Global Natural Rubber Market: by Application; Country Overview; Value Chain Analysis; Production Process; Cost Structure; Market Dynamics: Drivers & Constraints, Industry Events, Innovations & Trends, SWOT Analysis, Porter’s Five Forces; Industry Best Practices: Sourcing Strategy, Procurement Model, Contract Structure, Negotiation Levers, Pricing Model; Key Supplier Analysis, 2024-2032

Natural Rubber Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Natural Rubber market reached a value of about 15.81 MMT in 2021. The industry is projected to grow at a CAGR of around 4.8% in the forecast period of 2022-2027 to reach a value of about 21.06 MMT by 2027.

The global Natural Rubber industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The market is growing due to the increased application of natural rubber by the automotive sector and the growth and expansion of end-user verticals. In the industry report, the key demand indicator is the highest category spender by region—Asia Pacific.

Industry Definition and Segmentation

Natural rubber, also known as India rubber, is made up of polymers of the organic compound isoprene, with tiny impurities of other chemical compounds. Plants create natural rubber, which is categorised as a polymer. Rubber derived from the latex of the rubber tree is commonly abbreviated as NR. The Natural Rubber industry report comprises segments by application (Tires and Related products, Latex Products, Footwear, Non-Automotive Engineering, Belting, and hose) and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

Asia Pacific Region is Driving the Growth of the Industry

Natural rubber's most significant geographic market is the Asia Pacific. The industry's key supplier markets include Asian nations such as Thailand, Indonesia, and Malaysia. Vietnam is also becoming a vital sourcing area and, in the following years, might become a significant manufacturer in the Asia Pacific region. The automotive parts sector, which utilises a tremendous amount of rubber every year to create pipes, gaskets, automobile tyres, hoses, and other parts, is the largest end-user of rubber. The expansion of industrial and infrastructural industries in countries such as China, India, Brazil, Indonesia, Malaysia, Vietnam, and others is predicted to benefit the rubber industry. Due to export-oriented manufacturing facilities and high domestic demand from diverse end-user sectors, Asia Pacific is a prominent rubber market.

The growing automotive industry is driving the market. The expanding tyre market intends to move production to low-cost producing countries like India, China, and others. This will help them get more consumer demand because it is more cost-effective. The automotive parts sector, which utilises a tremendous amount of rubber every year to create pipes, gaskets, automobile tyres, hoses, and other parts, is the largest end-user of rubber. The vigorous expansion of developing economies and the rising per capita income of consumers in these nations is driving up demand for vehicles. The growing need for latex items, including gloves, belts, catheters, condoms, and other industrial durables, propels the natural rubber industry. Natural rubber's popularity is growing due to its unique features, such as adherence to metals and resilience to abrasion, which make it ideal for building seals, tyres, and other products. Natural rubber's qualities, such as high tensile strength, vibration dampening, and tear resistance, make it suitable and preferable to synthetic rubber in the car industry and significant structures.

However, the availability of replacements such as synthetic rubber is likely to hinder the market's growth.

Best Procurement Practices

The global Natural Rubber industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Natural Rubber regions, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

Rubber manufacturing technically begins with tapping latex sap from rubber trees by tappers. The latex is then cleansed and packaged into drums prior to being processed into sheets. To do this, acid is added to the latex, causing it to cluster together. In a mill, this clumpy fluid can be rolled into sheets, then dried and smoked. The latex sheets are next pure vulcanised, which involves chemical treatment and mild, moderate heating. Companies add acid to latex when it's ready to be manufactured into smoked rubber sheets—the substance clumps due to this. The tramped fluid is rolled into sheets in a mill. This eliminates the water from the sheets, allowing them to be dried and smoked. Latex is finally pure vulcanised. Chemical treatments and low-temperature mild heating are used in the prevulcanization process. Further heating transforms the substance into firm, black rubber.

Various Applications of the Product, Further Driving the Procurement of Natural Rubber

The market is growing due to the rising popularity of rubber-based surgical supplies, respirators, and pacemakers. Furthermore, the increased use of sustainable methods for getting natural rubber with zero or low deforestation and resource waste boosts the market's growth. An increase in the demand for organically made rubber goods due to rising crude oil prices would provide even more attractive and remunerative business prospects. Another significant contributor to the rising demand for natural rubber is the footwear industry. Natural rubber is utilised in footwear production because of its characteristics such as durability, slip resistance, and tensile resistance. Natural rubber is used in the footwear industry to make a variety of footwear, including casual, formal, and protective footwear. Other factors, such as increased industrialisation, particularly in emerging markets, and rising consumer spending power, propel the industry forward.

The regional markets for the industry can be divided into Europe, North America, the Asia Pacific, South America, and the Middle East and Africa.

Key Industry Players Mentioned in the Natural Rubber Industry Report

• Sri Trang Agro-Industry Public Company Limited
• Thai Rubber Latex Corporation
• Von Bundit Co., Ltd.
• Halcyon Agri Corporation Limited
• Kuala Lumpur Kepong Berhad

Market Landscape

By distribution channel, the online distribution channel is expected to grow at a fast pace as this mode of distribution has the advantage of providing a broader exposure to the manufacturers' products, especially with the proliferation of smart devices and internet connectivity. Furthermore, synthetic rubber is predicted to create the most income in numerous applications such as tyres, footwear, and industrial items due to its better features such as abrasion resistance, elasticity, and toughness. Also, the tyre industry is expected to grow at a high rate.

Key Initiatives by Companies

• In 2021, Sri Trang Agro-Industry Plc reported a record profit. Natural rubber sales are expected to rise to 1.6 million tonnes this year, up more than 20% from last year's total. Market expansion in Thailand and abroad, an upswing in the worldwide natural rubber sector, and the firm's continuing development of production capacity throughout all quarters are all contributing elements to the sales forecast.
• Von Bundit joined IRSG in 2017. In the previous several months, it has become the third NR firm to join the IRSG. In March, Southland Global, a Singapore-based subsidiary of Thailand's Southland Rubber Group, became an IRSG associate member. NOCIL, India's largest chemical company, joined in April.