Natural rubber demand set to increase while global economy anticipates rubber shortage
Climate change, Covid-19 pandemic and the fight for shipping containers are some of the obstacles that rubber producers face these days. The global rubber market has recently witnessed numerous supply chain disruptions, and now the international economy is challenged by a rubber deficiency, according to CNBC report. The broadcaster spoke to Ohio State University professor Katrina Cornish, who says that the global market is on the verge of ‘a rubber apocalypse’.
Rubber is a crucial component used in the making of car tires, and supply chain disruptions can seriously impact the tire recycling industry. According to some forecast quoted by CNBC, the demand for natural rubber will only be increasing, and the NR market could be estimated at nearly $68.5 billion by 2026. And people’s dependence on car tires will keep on boosting the demand for rubber.
All this takes place amid dependence of the global economy on Asia: 90 percent of all natural rubber supply originates on the Asian continent. The US is one of the key importers of those goods. In March 2021, the Western country imported $140 million worth of natural rubber from Asia, according to Census. In 2020, the global rubber market was valued at around $40 billion.