Composite and Plastic Lumber Demand to Expand

Demand for wood-plastic composite and plastic lumber in the United States is forecast to expand 11 percent per year through 2009 to $3.5 billion, according to a study by Cleveland-based market research firm the Freedonia Group.

Plastic lumber will benefit from growing use in fencing installations, while wood-plastic composites will achieve rising penetration in newer applications, such as fencing, window and door components and railroad ties, the study predicts. Demand for both composite and plastic lumber will be aided by consumer efforts to reduce maintenance associated with construction materials.

Molding and trim was the largest end use for composite and plastic lumber in 2004, at 46 percent of the total. Through 2009, demand for composite and plastic lumber in molding and trim applications is forecast to rise more than 6 percent per year to $1.3 billion, almost all of which will be plastic lumber, according to the study. Gains will be slower for most composite and plastic lumber applications, a result of the relative maturity of the overall molding and trim market, but will be significantly faster than those for wood molding and trim materials.

Among the major product categories, window and door applications, although rising from a smaller base, are anticipated to post the fastest gains through 2009, with demand expected to exceed $200 million. As with other applications, composite window and door components are making inroads against wood, metal and plastic materials because of their lower maintenance requirements and similarities to wood. Other applications, such as playground equipment, site and leisure furniture, hot tub cladding, porches and railroad ties, will see above-average gains through 2009 as well, albeit from smaller bases, according to the study.