The European wood plastic composite market is expected to witness healthy growth, at an CAGR greater than 10%, over the period . 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. However, challenges in recycling WPCs is hindering the growth of the market studied.
- 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 study period, followed by auto-interior parts.
- Germany accounts for the major share of the market studied currently, and is expected to dominate the market during the forecast period.
Key Market Trends
Decking Application to Dominate the Market
- Decking is one of the most important applications for wood-plastic composites in Europe, with the sales of solid profiles 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.
- Owing to the above-mentioned reasons, decking application is likely to dominate the market during the forecast period.
Germany to Dominate the Market
- Currently, Germany dominates the market studied as 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.
- All the aforementioned factors, in turn, are expected to increase the market for wood-plastic composites in Germany 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. Some of the major players of the market include Fkur, Beologic, UPM, Polyplank AB, and JELU-WERK Josef Ehrler GmbH & Co. KG., among others.
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