July 25, 2024
Abaca Fiber Market

Abaca Fiber Market to Witness High Growth Owing to Rising Applications in Paper and Pulp Industry

Abaca fiber, also known as Manila hemp, is a natural fiber extracted from the leaf sheaths (pseudostems) of abacá. It is considered one of the strongest natural fibers available and has high tensile strength. Abaca fiber is used in various applications such as pulp and paper, industrial cordage, twines and ropes. It is also used for specialty applications including air and water filters, cables, floor covering backing and geotextiles. The global abaca fiber market is estimated to be valued at US$ 1,921.1 Mn in 2024 and is expected to exhibit a CAGR of 14. % over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the abaca fiber market are Wigglesworth & Co. Limited., M.A.P. Enterprises, Yzen Handicraft Export Trading, Specialty Pulp Manufacturing, Inc. (SPMI), Chandra Prakash & Company, Ching Bee Trading Corporation, Peral Enterprises, Sellinrail International Trading Company, DGL Global Ventures LLC, and Terranova Papers.

The key opportunities in the Abaca Fiber Market Demand include increasing demand for lightweight, recyclable, and biodegradable materials from various end-use industries. Abaca fiber is also gaining popularity as a substitute for glass fibers in certain industrial and construction applications owing to its high strength and lightweight properties.

Technological advancements in abaca processing such as product innovation through modification and treatment of fibers are expected to drive the market growth. New methods are being developed to impart specific properties to fibers such as high tensile strength, dimensional stability and resistance to moisture.

Market Drivers

One of the key drivers for the abaca fiber market is the rising demand from the paper and pulp industry. Abaca fiber finds widespread application in the production of high-quality paper, bank notes, and specialty pulp. It is increasingly being used as an alternative to wood pulp due to its distinct properties including high tear and burst strength. The growth of the paper industry, especially in Asia Pacific, is expected to fuel the market expansion over the forecast period.

Current challenges in abaca fiber market:

Abaca Fiber Market production is concentrated in the Philippines, making it vulnerable to environmental and political issues in that country. Typhoons and storms damage abaca crops which affects the steady supply of raw materials. Recent storms have destroyed large tracts of abaca plantations creating shortages. High labor costs in Philippines is another challenge as abaca harvesting and processing is labor intensive.

SWOT Analysis

Strength: Abaca fiber is one of the strongest natural fibers with high tensile strength. It resists damage from seawater, rot and biological degradation.
Weakness: Abaca fiber production is seasonal and dependent on weather conditions. Supply shortage issues occur due to limited cultivation areas and environmental damage.
Opportunity: Rising demand for eco-friendly and sustainable materials is driving new applications of abaca fiber in industries like automotive and construction. Development of new hybrid varieties can boost yields.
Threats: Substitution threat from cheap synthetic fibers exists. Climate change may lead to more frequent and severe typhoons damaging abaca crops in key regions.

Geographical regions of concentration:

The Philippines dominates abaca fiber production, accounting for over 90% of global output. The regions of Bicol and Davao produce over 70% of Philippine abaca crop. Abaca plantations cover over 100,000 hectares in the country.

Fastest growing region:

South and Southeast Asia region is projected to be the fastest growing market for abaca fiber during the forecast period. This is mainly due to increasing industrialization, construction activities and use of natural fibers in industries like paper, textiles and bio-composites in countries like India, Indonesia and Vietnam.

*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it