The European wood plastic composite market is expected to witness healthy growth, at an estimated CAGR of 10.15% over the period, 2019-2024. One of the major factors driving the growth of the market studied is the rising demand for wood-plastic composite in domestic constructions, owing to its characteristics and increasing construction activities in the region.
- The increasing recycling rate of plastic wastes in Europe is expected to offer a huge opportunity for the wood plastic composite market.
- By application, the decking segment accounted for the largest share in the market studied, throughout the period, followed by auto interior parts.
- In 2018, Germany dominated the market studied. Sweden is expected to witness the highest CAGR of 10.62%, followed closely by Finland (10.55%) through the forecast period.
Key Market Trends
Increasing Demand from Decking
- Decking is one of the most important applications for wood-plastic composites in Europe, where sales of solid profiles are rising, as compared to that of the hollow ones.
- In construction, a deck is a flat or profiled (anti-slip) surface that is capable of supporting weight. A deck is similar to a floor, but is typically constructed outdoors, often elevated from the ground, and usually connected to a building.
- Wood plastic composite decking can be used in a number of ways, such as part of garden landscaping, extension of the living areas of houses, an alternative to stone-based features (such as patios), and in residential decks, as spaces for cooking, dining, and seating.
- Due to environmental and durability concerns related to softwoods and hardwoods, wood plastic composite decking (a mixture of two materials, typically wood pulp and recycled materials, such as plastic bottles or bags) was introduced in the market. Proponents of composite decking have touted this as a much needed development, as it helps to curb logging of trees for new decks.
- The typical production process of WPC decks in Europe involves the extrusion of a decking profile, based on a PVC or PE matrix followed by PP.
- In Europe, the WPC decking market is soon going to reach a mature stage, which means that the companies involved in the market may have lower growth rates. This development is driving the players to look for new areas of application.
Germany to Dominate the Market
- In 2018, Germany dominated the market in the region.
- Germany is the largest manufacturer and consumer of wood-plastic composites in Europe. Most WPC compounders in
Europe are located in Germany
- The demand for wood-plastic composites for construction applications may be driven by the country's strong construction sector. German construction companies are benefiting from the soaring demand for real estate, increasing investments in buildings, and high state spending on infrastructure. The upswing in construction has been encouraged by the European Central Bank's ultra-low interest rates, a growing urban population, and high immigration rate over the past five years. The sector is also helping to propel the overall economic growth.
- In housing construction, nominal sales jumped by 27% in January and February 2018, and the German government also made an announcement regarding its plan to construct around 1.5 million housing units by 2021. The overhang of pending residential building permits increased to more than 400,000, suggesting that the sector may continue to drive growth.
- Revenues in the German construction sector is likely to grow by 6% in nominal terms, to hit USD 145 billion in 2019, according to the ZDB and HDB construction associations, and up to 320,000 homes are likely to be built in 2019.
- All the aforementioned factors, in turn, are expected to increase the market for wood-plastic composites during the forecast period
The European wood plastic composite (WPC) industry is dominated by multiple players in the market with small but significant market shares and is focused on research and innovation. Most of the products are manufactured depending upon their end-use specification. In terms of region, the market becomes highly fragmented (for example, Germany) as various small players contribute to the regional demand.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support