Natural Rubber Market Expected to Reach $46.8 billion by 2034—Allied Market Research

According to a new report published by Allied Market Research, titled, " Natural Rubber Market by Application, and Region: Opportunity Analysis and industry forecast, 2021–2034”, the natural rubber market size was valued at $27.6 billion in 2021, and is projected to reach $46.8 billion by 2034, registering a CAGR of 4.2% from 2024 to 2033.

Introduction

Natural rubber is a flexible, elastic material derived from the latex of rubber trees. This raw latex is harvested by tapping the trees, allowing the liquid sap to be collected. The sap is then processed through methods such as coagulation and drying to produce rubber sheets or blocks. Natural rubber possesses unique properties such as excellent tensile strength, elasticity, and resistance to wear that makes it ideal for various applications such as tires, industrial products, and medical devices.

Market Dynamics

The shift toward sustainable and eco-friendly materials boosts the demand for natural rubber across various industries. As global awareness of environmental issues grows, consumers and manufacturers increasingly seek materials that have a lower ecological footprint. Natural rubber, derived from the latex of rubber trees, is inherently renewable and biodegradable, making it a favorable alternative to synthetic rubber, which is petroleum-based and poses significant environmental challenges. The increase in emphasis on sustainability in manufacturing processes and product design has led to a surge in the use of natural rubber in applications ranging from automotive tires to footwear, gloves, and various industrial products.

In addition, industries are under pressure to comply with stricter regulations aimed at reducing carbon emissions and minimizing waste. Natural rubber aligns well with these regulatory frameworks, as it aligns well with circular economy strategies, which emphasize that materials are reused and recycled more efficiently. Companies recognize that utilizing natural rubber meets sustainability goals and enhances their brand reputation and appeals to environmentally conscious consumers. This trend is particularly evident in sectors such as automotive and construction, where the demand for eco-friendly materials has become a key differentiator in product offerings. All these factors are expected to drive the growth of the natural rubber market during the forecast period.

However, the growth of the natural rubber market is significantly hampered by the intense competition from synthetic rubber, which has gained a substantial foothold in the market. Synthetic rubber, derived from petrochemical feedstocks, offers several advantages over natural rubber such as lower production costs, consistent quality, and enhanced performance characteristics. As a result, manufacturers are increasingly opting for synthetic alternatives in various applications, particularly in industries such as automotive, footwear, and industrial products. The ability of synthetic rubber to meet specific performance criteria, such as heat resistance, oil resistance, and durability, makes it a preferred choice for many producers. All these factors hamper natural rubber market growth.

The surge in emphasis on sustainability and environmental responsibility has created significant opportunities for the natural rubber market in the development of eco-friendly rubber-based products. Natural rubber, which is a renewable and biodegradable resource, has become a preferable alternative to synthetic rubber as consumers and manufacturers increasingly prioritize environmentally friendly materials. This shift is driven by the desire to reduce reliance on fossil fuels and to mitigate the environmental impact of product disposal. Its unique properties, such as excellent elasticity, resilience, and biodegradability, enable the production of a wide range of sustainable products, including biodegradable tires, eco-friendly footwear, and various industrial applications. All these factors are anticipated to offer new growth opportunities for the natural rubber market during the forecast period.

Segments Overview

The natural rubber market is segmented into application and region. On the basis of application, market is divided into tires, medical gloves, tubes, footwear, straps, rubber covered roller – MRO, rubber tiles, molded rubber product, bonding gum compound, conveyors belts, extruded products, rubberized coir product, rubber bands, latex adhesives, balloons, rubber lining, latex foam, latex thread, condoms, and industrial gloves. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, Latin America, West Africa, and the Rest of the World

Competitive Analysis

The major players operating in the natural rubber market include Sri Trang Agro-Industry Plc, THAI HUA RUBBER PUBLIC COMPANY LIMITED, Southland Holding Company, Sinochem Holdings Corporation Ltd, Bridgestone Corporation, Von Bundit Co., Ltd., Truco, THAI RUBBER LATEX GROUP PUBLIC COMPANY LIMITED, Pro Star Rubber Co., Ltd., and Num Rubber and Latex Co., Ltd.

Key Findings of the Study

• As per natural rubber market analysis, by application, the tires segment was the highest revenue contributor, growing with a CAGR of 3.3%.
• Based on region, the Asia-pacific segment was the highest revenue contributor in 2021.

Key regulations on the Natural Rubber

• Sustainable Natural Rubber Initiative (SNR-i): This initiative aims to promote sustainable practices in natural rubber production. Developed by the United Nations Environment Programme (UNEP) and the International Rubber Study Group (IRSG), SNR-i focuses on improving the social, environmental, and economic aspects of rubber production. It encourages stakeholders to adopt sustainable agricultural practices, protect biodiversity, and ensure fair labor conditions.
• International Organization for Standardization (ISO) Standards: ISO standards apply to natural rubber, covering quality control, environmental management, and safety. For instance, ISO 14001 provides guidelines for establishing an effective environmental management system, while ISO 9001 focuses on quality management systems. These standards help manufacturers ensure that their production processes meet international benchmarks for sustainability and quality.
• Forest Stewardship Council (FSC) Certification: While not exclusive to rubber, FSC certification plays a crucial role in ensuring sustainable forest management practices, which are relevant for rubber plantations. Companies sourcing natural rubber from certified plantations assure consumers of sustainable practices that protect ecosystems and promote responsible forestry.
• Roundtable on Sustainable Palm Oil (RSPO): Similar to the RSPO for palm oil, there are initiatives like the Global Platform for Sustainable Natural Rubber (GPSNR), which promotes sustainable practices within the natural rubber supply chain. These platforms aim to address issues related to deforestation, land use, and social equity in rubber cultivation, encouraging producers to adhere to responsible sourcing practices.
• Regulations on Hazardous Substances: Various regulations, such as the European Union’s Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) and the Toxic Substances Control Act (TSCA) in the U.S., govern the use of chemicals in rubber production. These regulations ensure that harmful substances are controlled and that products made from natural rubber do not pose health risks to consumers.
• National and Local Environmental Regulations: Countries with significant rubber production, such as Thailand, Indonesia, and Malaysia, often have national regulations governing land use, agricultural practices, and environmental protection. These regulations include requirements for land conservation, waste management, and water resource protection, ensuring that rubber cultivation practices align with broader environmental goals.