Brazil Rubber Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)
Report on Brazil Rubber Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)
Introduction to Brazil Rubber Industry
Netherlands and England had dominance over the world’s market for rubber production, in the early 20th century, with plantations in the East Indies. Although the rubber tree was native to Amazon, 70,000 seedlings were taken from Brazil by Henry Wickham of England in 1876, and then brought to East Indies for cultivation. This effectively robbed Brazil of its number 1 position as the exporter.
While the position of Brazil as an exporter of Rubber was declining due to the high cost structure, Henry Ford in 1930s undertook cultivation of rubber in Amazon region and established Fordlandia city. The condition and wages improved for the labours, however, the initiative failed due to a leaf pest. The beginning of World War II brought additional problems for the rubber industry.
Today, Thailand accounts for 36.2% of total natural rubber exports and Brazil is a net importer of rubber.
Despite advancement in synthetic plastic, there is no replacement for natural rubber. A single species of rubber Havea Brasiliensis, provides nearly all the sap for rubber production worldwide. More than one-third of an estimated 25 million ton of rubber produced comes from natural sources. The ever going demand for rubber has put ecological pressure on tropical forest, and there is a growing need to find alternatives to natural rubber.
Brazil is a net importer of natural rubber. Nearly 55% of country consumption (400 thousand tonnes per year) is imported from countries like Thailand and Indonesia. It is one of the top 10 consumers of natural rubber in the world.
China purchases more than one-third of the world’s total rubber supply each year, while Europe, the United States, and Japan consume a combined 25 percent.
In 2016, Brazil was among the 7th largest automotive market in the world with sales of 2.4 million units. Rubber is dominantly used in the automotive industry in the form of tires, brakes, belts, hoses and critical parts of the car engine. They are further segmented as Original Equipment Manufacturers and Replacement. The other industries utilizing rubber include Shoes, Mining & Steel, Consumer Electronics, Health and other industries in general.
In Latin America 4 regions namely Brazil, Guatemala, Colombia, and Mexico account for the maximum production of rubber. Brazil is the biggest producer in the region with about 202 thousand tonnes of dry rubber annually from nearly 156 thousand hectares on production. The country has approximately 222 thousand hectares of planted area, most of it which have been planted in the last 25 years. State of Sao Paulo, the main producing region, accounts for about 58% of the production, 40% of the production area and nearly 50% of the planted area. Sao Paulo accounts for 60% of the whole market installed processing facilities.
Major Trade Partners
Brazil imported $406.2 million worth of natural rubber (2.3% of total imports). Top countries exporting rubber to Brazil include South Korea ($95.5 million), Mexico ($77.7 million), Japan ($130.6 million) and India ($79.9 million).
The report contains a comprehensive analysis on:
- Brazil Rubber Industry Segments
- Brazil Rubber Industry Drivers, Restraints and Opportunities
- Brazil Rubber Industry Size & Forecast 2016 to 2023
- Supply & Demand Value Chain
- Brazil Rubber Industry Current Trends
- Competition & Major Companies
- Technology and R&D Status
- Porters Five Force Analysis
- Strategic and Critical Success Factor Analysis of Key Players
This report is an elaborate aggregation of primary inputs from industry experts and participants across the supply chain. It provides in-depth market segmentation that is derived from extensive product mapping exercises, macroeconomic factors, and other qualitative and quantitative insights. The impact of all such factors is delivered across multiple market segments and geographies.
- Detailed Historical Overview (Market Origins, Product Launch Timeline, etc.)
- Consumer and Pricing Analysis
- Market dynamics of the industry
- In-depth Market Segmentation
- Historical and Projected Market Sizing in terms of volume and value
- Recent market trends and Impact Factors
- R&D Status and Technology Overview
- Extensive Industry Structure Coverage