$1.3bn
$XX.Xm
1,860
134
$XXX.Xm
The Natural Rubber Product Manufacturing industry has faced considerable volatility in recent years, and has been contracting as many manufacturers exited thanks to stiff economic pressure. These manufacturers grappled with intense competition from low-cost overseas producers while battling the rise in substitute goods made from synthetic rubbers. Despite these challenges, the industry minimised profit losses by focusing on niche product offerings. Enhanced product quality from imported goods and intense price wars have only intensified the struggle for manufacturers. Revenue has declined at an annualised 0.6% over the five years through 2023-24 to $1.3 billion. This slowing includes a 6.8% drop in 2023-24, primarily because of dampened demand from crucial downstream sectors in manufacturing, mining and construction.The industry can expect to face the same challenges over time. Still, a strategic approach leveraging better export opportunities and increased demand from the construction sector is set to position the industry on a path to slow profit margin growth, especially for manufacturers that have specialised in niche products. These manufacturers have created a competitive advantage by catering to specific customer needs and providing high-quality and unique natural rubber products. This approach allows them to command higher prices and mitigate the effects of price competition from imported products.Although there is a projected rise in demand for specialised and bespoke natural rubber products – bolstered by a resurgence in global economic activity and strong industry exports – the next five years are likely to be challenging. Revenue is forecast to contract and an annualised 3.3% to $1.1 billion over the five years through 2028-29. Demand from the mining and manufacturing sectors is projected to decrease over this period. An appreciating Australian dollar can pose challenges for domestic manufacturers exporting their products, making them relatively more expensive in international markets. This may lead to reduced demand and difficulties in maintaining market share abroad, further shrinking exports. To counteract these effects, manufacturers can focus on product quality, consider diversifying export destinations and implement efficiency measures to sustain competitiveness despite the stronger currency.
Industry revenue has declined at a CAGR of 0.6 % over the past five years, to reach an estimated $1.3bn in 2023.
Market size is projected to decline over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 |
---|---|---|
FLSmidth | 62.5 | |
Ansell | 50.0 | |
Fenner Conveyor | 50.0 |
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Industry revenue is measured across several distinct product and services lines, including Rubber tubes, pipes and hoses, Rubber sheets, strips, plates and profile shapes and Sponge and foam rubber. Rubber tubes, pipes and hoses is the largest segment of the Natural Rubber Product Manufacturing in Australia.
Import competition poses challenges for the rubber sheets, strips, plates and profile shapes segment
Manufacturers produce a range of products that are made exclusively from natural rubber. These products include conveyor belts, floor coverings, rubber foam and tubing.
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ANZSIC 1920 - Natural Rubber Product Manufacturing in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Intense competition from low-cost overseas manufacturers has influenced the Natural Rubber Product Manufacturing industry revenue. Also, the increasing world price of rubber ...
Learn about an industry's products and services, markets and trends in international trade.
Downstream markets significantly influence demand for natural rubber product segments like rubber conveyor belts, hoses, sheets and tubes. As some sectors expand, demand for ...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Proximity to major industrial centres and raw material suppliers provides natural rubber businesses with advantages like market access, efficient supply chains and cost saving...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Price sensitivity among buyers and the availability of substitute products significantly affects industry performance. Intense price competition from imports and substitutes ...
Learn about the performance of the top companies in the industry.
The Natural Rubber Product manufacturing industry is highly fragmented, with numerous small manufacturers operating independently. The lack of major companies suggests a dece...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Manufacturers are bound by moderate miscellaneous hazardous goods and dangerous goods regulations across the various states and territories. Strict penalties are imposed on m...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Manufacturers have managed to maintain profitability by specialising in niche or customised products. This approach allows them to differentiate their product offerings, comm...
Including values and annual change:
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Key data sources in Australia include:
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The market size of the Natural Rubber Product Manufacturing industry in Australia is $1.3bn in 2024.
There are 134 businesses in the Natural Rubber Product Manufacturing industry in Australia, which has declined at a CAGR of 1.5 % between 2018 and 2023.
The market size of the Natural Rubber Product Manufacturing industry in Australia has been declining at a CAGR of 0.6 % between 2018 and 2023.
Over the next five years, the Natural Rubber Product Manufacturing industry in Australia is expected to decline.
The biggest companies operating in the Natural Rubber Product Manufacturing market in Australia are FLSmidth, Ansell and Fenner Conveyor
Rubber sheets, strips, plates and profile shapes and Rubber tubes, pipes and hoses are part of the Natural Rubber Product Manufacturing industry.
The company holding the most market share in Australia is FLSmidth.
The level of competition is high and steady in the Natural Rubber Product Manufacturing industry in Australia.