US demand for wood-plastic composite to hit $5.5bn
Dubai, June 11, 2014
The US demand for wood-plastic composite and plastic lumber is expected to rise 9.8 per cent annually to $5.5 billion in 2018, creating a market for 2.6 billion pounds of plastic, said a new study.
A rebound in new housing completions from a low 2013 level and gains in residential improvement and repair expenditures will generate growth in demand, according to a new study by The Freedonia Group, a Cleveland-based market research firm.
Decking applications will account for more than two-fifths of composite and plastic lumber demand in 2018, comprising 19 percent of all decking demand, stated the study entitled "Wood-Plastic Composite & Plastic Lumber."
The ongoing changes to manufacturing technologies that improve the colour-fade resistance and the resemblance to natural wood, particularly expensive hardwoods such as ipe and redwood, will also boost the use of composite and plastic decking, it added.
“Demand gains will also be boosted by increased market penetration in decking applications,” remarked Freedonia analyst Paul Goehrke.
Increases in overall construction activity will support demand gains 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, he stated.
"In large, high-growth residential applications such as decking, wood-plastic composite is increasingly preferred to plastic lumber. 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," he added.-TradeArabia News Service