Wood Plastic Composites Market In-depth Analysis 2031

The global wood plastic composites market size was approximately US$5 billion in 2022 and is likely to expand at a robust CAGR through 2030 end. Growing inclination towards using eco-friendly materials across various industrial applications has prevailed owing to rising concerns regarding environmental health. In this background, stringent norms laid by authorities regarding the use of sustainable green materials have triggered the use of wood plastic composites (WPC). Utilizing wood plastic composites, high durability can be achieved without the use of toxic materials. Moreover, plant-based materials are highly biodegradable, have high strength and stiffness quotients, low density, low carbon emissions, are renewable, and cost-efficient. This has fueled their use in plastic reinforcement. This aspect continues to influence the performance of the wood plastic composites market on the global front.

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Key Report Findings

1. The wood plastic composites market revenue was recorded to be nearly US$5 billion in 2022.
2. The packaging industry’s accelerating journey toward a sustainable future will bode well for market expansion.
3. Polyethylene-based composites continue to be the sought-after category.
4. North America contributes the largest revenue share to the wood plastic composites industry.

Growth Drivers

Desirable Attributes and Environmentally Sustainable Profile

Owing to their sustainable green functional features apart from durability and strength, wood plastic composites are being eyed upon by several automotive OEMs. In the wake of reducing emissions from vehicles alongside enhancing vehicle performance, manufacturers are focusing on innovating and adopting green and sustainable composites for automotive components.

Wood plastic composites can impart high mechanical strength, reduce material weight, enhance acoustic performance, reduce the cost of production, lower fuel consumption, and improve overall vehicle performance. That said, the demand for wood plastic composites in applications on the back of their environmentally friendly characteristics is expected to complement the growth of the wood plastic composites market.

Overview of Key Segments

Polyethylene-based Composites Favored

Wood plastic composites made from polyethylene are likely to witness high demand in the coming years. Polyethylene, being a subject of interest from both technological and academic standpoints, has gained significant traction owing to its processability, versatility, and mechanical properties.

Given its special molecular arrangement and molecular structure, polyethylene-based wood plastic composites can be molded as per need and can provide fine polishing and a rich look. This feature has fueled their adoption in applications such as flooring, molding strips, hollow boards, furniture material, and wall cladding. This aspect has driven sales of polyethylene-based composites, in turn significantly contributing towards the value growth of the wood plastic composites market.

Growth Opportunities Across Regions

North America Retains Lead

Developed nations in North America such as the United States and Canada are expected to reflect significant growth with respect to the adoption of wood plastic composites. This is mainly owing to the growing use of wood plastic composites in the manufacturing of porches, window frames, docks, and other decking applications. Moreover, the increasing demand for bioplastics in applications such as street construction and landscaping is expected to further bolster the growth of the wood plastic composites market in the region.

In addition, the presence of major players involved in the manufacturing and distribution of wood plastic composites is likely to create an impact on the market in North America. Factors such as stable economic growth, favorable government incentives, and inclination towards the use of environment-friendly solutions and products continue to influence demand, consequently complementing value growth of the wood plastic composites market in North America. This, in turn, boosts revenue growth of the region’s wood plastic composites market.

Asia Pacific Grows Lucrative

Alternatively, emerging economies such as China and India are expected to showcase high market lucrativeness. Momentous growth in the construction sector on the back of increasing urbanization has remained instrumental in driving the use of wood plastic composites in Asia Pacific. From a functional standpoint, wood plastic composites are highly heat, rot, and moisture resistant. These functional features have propelled their use in areas such as the construction of buildings owing to their long-lasting aesthetics as compared to conventional wood.

Moreover, the use of wood plastic composites in the automotive sector to manufacture components is expected to further accelerate market growth. Wood plastic composites when integrated with automotive components, can significantly reduce vehicle weight, in turn enhancing vehicle performance and fuel efficiency. This factor coupled with the growing automotive sector is likely to pave new avenues for the wood plastic composites market in Asia Pacific.

Wood Plastic Composites Market: Competitive Landscape

Major players in the wood plastic composites market are involved in new product development, innovations, and capacity expansions to maintain their market position. For instance, in 2021, Teknor Apex Co launched a highly weatherable compound for outer layers of WPC (wood plastic composites) decking. This compound offers superior performance, appearance, long service life, and low maintenance. The same year, in May, researchers from KTH Royal Institute of Technology developed transparent wood plastic composites featuring 100% renewability by using limonene acrylate. This composite provides enhanced optical transmittance and can be used in structural applications owing to its physiochemical properties.

Key Players

A few of the major players in the global wood plastic composites market include TIMBERTECH Ltd., Universal Forest Products Inc., Trex Company, Renolit SE, BEOLOGIC N.V, DOW, UFP Industries Inc., Seven Trust, Axion International Inc., and Croda International Plc.