IRSG expects significant growth in rubber demand to 2032

Singapore – Global rubber demand is forecast to rise by more than 12% by 2032, driven by steady growth in vehicle usage and tire output, according to the International Rubber Study Group (IRSG).

In its December 2025 World Rubber Industry Outlook, IRSG projected that total rubber demand would reach 32.49 million tonnes in 2025, up 2.1% from 2024.

The figure, it said, is projected to increase to 36.57 million tonnes by 2032.

Tire production, meanwhile, is expected to grow modestly, rising 0.24% in 2025, with average annual growth of 1.46% through to 2032.

IRSG forecasts natural rubber (NR) demand to increase 2% year-on-year to 15.73 million tonnes in 2025 and to 17.88 million tonnes by 2032.

Following a "similar but slightly slower path," synthetic rubber consumption is expected to rise to 16.77 million tonnes in 2025 and 18.69 million tonnes by 2032.

On the supply side, IRSG said global NR production is projected to reach 15.24 million tonnes in 2025, up 3.5% compared to 2024.

Output is projected to rise to 17.10 million tonnes by 2032, although IRSG said the market will "remain structurally tight."

The group estimates the global NR balance will record a deficit of 488,000 tonnes in 2025, narrowing from 2024 levels of 689,000 tonnes, but widening again to 779,000 tonnes by 2032.

IRSG added that geopolitical tensions, elevated debt levels and climate-related disruptions continue to weigh on global economic growth, shaping a more cautious outlook for vehicle and tire markets.