The global Wood Plastic Composite Market is estimated to be valued at US$5.84 Billion In 2021 and is expected to exhibit a compound annual growth rate (CAGR) of 12.10% over the forecast period of 2021 to 2028, as highlighted in a new report published by Coherent Market Insights.
Wood Plastic Composite (WPC) is a material made from a combination of wood and plastic fibers. It offers several advantages, including durability, resistance to moisture and rot, and low maintenance requirements. The increasing demand for sustainable building materials, coupled with the rise in construction activities worldwide, is driving the growth of the WPC market. The need for environmentally friendly and long-lasting alternatives to traditional wood products is also contributing to the market expansion.
Market Key Trends:
One key trend in the Wood Plastic Composite Market is the growing adoption of WPC decking materials in the construction industry. WPC decking offers numerous benefits, such as resistance to rot, fading, and splintering, making it an ideal choice for outdoor applications. The demand for WPC decking is rising due to its superior performance characteristics and the increasing emphasis on eco-friendly construction practices. Additionally, the increasing popularity of outdoor living spaces and the growing trend of sustainable architecture are further driving the demand for WPC decking products.
Threat of new entrants: The threat of new entrants in the wood plastic composite market is relatively low. This is due to the high capital investment required to set up manufacturing facilities and the need for technical expertise in developing and producing wood plastic composites. Additionally, existing companies in the market have established strong distribution networks and have built brand loyalty, making it difficult for new entrants to gain market share.
Bargaining power of buyers: The bargaining power of buyers in the wood plastic composite market is moderate. While buyers have a variety of options to choose from and can easily switch suppliers, the market is highly competitive, resulting in downward pressure on prices. However, buyers may still have some leverage in negotiating prices and terms, especially for large volume purchases.
Bargaining power of suppliers: The bargaining power of suppliers in the wood plastic composite market is also moderate. Suppliers of raw materials such as wood fibers and plastics have some control over prices and may be able to pass on cost increases to manufacturers. However, manufacturers can also switch suppliers or explore alternative materials, reducing the suppliers’ bargaining power.
Threat of new substitutes: The threat of new substitutes in the wood plastic composite market is low. Wood plastic composites offer unique properties such as durability, moisture resistance, and low maintenance compared to traditional wood or plastic materials. These advantages make it less likely for customers to switch to alternative materials.
Competitive rivalry: The wood plastic composite market is highly competitive, with several key players vying for market share. The competition is driven by factors such as product innovation, pricing strategies, and geographic reach. Market leaders, such as Tamco Building Products, Trex Company Inc, and Meghani group, have a strong presence and are continually investing in research and development to improve their product offerings and stay ahead of the competition.
The global wood plastic composite market is expected to witness high growth, exhibiting a Compound Annual Growth Rate (CAGR) of 12.10% over the forecast period of 2021 to 2028. This growth can be attributed to the increasing demand for eco-friendly and sustainable building materials, driven by the rising awareness of environmental issues.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the wood plastic composite market. This can be attributed to factors such as the growing construction industry, increasing investments in infrastructure development, and the demand for low-maintenance and durable building materials.
Key players operating in the wood plastic composite market include Tamco Building Products, Trex Company Inc, Meghani group, Beologic, Seven Trust, UFP Industries Inc, Fiberson LLC, Axion International, Polyplank AB, TimberTech, Universal Forest Products, and Josef Ehrler GmbH & Co KG. These key players are focused on product innovation, expanding their distribution networks, and strategic partnerships to gain a competitive edge in the market.