The global natural fiber composites market size was estimated at USD 9.44 billion in 2024 and is projected to grow at a CAGR of 12.0% from 2025 to 2030. Chief among market drivers is the heightened focus on sustainability and environmental awareness. As consumers and industries prioritize reducing their ecological impact, the demand for eco-friendly materials has risen significantly. Natural fibers, being biodegradable and renewable, offer a compelling alternative to less sustainable traditional synthetic composites, enhancing the appeal of natural fiber composites (NFC) across various sectors.
Governments worldwide have implemented stricter environmental regulations and initiated initiatives aimed at promoting sustainable manufacturing practices. This policy framework is particularly influential in industries such as automotive and construction, where compliance with environmental standards is paramount. These regulations incentivize the use of natural fiber composites and reinforce the market’s momentum as companies seek to align their operations with evolving legal requirements.
With superior strength, stiffness, and excellent thermal and acoustic insulation properties, NFCs are well-suited for a variety of applications ranging from automotive parts to construction materials and consumer goods. Manufacturers are keen to leverage these attributes, knowing that integrating natural fiber composites into their product offerings can result in enhanced performance while maintaining a commitment to sustainability.
Natural fibers often present a more economical option compared to synthetic alternatives, allowing manufacturers to balance performance with budgetary constraints. This economic advantage is particularly pertinent as the automotive industry pivots towards lightweight materials to enhance fuel efficiency and reduce emissions. Coupled with rising consumer preferences for sustainable products, the natural fiber composites market stands poised for continued expansion, reflecting both an evolution in material preferences and a commitment to environmentally responsible practices.
Wood dominated the market and accounted for a share of 58.9% in 2024, owing to its abundant availability, cost-effectiveness, and favorable mechanical properties. As a renewable resource, wood composites are increasingly preferred in the construction and automotive sectors due to their superior strength-to-weight ratio, appealing to both environmentally conscious consumers and manufacturers.
Hemp is expected to grow at the fastest CAGR of 12.8% over the forecast period, driven by hemp’s exceptional strength, lightweight characteristics, and eco-friendliness. Its versatility allows for broad applications in automotive and construction industries, while heightened consumer awareness of sustainable materials further accelerates hemp’s adoption as a leading natural fiber composite.
Inorganic compounds held the largest revenue share of 42.0% in 2024 due to superior thermal stability and mechanical strength, which are essential in demanding applications within the construction and automotive sectors. These characteristics underscore their preference in industries where performance and durability are critical.
Natural polymer is expected to register the fastest CAGR of 12.5% over the forecast period, driven by their biodegradability and compatibility with diverse natural fibers. As industries increasingly seek sustainable alternatives to synthetic polymers, natural polymers present an attractive solution that satisfies regulatory requirements while advancing environmental sustainability.
Compression molding led the market with a revenue share of 76.5% in 2024, owing to its efficiency in producing complex shapes with minimal waste. This method enables high-volume production while maintaining consistent quality, making it particularly appealing for manufacturers aiming to meet the escalating demand across various applications, especially in the automotive and construction sectors.
Injection molding is expected to register the fastest CAGR of 12.8% over the forecast period. Injection molding helps produce intricate designs with high precision and reduced cycle times. As manufacturers increasingly adopt this innovative technology for sustainable product development, injection molding emerges as the preferred choice for creating high-performance components across diverse industries.
The construction segment dominated the market with a substantial share in 2024. Natural fiber composites provide exceptional thermal insulation while minimizing the environmental impact of construction projects, aligning with green building certifications that encourage the use of eco-friendly materials, thereby enhancing their market position.
Sporting goods are projected to grow at the fastest rate over the forecast period. Natural fiber composites offer lightweight and durable options for various sporting applications, attracting environmentally conscious athletes and manufacturers seeking to enhance product performance while reducing ecological footprints.
North America natural fiber composites market dominated the global market with a revenue share of 48.6% in 2024, fueled by the rising consumer demand for sustainable and eco-friendly materials. This shift is fueled by increased awareness of environmental issues and the advantages of natural fibers, which provide renewable, biodegradable options that align with regulatory support for green building practices and sustainable manufacturing initiatives.
The natural fiber composites market in the U.S. dominated North America with the largest revenue share in 2024. Government initiatives advocating eco-friendly practices enhance the market’s appeal, while innovations in natural fiber applications facilitate the material’s adoption across various industries, further strengthening its market presence.
Europe NFC market held substantial market share in 2024. The region’s automotive and construction industries are increasingly utilizing natural fibers to comply with green standards, while ongoing research and development initiatives improve the performance characteristics of these composites, driving their integration into a wide range of applications.
The NFC market in Germany is expected to grow in the forecast period. The country’s dedication to stringent environmental standards, coupled with innovation in composite technologies, further promotes the adoption of natural fiber composites in both automotive and construction applications.
Asia Pacific NFC market is expected to register the fastest CAGR of 13.9% in the forecast period due to rapid industrialization and a growing awareness of sustainable materials among manufacturers. The expanding construction and automotive sectors in the region are driving demand for eco-friendly composites, while government initiatives promoting green technologies further contribute to the market’s growth and expansion.
The NFC market in India is projected to experience the fastest growth in the Asia Pacific market over the forecast period. The expanding automotive and construction industries are increasingly integrating natural fiber composites to comply with regulatory standards, while local advances in material technology enhance the performance and appeal of these composites across various applications, boosting their market presence.
Some key companies operating in the market include Flexform SpA; Procotex; TECNARO GMBH; UPM; among others. Companies are prioritizing strategic initiatives, including product innovation, sustainability enhancement, and expanded manufacturing capabilities, to address increasing demand from the automotive and construction sectors while complying with environmental regulations.
TECNARO GMBH specializes in bio-based composite materials, particularly natural fiber composites from renewable resources, developing innovative and sustainable solutions for automotive and construction applications that replace conventional plastics while ensuring high performance and reduced environmental impact.
Trex Company, Inc. is a leading manufacturer of composite decking and outdoor products crafted from recycled materials, including natural fibers. Their wood-plastic composites enhance durability and weather resistance, catering to eco-conscious consumers seeking sustainable, high-performance solutions for landscaping and construction.
The following are the leading companies in the NFC market. These companies collectively hold the largest market share and dictate industry trends.
In May 2024, CUPRA integrated Bcomp’s innovative natural fiber composites into the CUP Bucket seats of the Born VZ electric vehicle, achieving a 49% reduction in CO2 emissions compared to previous models.
In March 2024, UPM launched its UPM Solargo biostimulant product range, providing a sustainable alternative to traditional fertilizers, enhancing crop yield, and reducing reliance on nitrogen, phosphorus, and potassium-based products.
Report Attribute |
Details |
Market size value in 2025 |
USD 10.57 billion |
Revenue forecast in 2030 |
USD 18.65 billion |
Growth rate |
CAGR of 12.0% from 2025 to 2030 |
Base year for estimation |
2024 |
Historical data |
2018 - 2023 |
Forecast period |
2025 - 2030 |
Quantitative units |
Volume in kilotons, revenue in USD million/billion and CAGR from 2025 to 2030 |
Report coverage |
Volume and revenue forecast, company ranking, competitive landscape, growth factors, trends |
Segments covered |
Raw material, matrix, technology, application, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S., Canada, Mexico, UK, Germany, France, Italy, Spain, China, Japan, India |
Key companies profiled |
Flexform SpA; Procotex; TECNARO GMBH; UPM; Trex Company, Inc.; Bcomp; Polyvlies Franz Beyer GmbH; Green Dot Bioplastics |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global natural fiber composites market report based on raw material, matrix, technology, application, and region:
Raw Material Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)
Wood
Cotton
Flax
Kenaf
Hemp
Others
Matrix Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)
Inorganic Compound
Natural Polymer
Synthetic Polymer
Technology Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)
Injection Molding
Compression Molding
Pultrusion
Others (Extrusion, SMC, RTM)
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)
Automotive
Electronics
Sporting Goods
Construction
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)
North America
U.S.
Canada
Mexico
Europe
UK
Germany
France
Italy
Spain
Asia Pacific
Japan
China
India
Latin America
Middle East & Africa
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