The global wood plastic composite market size was estimated at USD 4.01 billion in 2017, progressing at a CAGR of 9.3% over the forecast period. Rising demand for lightweight and durable products in the automotive and construction industries is expected to drive demand over the coming years.
Wood fibers are utilized in manufacturing wood plastic composites (WPC) in order to increase their stiffness and strength. Various types of wood are used in commercial production, with pine, maple, and oak being the most common. Currently, wood selection is influenced more by availability rather than inherent qualities.
U.S. dominated the market in North America in terms of production as well as demand. The dominance of the market is attributed to a well-established building and construction industry, coupled with extensive usage of WPCs in the same.
Designing and manufacturing of the product is remarkably similar to manufacturing traditional plastics. There are some additional variables, though, that designers and manufacturers should be aware of when a material is being selected for manufacturing.
The ratio of wood to plastic in the chosen formula of a WPC will have an effect on its performance as it undergoes the production process. The percentage of wood present in the composite will have an effect on the melt flow index (MFI) of the final product. The more wood added to composite, the lower is the MFI of the final product. WPCs have the aesthetics of conventional wood combined with high strength. These factors have made WPCs a preferred alternative to conventional wood products.
On basis of type, the market is divided into polyethylene, polypropylene, and polyvinylchloride. Polyethylene-based wood plastic composites dominated the market in terms of revenue, accounting for a share of 65.9% in 2017. High stability and structure offered by polyethylene is expected to boost demand in high-performance operations such as construction and automotive.
Polypropylene is anticipated to progress at the fastest revenue-based CAGR of 9.7% over the forecast period, owing to its increased usage in niche applications like water-resistant coatings on furniture and high temperature controllable wooden units. The product finds wide application in manufacturing consumer products such as musical instruments and household electronics.
The polyvinylchloride segment accounts for a relatively smaller share in the overall wood plastic composite market. Polyvinylchloride thermoplastics have insulation properties and are thus employed in manufacturing insulated products for applications in electrical and automotive industries.
The others segment includes acrylonitrile butadiene styrene (ABS) and polystyrene, and accounts for very small share in the overall market. Major applications of acrylonitrile butadiene styrene and polystyrene-based WPC include windows, doors, and flooring.
Building and construction is one of the most important applications for WPC and accounted for the largest market share in 2017. Rising demand for aesthetically appealing flooring and furniture solutions across the world is expected to aid segment growth over the forecast period.
In terms of revenue, the decking application is expected to progress at an estimated CAGR of 9.3% over the forecast period. Consumers demand products with high aesthetic appeal and long life. Increase utilization of capstock-coated decking, which restricts growth of mold and premature degradation, is expected to assist in segment growth over the forecast period.
The automotive segment is expected to progress at the fastest revenue-based CAGR of 9.9% over the forecast period. Wood plastic composites are likely to witness significant growth in the automotive application owing to their favorable properties such as lightweight, machinability, durability, and environment-friendliness.
Rising application scope of wood plastic composites in manufacturing products such as musical instruments, shoe soles, toys, and trays is expected to have a positive impact on industry growth. Increasing demand for bio-plastics in niche applications such as household electronics is also expected to propel demand over the projected period.
North America was the largest market for wood plastic composites in 2017, accounting for 52.2% of the total revenue. This can be attributed to high product penetration in the building and construction industry. Rising consumer demand for bio-compatible products in applications such as consumer goods and automotive interior parts is expected to have a positive impact on the market.
Europe has reached a state of maturity as far as the WPC industry is concerned and is thus expected to register a sluggish revenue-based CAGR of 5.3% over the projected period. However, growth of the automotive industry in the region is expected to propel demand over the next few years. The auto sector uses WPC to manufacture interior and exterior trims in vehicles.
Government bodies in Asia Pacific have entered into public private partnerships (PPP) to undertake new building and infrastructural construction projects. Moreover, focused efforts taken by governments in various APAC countries to provide affordable housing are driving construction industry, thereby fueling the demand for wood plastic composites over the forecast period.
In terms of revenue, the market in Brazil is expected to progress at an estimated CAGR of 11.0% from 2018 to 2025. Rising construction projects in the region, coupled with increasing government initiatives to promote manufacture and use of bioplastics and biodegradable materials, is expected to benefit the industry over the forecast period.
Industry participants have been adopting strategies such as partnerships, joint ventures, and production capacity expansions in order to gain a larger market share and sustain growing industry rivalry.
For instance, CertainTeed Corporation acquired SimTek in July 2017 in order to expand its exterior WPC product portfolio. CertainTeed is also involved in expanding its production capacity to cater to rising demand for WPC. For instance, in June 2016, the company inaugurated a new WPC plant in Missouri, U.S. The company has an R&D division that strives to come up with improved products.
Beologic N.V. is one of the leading manufacturers of WPCs in Europe. The company’s plant in Belgium has a production capacity of 20,000 metric tons a year. It is aligned toward captive consumption as it is involved in manufacturing of polymers such as polyvinylchloride, polypropylene, and polyethylene, which are then used in manufacturing WPC.
Fiberon LLC distributes its WPC products to North America, Europe, Asia, and Central and South America by means of its own operational facilities in the regions. Fiberon LLC has collaborated with Blue Linx to establish distribution facilities in order to expand its market presence.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2018 - 2025
Volume in Kilotons, Revenue in USD Million and CAGR from 2018 to 2025
North America, Europe, Asia Pacific, Central & South America, and The Middle East & Africa
U.S., Canada, Mexico, Germany, U.K., France, Spain, Italy, Russia, Netherlands, Switzerland, China, India, Japan, Australia, South Korea, Thailand, Indonesia, Singapore, New Zealand, Philippines, Brazil, Argentina, Chile, Saudi Arabia, South Africa, United Arab Emirates, Egypt, Iran
Revenue forecast, company share, competitive landscape, and growth factors and trends
15% free customization scope (equivalent to 5 analyst working days)
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global wood plastic composite market report on the basis of type, application, and region.
Type Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Building & construction
Molding & Siding
Industrial & Consumer Goods
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Central & South America
Middle East & Africa
United Arab Emirates (UAE)
Avail customized purchase options to meet your exact research needs:
Get your queries resolved from an industry expert.
Design an exclusive study to serve your research needs.
A testimonial for service in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.
"The quality of research they have done for us has been excellent..."