According to the report, the global natural fiber composites market is likely to grow from USD 5.1 Billion in 2025 to USD 11.2 Billion in 2035 at a highest CAGR of 8.2% during the time period. The global natural fiber composite (NFC) market is under a strong growth, owing to the rising demand of sustainable materials in several industries. In 2025, UPM-Kymmene Corporation launched UPM Formi, a series of NFCs fabricated out of renewable cellulose fibers, which aimed at the automotive and consumer goods market. This technology fits in the increased focus on decreasing carbon footprints and the increase in material recyclability.
Furthermore, the developments in processing technologies have enhanced the functionality and affordability of NFCs, thus making them more affordable to manufacturers. Especially the automotive sector is implementing the use of NFCs in the interior parts in order to satisfy the strict environmental policies and consumer demands on ecologically-friendly products. The construction industry is also integrating the NFCs into the construction industry, such as decking and insulation materials, by taking advantage of their lightweight and high-resistance features. The developments put into focus the growth of the NFC market as industries look at viable options of conserving resources in the use of traditional materials.
The growing need to use lightweight materials in the automotive and aerospace sectors is driving the natural fiber composites market. In 2025, BMW increased its utilisation of hemp and composite panels made of flax in models of its iX electric SUV, which decreased the total weight of the vehicle and improved energy consumption. Manufacturers are switching to natural fiber composites over conventional plastics and metals in response to the push to gain fuel efficiency and reduction of emissions, which is driving growth in the market.
The main limitation is the comparatively low mechanical and moisture sensitivity of natural fiber composites. Sales In early 2025, suppliers such as UPM-Kymmene noted difficulties with wood fiber-based composite in high-stress automotive parts, where stress-strain behavior and long-term durability are problematic, limiting structural implementation of wood fiber composites.
The next opportunity is the possibility of the sustainable use of natural fiber composite in packaging and consumer products that are durable. In mid-2025, BASF launched biobased composite trays and containers of food and household goods using renewable fibers to respond to increasing consumer demands of environmentally friendly products and regulatory demands of biodegradable products.
Prominent players operating in the global natural fiber composites market are BASF SE, Bcomp Ltd., Biowert Industrie GmbH, Covestro AG, FlexForm Technologies, Flexipol Foams Pvt. Ltd., Green Dot Bioplastics Inc., GreenGran BV, Hempline Inc., Jelu-Werk Josef Ehrler GmbH & Co. KG, Kineco Group, NatureWorks LLC, NFC GmbH, Owens Corning, Plasthill Oy, Procotex Corporation SA, Stora Enso Oyj, Tecnaro GmbH, Toray Industries, Inc., Trex Company, Inc., UPM-Kymmene Corporation, Weyerhaeuser Company, and Other Key Players.
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