The global natural rubber industry is poised to endure a fifth consecutive year of supply shortages in 2025. Projections indicate that worldwide demand for natural rubber will grow by 1.8%, significantly outpacing the anticipated 0.3% increase in production. This enduring imbalance highlights the mounting challenges faced by leading natural rubber-producing nations, including Thailand, Indonesia, Vietnam, and China.
Natural rubber, esteemed for its durability, elasticity, and versatility, remains an indispensable material across numerous industries, ranging from automotive manufacturing and industrial goods to medical equipment and footwear production. However, adverse climatic conditions have significantly impeded production efforts in recent years. For instance, in Thailand, extreme heatwaves followed by severe flooding have extended periods of low production and curtailed peak yields. Similarly, China has experienced typhoons and heavy rains that have damaged critical rubber-producing regions. Furthermore, economic factors have exacerbated these production challenges. Rising labor costs, limited land availability, and the impact of diseases such as leaf flow disease have prompted many farmers to transition to more profitable crops, including palm oil. Such shifts in agricultural focus, coupled with the declining productivity of aging rubber trees, have further constrained the global supply of natural rubber.
The competition from synthetic rubber, derived from petrochemical sources, remains a significant factor within the market. Nevertheless, the unique properties of natural rubber ensure its continued indispensability for specific applications. Industry experts project that the global rubber market will achieve a valuation of $65.7 billion (€60.3 billion) by 2030, driven by sustained demand across diverse sectors.
The Global Platform for Sustainable Natural Rubber (GPSNR) is actively promoting the adoption of sustainable practices within the industry. By 2025, the organization intends to train 1,000 farmers in Thailand in agroforestry techniques, representing a significant step toward improving the sustainability and viability of natural rubber production.