FREEDONIA MARKET RESEARCH REPORT ANALYZES GLOBAL RUBBER CONSUMPTION

World rubber consumption is forecast to increase 4.0 percent annually to 26.3 million metric tons in 2011.  Rubber demand will directly benefit from solid, albeit decelerating, growth in world motor vehicle production, as well as a stronger global economy.  China overtook Japan as the second largest market in the world in the late 1990s and displaced the US in the top spot in 2002 -- a result of strong growth in motor vehicle production, as well as in the general economy, in China over the past decade.  Rubber demand in China is expected to increase 9.5 percent annually to 7.8 million metric tons in 2011.  While this is a slowdown from the torrid double digit increases achieved over the past decade, it will still be the strongest growth for any major rubber market in the world.  These and other trends, including market share and company profiles, are presented in World Rubber & Tire, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

The Asia/Pacific region is by far the leading rubber consumer, using more than half of all rubber consumed globally.  In addition, the region is expected to see the strongest growth in rubber demand through 2011, reflecting strength in China, India, Thailand and Vietnam.  Latin America, Eastern Europe and the Africa/Mideast regions will also see solid increases.  In contrast, rubber demand in Western Europe, the US and Japan will increase less than one percent annually.

Non-tire rubber will outpace tire rubber demand through 2011, and in the process overtake tire rubber demand.  Demand for non-tire rubber products will benefit from rising industrialization levels in developing countries and solid opportunities in sectors such as automotive (belts, hoses, gaskets, moldings, cushioning), industrial (adhesives, padding, belting, vibration dampening, wire and cable sheathing, hoses), consumer (toys, cushions, door moldings) and construction (wire insulation, moldings, roofing,

sealants and adhesives).  Tire demand will benefit from solid gains in both global motor vehicle production levels as well as the number of motor vehicles in use, which will benefit OEM and replacement tire demand respectively.  The continued popularity of performance tires and rising levels of vehicle ownership will support tire rubber demand.  In addition, as incomes rise in many developing countries, there is a tendency to shift from retreads to new tires.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.