Wood plastic composite market is estimated to be valued at USD 8.24 Billion in 2024 and is projected to reach USD 15.84 Billion by 2031, growing at a CAGR of 9.8% over the forecast period. The building and construction industry is experiencing increase in demand for wood plastic composites owing to their superior properties such as durability, weather resistance, and low maintenance. Furthermore, growing environmental concerns and stringent government regulations regarding deforestation are compelling industries and consumers to adopt sustainable alternatives to wood, thereby driving the growth of the global wood plastic composite market.
Rising Demand from Building & Construction Industry
Wood plastic composites are gaining increased preference in various construction applications such as decking, railing, and fencing, window profiles due to their properties like high strength, durability, and moisture resistance. Their ability to withstand harsh weather conditions makes them suitable for outdoor construction purposes. Therefore, the rising construction activities across both residential and non-residential sectors are fueling the demand for wood plastic composites.
Growing Environmental Concerns
Environmental concerns regarding large-scale deforestation have led industries as well as consumers to adopt eco-friendly substitutes to wood. Wood plastic composites provide a sustainable solution as they utilize a combination of recycled plastics
Growing Demand for Eco-Friendly Composite Materials is driving the Market Growth
Wood plastic composites are gaining popularity as they are made from recycled and renewable raw materials like wood and plastic. They offer an environmentally sustainable alternative to conventional materials like plastic and wood. The increasing concern about reducing carbon footprint and the push for eco-friendly products are driving the demand for wood plastic composites. Many industries are opting for composites to fulfill their sustainability goals and meet regulatory standards. The construction industry in particular is a major consumer of composites as they are used to make decking, fencing, and other outdoor structures.
Increasing Usage in Automotive Interiors is Fueling the Market Growth
Automakers are increasingly using wood plastic composites in vehicle interiors to enhance aesthetics, reduce weight, and withstand wear and tear. Composites help automakers develop attractive yet durable interiors at competitive costs. Features like instrument panels, door panels, consoles, and trim made with composites provide the look and feel of real wood without compromising on strength or quality. This has opened new avenues for composites in the automotive sector.
High Cost of Raw Materials Acts as a Restraint
The prices of raw materials used for making wood plastic composites like wood flour, plastic resins, and additives fluctuate continuously based on global demand and supply forces. Any increase in raw material costs is directly passed on to the end products, making composites more expensive than conventional materials at times. The fluctuating and unpredictable nature of raw material prices poses challenges for composite manufacturers and limits the accessibility of these products. The high input costs often restrict the large-scale adoption of composites where price sensitivity is high.
Lack of Standardization Inhibits Wider Adoption
Unlike metals and plastics, there are no international standards governing the production, properties, and applications of wood plastic composites. The composition, processing methods, and performance characteristics of composites vary significantly among producers. This lack of standardization leads to inconsistencies in quality and uncertainty regarding long-term durability. It also restricts composites from vital compliance and certification processes. The absence of globally accepted standards and testing protocols is a barrier for new markets and industries to embrace wood plastic composite materials with confidence.
Growing Popularity of Green Building Codes Presents Opportunities
Governments across major economies are implementing stringent green building codes and policies to promote the use of sustainable building materials. These regulatory push factors favor the adoption of eco-friendly building products like wood plastic composites. The growing demand for LEED certified green buildings and infrastructure is opening new revenue channels. Composites help construct durable decks, decking products, fencing, and outdoor structures for green buildings certified by agencies like LEED and Green Building Council. As green building gains pace globally driven by policy incentives, it will spur opportunities for wood plastic composite manufacturers.
Increase in Renovation and Remodeling Activities is Opening Avenues
The rise in disposable incomes is fueling more home renovation, remodeling, and refurbishment activities. Homeowners are increasingly opting for sustainable products to upgrade the aesthetics and functionality of outdoor spaces. Composites support this demand as their green attributes and appeal align well with current preferences. Products like decking materials made of composites are gaining traction in renovation projects. Even commercial spaces require regular replacement of worn-out materials and structures to attract customers. This creates continuous replacement demand acting as a tailwind.
*Link: https://www.coherentmarketinsights.com/market-insight/wood-plastic-composite-market-4849
Key Developments
- In October 2022, Green Dot Bioplastics, Inc. and Mayco International partnered to create an NFRP composite material from scrap and trim fibers
- In 2022, Green Dot Bioplastics launched an expanded line of compostable resins and teamed up with Mayco to reclaim fibers
- In July 2020, Nusaned Investment, owned by SABIC signed a deal with Suhul Alkhalej for industrial development.
Key Players
Advanced Environmental Recycling Technologies, Inc , Trex Company, Inc. , Advanced Environmental Recycling Technologies, Inc. , Axion International Holdings, Inc., Fiberon, LLC , TAMKO Building Products, Inc. , UPM-Kymmene Corporation , Universal Forest Products, Inc. , CertainTeed Corporation, TimberTech , Green Bay Decking, LLC, Polyplank AB , Beologic N.V. , FKuR Kunststoff GmbH , Green Resources Material, Universal Forest Product, Techwoodn , Perth Wood Plastic Composite Co., Ltd, Shanghai Seven Trust Industry Co., Ltd. , EverJade Group Limited , and Sentai WPC