Natural Fiber Composites Market Expected to Reach $8.3 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Natural Fiber Composites Market," The natural fiber composites market was valued at $4.2 billion in 2022, and is estimated to reach $8.3 billion by 2032, growing at a CAGR of 7.3% from 2023 to 2032.

Natural fiber composite (NFC) is a material made from a combination of natural fibers and a polymer matrix, where the natural fibers act as reinforcement, and the polymer matrix acts as a binder. These composites are designed to provide a balance of mechanical, thermal, and physical properties that make them suitable for a wide range of applications. Natural fibers that are commonly used in NFCs include flax, jute, sisal, hemp, bamboo, and kenaf. These fibers are sustainable, renewable, and biodegradable, making them an eco-friendly alternative to synthetic fibers.

The polymer matrix used in NFCs can be thermoplastic or thermosetting. Thermoplastic matrices are more commonly used because they are easier to process and recycle. Some commonly used thermoplastics include polypropylene (PP), polyethylene (PE), and polylactic acid (PLA). NFCs are used to manufacture interior and exterior parts of automobiles, including door panels, dashboards, seat backs, and trunk linings. They offer several advantages over traditional materials, including reduced weight, improved fuel efficiency, and enhanced environmental sustainability.

Moreover, NFCs are  used to manufacture furniture such as chairs, tables, and cabinets, as they offer a lightweight and eco-friendly alternative to traditional wood furniture. In addition, NFCs are used in manufacturing  sporting goods such as skateboards, snowboards, and surfboards. This is attributed to the fact that they offer improved strength, flexibility, and durability compared to traditional wood materials.

Furthermore, NFCs are used in a variety of building and construction applications such as decking, fencing, and cladding. The use of NFCs in building and construction offers several benefits over traditional wood materials, such as improved moisture resistance, durability, and reduced maintenance.

Moreover, they are resistant to insect damage and decay, which can extend the service life of the material.  In addition, they can be manufactured to mimic the appearance of wood, making them an attractive option for architects and designers in the construction sector.

The growth of the global natural fiber composites market is majorly attributable to its wide applications in various industries such as automotive, electronics, and construction.  In addition, the cost-effectiveness related to natural fiber composites is expected to drive the market growth during the forecast period.

However, limited temperature resistance in the aerospace & defense industry hinders the expansion of the market. On the contrary, rise in demand for customization of natural fiber composites is expected to offer ample growth opportunities for the natural fiber composites market during the forecast period.

The global natural fiber composites market is segmented into fiber type, technology, application, and region. On the basis of fiber type, the market is classified into wood, cotton, flax, kenaf, hemp, and others. Depending on the technology, it is segregated into injection molding, compression molding, and others. By application, it is categorized into automotive, electronics, construction, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of fiber type, the wood segment dominated the market and represented more than 35% of the overall revenue in 2022. The trend is estimated to continue until 2024 due to advantages of wood such as high strength and solidity.

Depending on technology, the injection molding segment led the market in 2022, accounting for around 45% of the global market share. This is attributed to the fact that high-volume, high-pressure, closed molding method of injection molding is used for the development of composite products. This method is followed by two steps, preheating and pressurizing.

Injection molding requires a low molecular weight polymer to maintain low viscosity. It is majorly used to produce parts in large volumes. Thus, surge in demand for large volume production from end-use industries is poised to contribute to the growth of the segment.

On the basis of application, the automotive segment was the major share contributor in 2022, garnering morethan half of the global market share. This is attributed to rise in demand for hybrid and electric vehicles, which, in turn, has led to 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.

Region wise, Asia-pacific exhibited the highest growth, accounting 41.35% of the total market share in 2022 due to rise in adoption in the manufacturing of fiberboards, particle boards, and composite panels in the region.

The key players operating in the global natural fiber composites market are Bcomp Ltd., DuPont, Green Dot Bioplastics Inc., JELU-WERK J. Ehrler GmbH & Co. KG, Lingrove Inc, Plasthill Oy, Polyvlies, Procotex, TECNARO GmbH, and UPM.

Key findings of the study

• Region wise, Asia-pacific is projected to grow at the highest CAGR of nearly 7.6%, in terms of revenue, during the forecast period.
• On the basis of fiber type, the wood segment accounted for the largest market share in 2022.
• Depending on technology, the injection molding garnered the highest share in 2022.
• On the basis of application, the automotive segment was the major shareholder in 2022.