Natural Fiber Composites Market

Natural Fiber Composites Market

The global natural fiber composites market is valued at USD 328 million in 2023 and is projected to reach USD 424 million by 2028, growing at a cagr 5.3% from 2023 to 2028. Significant growth of natural fiber composites in building & construction, automotive, and many other end-use industries is driving the growth of the market across the globe.

Attractive Opportunities in the Natural Fiber Composites Market

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Natural Fiber Composites Market Dynamics

Drivers: Recyclability

Natural fiber composites are renewable and abundant. Contrarily, synthetic fibers, such as glass, carbon, and aramid fibers, are not renewable and face the problem of degradability. Natural fibers as well as thermoplastic matrices, such as polypropylene and polyethylene, are recyclable and easy to dispose of. Natural fibers, especially flax and hemp, are increasingly being used instead of glass and carbon fibers, as they are cheaper and more environmentally friendly than other fibers. Current and impending legislation related to waste management in developed countries are expected to increase the pressure on the automotive industry to address the disposal problems. Landfills are the most commonly used disposal method for composites. However, several countries and organizations would require instilling stringent regulations to solve the problem of waste management of composites through waste minimization, recycling, and reuse.

Restraints: Lack of awareness about various applications of natural fiber composites among end-users in emerging economies of Asia Pacific

Users are unaware of the advantages of using natural fiber composites and their potential to substitute commonly used synthetic products. The natural fiber composites industry needs to create awareness regarding the benefits in terms of improved properties, reduced weight, low maintenance, and longer life. The countries in Asia Pacific, such as China and India, have very low consumption of composites compared with the US and European countries. The Asia Pacific countries have the opportunity to prosper in this market with lower labor costs and widely available raw materials. In Asia Pacific, people are unaware of the potential of natural fiber composite applications. Countries in Asia Pacific also lack regulations associated with environmental protection. Manufacturers should concentrate on raising public awareness to increase the market reach in the existing as well as potential applications of natural fiber composites.

Opportunities: Opportunities in the packaging industry

The global packaging industry accounts for more than 40% of the total plastic consumption. Legislations related to landfilling and recycling prompted by governments of various countries are expected to encourage the use of natural fiber composites in the packaging industry. Natural fiber composites can help the packaging industry by providing additional stiffness and strength and minimizing weight and cost by lowering the polymer content; they are also recyclable. Therefore, they have enormous scope to be used in the packaging industry.

Challenges: Dominance of glass fiber and carbon fiber composites

Glass fiber-reinforced composites still dominate more than 95% of the global composites industry. Therefore, it will be quite challenging for natural fiber composites to increase the market reach in industries such as automotive and building & construction. Moreover, carbon fiber composites are the preferred material in the automotive and sporting goods industries. Alternatively, the use of natural fiber composites in high-performance applications, such as aerospace, marine, and mass transit, is negligible. Standardization in manufacturing processes is required for their increased use in these applications.

Natural Fiber Composites Market Ecosystem

Flax type to account for the largest market share in terms of both value and volume by 2028

Flax type dominated the natural fiber composites market, by type, with a significant market share in terms of value, in 2022. Flax composites are light in weight making them well suitable for wide range of applications in automotive, building & construction, and many other end-use industries. Flax fibers offers inherent mechanical properties, which provide high stiffness and strength to the composites. Flax fibers also have a high tensile strength, enabling the production of load bearing and structurally sound parts.

PP resin type to be the fastest growing tank type of natural fiber composites market

The PP composites segment accounted for a larger share, in terms of value and volume, of the global natural fiber composites market in 2022. These composites are widely used in building & construction, automotive & transportation, and other end-use industries, such as sporting goods and medical. PP-based natural composites do not expand under high-heat and moist conditions, making them suitable for highly corrosive and high-temperature applications.

Asia Pacific is expected to witness the highest CAGR in the natural fiber composites market

The growth of the natural fiber composites market in Asia Pacific is mainly driven by the increasing consumption of natural fiber composites in various industries, such as construction & infrastructure, automotive, and electrical & electronics. The market in these end-use industries is led by countries such as China, India, and Japan. Asia Pacific dominates the global building & construction industry, which finds high growth in this region due to high infrastructural development activities in most countries. Emerging economies, such as China, India, Japan, Malaysia, Indonesia, and South Korea, are investing in large-scale infrastructure projects, building & construction projects, and civil and environmental applications.

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Natural Fiber Composites Market Players

The key players in the global natural fiber composites market are:

• Procotex SA Corporation NV (Belgium)
• Polyvlies Franz Beyer GMBH & Co. KG (Germany)
• Tecnaro GmbH (Germany)
• FlexForm Technologies (US)
• GreenCore Composites Inc. (Canada)
• Jelu-werk Josef Ehrler GmbH Co & Co. KG (Germany)

These companies are involved in adopting various inorganic and organic strategies to increase their foothold in the natural fiber composites industry. The study includes an in-depth competitive analysis of these key players in the natural fiber composites market, with their company profiles, recent developments, and key market strategies. 

Natural Fiber Composites Market Report Scope

This research report categorizes the natural fiber composites market based on material type, tank type, end-use industry, and region.

By Type:

• Flax
• Kenaf
• Hemp
• Others

By Resin Type:

• PP
• PE
• PA
• Others

By Manufacturing Process:

• Compression Molding
• Injection Molding
• Others

By End-use Industry:

• Automotive
• Building & Construction
• Others

By Region:

• Asia Pacific
• North America
• Europe
• Rest of the World

Recent Development

• In June 2022, Tecnaro and JOMA-POLYTEC founded a joint venture, ARBOTRADE GmbH. The venture jointly markets products made of bioplastics for the reforestation of forests. This merger creates a connection with a very high level of added value. TECNARO acts as a material developer and manufacturer and Joma-Polytec as a material processor so that customers can get everything from the raw material to the product from a single source. The joint company, ARBOTRADE GmbH, then takes over the sale of the innovative in-house developments on the market.

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