The 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 are materials that consist of wood or other organic fibers combined with plastics such as polyethylene, polypropylene or polyvinyl chloride. These materials have several advantages over traditional wood products such as enhanced strength, moisture resistance, dimensional stability and durability. They are also light weight, easy to install and require little maintenance. With rapidly growing construction industry and rising awareness about eco-friendly products, demand for wood plastic composites is increasing across the globe.
Market key trends:
One of the key trends fueling the growth of wood plastic composite market is increasing demand for sustainable and eco-friendly construction materials. Globally, there is a rising emphasis on reducing environmental footprint of construction industry. Wood plastic composites provide an alternative to conventional wood products as they utilize recycled and waste wood materials. They do not require treatment or preservatives and are durable. There is growing usage of wood plastic composites in outdoor applications such as decking, railing, fencing etc. given their ability to withstand weathering and rotting. Their excellent recyclability is also driving the preference for wood plastic composites among builders and architects.
Porter’s Analysis
Threat of new entrants: Low capital requirements and availability of raw materials and established value chain pose low threat of new entrants in the wood plastic composite market.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and standardization of products.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitutes for raw materials.
Threat of new substitutes: Threat of new substitutes is moderate owing to advantages offered by wood plastic composites over alternatives.
Competitive rivalry: High due to presence of numerous established players.
SWOT Analysis
Strength: Eco-friendly, customizable, and lightweight nature along with low maintenance.
Weakness: Higher prices compared to conventional materials and limited design flexibility.
Opportunity: Increasing spending on outdoor furnishings and construction activities. Rapid urbanization driving the demand for sustainable building materials.
Threats: Volatility in raw material prices and stringent environmental regulations.
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 spending on remodeling and renovation of residential and commercial buildings.
Regionally, North America dominates the wood plastic composite market currently owing to high construction activities in the US and Canada. Asia Pacific is expected to be the fastest growing market for wood plastic composites during the forecast period.
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, and Universal forests Products, and Josef Ehrler GmbH & Co KG. These players are focusing on new product launches and partnerships to gain competitive advantage in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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