Abaca fibre, often referred to as Manila hemp, is a natural fibre derived from the Musa textilis plant. It has a long history of being used in a variety of industries due to its strength, durability, and versatility. From the production of paper to handicrafts and ropes, abaca has remained an essential material in various sectors. The global abaca fibre market size was around USD 279.86 million in 2024. The market is estimated to grow at a compound annual growth rate (CAGR) of 3.74% during 2025-2034, reaching a value of USD 387.70 million by 2034. This growth is driven by increasing demand across multiple applications, as well as the rising popularity of eco-friendly and sustainable materials.

This blog post will delve into the trends, forecasts, and market dynamics that are shaping the global abaca fibre market. We will explore the key segments of the market, including paper and pulp, cordage and ropes, handicrafts, yarns, and others, while also examining regional trends, market drivers, and competitive landscapes.

Market Overview

Abaca fibre is a natural, strong, and durable fibre derived from the banana plant native to the Philippines. It has been traditionally used in the production of ropes, paper, and handicrafts due to its superior quality and eco-friendly attributes. Abaca’s resistance to saltwater, flexibility, and toughness make it particularly useful in marine, industrial, and consumer goods applications.

The global abaca fibre market has witnessed steady growth in recent years. It is expected that the market will continue to expand as demand for sustainable and biodegradable materials rises across various industries. Key factors influencing the market include the increasing use of abaca in paper production, the demand for environmentally friendly products, and its versatility in various applications.

Market Segmentation by Application

Paper and Pulp

One of the largest applications for abaca fibre is in the paper and pulp industry. Abaca’s unique properties, such as its high cellulose content and strength, make it an ideal material for manufacturing specialty papers, including banknotes, tea bags, and other high-quality papers. The demand for paper products with superior durability and environmentally friendly attributes has driven the growth of this segment.

As more industries and consumers shift toward sustainable products, the need for paper made from natural fibres like abaca is expected to increase. Additionally, the growing demand for biodegradable packaging materials is contributing to the increased use of abaca in the paper sector.

Cordage and Ropes

Abaca fibre is well-known for its use in the production of ropes and cordage. The fibre’s strength and resistance to saltwater make it particularly suitable for maritime applications, such as fishing lines, mooring ropes, and ship rigging. Moreover, abaca ropes are often used in industries such as construction and agriculture, where strength and durability are essential.

The global shipping industry, which is continuously expanding, remains one of the key drivers of demand for abaca-based ropes and cordage. With rising global trade and shipping activities, the need for durable and eco-friendly materials in these industries will continue to propel the market forward.

Handicrafts and Fibre Craft

Abaca fibre has a long tradition in the creation of handicrafts and fibre craft products. It is widely used in making items such as woven baskets, hats, bags, and mats. The increasing consumer preference for sustainable and handmade goods has contributed to the rising demand for abaca-based handicrafts.

In regions such as Southeast Asia and Latin America, where the culture of traditional crafts is strong, abaca plays a significant role in local economies. As global consumers continue to embrace sustainable, locally made products, the market for abaca-based handicrafts is expected to see consistent growth.

Yarns

Abaca yarns are another important application of the fibre. These yarns are used in textile production, particularly in the creation of eco-friendly fabrics. Abaca yarns are known for their durability and strength, making them ideal for use in fabrics for furniture, upholstery, and accessories. As more textile manufacturers focus on sustainable and natural fibres, the demand for abaca yarns is anticipated to increase.

The growing trend of sustainability in the fashion and textile industries is expected to drive the market for abaca yarns, especially in eco-conscious consumer markets.

Others

Abaca fibre is also utilized in various niche applications, including automotive and construction materials, where it is incorporated into composite materials for insulation and reinforcement purposes. As industries continue to explore new, sustainable alternatives to traditional materials, the use of abaca in composite products and other specialized materials is likely to grow.

Regional Analysis

The global abaca fibre market exhibits diverse regional trends, with some areas contributing more significantly to market growth than others.

Asia-Pacific

The Asia-Pacific region, particularly the Philippines, is the largest producer and exporter of abaca fibre. The Philippines accounts for around 80% of the global supply of abaca. The country’s favourable climate, combined with a long-standing tradition of abaca cultivation, makes it a dominant player in the global market. The growing demand for abaca in various industries such as paper, textiles, and handicrafts is driving market growth in the region.

Latin America

Countries like Ecuador and Costa Rica are emerging as key players in the production of abaca. Latin America’s proximity to the Philippines and its increasing adoption of sustainable agricultural practices position it as an important region for the future growth of the abaca market.

North America and Europe

In these regions, the demand for sustainable materials is rising, especially in industries such as textiles, packaging, and paper. Abaca’s eco-friendly properties and versatility make it an attractive alternative to synthetic fibres. The increasing emphasis on sustainability and environmental consciousness will drive the demand for abaca fibre in North America and Europe.

Market Dynamics

SWOT Analysis

Strengths: Abaca’s natural strength, biodegradability, and versatility make it an attractive material across a variety of industries. Its eco-friendly characteristics position it well in markets demanding sustainable materials.

Weaknesses: The primary limitation of abaca fibre is its limited production capacity, particularly outside the Philippines. This may result in supply constraints.

Opportunities: Growing demand for sustainable and biodegradable materials, coupled with innovations in the application of abaca, present significant opportunities for market expansion.

Threats: Price volatility and supply chain disruptions are potential threats to the market. Additionally, the availability of alternative materials could pose competition to abaca’s market share.

Porter’s Five Forces Analysis

• Bargaining power of suppliers: High, as the majority of abaca production is concentrated in the Philippines.
• Bargaining power of buyers: Moderate, with a growing demand for sustainable fibres.
• Threat of new entrants: Low, due to the specialized nature of abaca cultivation and production.
• Threat of substitutes: Moderate, as synthetic fibres and other natural fibres may offer alternatives.
• Industry rivalry: Moderate, with key players competing based on product quality and sustainability.

Price Analysis

Abaca fibre prices are influenced by factors such as global demand, supply chain conditions, and production costs. As the market grows, prices are expected to rise, though factors like climate change and regional production fluctuations may introduce volatility. The price trend is expected to reflect a steady increase over the forecast period.

Competitive Landscape

The abaca fibre market is characterized by a mix of established producers in the Philippines, as well as emerging players from Latin America. Key players are focusing on improving production processes, expanding into new markets, and enhancing sustainability efforts to maintain a competitive edge.