CLEVELAND, OH - U.S. demand for wood-plastic composite and plastic lumber is expected to rise 9.8 percent annually to $5.5 billion in 2018, creating a market for 2.6 billion pounds of plastic, according to a new study by The Freedonia Group Inc.
According to the report, “Wood-Plastic Composite & Plastic Lumber,” a rebound in housing construction combined with gains in residential improvement and repair, will generate a growth in demand for the products. In 2013 wood-plastic composites had a $3.4 billion market share, according to the report.
Decking applications will account for more than two-fifths of composite and plastic lumber demand in 2018, comprising 19 percent of all decking demand, the report says. In applications such as decking, wood-plastic composite is increasingly preferred to plastic lumber, the report says.
As nearly two-thirds of composite and plastic lumber demand is generated by the residential market, expansion in residential construction activity will boost composite lumber demand. Overall increases in construction will cause demands for both types of alternative lumber through 2018, but wood-plastic composite demand will rise at a quicker pace than demand for plastic lumber, albeit from a smaller base, the report says.
Additionally, improvements in manufacturing technologies that improve resistance to fading color and a resemblance to natural wood, particularly expensive hardwoods such as ipe and redwood, will also boost demand for composite and plastic decking.
Molding and trim are also expected to advance at a strong pace through 2018. Wood-plastic composite and plastic lumber use in molding and trim will benefit from renewed housing activity and from performance characteristics, including resistance to moisture and ease of shaping.
U.S. COMPOSITE & PLASTIC LUMBER DEMAND (million dollars)
|
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% Annual Growth |
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Item |
2008 |
2013 |
2018 |
2008- 2013 |
2013- 2018 |
|
|
|
|
|
|
Composite & Plastic Lumber |
3265 |
3447 |
5500 |
1.1 |
9.8 |
Decking |
1385 |
1400 |
2470 |
0.2 |
12.0 |
Molding & Trim |
942 |
1005 |
1525 |
1.3 |
8.7 |
Fencing |
460 |
545 |
790 |
3.4 |
7.7 |
Landscaping & Outdoor Products |
218 |
212 |
300 |
-0.6 |
7.2 |
Other |
260 |
285 |
415 |
1.9 |
7.8 |
“Wood-Plastic Composite & Plastic Lumber” is available for $5,300 from The Freedonia Group. For more information visit freedoniagroup.com.
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