Wood plastic composites (WPCs) are a composite of a wood fiber/flour and thermoplastic polymer such as polyvinyl chloride (PVC), polyethylene (PE), polypropylene (PP), or polylactic acid (PLA). They not only resemble wood in appearance but also retain the strength of plastics. WPCs offer advantages such as durability against weathering, insects, moisture, and impact. They require less maintenance as compared to pure wood, making them suitable for use in construction industry applications like decking, fencing, and railing.
The global wood plastic composite market is estimated to be valued at US$ 8.46 Mn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The construction industry application segment of wood plastic composites provides a major market opportunity. WPCs are increasingly being used in outdoor construction materials like decking, railing, fences, windows, and doors as an alternative to pure wood and plastics owing to their wood-like appearance and durability. They do not easily rot, crack, splinter or require recurring maintenance like wood. This makes them suitable for long-lasting outdoor construction usages reducing replacement and maintenance costs. Growing construction activities globally is expected to drive increasing demand for sustainable, durable and low maintenance wood plastic composite products in this segment during the forecast period.
Porter's Analysis
Threat of new entrants: Low-moderate as sustainable wood plastic composite products require high initial investments for manufacturing.
Bargaining power of buyers: Moderate as wood plastic composite products have substitutes like wood, plastic, metals etc.
Bargaining power of suppliers: Moderate as wood and plastic are major raw materials which have large number of suppliers globally.
Threat of new substitutes: Moderate-high as new eco-friendly alternatives are being developed.
Competitive rivalry: Moderate-high as the global Wood Plastic Composite market is moderately concentrated.
SWOT Analysis
Strengths: Enhanced material properties, recyclability, environmental sustainability.
Weaknesses: Higher costs than traditional materials, lack of awareness.
Opportunities: Growth in construction industry, rising focus on eco-friendly products.
Threats: Volatility in raw material prices, substitution threats from new eco-materials.
Key Takeaways
The global Wood Plastic Composite market size is expected to witness high growth during the forecast period of 2024 to 2031. The market size for Wood Plastic Composite reached US$ 8.46 Mn in 2024 and is expected to grow at a CAGR of 4.4% during the forecast period.
North America currently dominates the global WPC market owing to substantial growth in the construction industry in countries like the US. The Asia Pacific region is expected to grow at the fastest rate during the forecast period attributed to rapid growth of end use industries like packaging, automotive and construction in emerging economies like China and India. Countries like China, India, Indonesia and Malaysia are slated to drive high demand.
Key players analysis: Key players operating in the Wood Plastic Composite market are Abbott Laboratories, Baxter, Piramal Pharma Solutions, Manus Aktteva Biopharma LLP, Maruishi Pharmaceutical Co.,Ltd., Lunan Pharmaceutical Group, Abbvie, Wellona Pharma, Rewine Pharmaceutical, and Troikaa Pharmaceuticals Limited.
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