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US Composite & Plastic Lumber Demand to Exceed $3 Billion by 2008
¡¾May 12, 2004¡¿

News from The Freedonia Group: US Composite & Plastic Lumber Demand to Exceed $3 Billion by 2008

CLEVELAND--(BUSINESS WIRE)--May 11, 2004--Demand for wood-plastic composite and plastic lumber in the US is forecast to expand nearly twelve percent per annum through 2008 to $3.1 billion. Advances will result from increasing market penetration of these alternative building materials, particularly in decking applications, which are expected to total $1.2 billion by 2008. More intensive use of these decking materials will be driven by characteristics such as high durability and low maintenance requirements. Advances for composite decking will also be supported by increasing consumer and contractor acceptance, a widening distribution network, and product improvements that enhance appearance. These and other trends are presented in Composite & Plastic Lumber, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

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 siding. Demand will be aided by end consumers' efforts to reduce maintenance associated with construction materials.

Molding and trim was the largest end use for composite and plastic lumber in 2003, at about 47 percent of the total. Through 2008, demand for composite and plastic lumber in molding and trim applications is projected to expand 7.1 percent per year, almost all of which will be plastic lumber. Gains will be slower than for most composite and plastic lumber applications, a result of the relative maturity of this market, but will nonetheless be well in excess of those for wood molding and trim materials.

Residential building will remain the largest market for composite and plastic lumber over the forecast period. Although prospects for new home construction are expected to moderate through 2008, these materials will achieve growth through increasing market penetration at the expense of alternative materials. Gains in the much smaller nonresidential building market will be enhanced by an expected recovery in construction activity in the office and commercial segments, which will be rebounding from a weak performance since the 2001 recession.

The Freedonia Group, Inc.
Corinne Gangloff, 440-684-9600
pr@freedoniagroup.com