Wood Plastic Composites Market

Updated on : April 23, 2024

Wood Plastic Composites Market

The global wood plastic composites market was valued at USD 7.5 billion in 2023 and is projected to reach USD 11.9 billion by 2028, growing at 9.8% cagr from 2023 to 2028. The commercialization of wood-plastic composites occurred in the early 1990s. The first-generation wood-composite products were made of recycled wood flour or chips with binder and were used in some limited applications. The next generation wood-plastic composites have superior mechanical, physical, and dimensional stability and can be used to produce complex forms. Advancements in the technology, followed by investment in R&D activities by the leading market players, provide a positive sign for the wood-plastic composites products in the marketplace. The major applications of wood-plastic composites are building & construction products, followed by automotive components. In building & construction application, wood-plastic composites are widely used in decking, molding & sliding, and fencing.

Attractive Opportunities in Wood Plastic Composites Market Trends

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Wood Plastic Composites Market Dynamics

Driver: Recyclability

Wood-plastic composites are renewable and abundant. Variety of synthetic fibers such as carbon, aramid and glass fibers faces degradability problem due to non-renewable nature. Thermoplastic resins such as polyethylene, polypropylene and polyvinylchloride along with wood fiber are easy to dispose and recyclable. Easy recyclability factor is driving the growth of wood-plastic composites in multiple end-use industries across the world. Various government in developed countries are implementing regulations and legislations on waste management. This regulations are expected to fuel the demand for wood-plastic composites in future.

Restraint: Rigidity issues and impact under heavy loads

Wood is treated with thermoplastics and a few additives, which makes the wood-plastic composite stiffer, and it loses its flexibility. It adopts one shape quickly, but then it becomes challenging to reshape it. This limits the reusability of the material. Every product has a limited shelf life and is subject to depreciation. Wood-plastic composite is susceptible to creep under heavy load when used over a long duration of time. Various processing factors, such as molding temperature, wood-plastic ratio, and screw speed can may affect the mechanical properties of wood-plastic composites. The use of coupling agents can help enhance the tensile properties and can add more strength to wood-plastic composites.

Opportunity:Growth opportunity in automotive industry due to government regulations

Growing demand for low-maintenance, high-performance, and cost effective products that are eco-friendly in nature and also offer low maintenance properties is expected to increase the demand for wood-plastic composites across the world in coming years. Moreover, increasing demand for biodegradable and recyclable materials for manufacturing various automotive components, that offers weight reduction, and superior mechanical strength is expected to drive the demand for wood-plastic composites during the forecast period.

Challenge: Life-cycle improvement

Wood-plastic composites are highly durable when compared to normal wood. However, due to excess rain or heat, products may have a reduced life span. Wood-plastic composites melts in excess heat and is prone to fungal growth on the surface due to excess humidity. Top global players in the market are yet to produce a product to tackle these issues effectively. This is a major challenge in the wood-plastic composites market.

Wood Plastic Composites Market Ecosystem

Based on the type, the polyvinylchloride segment is estimated to be the fastest-growing type during the forecast period.

Polyvinylchloride (PVC) is a thermoplastic material, which can be melted repeatedly. It becomes soft on being heated to a certain temperature, and then hardens on cooling. Polyvinylchloride is a widely consumed type of wood-plastic composites in the global market. Due to its various advantages, such as low maintenance, tough, rigid with a high impact strength, sound and heat insulation, nontoxic and weatherproof, non-wrapping and stain proof, reliable, fire retardant and self-extinguishing, non-corrosive, and chemical resistant, consumers prefer using it as compared to other types of wood-plastic composites. Polyvinylchloride is extensively used in the construction business as it is a low-maintenance material. It is widely used in countries such as the US, the UK, and Ireland. This material has almost entirely replaced the use of raw wood, which tends to rot after a couple of years.

Based on application, the industrial & consumer goods is anticipated to register the second-highest CAGR in wood-plastic composites market.

Industrial & consumer goods application segment is one of the significant end-use applications of wood-plastic composites. Polyvinylchloride based wood-plastic composites is gaining high popularity due to its moisture resistance, balance of thermal stability, strength, and stiffness. Patent activity by many manufacturers is very high in this segment. Growth in the industrial & consumer goods segment along with increasing government regulations regarding biodegradable materials may drive the market in upcoming years.

Europe to be the second-largest market for wood-plastic composites during the forecast period.

The European wood-plastic composites market is a mature market. Currently, wood-plastic composites are increasingly used to produce furniture, technical parts, consumer goods, and household electronics using the injection molding and extrusion processes. Development of new production methods, such as the extrusion wood-plastic composite board, in many end-use applications shows a positive sign for the overall market.

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Wood Plastic Composites Market Players

The wood-plastic composites market is dominated by a few globally established players. Trex Company, Inc., (US), MoistureShield (US), UFP Industries, Inc. (US), Fiberon (US), TimberTech (US), TAMKO Building Products LLC (US), Beologic (Belgium), FKuR Kunstsoff GmbH (Germany), JELU-WERK J. Ehrler GmbH & Co. KG (Germany), and Green Dot Bioplastics, Inc. (US), among others, are the main producers in the global market.

These companies are attempting to establish themselves in the wood-plastic composites market by employing a range of inorganic and organic approaches. A thorough competitive analysis of these major wood-plastic composites market participants is included in the research, along with information on their company profiles, most recent advancements, and important market strategies.

Read More: Wood-plastic Composites Companies

Wood Plastic Composites Market Report Scope

The study categorizes the wood-plastic composites market based on Type, Application, and Region.

Wood Plastic Composites Market by Type:

• Polyethylene
• Polyvinylchloride
• Polypropylene
• Others

Wood Plastic Composites Market by Application:

• Building & Construction Products
• Automotive Components
• Industrial & Consumer Goods
• Others

Wood Plastic Composites Market by Region:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa

Recent Developments

• In September 2023, UFP Global Holdings Ltd has acquired 80 percent of the equity in a newly formed company, UFP Palets y Embalajes SL, for approximately USD 52 million USD. UFP Palets is comprised of the former pallet manufacturing operations of Palets Suller SL, Serrería y Palets Chiva SL and Drevex Castellón SL, collectively known as Palets Suller Group.
• In August 2023, MoistureShield partners with Great Southern Wood Preserving, Inc. to expand distribution of composite decking portfolio and newly added railing product line in Pennsylvania and Kentucky.
• In June 2023, Trex Company, Inc. launched Trail Select T-Rail. Trex Select T-Rail is an affordable and easy-to-install railing option offered by Trex. It features a classic T design on top with a choice of two infill options, providing a clean yet stunning design for decks. This railing system is designed for simplified, pre-designed rail applications.
• In October 2022, Green Dot Bioplastics, Inc. and Mayco International have partnered to reclaim trim and scrap fibers for Natural Fiber Reinforced Plastic. Together, the two companies developed an NFRP composite material using the trim and scrap fibers, removing them from the waste stream and expanding the lifespan of the original materials.
• In June 2022, UFP Industries announced that its affiliate, PalletOne, Inc., has acquired a 50 percent equity stake in Dempsey Wood Products, LLC. The purchase agreement includes options for PalletOne to purchase the remaining 50 percent of Dempsey after three years.

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