Wood Plastic Composites Market Size, Share & Trends Analysis Report By Product (Polyethylene, Polypropylene), By Application (Automotive Components), By Region, And Segment Forecasts, 2024 - 2030

Wood Plastic Composites Market Size Trends

The global wood plastic composites market size was estimated at USD 7.15 billion in 2023 and is expected to grow at a CAGR of 11.6% from 2024 to 2030. The market is driven by the rising demand for sustainable construction materials along with an increase in renovation and repair activities in the residential sector across the globe. Wood plastic composites are increasingly being used in construction applications. Wood plastic composites are being employed in roofing applications as well as in the manufacturing of glass windows.

Wood plastic composites are increasingly being used in construction applications. Wood plastic composites are being employed in roofing applications as well as in the manufacturing of glass windows. In developing countries, wood plastic composites are replacing standard wood in roofing applications on account of its high strength. This is on account of its tendency to break into larger pieces as compared to standard wood, which prevents sharp shards upon breakage, which can lead to serious human injuries in case of an accident.

Furthermore, wood plastic composite has a lower melting temperature as compared to conventional wood products, which lowers the energy cost for end-users and also reduces the environmental impact of the product. Wood plastic composite can be worked upon by the same tools utilized for wood products. This factor eliminates the investments to be made by the manufacturers and the risks associated with recouping the same.

Biggest tech companies such as IBM, Microsoft, and Cisco are investing in megaprojects to build smart, sustainable cities across the globe. Investments in these cities are expected to reach USD 135.00 trillion in the next two years. In addition to these cities, international megaprojects such as Hudson Yards and Masdar City have created opportunities for interior construction manufacturers resulting in surging wood plastic composite demand over the coming years.

Wood flour is hygroscopic in nature and must be wetted properly with the use of a thermoplastic matrix otherwise it can absorb moisture which leads to weak mechanical properties, unwanted odors and microbial attacks. The technique requires complex machine arrangements and skilled laborers resulting in increasing the overall cost of the products. This in turn can restrict the market growth over the projected years.

Industry Dynamics

The market growth stage is medium, and pace of the market growth is accelerating. The major key players in the market are using their in-house technology and manufacturing process for wood plastic composite products. In addition, various software is used by the key players to build a 3D model for residential and commercial building & construction projects, leading to moderate degree of innovation.

The industry participants are implementing strategies including mergers and acquisitions, to strengthen their foothold in the market. For instance, In May 2022, UFP Industries, Inc. announced the acquisition of Cedar Poly LLC for USD 17.0 million. This helped UFP Industries, Inc. vertically integrate the sourcing of recycled polymers and increase use of post-industrial waste materials in their products without compromising the quality of the overall products.

Regulations and standards moderately impact the wood plastic composites industry by ensuring product quality, safety, and environmental sustainability. Standards related to mechanical properties, durability, and performance help maintain consistency and reliability in wood plastic composite products, boosting consumer confidence and market acceptance.

The product is prone to staining and color fading due to the presence of wood particles. In addition, the presence of mineral-based composite products and pure plastic base products plays as an alternative to the WPC products. However, WPC products exhibit the lowest price point, thereby the level of substitution threat is expected to be moderate over the forecast period.

Product Insights

The polyethylene product segment led the market and accounted for 65.9% share of global revenue in 2023. The high demand of polyethylene in manufacturing furniture for homes, offices, restaurants, resorts and hospitals. Moreover, the rising demand for polyethylene in the automotive industry owing to its low cost, high stiffness and biodegradability is expected to further propel the market growth over the coming years. Low cost, high stiffness, abundant raw material availability, and biodegradability offered by polyethylene-based wood plastic composite products are likely to open new avenues for market growth.

In terms of revenue, polypropylene is the fastest-growing product segment with a CAGR of 11.9% over 2024 to 2030. This higher share is attributed to its heavy use in the niche application segments such as water-resistant coatings on furniture and high-temperature controllable wooden units.

Polyvinylchloride is projected to register a CAGR of 11.2% in terms of volume over the forecast period. Growing demand for polyvinylchloride thermoplastics in automotive applications for manufacturing door panels, seat cushions, cabin linings, backrests and dashboards on account of its excellent insulation properties is expected to have a positive impact on the market growth over the forecast period. Polyvinylchloride thermoplastics have insulation properties and are thus employed in the manufacturing of insulative products for applications in electrical, and automotive industries.

The rising demand for polystyrene and acrylonitrile butadiene styrene composites in a wide range of applications such as kitchen furniture, shower receptors, bathtubs, windowsills and whirlpool baths on account of its high durability and environment friendly characteristics is expected to boost market growth over the next eight years.

Application Insights

Building and construction segment led the market and accounted for 71.3% of the global revenue share in 2023. Increasing infrastructural development activities in the emerging economies such as China, India, Thailand and Brazil coupled with the growing demand for aesthetically appealing furniture and flooring solutions across the globe, has surged the demand for wood plastic composite in the construction industry. Rising demand for various wood plastic-based wood products in construction applications, especially for decking, is expected to propel market growth. 

The use of recyclable or biodegradable wood-plastic composite-based parts in automobiles is expected to improve mechanical strength and acoustic performance. In addition, it also reduces material weight and fuel consumption, reduces manufacturing costs, improves passenger safety and shatterproof performance. These factors are forecasted to boost the at the fastest CAGR of 12.3% over 2024 to 2030.

Wood-filled PVC is gaining popularity because of its balance of thermal stability, moisture resistance, stiffness, and strength, although being more expensive than unfilled PVC. Wood-plastic composites are used in a variety of sectors across the world, although their methodologies differ. For longevity, they extrude wood-filled PVC with an unfilled PVC cap stock, while others extrude a PVC core with a paintable wood-filled PVC surface.

Increasing demand for wood plastic composite in manufacturing noise barriers for street construction, sheet pilings for landscaping, and garden furniture, is expected to surge the product demand over the forecast period. In addition, the rising demand for wood plastic composite in manufacturing consumer goods including toys, and showpieces is anticipated to further propel the market growth over the coming years.

Regional Insights

The wood plastic composites market in North America accounted for the largest revenue market share with 51.9% in 2023. Automotive and construction industries in North America are showing growth signs. Moreover, reduction in unemployment rates, passage of major infrastructure-related bills, and reduced prices due to shale gas flooding the market are some of the key reasons for the growth of the construction industry in the region, further supporting the product demand in the region.

U.S. Wood Plastic Composites Market Trends

The U.S. wood plastic composite market dominated in North America in terms of production as well as demand. The demand is expected to grow over the forecast period owing to the rising application scope of the product in manufacturing docks, porches, and window frames.

The wood plastic composite market in Canada is expected to progress at an estimated CAGR of 11.2% over the forecast period, in terms of revenue. Increasing utilization from consumer goods and niche product segment coupled with rising demand from building & construction thereby boosting product demand.

Europe Wood Plastic Composites Market Trends

Europe wood plastic composites market was valued at USD 10.00 billion in 2023. The growth of the automotive industry in the region, which uses the product to manufacture interior & exterior trims, is anticipated to propel the demand for the product over the forecast period. However, the region has reached the stage of maturity and, thereby expected to grow at a sluggish rate over the forecast period.

The wood plastic composites market of UK is witnessing a considerable growth rate. Increasing demand for WPC in the manufacturing of consumer goods including pencils, toys, and cups is expected to have a positive impact on wood plastic composites in the UK.

Germany wood plastic composites market accounted for a revenue of USD 221.3 million in 2023. Rising electric vehicle adoption in Germany is expected to raise demand for WPC products including trims and additional shelves are expected to drive the market growth on a positive note.

Asia Pacific Wood Plastic Composites Market Trends

The wood plastic composites market in Asia-Pacific is expected to progress at the fastest CAGR of 12.4% over the forecast period. The increasing population in countries including India, China, Bangladesh, and Pakistan coupled with changing consumer lifestyles has resulted in the growth of the construction and consumer goods industry in the region, which in turn is expected to have a positive impact on the market growth over the forecast period.

India wood plastic composite market is expected to witness significant growth on account of the rising expansion of capital market, presence of small- & large-scale industries, and rising foreign exchange reserves. Government’s ‘Make in India’ initiative is further expected to boost the consumer goods application segment. Hence, the market revenue in India is growing at a CAGR of 13.0% over the forecast period of 2024 to 2030.

The wood plastic composites market in China dominated in Asia-Pacific, in 2023, owing to high growth of application industries especially building & construction. In addition, the increasing consumer goods industry in the country is anticipated to propel the product demand.

Central & South America Wood Plastic Composites Market Trends

Central and South America wood plastic composite marketis witnessing significant growth.Construction activities in the region have grown substantially owing to the rising income levels and shifting consumer preference towards green buildings. Expanding commercial construction sector coupled with the government initiatives to create awareness about green buildings among people is expected to stimulate the Central and South America market growth over the forecast period.

The wood plastic composite market in Brazil is expected to progress at an estimated CAGR of 11.5% from 2024 to 2030 due to rising construction projects from the bolstering population coupled with the government initiatives to promote manufacture and use of bioplastic and biodegradable materials.

Middle East & Africa Wood Plastic Composites Market Trends

Middle East & Africawood plastic composites market is expected to reach USD 1.27 billion by the end of 2030. The regional government, by taking the depletion of its oil reserves in the near future into consideration has invested in construction sector to strengthen its hospitality sector, which in turn is expected to increase the demand for wood plastic product in the region over the forecast period.

Key Wood Plastic Composites Company Insights

Some of the key players operating in the market include CertainTeed, LLC., JELU-WERK J. Ehrler GmbH & Co. KG, RENOLIT SE, Trex Company, Inc., and Oakio Plastic Wood Building Materials Co. Ltd.:

• CertainTeed, LLC. has segregated its business into two divisions which include exterior building, and interior building. The product portfolio under exterior building products includes roofing, siding, trim, sheathing, fence, decking and railing, foundations, windows, and fiber cement siding. Moreover, the company has a wide geographical presence and offers its products in over 100 countries.

• JELU-WERK J. Ehrler GmbH & Co. KG is engaged in the production of wood plastic composite compounds, lignocellulose, and cellulose using plant fibers. The wood plastic composite brands of the company operating in the market are Jelucel, Jeluvet, and Jeluxyl. The company distributes its products across all five major regions across the globe.

Beologic, Fiberon, FKuR, Guangzhou Kindwood Co. Ltd., and UFP Industries, Inc. are some of the emerging market participants in the market.  

• UFP Industries, Inc. is engaged in the manufacturing and distribution of wood and wood-based alternative products. The company has three reportable segments including retail, construction, and industrial. The company has over 170 facilities in over 100 countries including the U.S., Canada, Mexico, India, Japan, UK, and Australia which supplies tens of thousands of products to its three-business segment.

• Fiberon manufactures and distributes wood plastic composite products which include composite decking, railings, and cladding. Its North Carolina production facility includes 400,000 square feet of manufacturing space and 175,000 square feet of assembly and warehouse space.

Recent Developments

• In June 2024, Oakio Plastic Wood Building Materials Co. Ltd., Inc. introduced Proshield WPC Cladding. This advanced cladding solution offers durability, sustainability, and aesthetic versatility for exterior building materials. Proshield WPC Cladding is engineered with a unique blend of wood fibers and high-density polyethylene, encased in a robust polymer shield.

• In January 2023, UFP Industries, Inc. announced to feature new and innovative products from two leading brands, Deckorators and UFP-Edge. These distinctive products allow both DIYers and builders to bring the personal creativity of interior design to outdoor living, thereby helping the company to gain a competitive edge.

Wood Plastic Composites Market Report Scope

Report Attribute	Details
Market size value in 2024	USD 7.97 billion
Revenue forecast in 2030	USD 15.41 million
Growth rate	CAGR of 11.6% from 2024 to 2030
Base year for estimation	2023
Historical data	2018 - 2022
Forecast period	2024 - 2030
Quantitative units	Volume in Kilotons, Revenue in USD Million and CAGR from 2024 to 2030
Report coverage	Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments covered	Product, application, region
Regional scope	North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
Country scope	U.S.; Mexico; Canada; UK; Germany; France; Spain; Italy; Russia; Netherland; Switzerland; China; Japan; India; South Korea; Australia; Indonesia; Thailand; Singapore; New Zealand; Philippines; Brazil; Argentina; Chile; Saudi Arabia; South Africa; UAE; Egypt; Iran
Key companies profiled	CertainTeed, LLC.; Beologic; Fiberon; FKuR; Guangzhou Kindwood Co. Ltd.; JELU-WERK J. Ehrler GmbH & Co. KG; PolyPlank AB; RENOLIT SE; TAMKO Building Products LLC; The AZEK Company Inc. (TimberTech); Trex Company, Inc.; UFP Industries, Inc.; Hardy Smith Designs Private Limited.; Oakio Plastic Wood Building Materials Co. Ltd.
Customization scope	Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs. Explore purchase options

Global Wood Plastic Composites Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global wood plastic composites market report based on product, application, and region. 

• Product Outlook (Volume, Kilotons; Revenue, USD Million; 2018 - 2030)

  • Polyethylene

  • Polypropylene

  • Polyvinylchloride

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million; 2018 - 2030)

  • Building & Construction

  • Automotive Components

  • Industrial & Consumer Goods

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million; 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Spain

    • Italy

    • Russia

    • Netherlands

    • Switzerland

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

    • Thailand

    • Indonesia

    • Singapore

    • New Zealand

    • Philippines

  • Central & South America

    • Brazil

    • Argentina

    • Chile

  • Middle East

    • Saudi Arabia

    • South Africa

    • United Arab Emirates (UAE)

    • Egypt

    • Iran