Natural Fibers Market Report 2026

The natural fibers market size has grown strongly in recent years. It will grow from $78.47 billion in 2025 to $84.21 billion in 2026 at a compound annual growth rate (CAGR) of 7.3%. The growth in the historic period can be attributed to increasing textile manufacturing activities, availability of abundant natural fiber sources, rising demand for biodegradable materials, adoption of fibers in traditional industries, improvements in fiber extraction techniques.

The natural fibers market size is expected to see strong growth in the next few years. It will grow to $110.23 billion in 2030 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to increasing focus on sustainable materials, expansion of lightweight composite usage, rising demand from automotive electrification, growing investments in green manufacturing, increasing innovation in natural fiber processing. Major trends in the forecast period include increasing use of natural fibers in automotive applications, rising demand for eco-friendly textile materials, expansion of bio-based composite development, growing adoption in medical and hygiene products, enhanced focus on fiber processing efficiency.

The increasing demand from the automotive industry is expected to drive the growth of the natural fibers market in the coming years. The automotive industry comprises companies engaged in the design, development, manufacturing, marketing, and sale of motor vehicles. Natural fibers are increasingly used in automotive applications due to their advantages such as weight reduction, environmental sustainability, reduced reliance on non-renewable resources, biodegradability, improved energy efficiency, recyclability, enhanced aesthetic appeal, and a lower carbon footprint. For example, in April 2024, according to the Serbian Association of Vehicle and Parts Importers, a Serbia-based professional automotive organization, global vehicle production reached 93,546,599 units in 2023, including 67,133,570 passenger vehicles, compared with 84,830,376 vehicles produced in 2022. Therefore, the rising demand within the automotive industry is contributing to the growth of the natural fibers market.

Companies operating in the natural fibers market are increasingly focusing on advancements in fabric and yarn technologies to strengthen their competitive positioning. Fabric and yarn technologies involve innovations in materials, production processes, and techniques used to manufacture textiles. For instance, in November 2023, Transforming Textiles AB, a Sweden-based manufacturer of narrow woven fabrics, launched Sense-Tex, an environmentally friendly smart textile technology that combines style, intelligent functionality, and sustainability. Sense-Tex is based on a novel five-fiber yarn-thread technology that enables full circularity and large-scale mechanical recycling, which had not previously been achievable. The technology enhances hygiene and durability while reducing the need for frequent washing by embedding health-supporting properties into the fibers. When connected to sensors, it can provide health indicators similar to those of a smartwatch, allowing fabrics to monitor health while supporting overall well-being.

In June 2023, Albany International, a US-based manufacturing company, acquired Heimbach Group for approximately $177.86 million (€153 million). Through this acquisition, Albany International aimed to expand its global scale and geographic reach, gain access to complementary technologies, and create opportunities for margin expansion. Heimbach Group is a Germany-based manufacturing company specializing in natural fiber solutions.

Major companies operating in the natural fibers market are BASF SE, UPM-Kymmene Oyj, Trex Company Inc., Fiberon LLC, Barnhardt Natural Fibers LLC, Polyvlies Franz Beyer GMBH & Co KG, Bcomp Ltd., Procotex SA Corporation NV, Ananas Anam, FlexForm Technologies, Swicofil AG, JELU-WERK J. Ehrler GmbH and Co KG, Tecnaro GmbH, Bast Fiber Technologies Inc., The Natural Fibre Company, Dividan LLC, GreenGran BV, The Flax Company SARL, Industrial Hemp Manufacturing LLC, Jaydeep Cotton Fibers Pvt Ltd., Asha Cotton Industries Limited, Vrijesh Natural Fibre & Fabrics Pvt Ltd., Dun Agro Hemp Group, NATURALUS PLUOŠTAS UAB, GreenCore Composites Inc., Meshlin Composites Zrt, BAFA Neu GmbH, Castellins NV, Circular Systems.

Asia-Pacific was the largest region in the natural fibers market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the natural fibers market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the natural fibers market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The natural fiber market consists of sales of cotton, flax, hemp, bamboo, sisal, and jute. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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