Natural Fiber Reinforcement Materials Market Expected to Reach $694.64 Million by 2030—Allied Market Research

According to a new report published by Allied Market Research, titled, “Natural Fiber Reinforcement Materials Market," The natural fiber reinforcement materials market was valued at $360.97 million in 2020, and is estimated to reach $694.64 million by 2030, growing at a CAGR of 6.81% from 2021 to 2030.

Natural fiber reinforced composites are composite materials, in which at least one fiber is derived from renewable and carbon dioxide neutral resources, such as wood and plants. Natural fibers, being bio-based, have several advantages such as, eco-friendly in nature, easy to dispose, non-toxicity, light weight, and many others as compared to other synthetic fibers.

Growth of the natural fiber reinforcement materials market is driven by the rise in demand for natural fiber reinforcement materials from the automotive industry, its environment-friendly nature, and stringent regulations against the use of pollution causing synthetic materials. Furthermore, increase in awareness among the people in regards with the environmental protection also fuels the growth of the natural fiber reinforcement materials market. The Kenaf fiber segment has the major market share in 2020 as it offers many added advantages in terms of low density with higher specific strength and stiffness. Also, it benefits in terms of low hazard during the manufacturing processes and low emissions of toxic fumes when subject to heat. Moreover, it also reciprocates oxygen to the environment, is a renewable fiber source, and has the benefit of lower production costs.

The rapid urbanization and industrialization led to increase in the building & construction activities across the globe, especially in the developing countries such as India, China, and Brazil. The Indian government policies to invest in the development of smart cities and infrastructure related to transportation to improve the economic standards of the country have provided lucrative opportunities for the growth of the market. The increase in income and spending power individuals in the developing countries have led to vast change in their life style activities, which led to increase in demand for various consumer goods. The above mentioned factors are expected to drive the growth of the natural fiber reinforcement materials market during the forecast period.

Factors such as, low strength as compared to synthetic fibers and fluctuation in raw material prices are expected to hamper the market growth. Furthermore, increase in applications of natural fiber in the construction and packaging sectors is creating several lucrative opportunities for growth in the natural fiber reinforcement materials market.

The natural fiber reinforcement materials market is segmented on type, end-use industry, and region.

By type, it is divided into hemp, flax, kenaf, jute, and others (coir, abaca, sisal). On the basis of end-use industry, it is segmented into transportation, building & construction and consumer goods & others. By geography, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Europe region accounted for largest market share of the total revenue in 2020, followed by North America and Asia-Pacific. The high adoption of natural fiber products in the region would continue to bolster the natural fiber reinforcement materials market size, due to the presence of huge population base, increasing investment in the construction & transportation projects, and presence of many developing countries in this region.

The key players operating in the global natural fiber reinforcement materials market are AgroFiber SAS, Bast Fiber LLC., Greene Natural Fibers LLC., Procotex Corporation, Hempflax BV, Saneco S.A., Hempline Inc., Schweitzer-Mauduit International, Inc., Kenaf Industries of South Texas, and NFC Fibers GmbH. Other major natural fiber reinforcement materials players in the natural fibers market (not included in the report) such as EUCHORA S.R.L., Badische Naturfaseraufbereitung GmbH, Tenbro, Wilhem G. Clasen, FlaxStalk Natural Fiber Solutions, Fiberon LLC., Tecnaro, FlexForm Technologies, Greencore Composites, and Greengran B.V. are competing for the share of the market through product launch, joint venture, partnership, and expanding the production capabilities to meet the future demand for the natural fiber reinforcement materials market in the forecast period.

Key findings of the study

• By region, Europe holds a dominant position in 2020 and would continue to maintain the lead over the forecast period.
• By type, the flax segment is projected to create abundant revenue opportunity till 2030.
• By end-use industry, transportation segment is expected to possess highest market share throughout the forecast period.

IMPACT OF COVID-19 ON GLOBAL NATURAL FIBER REINFORCEMENT MATERIALS MARKET

• Emergence of COVID-19 had less impact on growth of the global natural fiber reinforcement materials market during the pandemic outbreak period.
• This impact is mostly attributed to significant disruptions in the raw material transportation, unavailability of labor, shutdown of many manufacturing industries.
• The decrease in demand for many non-essential products and shut down of manufacturing industries created a negative impact on the growth of the global natural fiber reinforcement materials market.