by Wood plastic composites (WPCs) are composite materials made of wood fiber/wood flour and thermoplastic polymers such as polyethylene, polypropylene, and polyvinyl chloride. WPC products offer greater durability and water resistance compared to traditional wood. They are used for making decking boards, railing, window, and door profiles. Moreover, WPCs do not require sealing or staining like typical wood products and eliminate the use of toxic preservatives. The global construction industry has been growing steadily which is fueling the demand for WPCs.
The global Wood Plastic Composite Market is estimated to be valued at US$ 8.46 Mn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends: One of the key trends in the wood plastic composite market size is the increasing adoption of renewable and recycled content. Many manufacturers are focusing on reducing petroleum-based polymers usage and incorporating renewable and recycled materials such as agricultural waste and discarded plastics in WPCs. For instance, Trex Company, a leading manufacturer of composite decking and railing, uses polyethylene film discarded from consumer goods packaging and reclaimed wood fibers to manufacture its products. Use of recycled materials makes WPCs more sustainable and eco-friendly. This trend is expected to continue over the forecast period supported by government policies and regulations favoring green building products.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low in the wood plastic composite market as significant capital investments are required to build manufacturing infrastructure. Also, established players have strong brand recognition and supply chain networks.
Bargaining power of buyers: The bargaining power of buyers is moderate as wood plastic composite have applications in various end-use industries. Buyers can switch to substitute materials if pricing is not competitive.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials such as wood powder and plastic resins are commodity chemicals available from numerous suppliers globally.
Threat of new substitutes: The threat of substitutes is moderate as materials such as reinforced concrete, aluminium, and plastic sheets can replace wood plastic composites in certain applications.
Competitive rivalry: The competitive rivalry is high due to presence of numerous international and regional players operating in the market. Players compete based on product quality, pricing, and innovation.
Key Takeaways
The global wood plastic composite market is expected to witness high growth. The global Wood Plastic Composite Market is estimated to be valued at US$ 8.46 Mn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period 2024 to 2031.
The Asia Pacific region is expected to dominate the market during the forecast period driven by growth of the construction industry in China and India. The Asia Pacific region is expected to hold major share in the global wood plastic composite market during the forecast period. Abundant availability of raw materials and low manufacturing costs are driving the market in the region. China dominates the Asia Pacific wood plastic composite market owing to large production facilities and presence of major players in the country.
Key players: Key players operating in the wood plastic composite market are Abbott Laboratories, Baxter, Piramal Pharma Solutions, Manus Aktteva Biopharma LLP, Maruishi Pharmaceutical Co.,Ltd., Lunan Pharmaceutical Group and Abbvie. Abbott Laboratories offers wood plastic composites under various brands such as Kompozit, Decking, and WPC Cladding.
