July 15, 2024
Wood Plastic Composite Market

Wood Plastic Composite Market Is Estimated To Witness High Growth Owing To Growing Construction Industry

The wood plastic composite market is estimated to be valued at US$ 7.34 Billion in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Wood plastic composites are composite materials made from recycled wood fiber/sawdust and thermoplastic or thermosetting binders. WPCs possess attractive material properties such as high strength, durability, and resistance to moisture and heat. They found major applications in decking, fencing, railings, window and door frames, and automotive interiors. Rapid urbanization and infrastructure development are fueling the construction industry which in turn boosting the demand for wood plastic composites.

Market Dynamics:
Growing construction industry: Wood plastic composites are increasingly being used in exterior construction applications such as decking, fencing, railings, window frames due to their durability and low maintenance properties. According to Oxford Economics, global construction output is estimated to grow by 85% to USD 15.5 trillion by 2030. This rapid growth in construction spending worldwide is expected to propel the demand for wood plastic composites during the forecast period.
Sustainability benefits: WPCs provide an eco-friendly alternative to traditional wood and plastic materials. They make use of recycled wood and plastic waste and exhibit superior dimensional stability and resistance to moisture, rust, and rot. Moreover, they don’t require painting or staining and maintain looks for years which reduces maintenance efforts. The sustainable properties of wood plastic composites are increasing their adoption across various end-use industries.

SWOT Analysis

Strength: Wood plastic composite materials are durable and weather resistant. They do not require much maintenance and can withstand extreme weather conditions. WPC materials are also environment friendly as they reduce the dependence on tropical hardwood.
Weakness: The production cost of wood plastic composites is higher than traditional wood. There are also difficulties in processing and recycling of WPC materials. WPC materials also lack the natural appearance and texture of wood.
Opportunity: The growing construction industry worldwide presents an opportunity for increased demand of WPC materials. They can replace hardwood in decking and fencingapplications. The rising environmental regulations also favor the use of WPCs over tropical hardwood.
Threats: Volatility in plastic prices can significantly affect the production cost of WPCs. Strict environmental laws in some regions pose threats in terms of production and disposal of WPC waste.

Key Takeaways:

Global Wood Plastic Composite Market Demand is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing construction activities worldwide. Rapid urbanization has boosted infrastructure development projects, driving the demand for WPC materials in decking, fencing, railings, and window and door frames.

Regional analysis: North America dominates the global WPC market, with the US accounting for majority of the demand. Strict environmental regulations encouraging the use of eco-friendly alternatives to hardwood favor market growth. Asia Pacific exhibits the fastest growth in the WPC industry, driven by China, India, and other developing nations. Rising investments in commercial and residential construction boosted by growing population is a key factor augmenting demand.

Key players operating in the wood plastic composite market are Tamco Building Products, Trex company Inc, Meghani group, Beologic, Seven Trust, UFP Industries Inc, Fiberson LLC, Axion International, Polyplank AB, TimberTech, Universal forests Products, and Josef Ehrler GmbH & Co KG. Key players are focusing on new product launches, capacity expansions and mergers & acquisitions to strengthen their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it