According to MRFR analysis, the Global Wood-Plastic Composites Market is projected to register a CAGR of 11.4% to reach USD 8.79 billion by the end of 2025.
Wood plastic composites (WPCs) are composite materials made from various wood fibers/flours and thermoplastics, such as polyethylene (PE), polypropylene (PP), and polyvinyl chloride (PVC). WPCs are widely used owing to the properties that can be attained by changing the composition of materials. Stiffness, flexibility, resistant towards decay, low maintenance, lower manufacturing cost as compared to plastics are some of the advantages offered by WPCs. Some of the major applications of wood plastic composites are in floor parquets, water paper baskets, plastic lumbers, park benches, picnic tables, and others. They are sold under trade names: STRUXURE, Panorama, ArmorGuard, Fibrolon S 7530, Atmer 7300, Algustrum Plus Blank, and EverGrain.
The major factors favoring the growth of the global market are the expanding building & construction and automotive industries in emerging countries and growing awareness regarding the advantages of WPCs over normal wood, especially for decking and railing purposes. For instance, in June 2018, the Asian Infrastructure Investment Bank (AIIB) announced a USD 200 million investment in the National Investment & Infrastructure Fund (NIIF).
Globally, the automotive industry is witnessing healthy growth in terms of production and sale. In 2018, the global sale of commercial vehicles reached 26 million from 25 million compared in 2017.
Furthermore, the raw materials of WPCs are obtained from the municipal solid waste, making it a cost-effective and sustainable product, which makes WPCs an opportunistic market during the assessment period.
However, the absorption of water by the surface of the composite results in discoloration and affects the aesthetic appeal, which is expected to lower the demand for the product and restrain the growth of the global market.
Pricing and Regulatory Analysis
In 2018, the WPCs were priced between USD 15.80 and USD 22.36 per square meters across the globe. In the same year, the price of polyethylene varied between USD 733.7 and USD 1162.65 per metric ton.
The stringent environmental regulations regarding the use of chemically treated composite such as CCA-treated lumber is expected to boost the demand for WPCs in the building & construction industry. For instance, ISO 16000-9 by the European Committee for Standardization (CEN), for ‘Air Quality and VOCs release’, ISO 16929 by International Organization for Standardization, for ‘determination of the degree of disintegration of plastic materials’, ASTM D7032-17, by American Society for Testing and Materials, for ‘Performance ratings of WPCs for deck boards, guards, stair treads, and handrails’.
- Increasing demand for sustainable products to reduce the carbon footprint in the environment
- Increasing applications of WPCs in the building & construction industry such as in railings, decking, windows, and door frames
- Growing production of automobiles in emerging economies has surged the demand for WPCs in the manufacturing of interiors parts
- Relatively low manufacturing cost as compared to its alternatives (PVC)
- Recyclability of PVCs
- Use of plastic decreases the stiffness of WPCs compared to wood lumber
- Absorption of water can lead to discoloration
- Polyethylene (PE): The segment is expected to hold the largest share of the global wood plastic composites market owing to higher structural stability and lower resin cost as compared to other product types.
- Polyvinyl Chloride (PVC): PVC is majorly used in the manufacturing of interior parts of automobiles, e.g., dashboards.
- Polypropylene (PP): PP finds applications in water-resistant coatings, musical instruments, and household appliances.
- Others: The segment includes polystyrene and acrylonitrile butadiene styrene (ABS).
By End-Use Industry
- Building & Construction: The building & construction segment held the largest market share in 2018 and is expected to be dominant during the forecast period. The growth of the segment is attributed to the use of WPCs in decking and railing applications. Railing and decking products, accounting for almost USD 1 billion annually, two-third of WPCs production.
- Automotive: The increasing demand for WPCs in the automotive industry in the manufacturing of interior parts is likely to boost the growth of the global market.
- Consumer goods: The growing use of WPCs in the manufacturing of benches, tables, and shelves is expected to boost the growth of the global market.
- North America
- Latin America
- Middle East & Africa
- North America: Held the largest market share of over 45% in 2018 and is projected to be the dominant regional market during the forecast period. The increasing reconstruction activities and high emphasis on bio-compatible products are factors propelling the growth of the North American market. In addition, the increasing application of WPCs in flooring is likely to boost the product demand in the regional market.
- Europe: High automobile production and growing adoption of green materials in the building & construction due to stringent environmental regulations are factors driving the market growth in the region.
- Asia-Pacific: The growth of the market in the region is attributed to the growing building and construction and automotive industries supported by government bodies, leading to high consumption of WPCs for production of door and window frames, dashboards, and benches. In February 2019, the Government of India approved the FAME-II (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme with a fund requirement of USD 1.39 billion for FY20-22.
- Latin America: Held smaller share but the rapidly expanding automotive industry and increasing construction activities in the region is expected to boost the market growth for wood plastic composites in the region.
- Middle East & Africa: The region is expected to witness positive growth owing to the increase in the usage of WPCs in the infrastructure sector for applications such as flooring, walkways, patios, and gazebos.
- AXION STRUCTURAL INNOVATIONS LLC (US)—STRUXURE
- CERTAINTEED (US)—Panorama
- Fiberon (US)—ArmorGuard
- FKuR Kunststoff GmbH (Germany)—Fibrolon S 7530
- Croda International Plc (UK)—Atmer 7300
- Polyplank AB (Sweden)—Algustrum Plus Blank
- TAMKO (US)–EverGrain
- Trex Company, Inc (US)—TRANSCEND
- HARDY SMITH (India)—WPC door line
- Universal Forest Products, Inc (US)
Frequently Asked Questions (FAQ) :
The Wood plastic composites market can expand at 11.4% CAGR by 2025.
By 2025, the Wood plastic composites market value can exceed 8.79 billion.
Fiberon (US)—ArmorGuard, AXION STRUCTURAL INNOVATIONS LLC (US)—STRUXURE and CERTAINTEED (US)—Panorama are some reputed names in the Wood plastic composites market.
The rise in need for sustainable products can promote the Wood plastic composites market.
The rigidity of physical properties can impact the plastic composites market.