Natural Fiber Composites Market 2022- 2028|Size and Share Analysis

Natural Fiber Composites Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Raw Material (Wood, Cotton, Flax, Kenaf, Hemp, and Others), Technology (Injection Molding, Compression Molding, Pultrusion, and Others), and End User (Automotive & Aerospace, Building & Construction, Electrical & Electronics, Sporting Goods, and Others)

Publication Month : Mar 2023

  • Report Code : TIPRE00003924
  • Category : Chemicals and Materials
  • Status : Published
  • No. of Pages : 209
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The natural fiber composites market is expected to grow from US$ 4,438.83 million in 2022 to US$ 6,910.46 million by 2028; it is estimated to register a CAGR of 7.7% from 2022 to 2028.

Natural fiber composites are composite materials with a polymer matrix embedded with high-strength natural fibers. Natural fibers are used as a component of composite materials, where the orientation of fibers impacts the properties. In composite materials, natural fibers often refer to plant fibers extracted from lignocellulosic biomass such as wood fibers and other plant fibers from the stem, leaf, fruit, and seed.     

The demand for fiber-reinforced (glass and carbon fibers) composites is relatively high. However, they are expensive and are not environmentally friendly. These fibers are nonrenewable and nonrecyclable. Many European Union and Asian countries have introduced regulations for the automotive industry. According to European Union legislation passed in 2006, 80% of vehicles should be reused or recycled; in the 2015 revision, this percentage rose to 85%. According to a 2015 regulation in Japan, 95% of vehicles should be reused or recycled. Moreover, drawbacks such as high fiber density, poor recyclability, and handling hazards limit the use of glass fiber composites. These drawbacks of glass fiber composites boost the demand for natural fiber composites.

The natural fiber composites market is segmented into five major regions—North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. In 2022, Europe held the largest market share, and Asia Pacific is estimated to register the highest CAGR during the forecast period. High demand for natural fiber composites from the automotive and construction industries favors the growth of the European natural fiber composites market. Further, Asia Pacific, the most populated region in the world, hosts one of the world's most rapidly developing construction and automotive industries. This factor contributes to the high demand for natural fiber composites in the region.

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Natural Fiber Composites Market: Strategic Insights

natural-fiber-composites-market
Market Size Value inUS$ 4,438.83 million in 2022
Market Size Value byUS$ 6,910.46 million by 2028
Growth rateCAGR of 7.7% from 2022 to 2028
Forecast Period2022-2028
Base Year2022
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Impact of COVID-19 Pandemic on Natural Fiber Composites Market

Before the COVID-19 pandemic, the natural fiber composites market was mainly driven by industries such as automotive, building & construction, sporting goods, and marine. In 2020, various industries had to slow down their operations due to disruptions in supply chains caused by the shutdown of national and international borders. The pandemic hampered manufacturing processes due to restrictions imposed by government authorities in various countries. Natural fiber reinforced composites have major applications in the aerospace and automobile industries, wherein they are used to manage the body weight of vehicles and fuel management. It is used in cement paste and mortar in the construction sector. Hence, with the reduction in activity in these sectors, the demand for natural fiber composites also decreased. The pandemic also caused fluctuations in the prices of raw materials. All these factors led to a decrease in demand for natural fiber composites.  

However, in 2021, the economies started reviving as various industries resumed business activities. As a result, several industries, including automotive and building & construction, showed signs of recovery in their operations. Various industries are also overcoming the consequences of disruptions in their raw material supply chains. With such a promising recovery, the global industrial sector is expected to provide the impetus for the natural fiber composites market growth in the coming years.

Natural Fiber Composites Market Breakdown, by Region

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Market Insights

Strategic Developments by Key Players Favor Natural Fiber Composites Market Growth

In July 2022, BMW Group, the premium carmaker's venture capital firm, invested in a Swiss clean tech company Bcomp Ltd, a manufacturer of high-performance components made from natural fibers. Such strategic developments by key players are expected to bolster the natural fiber composites market growth in the coming years. In addition, key market players are involved in strategies such as mergers and acquisitions to expand their geographic presence.

Raw Material-Based Insights

Based on raw material, the natural fiber composites market is segmented into the wood, cotton, flax, kenaf, hemp, and others. The hemp segment is expected to register the highest CAGR during the forecast period. Hemp fibers are found in the stem of the plant, making them strong. They are essential for the fortification of composite materials. With the surging demand for sustainable, biodegradable, and recyclable materials, the use of hemp fibers as support in composite materials has increased. Natural fiber composites made from hemp are biodegradable.

Natural Fiber Composites Market, by Raw Material – 2022 and 2028

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End User-Based Insights

Based on end user, the natural fiber composites market is divided into automotive & aerospace, building & construction, electrical & electronics, sporting goods, and others. The automotive & aerospace segment dominated the market in 2022. Natural fiber composites are widely used in fabricating electric car components because of their lightweight qualities. Due to their better stiffness and strength compared to other synthetic fibers and better acoustic insulation properties, these composites are also employed in vehicle door panels, seat backs, floor panels, underfloor pans, and trunk liners.

UPM-Kymmene Corp, Flexform Technologies LLC, Polyvlies Franz Beyer GmbH, Amorim Cork Composites SA, Tecnaro GmbH, Lanxess AG, Bcomp Ltd, Cobra Advanced Composites Co Ltd, Plasthill Oy Ltd, and Lingrove Inc are among the major players operating in the natural fiber composites market. These companies mainly focus on product innovation to expand their market share and follow emerging market trends.

Report Spotlights

  • Progressive industry trends in the natural fiber composites market to help companies develop effective long-term strategies
  • Business growth strategies adopted by market players in developed and developing countries
  • Quantitative analysis of the natural fiber composites market from 2020 to 2028
  • Estimation of global demand for natural fiber composites
  • Porter's Five Forces analysis to illustrate the efficacy of buyers and suppliers operating in the natural fiber composites industry
  • Recent developments to understand the competitive market scenario
  • Market trends and outlook, as well as factors driving and restraining the growth of the natural fiber composites market
  • Assistance in the decision-making process by highlighting market strategies that underpin commercial interest
  • Size of the natural fiber composites market at various nodes
  • Detailed overview and segmentation of the market and growth dynamics of the natural fiber composites industry
  • Size of the natural fiber composites market in various regions with promising growth opportunities
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Raw Material , Technology, and End User

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions


Can you list some of the major players operating in the global natural fiber composites market?

The major players operating in the natural fiber composites market are UPM-Kymmene Corp, Flexform Technologies LLC, Polyvlies Franz Beyer GmbH, Amorim Cork Composites SA, Tecnaro GmbH, Lanxess AG, Bcomp Ltd, Cobra Advanced Composites Co Ltd, Plasthill Oy Ltd, and Lingrove Inc.

In 2022, which region held the largest share of the global natural fiber composites market?

In 2022, Europe accounted for the largest share of the global natural fiber composites market. The natural fiber composites market growth in this region is attributed to the high use of these materials in the automotive, aerospace, building & construction industries, among others. The construction sector in Europe has consistently expanded due to the rising population. Also, rapid shifts in the remodeling business trends, such as remodeling for accessibility, customizations, and technological integrations, are likely to fuel construction sector. All these factors led to the dominance of Europe region in 2022.

In 2022, which raw material segment accounted for the largest share in the natural fiber composites market?

In 2022, the wood segment held the largest market share. Manufacturing wood fiber that is used to manufacture hardboard and insulation board is similar to that of MDF fiber. Wood contains polymers such as cellulose, lignin, and various hemicelluloses that have very different properties than synthetic polymers with which they are most often combined. Wood is stiffer, less expensive, and stronger than these synthetic polymers, making it a useful filler or reinforcement. These factors contribute to the dominance of the wood segment in the natural fiber composites market in 2022.

Which technology segment is expected to account for the fastest growth in the global natural fiber composites market?

During the forecast period, the injection molding segment is expected to register highest CAGR. The injection molding process is a popular manufacturing method for mass production. Although the reinforcement fiber degrades during the process, high processability is a key factor that triggers the popularity of injection molding. Increasing demand for composite materials from automotive, hardware/apparatuses, medical, and bundling enterprises are driving the growth of the injection molding segment during the forecast period.

In 2022, which end-user segment accounted for the largest share in the natural fiber composites market?

In 2022, the automotive segment held the largest market share. The rising demand for hybrid and electric vehicles has led to an increase in investments by automakers across the world. The flourishing automotive industry worldwide continues to be a key contributor to the growth of the natural fiber composites market. Natural fibers support the universal goal of the automotive industry to manufacture lightweight products with reduced fuel consumption and increased vehicle speeds, without compromising safety standards.

What is the key driver for the growth of the global natural fiber composites market?

The primary advantage of natural fiber composites is that they are eco-friendly since they are low-cost, bio-based, sustainable, and reduce energy consumption. Natural fiber composites have drawn significant attention as alternative building materials, especially wood substitutes in developing countries. A high demand for sustainable and renewable composites from the automotive industry for the manufacturing of fuel-efficient, lightweight vehicles as well as rising adoption of electric vehicles (EVs) drives the natural fiber composites market. All these factors are driving the natural fiber composites market growth.

The List of Companies - Global Natural Fiber Composites Market

  1. UPM-Kymmene Corp        
  2. Flexform Technologies LLC              
  3. Polyvlies Franz Beyer GmbH           
  4. Amorim Cork Composites SA          
  5. Tecnaro GmbH     
  6. Lanxess AG            
  7. Bcomp Ltd              
  8. Cobra Advanced Composites Co Ltd            
  9. Plasthill Oy Ltd     
  10. Lingrove Inc

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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