The document discusses growth in the wood-plastic composite (WPC) market in Europe. It states that European WPC production is expected to grow nearly 10% annually through 2009 to nearly 145,000 tonnes per year. The automotive industry currently accounts for over half of WPC consumption in Europe. While decking has driven growth in North America, interest in decking is increasing in some European countries. The document predicts continued growth in applications like construction and furniture.
The document discusses growth in the wood-plastic composite (WPC) market in Europe. It states that European WPC production is expected to grow nearly 10% annually through 2009 to nearly 145,000 tonnes per year. The automotive industry currently accounts for over half of WPC consumption in Europe. While decking has driven growth in North America, interest in decking is increasing in some European countries. The document predicts continued growth in applications like construction and furniture.
The document discusses growth in the wood-plastic composite (WPC) market in Europe. It states that European WPC production is expected to grow nearly 10% annually through 2009 to nearly 145,000 tonnes per year. The automotive industry currently accounts for over half of WPC consumption in Europe. While decking has driven growth in North America, interest in decking is increasing in some European countries. The document predicts continued growth in applications like construction and furniture.
The document discusses growth in the wood-plastic composite (WPC) market in Europe. It states that European WPC production is expected to grow nearly 10% annually through 2009 to nearly 145,000 tonnes per year. The automotive industry currently accounts for over half of WPC consumption in Europe. While decking has driven growth in North America, interest in decking is increasing in some European countries. The document predicts continued growth in applications like construction and furniture.
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May 2006 Additives for Polymers
product throughout Asia. However, black is more Wood-plastic composite growth
of a commodity product and in value terms the taking off in Europe… leading producer is Ngai Hing Hong, which is the country’s leading colour masterbatch producer and The growth in sales of wood-plastic composite also manufactures significant volumes of white (WPC) products in North America has been the masterbatch. These products attract a higher pre- envy of European producers for ten years. mium than black masterbatch. Ngai Hing Hong However, there are now signs that the European has the widest network of plants in China with market is slowly taking off, according to The seven factories. The country’s leading white mas- European Wood Plastics Composites Market terbatch producer is Meilian Chemical based in 2006, a new report from UK-based consultancy Guandong, which mainly supplies the blow the Hackwell Group. According to the report, moulding industry, while Gunagdong Hengchang European production of 99 288 tonnes in 2005 will Chemical Industry has the largest output of addi- rise at annual growth rates just short of 10% to tive masterbatch. nearly 145 000 tonnes per year in 2009, worth The production of masterbatch in China is very about 290 million. Faster growth is likely to much concentrated in the hands of the leading occur if larger companies with more resources players, with 50 companies accounting for nearly enter the market. To put this in perspective, a three-quarters of production for 2005. There are recent study from Freedonia (see p.10) suggests an probably several hundred other companies in 11% annual growth rate for the combined WPC China manufacturing some masterbatch products and plastic lumber sector in the USA to reach a value of c. 3.0 billion in 2009, while a report last but most of these are very small-scale, unsophisti- year from Business Communications Co forecast cated operators, AMI says. Of these 30 are pro- that the WPC market alone in North America ducing for the fibre industry. would reach 900 000 tonnes by 2009 [ADPO, It is also notable that the plastics industry in China April 2005]. is improving its supply structure and demands Made from mixtures of wood filler (typically increasingly sophisticated products and raw mate- 40–80%) and plastics, the outdoor durability of rials. All of this has had an impact on the master- WPC products is more like that of plastics than batch industry, with companies becoming more wood, providing low outdoor maintenance costs technically advanced and intelligent in their prod- that offset their relatively high purchase price. uct development. However, different sectors of the Products can also be extruded like plastics, without local market are varied in their adoption of mas- expensive woodworking operations, and can be terbatch, with some applications continuing to co-extruded or veneered. One significant differ- have a significant use of dry pigments and com- ence between Europe and the rest of the world is pounds while others, particularly where products in the resin matrix currently used. The most popu- are destined for export, have generally adopted the lar resin for WPCs in Europe is virgin polypropy- use of masterbatch. Another feature of China’s lene, with four or five manufacturers also using masterbatch industry is that most plants, even PVC; the global preference is for polyethylene, those belonging to major international groups, often recycled. serve relatively local markets; logistical difficulties The report highlights the considerable variety of as well as local regulations result in little long-dis- WPC products already available in Europe. The tance masterbatch supply. This helps to explain automotive industry is easily the biggest user of why some producers are developing networks of WPC in Europe at the moment, with well over half more than one plant in order to serve the total mar- the total consumption. The situation is very differ- ket. The main companies to have gone down this ent elsewhere and vehicles account for as little as route are Clariant, Ngai Hing Hong and PolyOne. 7% of WPC sales worldwide. Hackwell expects a few European automotive supplier companies to Contact: Applied Market Information, AMI House, be diverted to natural fibres such as flax and hemp 45-47 Stokes Croft, Bristol BS1 3QP, UK; tel: in future. However, there is great scope for growth +44-117-924-9442; fax: +44-117-989-2128; in WPC sales in construction and furniture. URL: www.amiplastics.com Decking has been by far the biggest engine of
9 Additives for Polymers May 2006
growth for WPC in the USA and the absence of a 11% annually through 2009 to US$3.8 billion (c. strong European decking market has held the 3.0 billion). According to a new study from WPC industry back there. Nevertheless, a number Freedonia, Composite & Plastic Lumber (#2027), of European countries are now showing interest in moulding and trim will remain the largest end use decking, which had already become the leading but will lose share to other applications, while res- non-automotive WPC product in Europe by 2004. idential building will remain the top US market Although few furniture products are available yet, during the forecast period. the number of companies developing furniture Advances will result from increasing market pen- components made of WPC is much greater than etration of these alternative building materials, par- when Hackwell published its first WPC report in 2003, and IPT in Germany has demonstrated the ticularly in decking applications, which are rotational moulding of a WPC chair. Sales are also expected to account for more than one-third of expected in infrastructure applications normally value demand in 2009. Performance characteris- made of wood (such as highway sound barriers tics of these materials, such as durability and low and waterfront fixtures). Injection mouldings of maintenance requirements, will cause more people WPC will offer the advantages of a popular natu- to adopt them for their decking projects, Freedonia ral material and a much-reduced dependence on says. Advances for composite decking will also be oil-based resin for a wide variety of products. driven by increasing consumer and contractor familiarity, a widening distribution network, and The report says that it is not yet clear which of product improvements that enhance appearance. many other applications will become firmly estab- Any earlier Freedonia study, Wood & Competitive lished but siding or cladding, fencing and interior Decking (#1991), forecast an annual US growth construction items are contenders. The WPC win- rate for WPC decking of 15% between 2004 and dow market in the USA is being developed but its 2009, accounting for some 16% by volume of the European equivalent is dominated by PVC and total US decking market in 2009. already largely saturated. Improvements in the strength of WPC can be expected over the next two Plastic lumber will benefit from growing use in or three years to help its market penetration in a fencing, while WPCs will achieve rising penetra- number of areas. Technical standards are being tion in newer applications, such as fencing, developed for WPC [ADPO, May 2005]. window and door components, and railroad ties. Demand for both WPC and plastic lumber will be Leading European WPC manufacturers include aided by consumers’ efforts to reduce maintenance Tech-Wood, PPT, Polyplank, Kosche and associated with construction materials. Deceuninck, among others. There is a growing concentration of producers in German-speaking Moulding and trim was the largest end use for countries. Several European companies offer WPC WPC and plastic lumber in 2004, at about 45% of in pellet form at under 1/kg. Hackwell finds that the total. Demand from these applications is fore- the volume of imports of WPC from the USA, cast to rise at a healthy pace to $1.3 billion by China, Malaysia and elsewhere is not yet large, 2009, almost all of which will be plastic lumber. and Europe has a small export trade so overall con- Gains will be slower than for most applications for sumption figures for Europe do not differ very these materials, a result of the relative maturity of much from production figures. this market, but will be significantly faster than Published in April, the Hackwell report costs those for wood moulding and trim. 2240/$2915. Among the major product categories, windows Contact: The Hackwell Group, UK; tel: +44- and doors applications are anticipated to post the 1892-525576; fax: + 44-1892-683755; URL: fastest gains up to 2009 (but from a small base), www.woodplasticcomposites.org with demand expected to exceed $200 million. As with other applications, WPC window and door …while strong WPC growth components are making inroads against wood, continues in the USA metal and plastic materials because of their lower maintenance requirements and similarities to In the USA, demand for wood-plastic composites wood. Other applications such as playground (WPCs) and plastic lumber is forecast to expand at equipment, site and leisure furniture, hot-tub
