Natural latex in primary forms market in ASEAN

Earlier Report Observations

The ASEAN market for natural latex in primary forms expanded significantly in 2019, reaching 11.3 million tonnes, driven by heightened demand for medical gloves and disposable products in the healthcare sector alongside a growing consumer preference for eco-friendly and biodegradable goods over synthetic alternatives. This growth was supported by a rising middle class in the Asia-Pacific region. However, the market contracted to 10.4 million tonnes in 2020 as the global pandemic disrupted supply chains across Southeast Asian producer countries, and volatility in natural rubber prices due to weather and geopolitical issues further strained production and distribution.

From 2021 to 2023, the market continued its downward trend, falling to 9.5 million tonnes. This period saw increased investments in production capacity in countries like Vietnam and Malaysia and regulatory changes promoting sustainable rubber cultivation, yet these were offset by global factors. Adverse weather conditions in producer regions and ongoing fluctuations in natural rubber prices persistently affected regional supply, leading to the decline. During these years, the market also experienced the entry of new players, a expansion of eco-friendly product segments, and tighter labeling and traceability regulations in some ASEAN countries, reflecting a structural shift towards sustainability and transparency even as total consumption decreased.

Looking at 2024, key developments included heightened state and private investment in the natural rubber sector for sustainable production, policy shifts supporting rubber cultivation with subsidies, and rising demand from the automotive, medical, and textile industries. New environmental certifications and regulations for natural latex products, along with the emergence of product segments like concentrated latex and hypoallergenic varieties, signaled ongoing innovation and diversification in the ASEAN market.

Production natural latex in primary forms in ASEAN

In kind, 2017-2020, K t

Top producers of natural latex in primary forms, 2017-2020

World map of production of natural latex in primary forms, 2017-2020

After two consecutive years of growth, ASEAN's production of natural latex in primary forms declined. In 2019, production reached its peak at 11,278 K t. However, in 2020, output fell to 10,895 K t, representing a modest decrease of 3.4% compared to the previous year. The most significant increase occurred in 2018, when production rose by 2.8%.

Annual dynamics of production in ASEAN in kind, 2017-2020, K t

Exports natural latex in primary forms from ASEAN

Exports in kind, K t

The data shows irregular changes, pointing to a volatile market environment. Exports hit their lowest point in 2019 at 277 K t, then surged to 840 K t in 2020, marking a dramatic improvement of 202.6% from the previous year. The largest decline was recorded in 2019 at 73.8%. Overall, exports varied significantly, with a 3.9-fold difference between the high in 2017 and the low in 2019.

Annual dynamics of product's exports from ASEAN in kind, 2017-2020, K t

From 2017 to 2020, the largest buyers of natural latex in primary forms from ASEAN were China (accounting for 40.6% of exports in kind), the United States (2.1%), and South Korea (1.8%). Together, these three countries contributed 44.6% of total exports in kind, indicating a diversified country structure with many other partners involved.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from ASEAN in kind, 2017-2020

Exports in value, M $ US

The data reveals irregular changes, signaling a volatile market environment. Exports in value terms were at their lowest in 2019, amounting to 282 M $ US, then jumped to 1,606 M $ US in 2020, reflecting an intense increase of 470.5% from the previous year. The largest decline occurred in 2019 at 82.1%. Overall, there was a 6.3-fold gap between the highest exports in 2017 and the lowest in 2019.

Annual dynamics of product's exports from ASEAN in value, 2017-2020, M $ US

An analysis of exports in value terms from 2017 to 2020 shows a broad distribution across many markets. China (40.2% of exports in value terms), the United States (2.4%), and South Korea (1.9%) together accounted for only 44.4% of total flows. The remaining 55.6% went to other partners, highlighting the significant role of diverse markets in ASEAN's export structure.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from ASEAN in value, 2017-2020

Imports natural latex in primary forms to ASEAN

Imports in kind, K t

There were noticeable fluctuations in market performance during this period. Imports reached their lowest point in 2018 at 15 K t, then climbed to 354 K t in 2020, up by 11.8% compared to 2019. The largest decline was recorded in 2018 at 15.3%, while the most substantial increase occurred in 2019 at 2,082.2%. Overall, imports varied widely, with a 24-fold gap between the high in 2020 and the low in 2018.

Annual dynamics of product's imports to ASEAN in kind, 2017-2020, K t

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to ASEAN in kind, 2017-2020

Imports in value, M $ US

After two years of decline, ASEAN's imports of natural latex in primary forms in value terms increased. In 2019, imports hit their minimum at 594 M $ US, then rose to 708 M $ US in 2020, indicating a growth of 19.1% over the past year. The largest decline was recorded in 2018 at 17.0%. Over the 2017-2020 period, imports decreased by 9.5%, with a compound annual growth rate (CAGR) of 3.3%.

Annual dynamics of product's imports to ASEAN in value, 2017-2020, M $ US

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to ASEAN in value, 2017-2020