Natural Fibers Market to Reach US$ 9.7 Billion by 2031 at 7.9% CAGR; North America Leads with 33% Share - Key Players: BASF, Grasim, Lenzing

The Natural Fibers Market reached US$ 5.3 billion in 2023 and is expected to reach US$ 9.7 billion by 2031, growing at a CAGR of 7.9% during the forecast period 2024-2031. The market is experiencing steady growth as industries increasingly shift toward sustainable, biodegradable, and eco-friendly raw materials in response to environmental concerns and regulatory pressures.

Natural fibers such as cotton, jute, flax, hemp, wool, and silk are widely used across textiles, automotive interiors, construction materials, packaging, and home furnishings. Rising consumer awareness regarding sustainability, growing demand for organic and renewable materials, and increasing adoption of natural fiber-based composites in lightweight automotive and building applications are key growth drivers. Additionally, government support for sustainable agriculture and circular economy initiatives is further strengthening the global natural fibers market outlook.

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The Natural Fibers Market is the sector that produces and supplies fibers derived from plants and animals, used in textiles, construction, automotive, and other sustainable material applications.

Key Developments
✅ October 2025: Textile and apparel manufacturers in North America sourced natural fibers such as cotton, wool, and flax for use in fabrics and finished garments.

✅ September 2025: European industrial sectors utilized natural fibers including jute and hemp for composites, geotextiles, and automotive interior applications.

✅ August 2025: Asia-Pacific textile producers processed natural fibers including cotton, silk, and bamboo for yarn production and garment manufacturing.

✅ July 2025: Fiber suppliers provided standardized natural fibers to spinning, weaving, and knitting facilities for consistent material quality.

✅ May 2025: Retail and home textile companies offered products made from natural fibers including linen and wool in consumer markets.

✅ March 2025: Regulatory authorities reviewed labeling and quality standards for natural fiber products marketed in apparel and industrial segments.

Mergers & Acquisitions
✅ November 2025: A global textile materials company acquired a natural fibers supplier to broaden its raw materials portfolio.

✅ August 2025: A European fiber processing firm partnered with an agricultural cooperative to secure consistent supply of natural fibers.

✅ June 2025: An Asia-Pacific textile materials provider acquired a natural fibers distribution business to strengthen its market presence.

Key Players
BASF SE | Vardhman Textiles Limited | Grasim Industries Limited | Flexform Technologies | Bharatiya Natural Fibres | Sanko Textile | Lenzing AG | Procotex | J. Rettenmaier & Söhne GmbH + Co KG | Bast Fibre Technologies Inc. | Others

Key Highlights
BASF SE - Holds a 19.8% share, driven by its strong expertise in specialty chemicals and fiber additives, supporting performance enhancement and sustainability in natural and technical fiber applications.

Grasim Industries Limited - Holds a 17.6% share, supported by its leadership in man-made cellulosic fibers, integrated manufacturing capabilities, and expanding use of sustainable fiber solutions in textiles.

Lenzing AG - Holds a 15.2% share, powered by its eco-friendly cellulose fibers, strong focus on circular economy practices, and high adoption in premium and sustainable textile segments.

Vardhman Textiles Limited - Holds a 11.9% share, benefiting from large-scale textile manufacturing, strong domestic and export presence, and consistent demand for blended and natural fiber-based fabrics.

J. Rettenmaier & Söhne GmbH + Co KG - Holds a 9.4% share, recognized for its advanced fiber processing technologies and diversified applications across textiles, industrial, and specialty materials.

Procotex - Holds a 8.1% share, driven by its expertise in recycled fibers, circular material solutions, and increasing adoption in sustainable textile and industrial applications.

Sanko Textile - Holds a 6.7% share, supported by its vertically integrated textile operations and growing focus on environmentally responsible fiber production.

Flexform Technologies - Holds a 5.1% share, contributing through niche fiber processing solutions and customized materials for specialized textile and industrial uses.

Bast Fibre Technologies Inc. - Holds a 3.6% share, emerging as an innovator in bast fiber processing with strong potential in sustainable and bio-based material applications.

Bharatiya Natural Fibres - Holds a 1.9% share, focused on regional natural fiber sourcing and processing, supporting localized and eco-friendly textile production.

Others - Hold a 0.7% share, comprising smaller regional manufacturers and emerging players contributing to innovation and market diversification.

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Market Drivers
- Growing demand for sustainable, biodegradable, and eco-friendly materials across textiles, packaging, automotive, and construction sectors.

- Increasing consumer awareness of environmental impact and preference for natural and renewable materials.

- Rising adoption of natural fibers in fashion and apparel due to comfort, breathability, and performance benefits.

- Expansion of automotive lightweighting initiatives using natural fiber composites to improve fuel efficiency and reduce emissions.

- Supportive government regulations and policies promoting use of renewable materials and reducing plastic waste.

- Advancements in processing and treatment technologies to enhance fiber performance and durability.

- Growing investments in research and development for next-generation natural fiber applications and hybrid composites.

Industry Developments
- Launch of innovative natural fiber products and blends for textiles, nonwoven applications, and industrial materials.

- Development of high-performance fiber treatment techniques to improve moisture management, strength, and wear resistance.

- Expansion of supply chain partnerships between growers, processors, and manufacturers to ensure quality and traceability.

- Collaborations between automotive OEMs and material suppliers to integrate natural fiber composites in interior and structural components.

- Rising mergers, acquisitions, and strategic investments in natural fiber technology and processing companies.

- Introduction of certification standards, eco-labels, and sustainability frameworks to support consumer transparency.

- Growing adoption of circular economy practices including recycling and reuse of natural fiber materials.

Regional Insights
North America - 33% share: "Driven by adoption of sustainable materials in consumer goods and industrial products, strong regulatory push for biodegradability, and growing natural fiber processing infrastructure."

Europe - 30% share: "Supported by stringent sustainability policies, high consumer awareness of eco-friendly products, and robust textile and automotive sectors adopting natural fibers."

Asia Pacific - 29% share: "Fueled by large agricultural base supplying fiber crops, growing textile manufacturing, increasing sustainability initiatives, and rising disposable income."

Latin America - 5% share: "Boosted by expanding agricultural production of natural fiber crops, growing demand for eco-friendly products, and improving processing capabilities."

Middle East & Africa - 3% share: "Driven by developing industrial sectors, increasing awareness of sustainable materials, and initiatives to reduce reliance on synthetic fibers."

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Key Segments
By Product
Cotton dominates the market due to its widespread availability, comfort, versatility, and extensive use across apparel, home textiles, and industrial applications. Wool holds a significant share, driven by its durability, insulation properties, and use in high-value textile products. Flax and linen continue to see steady demand owing to their strength, breathability, and eco-friendly characteristics. Silk represents a premium segment, supported by its high-quality texture and application in luxury textiles. Jute, hemp, sisal, and kenaf are gaining traction as sustainable and biodegradable fiber alternatives, particularly in packaging, construction, and agricultural applications. Leather maintains demand across automotive, furniture, and fashion industries. Other products, including emerging natural fibers, contribute to market expansion through niche and specialized applications.

By Type
Plant-based fibers account for the largest share of the market, driven by growing demand for sustainable, biodegradable, and renewable materials across multiple industries. Animal-based fibers hold a notable share, supported by continued demand for wool, silk, and leather in textile, automotive, and furniture applications.

By Process Method
Spinning represents a core process segment as it is fundamental to converting raw fibers into yarn for textile and industrial uses. Weaving holds a significant share, widely used in fabric production for apparel, home furnishings, and technical textiles. Knitting is experiencing steady growth due to its flexibility, comfort, and increasing use in apparel and medical textiles. Other process methods, including nonwoven and advanced fabrication techniques, support specialized and industrial applications.

By End-User
The textile industry dominates the market as the primary consumer of natural fibers for apparel and home furnishing products. Automotive applications continue to grow with increasing use of natural fibers in interior components and lightweight materials. Construction holds a significant share, supported by demand for eco-friendly insulation and reinforcement materials. Agriculture applications benefit from the use of natural fibers in ropes, nets, and soil stabilization. Packaging and paper & pulp industries are expanding their use of natural fibers as sustainable alternatives to synthetic materials. Medical applications are growing steadily due to biocompatibility and hygiene benefits. Furniture and electrical & electronics sectors contribute through upholstery and insulation applications, while other end users support overall market growth through niche uses.

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