Plastic Lumber Market Expected to Reach $15.8 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Plastic Lumber Market," The plastic lumber market was valued at $5.3 billion in 2022, and is estimated to reach $15.8 billion by 2032, growing at a CAGR of 11.3% from 2023 to 2032.

Plastic lumber is a versatile and sustainable building material made primarily from recycled plastics, such as discarded plastic bottles, bags, and containers. It is designed to mimic the appearance and functionality of traditional wood lumber while offering several environmental benefits. The production process involves melting and extruding recycled plastic materials into various shapes and sizes, creating a durable and weather-resistant product.

Plastic lumber boasts several advantages, including resistance to rot, insects, and decay, making it an ideal choice for outdoor applications like decking, fencing, and landscaping. Moreover, it helps reduce the burden on landfills by repurposing plastic waste, contributes to forest conservation, and requires minimal maintenance. Its availability in a range of colors and textures further enhances its appeal in construction and landscaping projects, making it a sustainable alternative to conventional wood lumber.

The plastic lumber market is poised for significant growth, primarily fueled by growing environmental concerns. As the world grapples with the escalating crisis of plastic pollution, consumers, businesses, and governments are increasingly turning to sustainable alternatives to traditional wood products. Plastic lumber, made from recycled plastics such as discarded bottles and bags, offers a compelling solution. It not only diverts plastic waste from landfills and oceans but also conserves natural wood resources, thereby mitigating deforestation.

Moreover, plastic lumber is durable, resistant to rot and insects, and requires minimal maintenance, making it an attractive choice for construction and outdoor applications. The market's upward trajectory is further propelled by stringent environmental regulations and a shift toward eco-conscious construction practices. As consumers become more eco-aware, the demand for plastic lumber is expected to surge, creating a positive feedback loop that encourages further innovation and investment in this sustainable building material. The plastic lumber market is not only addressing environmental concerns but also reshaping the construction industry toward a greener and more sustainable future.

Cost considerations can indeed pose a significant challenge to the growth of the plastic lumber market. While plastic lumber offers several advantages over traditional wood, such as durability, resistance to rot and pests, and reduced maintenance requirements, its initial cost can be higher. This upfront expense includes not only the material itself but also the manufacturing processes involved in creating plastic lumber, which can be more energy-intensive than producing traditional wood products.

In addition, the cost of recycling and processing plastic waste into usable lumber can be substantial. Consumers and businesses often make decisions based on short-term financial considerations, and this can deter them from investing in plastic lumber, especially when traditional wood alternatives may seem cheaper at first glance. Furthermore, some may be hesitant to make the switch to plastic lumber due to uncertainty about its long-term performance and sustainability benefits, leading to a preference for tried-and-true wood products.

The plastic lumber market is poised for substantial growth and lucrative opportunities, driven by the expanding range of applications for this versatile material. Traditionally, plastic lumber has been employed primarily in outdoor decking and fencing projects due to its durability and resistance to environmental elements. However, recent advancements in manufacturing techniques and a growing emphasis on sustainability have paved the way for a broader array of applications. These encompass not only construction but also landscaping, furniture production, and even marine applications.

As society increasingly seeks eco-friendly alternatives to traditional wood, plastic lumber stands out as an attractive solution, given its recyclability and low maintenance requirements. Moreover, as regulations and consumer preferences increasingly favor sustainable practices, businesses in the plastic lumber market are well-positioned to capitalize on these expanding opportunities.

The plastic lumber market is segmented on the basis of product, resin type, application, and region. By product, the market is divided into virgin plastic, recycled plastic, and composite. On the basis of resin type, it is categorized into polyethylene, polyvinyl chloride, polystyrene, and others. As per application, it is categorized into decking, molding trim, fencing, landscaping outdoor products, windows doors, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of the product, the plastic lumber market is classified into virgin plastic, recycled plastic, and composite. Composites is projected to be the fastest-growing segment and virgin plastic has garnered the highest share in the plastic lumber market.

On the basis of the resin type, the plastic lumber market is classified as polyethylene, polyvinyl chloride, polystyrene, and others. Other resin types including polypropylene, composite resins, high-density polyethylene (HDPE), and low-density polyethylene (LDPE) are projected to be the fastest-growing segment and polyethylene has garnered the highest share in the plastic lumber market.

On the basis of the application, the plastic lumber market is classified as decking, molding trim, fencing, landscaping outdoor products, windows doors, and others. Molding trim is projected to be the fastest-growing segment and decking has garnered the highest share in the plastic lumber market.

The major players operating in the global plastic lumber market are Genova Products Inc., Trex Company, Inc., American Recycled Plastic, KWK Plastic Lumber Co., Ltd., Ecoville, CMI, PlasTEAK, Fiberon, TANGENT Technologies, LLC., and Repeat Plastics Australia Pty Ltd.

Other players include AZEK Building Products, Envision Decking, Lumberock , Bedford Technology, Bear Board, Nexwood, EPS Plastic Lumber.

Key Findings Of The Study:

• On the basis of the product, the composites segment is expected to grow at a CAGR of 13.1%, in terms of revenue, during the forecast period.
• On the basis of the resin type, the others segment including polypropylene, composite resins, high-density polyethylene (HDPE), and low-density polyethylene (LDPE) is expected to grow at a CAGR of 12.6%, in terms of revenue, during the forecast period.
• Depending on the application, the molding trim segment is expected to grow at a CAGR of 12.2%, in terms of revenue, during the forecast period.
• Region-wise, Europe garnered the highest share in 2022 in terms of revenue.