Wood Plastic Composites Market Expected to Reach $12.6 Billion by 2030—Allied Market Research

According to a new report published by Allied Market Research, titled, “Wood Plastic Composites Market," The wood plastic composites market was valued at $5.4 billion in 2020, and is estimated to reach $12.6 billion by 2030, growing at a CAGR of 8.9% from 2021 to 2030.

Wood plastic composites comprises recycled plastic and wood wastes with beneficial features, such as reduced melting temperature resulting in lower energy costs for producers and further reducing the environmental impact of the product. There is increase in demand for these composites among the plastic additives. Innovative use for wood-based composites are constantly accomplished. These hybrid materials provide sustainability, longevity, and cost savings in various applications, such as car speakers, interiors, home furniture, and kitchen accessories.

The global wood plastic composites market is driven by high availability of non-utilized plastic and wood wastes, increase in demand  for decking, molding & sliding, and fencing in building & construction applications, and stringent regulations on the use of chemicals in building materials. However, rise in cost of raw materials and issues related to mechanical strength and/or weight hamper their potential for several structural applications.

Conversely, increase in implementation of biodegradable raw materials is expected to create opportunities in the global wood plastic composites market. Market players have adopted merger as their key strategy to widen their brand portfolios and expand their market reach.

The wood plastic composites market is segmented on the basis of type, application, and region. By type, it is segregated into polyethylene, polyvinylchloride, polypropylene, and others. On the basis of application, it is fragmented into building & construction, automotive components, industrial & consumer products, and others. Region wise, it  is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

According to type, the polypropylene segment is projected to hold a 69.4% market share in the market in 2020. The polypropylene segment is anticipated to see a boom, over the forecast period, owing to its heavy use in the niche application segments, such as water resistant coatings on furniture and high temperature controllable wooden units.

By application, the building & construction segment is projected to contribute a 73.0% market share in the market in 2020. The building & construction products segment is expected to be the largest consumer of PE and PVC wood-plastic composites, followed by automotive components segment where wood-plastic composites are used for manufacturing lightweight automotive components.

Region wise, the demand for wood plastic composite in the China is expected to grow significantly over the forecast period on account of the rising application scope of wood plastic composite in manufacturing docks, porches, and window frames. In addition, growing demand for bio-based plastics in landscaping and street construction is anticipated to further propel market growth over the coming years.

The major companies profiled in this report include, AIMPLAS, Beologic N.V., Dow, FKuR, Fortune Brands, JELU-WERK J. Ehrler GmbH & Co. KG, Renolit SE, TimberTech, Trex Company, Inc., Universal Forest Products, Inc. These players have adopted strategies such as product launch and business expansion to sustain the competition and to strengthen their foothold in the market.

Key Findings Of The Study:

• Region-wise, Asia-Pacific is projected to grow at the highest CAGR of nearly 9.1%, in terms of revenue, during the forecast period.
• On the basis of application, the building & construction segment accounted for the largest market share in 2020.
• Depending on type, the polypropylene segment garnered the highest share in 2020.

Impact of COVID-19 on Global Wood Plastic Composites Market

• The outbreak of COVID-19 led to partial or complete shutdown of production facilities that do not come under essential goods, owing to prolonged lockdown in major countries, including the U.S., China, Japan, India, and Germany. It led to either closure or suspension of their production activities in most of the industrial units across the globe.
• COVID-19 proved to be a major challenge for the wood plastic composite market. The outbreak of coronavirus has disrupted the supply chain and postponed the deliveries of wood composites and other raw materials from yards, due to lockdown and shortages of staff.
• Industries are being shut down all across the world. People's purchasing power is decreasing, which has a direct impact on the automobile and construction industries, lowering demand for wood-plastic composites and limiting industry growth.
• During this time, the construction industry suffered numerous losses. It's because of the high use of wood plastics. Construction, on the other hand, come to a halt. The need for wood plastics and composites is dwindling. Demand for the wood plastics and composites declined since 2020. Due to supply chain challenges, the markets experience difficulties in import and export. However, the demand for wood plastics has increased since 2021. New developments will create much more growth in the wood plastics composite industry.