
Asia-Pacific dominates the market
Natural rubber is a vital agricultural product, which is used for manufacturing in a wide range of industries such as automotive, manufacturing, and medical industries. Thailand, Malaysia and Indonesia are among the major producers of natural rubber. With Thailand being the world’s largest producer, the country produced around 4.84 million metric tons of natural rubber in 2019. About 90% of natural rubber production in Thailand is produced by smallholders, while 10% comes from of estates / large operators. Rubber produced by small farmers is usually sold as field latex, smokeless sheets, cup pieces or crepe blankets and is handled by middlemen, reducing the income of these farmers.
Among the major consumers, with China being one of the top three car manufacturers in the world, the increasing growth of the automotive industry has resulted in increased demand for raw materials such as natural rubber. China is the largest consumer of natural rubber in the world and therefore depends on imports to meet its domestic consumption needs. In addition, during the second quarter of 2021, the consumption of rubber increased despite the slowdown in the manufacturing sector due to the energy crisis in the country. According to the Association of Natural Rubber Producing Countries (ANRPC) quoted in the media, China’s rubber consumption was 507,000 tonnes in August 2021 and 50,000 tonnes in September 2021.
Thailand, Malaysia and Indonesia are among the major natural rubber exporters to China. According to ITC Tradmeap, Chinese imports of natural rubber were valued at $ 3,352,490,000 in 2016, which increased by 0.5% and was valued at $ 3,368,889,000 in 2019.
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