The global Wood Plastic Composite Market is estimated to be valued at US$ 7.34 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Wood plastic composites (WPCs) are a type of composite material made by combining wood fiber/wood flour raw materials with thermoplastic polymers such as polypropylene, polyethylene, PVC, or polystyrene. WPC materials have the appearance and texture of wood but are more uniform, weatherproof, durable, and less susceptible to cracking and swelling. Furthermore, as they do not require pressure treatment like ordinary wood, they are more eco-friendly. The rising environmental concerns and increasing awareness about sustainable building products are contributing to the demand for WPCs globally.
Market key trends:
One of the major trends driving the wood plastic composite market is the accelerated adoption of sustainable and eco-friendly products across industries. As plastic production and disposal have significant environmental impacts, there is a growing focus on developing sustainable alternatives that are durable as well as biodegradable. WPCs have renewable wood content and can reduce the use ofVirgin plastics. Additionally, governments worldwide are implementing strict regulations to minimize the environmental footprint of industries such as construction and packaging. This is fueling the replacement of traditional materials with greener options like WPCs.Another key trend is the increasing R&D focused on improving the mechanical and physical properties of WPCs. Several companies are investing in developing advanced formulations to enhance attributes like durability, weather resistance, flexibility and dimensional stability of WPC products. This is expected to expand their application scope in high performance areas over the forecast period.
Porter’s Analysis
Threat of new entrants: The wood plastic composite market requires sizable capital investments to manufacture upstream materials and establish production facilities making the threat of new entrants moderate to low.
Bargaining power of buyers: The bargaining power of buyers is moderate as wood plastic composite finds application across various end-use industries like building & construction, automotive, industrial & consumer goods. However, established brands have pricing power.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials used in wood plastic composite manufacturing such as wood flour, plastic resins etc. are commoditized and available from numerous global suppliers.
Threat of new substitutes: The threat of substitutes is low to moderate as wood plastic composite offers superior properties compared to traditional materials like wood, metals, glass etc. making it difficult to replace.
Competitive rivalry: The competitive rivalry in the market is high owing to the presence of numerous international and regional players offering differentiated product portfolio targeting various application segments.
Key Takeaways
Global Wood Plastic Composite Market Demand is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing preference for eco-friendly and sustainable construction materials. The building & construction segment currently dominates the application landscape and is expected to continue its lead, driven by rising residential and commercial construction activities globally.
Regional analysis - Asia Pacific region currently accounts for more than 35% of the global market share and is expected to continue dominating the wood plastic composite landscape driven by robust construction activities in China and India. APAC market is anticipated to expand at a double-digit CAGR owing to rapid urbanization, infrastructure development and economic growth in the region. North America and Europe are other major markets global expected to grow at a steady pace supported by stringent regulatory push for eco-friendly materials.
Key players operating in the Wood Plastic Composite market are Tamco Building Products, Trex company Inc, Meghani group, Beologic, Seven Trust, UFP Industries Inc, Fiberson LLC, Axion International, Polyplank AB, TimberTech, Universal forests Products, and Josef Ehrler GmbH & Co KG. Key players are focusing on new product launches, geographical expansion and acquisitions to gain market share.
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