Wpc & Plastic Lumber

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WPC & PLASTIC LUMBER Industry Study #3845 | September 2020

This study analyzes the US market for wood-plastic composite WPC lumber and plastic lumber by material (cellulose, PVC, polyethylene, and other resins), region (Northeast, Midwest, South, West), market (new and improvement and repair residential, commercial, and nonbuilding construction), and application. Historical data are provided for 2009, 2014, and 2019 with forecasts for 2024 and 2029. Data are provided in dollar value and lineal feet.

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Report Link: https://hubs.ly/H0xhk9s0 Table of Contents

1. Executive Summary 14

2. Overview 16 Study Scope 16 Historical Sales Trends 17 Demand by Material 18 Demand by Application 20 Demand by Market 22 Impact of COVID-19 Pandemic 24 Pricing Trends 26 Foreign Trade 27

3. Factors Impacting Demand 28 Construction Industry Outlook 28 Homeownership & Lot Size 30 Outdoor Living Trends 32 Pool Ownership 34 Competitive Materials 35 Regulatory Environment 37 Building Codes & Local Zoning 38 Sustainability & Recycling 39

4. Raw Material Requirements 41 Raw Material Consumption in Plastic & Composite Lumber 41 Cellulosic Materials 43 Plastic Resins 46 Consumption by Resin Type 46 Polyvinyl Chloride (PVC) 47 Polyethylene 48 Polyurethane & Other Resins 49 Additives & Modifiers 51

5. Wood-Plastic Composite (WPC) Lumber 52 Product Description 52 Demand by Application 53 Demand by Market 54 Raw Material Consumption 55

Table of Contents (continued)

6. Plastic Lumber 56 Product Description 56 Demand by Application 57 Demand by Market 59 Raw Material Consumption 60

7. Decking Applications 61 General Decking Market Trends 61 Plastic & Composite Lumber Decking 63 WPC Lumber Decking 65 Demand by Function (Boards, Rails, Accessories) 66 Demand by Surface Treatment (Coated vs. Uncoated) 67 Demand by Material Type 68 Demand by Market 69 Market Share 70 Plastic Lumber Decking 72 Demand by Function (Boards, Rails, Accessories) 73 Demand by Resin Type 74 Demand by PVC (Vinyl) Formulation 75 Demand by Market 76 Market Share 78 Raw Material Consumption 79

8. Moulding & Trim Applications 80 General Moulding & Trim Market Trends 80 WPC & Plastic Moulding & Trim 83 Demand by Type 83 WPC Lumber Moulding & Trim 84 Plastic Lumber Moulding & Trim 86 Raw Material Consumption 88 Demand by Market 90 Market Share 91

9. Fencing Applications 92 General Fencing Market Trends 92 WPC & Plastic Lumber Fencing 94 Demand by Type 94 WPC Lumber Fencing 95 Plastic Lumber Fencing 97 Raw Material Consumption 99 Demand by Market 100

Table of Contents (continued)

Market Share 101

10. Window & Door Applications 102 General Window & Door Market Trends 102 WPC & Plastic Lumber Windows & Doors 105 Raw Material Consumption 107 Demand by Market 108 Market Share 109

11. Landscaping & Outdoor Applications 110 General Landscaping & Outdoor Product Trends 110 WPC & Plastic Lumber Landscaping & Outdoor Products 112 Demand by Type 112 WPC Lumber Landscaping & Outdoor Products 113 Plastic Lumber Landscaping & Outdoor Products 113 Demand by Application 114 Raw Material Consumption 115 Demand by Market 117 Suppliers 119

12. Other Applications for Plastic & Composite Lumber 120 Plastic & Composite Lumber in Other Applications 120 Demand by Product (Railroad Ties, Hot Tubs, Marine, Flooring) 121 Demand by Market 123 Raw Material Consumption 124 Market Share 125

13. Residential Buildings 126 Market Scope & Definition 126 Demand by Type & Market Sector 127 New Housing 129 Demand by Type 129 Demand by Application 130 Improvements & Repairs 132 Demand by Type 132 Demand by Application 133 Demand by Housing Type 136

14. Commercial Buildings 138 Market Scope & Definition 138 Demand by Type & Market Sector 141

Table of Contents (continued)

New Commercial Buildings 143 Demand by Type 143 Demand by Application 144 Improvements & Repairs 146 Demand by Type 146 Demand by Application 147

15. Other Markets (Recreation, Agriculture) 149 Market Scope & Definition 149 Nonbuilding Construction Markets 150 New Nonbuilding Markets 151 Demand by Type 151 Demand by Application 152 Nonbuilding Improvement & Repair 153 Demand by Type 153 Demand by Application 154 Agriculture Markets 155

16. Regions 156 Demand by Region 156 Northeast 158 Midwest 160 South 162 West 164

17. Industry Structure 166 Key Findings & Industry Composition 166 Market Share 168 Manufacturing (Extrusion & Injection Molding) 175 Product Development 178 Marketing 180 Distribution 182 Mergers & Acquisitions 183 List of Industry Participants 185

18. Appendix 188 Scope 189 Definitions 192 Abbreviations 195 Freedonia Methodology 196 Study-Specific Methodology 211

Table of Contents (continued)

Sources 212 Associations & Agencies 213 Related Studies & Reports 214 Macroeconomic Assumptions 216 Economic Environment 216 Demographic Trends 219 Consumer Spending 221 Residential Building Construction 222 Housing Stock 224 Residential Improvements & Repairs 225 Commercial Building Construction 226 Commercial Building Improvements & Repairs 228 Nonbuilding Construction Expenditures 229

2. Overview Table 2-1 | WPC & Plastic Lumber Demand by Material, 2009 – 2029 (million dollars) 18 Table 2-2 | WPC & Plastic Lumber Demand by Application, 2009 – 2029 (million dollars) 21 Table 2-3 | WPC & Plastic Lumber Demand by Market, 2009 – 2029 (million dollars) 23

4. Raw Material Requirements Table 4-1 | Raw Material Consumption in WPC & Plastic Lumber Production by Material & Application, 2009 – 2029 (million pounds) 42 Table 4-2 | Cellulosic Materials: Advantages & Disadvantages 44 Table 4-3 | Plastic Resin Consumption in WPC & Plastic Lumber Production by Resin Type, 2009 – 2029 (million pounds) 46 Table 4-4 | Polyvinyl Chloride (PVC) Plastic Lumber: Advantages & Disadvantages 48 Table 4-5 | Polyethylene WPC Lumber: Advantages & Disadvantages 49 Table 4-6 | Polyurethane, Polystyrene, & Polypropylene: Advantages (+) & Disadvantages (-) in WPC & Plastic Lumber 50

5. Wood-Plastic Composite (WPC) Lumber Table 5-1 | WPC Lumber Demand by Application, 2009 – 2029 (million dollars) 53 Table 5-2 | WPC Lumber Demand by Market, 2009 – 2029 (million dollars) 54 Table 5-3 | Raw Material Consumption in WPC Lumber Production, 2009 – 2029 (million pounds) 55

6. Plastic Lumber Table 6-1 | Plastic Lumber Demand by Application, 2009 – 2029 (million dollars) 58 Table 6-2 | Plastic Lumber Demand by Market, 2009 – 2029 (million dollars) 59 Table 6-3 | Raw Material Consumption in Plastic Lumber Production, 2009 – 2029 (million pounds) 60

7. Decking Applications Table 7-1 | Advantages of Materials in Decking 62 Table 7-2 | WPC & Plastic Lumber Decking Demand by Type, 2009 – 2029 (million linear feet & million dollars) 64 Table 7-3 | Key Characteristics of WPC Decking 65 Table 7-4 | WPC Decking Demand by Function, 2009 – 2029 (million linear feet & million dollars) 66 Table 7-5 | WPC Decking Demand by Surface Treatment, 2009 – 2029 (million linear feet & million dollars) 67

List of Tables (continued)

Table 7-6 | WPC Decking Demand by Material Type, 2009 – 2029 (million linear feet & million dollars) 69 Table 7-7 | WPC Decking Demand by Market, 2009 – 2029 (million linear feet & million dollars) 70 Table 7-8 | Characteristics of Plastic Decking by Resin Type 72 Table 7-9 | Plastic Lumber Decking Demand by Function, 2009 – 2029 (million linear feet & million dollars) 73 Table 7-10 | Plastic Lumber Decking Demand by Resin Type, 2009 – 2029 (million dollars) 74 Table 7-11 | PVC (Vinyl) Decking Demand by Formulation, 2009 – 2029 (million linear feet & million dollars) 75 Table 7-12 | Plastic Lumber Decking Demand by Market, 2009 – 2029 (million linear feet & million dollars) 77 Table 7-13 | Raw Material Consumption in WPC & Plastic Lumber Decking Production, 2009 – 2029 (million pounds) 79

8. Moulding & Trim Applications Table 8-1 | Types of Moulding & Trim by Product Category 81 Table 8-2 | Characteristics of Nonwood Moulding & Trim Materials 82 Table 8-3 | WPC & Plastic Moulding & Trim Demand by Type, 2009 – 2029 (million dollars) 84 Table 8-4 | WPC Moulding & Trim Demand by Market, 2009 – 2029 (million dollars) 85 Table 8-5 | Plastic Lumber Moulding & Trim Demand by Market & Product, 2009 – 2029 (million dollars) 87 Table 8-6 | Raw Material Consumption in WPC & Plastic Moulding & Trim Production, 2009 – 2029 (million pounds) 89 Table 8-7 | WPC & Plastic Moulding & Trim Demand by Market, 2009 – 2029 (million dollars) 90

9. Fencing Applications Table 9-1 | Key Drivers of Fencing Demand by Material 93 Table 9-2 | WPC & Plastic Lumber Fencing Demand by Type, 2009 – 2029 (million dollars) 95 Table 9-3 | WPC & Plastic Lumber Fencing: Advantages & Disadvantages 95 Table 9-4 | WPC Lumber Fencing Demand by Market, 2009 – 2029 (million dollars) 96 Table 9-5 | Plastic Lumber Fencing Demand by Market, 2009 – 2029 (million dollars) 97 Table 9-6 | Raw Material Consumption in WPC & Plastic Lumber Fencing Production, 2009 – 2029 (million pounds) 99 Table 9-7 | WPC & Plastic Lumber Fencing Demand by Market, 2009 – 2029 (million dollars) 100

List of Tables (continued)

10. Window & Door Applications Table 10-1 | Characteristics of Window & Door Materials 104 Table 10-2 | WPC & Plastic Window & Door Demand by Type, 2009 – 2029 (million dollars) 106 Table 10-3 | Characteristics of WPC & Cellular PVC Windows & Doors 106 Table 10-4 | Raw Material Consumption in WPC & Plastic Window & Door Production, 2009 – 2029 (million pounds) 107 Table 10-5 | WPC & Plastic Window & Door Demand by Market, 2009 – 2029 (million dollars) 108

11. Landscaping & Outdoor Applications Table 11-1 | WPC & Plastic Lumber Landscaping & Outdoor Product Demand by Type, 2009 – 2029 (million dollars) 113 Table 11-2 |WPC & Plastic Lumber Landscaping & Outdoor Product Demand by Application, 2009 – 2029 (million dollars) 114 Table 11-3 | Raw Material Consumption in WPC & Plastic Landscaping & Outdoor Product Production, 2009 – 2029 (million pounds) 116 Table 11-4 | WPC & Plastic Lumber Landscaping & Outdoor Product Demand by Market, 2009 – 2029 (million dollars) 118

12. Other Applications for Plastic & Composite Lumber Table 12-1 | Other WPC & Plastic Lumber Demand by Type, 2009 – 2029 (million dollars) 120 Table 12-2 | Other WPC & Plastic Lumber Demand by Application, 2009 – 2029 (million dollars) 122 Table 12-3 | Other WPC & Plastic Lumber Demand by Market, 2009 – 2029 (million dollars) 123 Table 12-4 | Raw Material Consumption in WPC & Plastic Lumber Production for Other Products, 2009 – 2029 (million pounds) 124

13. Residential Buildings Table 13-1 | Residential WPC & Plastic Lumber Demand by Type & Market Sector, 2009 – 2029 (million dollars) 128 Table 13-2 | New Residential WPC & Plastic Lumber Demand by Type, 2009 – 2029 (million dollars) 130 Table 13-3 | New Residential WPC & Plastic Lumber Demand by Application, 2009 – 2029 (million dollars) 131 Table 13-4 | Residential Improvement & Repair WPC & Plastic Lumber Demand by Type, 2009 – 2029 (million dollars) 133 Table 13-5 | Residential Improvement & Repair WPC & Plastic Lumber Demand by Application, 2009 – 2029 (million dollars) 135

List of Tables (continued)

Table 13-6 | Residential WPC & Plastic Lumber Demand by Housing Type, 2009 – 2029 (million dollars) 136

14. Commercial Buildings Table 14-1 | Commercial WPC & Plastic Lumber Demand by Type & Market Sector, 2009 – 2029 (million dollars) 142 Table 14-2 | New Commercial WPC & Plastic Lumber Demand by Type, 2009 – 2029 (million dollars) 144 Table 14-3 | New Commercial WPC & Plastic Lumber Demand by Application, 2009 – 2029 (million dollars) 145 Table 14-4 | Commercial Improvement & Repair WPC & Plastic Lumber Demand by Type, 2009 – 2029 (million dollars) 147 Table 14-5 | Commercial Improvement & Repair WPC & Plastic Lumber Demand by Application, 2009 – 2029 (million dollars) 148

15. Other Markets (Recreation, Agriculture) Table 15-1 | Nonbuilding WPC & Plastic Lumber Demand by Type & Market Sector, 2009 – 2029 (million dollars) 150 Table 15-2 | New Nonbuilding WPC & Plastic Lumber Demand by Type, 2009 – 2029 (million dollars) 151 Table 15-3 | New Nonbuilding WPC & Plastic Lumber Demand by Application, 2009 – 2029 (million dollars) 152 Table 15-4 | Nonbuilding Improvement & Repair WPC & Plastic Lumber Demand by Type, 2009 – 2029 (million dollars) 153 Table 15-5 | Nonbuilding Improvement & Repair WPC & Plastic Lumber Demand by Application, 2009 – 2029 (million dollars) 154 Table 15-6 | Agricultural WPC & Plastic Lumber Demand by Market Sector, 2009 – 2029 (million dollars) 155

16. Regions Table 16-1 | WPC & Plastic Lumber Demand by Region, 2009 – 2029 (million dollars) 157 Table 16-2 | Northeast: WPC & Plastic Lumber Demand by Subregion & Application, 2009 – 2029 (million dollars) 159 Table 16-3 | Midwest: WPC & Plastic Lumber Demand by Subregion & Application, 2009 – 2029 (million dollars) 161 Table 16-4 | South: WPC & Plastic Lumber Demand by Subregion & Application, 2009 – 2029 (million dollars) 163 Table 16-5 | West: WPC & Plastic Lumber Demand by Subregion & Application, 2009 – 2029 (million dollars) 165

List of Tables (continued)

17. Industry Structure Table 17-1 | WPC & Plastic Lumber Sales by Company, 2019 (million dollars) 167 Table 17-2 | Advantages & Disadvantage of Extrusion Processing in WPC & Plastic Lumber Production 175 Table 17-3 | Advantages & Disadvantage of Injection Molding in WPC & Plastic Lumber Production 176 Table 17-4 | Selected Mergers & Acquisitions 184 Table 17-5 | Selected Industry Participants 185

18. Appendix Table 18-1 | Study Scope: US Geographic Regions & Subregions 190 Table 18-2 | Relevant Industry Codes 191 Table 18-3 | Relevant HS Codes 191 Table 18-4 | Abbreviations & Acronyms Used in Study 195 Table 18-5 | Macroeconomic Indicators, 2009 – 2029 (billion 2012 dollars) 217 Table 18-6 | Population & Households, 2009 – 2029 (million persons) 220 Table 18-7 | Personal Consumption Expenditures, 2009 – 2029 (billion dollars) 222 Table 18-8 | Residential Building Construction Expenditures, 2009 – 2029 (billion dollars & billion 2012 dollars) 224 Table 18-9 | Housing Stock by Type, 2009 – 2029 (million units) 224 Table 18-10 | Residential Improvement & Repair Expenditures, 2009 – 2029 (billion dollars & billion 2012 dollars) 226 Table 18-11 | Commercial Building Construction Expenditures, 2009 – 2029 (billion dollars & billion 2012 dollars) 228 Table 18-12 | Commercial Building Improvement & Repair Expenditures, 2009 – 2029 (billion dollars & billion 2012 dollars) 229 Table 18-13 | Nonbuilding Construction Expenditures, 2009 – 2029 (billion dollars & billion 2012 dollars) 230

1. Executive Summary Figure 1-1 | WPC & Plastic Lumber Market 15

2. Overview Figure 2-1 | WPC & Plastic Lumber Demand, 2000 – 2019 (million dollars) 17 Figure 2-2 | WPC & Plastic Lumber Demand by Material, 2009 – 2029 (million dollars) 19

3. Factors Impacting Demand Figure 3-1 | Construction Expenditures, 2009 – 2029 (percent CAGR) 29 Figure 3-2 | WPC & Plastic Lumber Products Commonly Used in Home Improvements 31 Figure 3-3 | Presence of Outdoor Space at Home, 2019 (percent) 33 Figure 3-4 | US Consumer Insights: Pool & Spa Accessibility, 2019 (percent of total respondents) 34

4. Raw Material Requirements Figure 4-1 | Raw Material Consumption in WPC & Plastic Lumber Production by Material, 2009 – 2029 (million pounds) 42 Figure 4-2 | Wood Fiber Content of WPC Materials by Application (percent of formulation) 45

5. Wood-Plastic Composite (WPC) Lumber Figure 5-1 | Wood-Plastic Composite Lumber Product Components 52 Figure 5-2 | WPC Lumber Demand by Market, 2009 – 2029 (million dollars) 54 Figure 5-3 | Raw Material Use in WPC Lumber, 2009 – 2029 (million pounds) 55

6. Plastic Lumber Figure 6-1 | Plastic Lumber Demand by Market, 2009 – 2029 (million dollars) 59 Figure 6-2 | Raw Material Consumption in Plastic Lumber, 2009 – 2029 (million pounds) 60

7. Decking Applications Figure 7-1 | Decking Demand by Material, 2009 – 2024 (million dollars) 62 Figure 7-2 | Capstock-Coated Lumber: Value Share of WPC Decking Demand, 2009 – 2029 68 Figure 7-3 | WPC Decking Market Share by Company, 2019 (billion dollars) 71 Figure 7-4 | Cellular PVC Share of Vinyl Decking Value Demand, 2009 – 2029 76 Figure 7-5 | Plastic Decking Market Share by Company, 2019 (million dollars) 78

List of Figures (continued)

8. Moulding & Trim Applications Figure 8-1 | WPC Moulding & Trim Demand by Market, 2009 – 2029 (million dollars) 85 Figure 8-2 | WPC & Plastic Moulding & Trim Market Share by Company, 2019 (million dollars) 91

9. Fencing Applications Figure 9-1 | Fencing Demand by Material, 2009 – 2024 (million dollars) 93 Figure 9-2 | WPC Lumber Fencing Demand by Market, 2009 – 2029 (million dollars) 96 Figure 9-3 | Plastic Lumber Fencing Demand by Market, 2009 – 2029 (million dollars) 98 Figure 9-4 | WPC & Plastic Lumber Fencing Market Share by Company, 2019 (million dollars) 101

10. Window & Door Applications Figure 10-1 | Window & Door Demand by Material, 2008 – 2019 (billion dollars) 103 Figure 10-2 | WPC & Plastic Window & Door Market Share by Company, 2019 (million dollars) 109

11. Landscaping & Outdoor Applications Figure 11-1 | Shed, Pot & Planter, & Outdoor Furniture Demand Share by Material, 2018 & 2019 (million dollars) 111

12. Other Applications for Plastic & Composite Lumber Figure 12-1 | Other WPC & Plastic Lumber Applications: Market Share by Company, 2019 (million dollars) 125

13. Residential Buildings Figure 13-1 | Residential WPC & Plastic Lumber Demand by Housing Type, 2009 – 2029 (million dollars) 137

17. Industry Structure Figure 17-1 | WPC & Plastic Lumber Market Share by Company, 2019 (billion dollars) 168 Figure 17-2 | WPC & Plastic Lumber Market: Leading Supplier, 2019 169 Figure 17-3 | WPC & Plastic Lumber Market: Second Leading Supplier, 2019 170 Figure 17-4 | WPC & Plastic Lumber Market: Third Leading Supplier, 2019 171 Figure 17-5 | WPC & Plastic Lumber Market: Fourth Leading Supplier, 2019 172 Figure 17-6 | WPC & Plastic Lumber Market: Fifth Leading Supplier, 2019 173 Figure 17-7 | WPC & Plastic Lumber Market: Sixth Leading Supplier, 2019 174

List of Figures (continued)

18. Appendix Figure 18-1 | Annual Growth in Real GDP, 2000 – 2019, Compared to 1980 – 2005 Average (percent) 218 Figure 18-2 | Annual Population Growth, 2004 – 2019 (percent) 220 Figure 18-3 | Housing Stock by Year of Construction, 2019 (percent) 225