Wood-Plastic Composites Market Growth Analysis | 2023-2028

Market Insights

The wood-plastic composites market was estimated at USD 6.49 billion in 2022 and is likely to grow at a CAGR of 11.17% during 2023-2028 to reach USD 12.33 billion in 2028.

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Market Dynamics

Introduction

Wood-plastic composites (WPC) are hybrid materials combining wood fibers or particles with thermoplastic polymers, such as polyethylene or polypropylene. This fusion results in a durable, versatile material with the aesthetic appeal of wood and the resilience of plastic. WPCs offer enhanced strength, moisture resistance, and dimensional stability, making them suitable for various applications like decking, fencing, and outdoor furniture.

COVID-19 IMPACT

There was a partial or entire shutdown of manufacturing of non-essential products during the global pandemic in the year 2020. Restrictions on trades and lockdowns across the globe have negatively impacted the market and led to a decline in demand and sales of the wood-plastic composites market.

Market Drivers

The major factors driving the growth of the wood-plastic composites market are:

• Increasing use of wood-plastic composites in interior applications in the growing automotive industry.
• Recovery in building and construction activities.
• A high focus on the use of green materials.

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Key Players

The supply chain of this market comprises raw material suppliers, WPC manufacturers, part manufacturers, distributors, and OEMs. The key WPC manufacturers are-

• TAMKO Building Product,
• Trex Company, Inc.,
• Advanced Environmental Recycling Technologies, Inc.,
• Universal Forest Products, Inc.,
• Fiberon, LLC,
• TimberTech,
• Beologic N.V.,
• CertainTeed.

Process optimization, new product development, and new application development are the major strategies adopted by the key players to gain a competitive edge in the market.

Note: The above list does not necessarily include all the top players in the market.

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Segments Analysis

By End-Use Industry Type

Building & Construction segment is expected to remain the growth engine of the market during the forecast period. Recovering North American housing starts, high residential activities in the Asia-Pacific and Middle East regions, and a focus on the use of green materials are likely to drive the market segment during the forecast period. Decking, siding, and fencing are the major applications of wood-plastic composites in the building & construction industry, together accounting for more than 90% of the wood-plastic composites market in the building & construction industry in 2021.

The automotive segment is expected to experience the highest growth over the next five years. The automakers’ push to build lightweight vehicles for achieving the government’s stringent regulations, such as CAFÉ standards and EU Carbon emissions, and demand for recycled materials are likely to drive the demand for WPC in the automotive industry. WPCs are mainly used in interior applications, such as rear shelves and trims for trunks and spare wheels, and interior trims for vehicle doors. The wood-plastic composite stakeholders are continuously working on the development of new wood-plastic composite applications in the automotive industry.

By Resin Type

Polyethylene is expected to remain the largest resin type during the forecast period because of its overall higher performance than other resin-based wood-plastic composites.  Polyethylene is widely preferred for manufacturing decking, fencing, furniture, wall cladding, hollow boards, and profiles.

By Manufacturing Process Type

The extrusion process is expected to remain the most dominant process type in the market during the forecast period. Building & Construction, the largest end-user industry of the market heavily relies on the extrusion process to manufacture key applications, such as decking, siding, and fencing. The injection molding process is likely to exhibit the fastest growth for the same period driven by the automotive and consumer goods segments. Wood-plastic composites are increasingly used to produce furniture, consumer goods, and household electronics using the injection molding process. WPC granulates for injection molding are now produced by global players and are becoming more attractive for clients that manufacture consumer goods, automotive, and other parts.

Regional Insights

North America is expected to remain the largest market in terms of region, over the next five years. More than 60% of the WPC manufacturers are located in the North American region, serving primarily construction and consumer goods industries. Asia-Pacific is likely to witness the fastest growth rate during the same period driven by growing economies, mainly China and India. Europe is the largest market for the automotive industry.

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Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects wood-plastic composites market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The wood-plastic composites market is segmented into the following categories:

By Resin Type

• Polyethylene
• Polyvinylchloride
• Polypropylene
• Others

By End-Use Industry Type

• Building and Construction
• Automotive
• Consumer Goods
• Others

By Manufacturing Process Type

• Extrusion Process
• Compression Molding Process
• Injection Molding Process

By Region

• North America (Country Analysis: USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, UK, Italy, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, and the Rest of the Asia-Pacific)
• Rest of the World (Country Analysis: Middle East and Latin America)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3)
• SWOT analysis of key players (up to 3)

Regional Segmentation

• Current market segmentation of extrusion process-based WPC market by end-use industry type.

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case you need any custom research requirements related to market assessment, competitive benchmarking, sourcing and procurement, target screening, or other requirements, please send your inquiry to [email protected].