Global Wood Plastic Composites Industry Overview

The global wood-plastic composites market reached a volume of 3.6 Million Tons in 2018. Driven by the rising demand for recyclable materials from the automotive sector and growing number of applications in the construction sector, the global wood plastic composites market is anticipated to get $10,678 million by 2027, exhibiting a CAGR of 11.51% during the forecast periods of 2019-2027. In terms of volume, it is expected to grow with a CAGR of 10.02%.

The need to comply with CO₂ emission and fuel economy targets is one of the crucial factors that will drive the wood-plastic composites market growth. The high cost of wood plastic composites (WPCs) is a lesser worry than their environmental footprint. Therefore researchers across the world are focused on developing effective and efficient WPCs from recycled raw materials. WPCs reduce the resource pressure on non-renewable materials, as the percentage composition of wood in them is above 50%. Petroleum-based polymer mix used for making WPCs leave a significant carbon footprint. However, using bio-based materials can reduce the environmental impact substantially. The pressure to comply with environmental regulations will fuel the use of these materials, and drive the wood-plastic composites market growth.

The rising hardwood price is one of the key trends that will further propel wood-plastic composites market growth. Manufacturers and stakeholders are finding it difficult to procure high-quality hardwood. Composites, especially WPCs are widely adopted due to their several benefits such as lower maintenance, environment-friendliness, and greater return on investment.

The use of wood plastic composites prevents the deforestation owing to which they act as an ideal substitute for hard wood. Additionally, the manufacturing process of wood plastic composites does not involve any chemical which can be harmful or toxic to the environment. These environmental concerns and rising awareness regarding them act as a primary factor which has been driving the growth of the market.

The demand for wood plastic composites has been witnessing a robust growth in the construction and automobile industries as they are inexpensive in nature and are easy to be used in different non-structural areas including balconies, staircases, pillars, etc.

Wood plastic composites offer numerous benefits as compared to its substitutes. They are durable, rust-free in nature, require low-maintenance and sustain high temperatures on account of which they are being increasingly used in interiors, car speakers, and home furniture and kitchen appliances. This has contributed towards an augmented demand for wood plastic composites across the globe.

There has been an increase in industrialisation and urbanisation in developing nations which has given a boost to the construction and building sectors. These are some of the growth-inducing forces which have been acting in favour of the global wood composites market.

Market Drivers

The increased use of wood plastic composite products in residential and commercial buildings is the primary driver for the global wood plastic composite market. WPC products are biodegradable and eco-friendly, this has been driving the global wood-plastic composites market. WPC products are molded to meet almost any desired shape. WPC products can be bent and fixed to form strong arching curves; this is also driving the global wood plastic composite market.

Market Insights

The global wood plastic composite market is being driven primarily by the growing demand from building and construction applications and increasing demand for recyclable materials in the automotive industry. The lack of rigidity and the impact of heavy load coupled with the nonexistent well-defined quality standards are the major factors hindering the global wood plastic composites market advancement. The competition in the market is very high as the market is highly consolidated with the presence of a large number of manufacturers and suppliers. The market has high entry barriers.

Regional Insights

Regional segmentation of the wood plastic composite market is carried over the North America, Europe, Asia-Pacific and the Rest of World. Asia-Pacific is expected to showcase the fastest growth over the forecast period for this market. The market is propelled by booming construction industry and rising number of outdoor applications. However, the North American market is expected to continue its dominance in the global market on account of the high demand for wood-plastic composites from the marine industry in countries such as the U.S and Canada.

Market Trends Forecast

The global demand for Wood Plastic Composite is forecast to report strong growth driven by consumption in major emerging markets. More growth opportunities will turn up between 2019 and 2025 as compared to the past five years, suggesting rapid pace of change. Companies quickly adapting to this changing landscape are emerging as top performers and earning attractive revenues through sustainable transition, innovation, efficient pricing and sales execution strategies.