Abstract
US demand to grow 10.3% annually through 2013
Demand for wood-plastic composite and plastic lumber is projected to advance
more than ten percent per year to $5.6 billion in 2013. Gains will be driven
by continued consumer acceptance of these products as replacements for more
traditional materials, such as natural wood. Composite and plastic lumber will
increasingly be desired due to its long life span, minimal maintenance
requirements, resistance to degradation caused by insect attack and exposure
to the elements, and ability to be cut and hewn like natural wood. Moreover,
the increasing perception of these materials as environmentally friendly
products, due to their incorporation of recycled materials, will promote
further demand gains. Demand gains will also be encouraged by the rebound of
the residential construction from recent cyclical lows. Rising housing
completions will promote demand advances in the new residential construction
market, while increasing residential improvement and repair expenditures will
lead advances in demand for decking, fencing and landscaping and outdoor
products.
Decking will remain leading market
Decking will continue to serve as the leading market for composite and plastic
lumber. Busy homeowners will increasingly opt for these materials over
traditional wood decks, as decks made from composite and plastic lumber
require less annual maintenance and have longer life spans. While decks made
from these materials may cost more initially, composite and plastic lumber
decks can cost less in the long term, since these decks do not require annual
staining or insect treatments. Also fueling gains in demand is the high degree
of homeowner interest in installing decks as a way to increase outdoor living
space.
Wood-plastic lumber to outpace plastic lumber
Wood-plastic composite lumber will post more rapid demand gains than plastic
lumber, advancing 11.1 percent annually to 2013. Demand gains will be led by
continued consumer interest in woodplastic material as a substitute for wood
in decking, landscaping and outdoor products, and fencing. Growth in demand
for plastic lumber is forecast to rise 7.9 percent per year to $2.8 billion in
2013. Demand gains for plastic lumber will be promoted by continued acceptance
of the material as a replacement for wood in fencing, landscaping and outdoor
products, and molding and trim.
Windows, doors will be fastest growing application
Through 2013, among the major applications, windows and doors are anticipated
to post the fastest gains, albeit from a small base. As with other segments,
wood-plastic composite window and door components are making inroads because
of their lower maintenance requirements, durability in exterior applications
and similarities to wood. Decking and fencing are also forecast to see
above-average gains through 2013, mainly due to rising interest in using
alternative materials in place of natural wood lumber. Molding and trim will
remain a key market for composite and plastic lumber, but will see
below-average growth through 2013, as plastic lumber has already attained
substantial market penetration. Demand for composite and plastic lumber in
landscape and outdoor products and other applications will be encouraged by
continued consumer recognition of the performance properties of the material,
as well as by their perception as ecologically friendly construction products.
Study coverage
Composite & Plastic Lumber is a new Freedonia industry study, presents
historical demand data (1998, 2003, 2008) plus forecasts for 2013 and 2018 by
material, application and market. The study also considers market environment
factors, evaluates company market share and profiles more than 30 industry
competitors.
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