Natural latex in primary forms market in India

Earlier Report Observations

The Indian natural latex market expanded from 668 thousand tons in 2018 to 709 thousand tons in 2019, supported by the government's National Rubber Policy which aimed to boost domestic production and consumption. This was reinforced by an increase in import duty on radial truck and bus tires to 15%, stimulating demand for natural rubber in the tire industry. In 2020, the COVID-19 pandemic caused temporary production halts due to lockdowns, leading to a slight market contraction to 684 thousand tons. However, this was partially offset by heightened demand for latex gloves in the healthcare sector, which emerged as a new driver for latex consumption.

Post-pandemic recovery saw the market surge to 753 thousand tons in 2021 and further to 850 thousand tons in 2022. This growth was fueled by sustained demand from the automotive and healthcare industries, alongside the emergence of new product segments like latex mattresses and pillows, which gained popularity for their eco-friendly and health benefits. Government initiatives, including financial assistance schemes from the Rubber Board and a 23% increase in budget allocation for the natural rubber sector in 2023, supported production expansion. However, by 2023, market growth slowed to 859 thousand tons as price volatility and supply chain challenges, alongside persistent labor shortages, tempered the expansion.

Production natural latex in primary forms in India

In kind, 2017-2020, K t

From 2017 to 2020, India ranked as the world's sixth-largest producer of natural latex in primary forms.

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

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

In 2020, India produced 685.0 thousand tonnes of natural latex in primary forms, marking a 2.4% decrease compared to the previous year. Over the 2017-2020 period, production fell by 3.9%, with an average annual decline of 1.3%. The lowest production level was in 2018 at 660.0 thousand tonnes, which saw the sharpest drop of 7.4%. In contrast, 2019 recorded the largest increase at 6.4%.

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

In value, 2017-2020, M $ US

India's production of natural latex in primary forms declined for the second year in a row. In 2020, the output was valued at 929 million US dollars, down 9.1% from 2019. From 2017 to 2020, production value decreased by 11.5%, averaging a 4.0% annual decline. The highest value was in 2018 at 1 111 million US dollars, which also saw the biggest increase of 5.8%.

Annual dynamics of production in India in value, 2017-2020, M $ US

Exports natural latex in primary forms from India

Exports in kind, t

The data shows irregular changes, pointing to a volatile market. Exports hit their lowest point in 2018 at 535 tonnes, with the largest decline of 96.6% that year. In contrast, the peak was in 2017, creating a 29-fold difference between the high and low points. By 2020, exports rebounded to 6 550 tonnes, surging 499.1% year-over-year.

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

From 2017 to 2020, China, Brazil, and Belgium were the top markets for India's natural latex exports in volume terms. China accounted for 36.7% of exports, Brazil for 12.0%, and Belgium for 7.8%, together making up 56.4% of total export flows.

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

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

Exports in value, K $ US

The data indicates irregular changes, reflecting a volatile market environment. The lowest export value was in 2018 at 900 thousand US dollars, with the largest decline of 96.1% that year. The peak was in 2017, resulting in a 25-fold difference between the high and low points. In 2020, export value rose to 8 887 thousand US dollars, up 458.0% from the previous year.

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

Between 2017 and 2020, China, Brazil, and Belgium remained the leading buyers of India's natural latex in value terms. China represented 35.9% of exports, Brazil 11.5%, and Belgium 7.8%, collectively accounting for 55.3% of total export value.

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

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

Imports natural latex in primary forms to India

Imports in kind, t

Market behavior was volatile during these years. Imports reached their lowest point in 2017 and peaked in 2019, with a 2.9-fold difference between these years. The highest import volume was in 2019 at 8 543 tonnes, following the largest increase of 175.0% in 2018. In 2020, imports fell to 5 091 tonnes, down 40.4% from 2019.

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

From 2017 to 2020, Vietnam, Malaysia, and Thailand were the main sources for India's natural latex imports in volume terms. Vietnam contributed 33.3% of imports, Malaysia 33.2%, and Thailand 29.4%, together representing 95.9% of total import flows.

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

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

Imports in value, K $ US

Market performance showed noticeable fluctuations over the period. Import value bottomed in 2017 and peaked in 2019, with a 2.3-fold difference. The highest value was in 2019 at 9 305 thousand US dollars, after the largest increase of 120.4% in 2018. In 2020, import value dropped to 5 740 thousand US dollars, declining 38.3% year-over-year.

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

Between 2017 and 2020, Malaysia, Thailand, and Vietnam continued to be the top suppliers of natural latex to India in value terms. Malaysia accounted for 34.2% of imports, Thailand for 30.7%, and Vietnam for 30.3%, jointly making up 95.2% of total import value.

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

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