Ivory Coast becomes third largest producer of natural rubber globally
TLDR
- Ivory Coast rises to become the 3rd largest natural rubber producer globally, surpassing Vietnam.
- Thailand and Indonesia face output declines, leading to a 3% decrease in global production.
- Global demand for natural rubber, mainly from the tire industry, slightly decreases by 1% in 2023.
Ivory Coast has surpassed Vietnam to claim the third position as the largest producer of natural rubber, trailing behind Thailand and Indonesia - both of which have experienced output decline.
Production in the West African nation meanwhile has surged, reaching 1.6 million tonnes in 2023, marking a 25% increase from the previous year. It contributed 12% to global rubber production.
However, declines in Thailand (8%) and Indonesia (18%) resulted in an overall 3% decrease in global production. Demand for natural rubber, primarily driven by the tire industry, also experienced a slight dip of 1% to 14.1 million tonnes in 2023, closely aligning with the overall supply.
Key Takeaways
Previously ranked 4th, Ivory Coast has now emerged as the leading producer of rubber on the African continent, contributing nearly 80% of Africa's rubber production. However, despite its significant output, Ivory Coast faces a challenge in terms of rubber transformation, with only 0.5% of the revenue generated from the over $350 billion rubber sector benefiting Ivorian producers. To address this issue, the Ivorian government implemented a strategy in 2021 aimed at achieving 100% local transformation of rubber production by 2025. As part of this strategy, natural rubber exports were banned in November 2023. Currently, Ivory Coast hosts nearly five major rubber companies/industries operating within the country, reflecting efforts to enhance local processing and value addition within the rubber sector.
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