WOOD & COMPETITIVE DECKING to 2013 (US industry forecasts for 2013 & 2018)

Abstract

Demand for decking is projected to grow 2.1 percent annually to 3.6 billion lineal feet in 2013, valued at $5.2 billion. Gains in demand will be driven by increased use of wood-plastic composite decking and plastic decking. Demand for woodplastic composite decking is forecast to rise 9.5 percent per year through 2013, while demand for the smaller plastic decking segment is projected to advance 10.2 percent annually. Consumers will be attracted to these decking materials due to their long lifespans, minimal maintenance requirements, and imperviousness to degradation caused by general wear and tear and long-term exposure to moisture. While decks made from these materials generally cost more initially, they require less annual maintenance than most wood decks, thus offering customers savings in the long term.

In addition to its performance characteristics, gains in demand for composite decking will be encouraged by its close resemblance to natural wood, its ability to be cut like wood decking, increasing consumer familiarity with composite decking, and the perception that it is an environmentally friendly material, due to the use of reclaimed plastics in its production. Advances in demand for plastic and other decking types will be driven by the high durability of these products, making them ideal for use in public parks, commercial spaces, and such facilities as dockyards and marinas.

Wood decking will continue to account for the majority of decking demand in volume and value terms. Demand for wood decking is forecast to rise less than one percent annually to 2.8 billion lineal feet in 2013. Advances will be restrained from heavy competition from other materials. Gains in demand will be promoted by increasing consumer interest in tropical hardwoods.

The residential market, which accounted for 61 percent of total decking demand in 2008, will continue to account for the majority of decking demand in 2013, posting 2.6 percent annual growth rates. Advances will be derived from the continued popularity of decks. Consumers will add amenities to their existing decks, such as outdoor kitchens, spas and hot tubs, and areas for other activities.

Not only do these larger decks require deck boards, but many homeowners will install additional railings and other accessories to separate areas of the deck, in addition to enhancing the safety of their decks by preventing falls by small children or older adults. Further gains will be derived from the rebounding US housing market.

Study coverage

This new Freedonia industry study, Wood & Competitive Decking, presents historical demand data (1998, 2003 and 2008) and forecasts for 2013 and 2018 by product, market and US region. The study also considers market environment factors, details industry structure, assesses company market share and profiles 39 industry competitors.