The natural rubber market is facing its sixth year of global deficit, a situation exacerbated by insufficient supply relative to increasing demand. This year, global production is expected to rise by 2%, reaching 15.2 million tons; however, this is a modest improvement compared to last year’s growth rate of 1.4%. The Association of Natural Rubber Producing Countries (ANRPC) highlights several challenges affecting production, including prolonged periods of unprofitable pricing, adverse weather conditions, and difficulties in replanting plantations. Furthermore, an epidemic affecting rubber tree leaves has resulted in decreased yields in several countries, with reductions of 30 to 35% reported in some areas.

Thailand, the world's top rubber producer, is anticipated to maintain its production levels this year, while Indonesia, the second-largest producer, is expected to continue its decline. This decline in Indonesian output is attributed to both diseases impacting rubber trees and increasing competition from other agricultural products, leading to decreased investment in rubber production. As demand for natural rubber grows—especially in the tire and automotive industries—these supply issues may lead to rising prices and further market instability.

Overall, the ongoing global deficit in natural rubber emphasizes the need for strategic investments in production and potential innovations in agriculture to address the challenges faced by the industry. Stakeholders are urged to consider sustainable practices that may enhance yield while combating the adverse effects of climate change and pest outbreaks.