Market trends
China WPC industry gears towards elite level
Source: CPRJ Editorial Team
▲ The Chinese WPC industry has experienced rapid growth in recent years.
Advancing technology, market development, legislation support and improving standardization have driven forward the Chinese wood plastic composite (WPC) industry, which is about to enter a fast-growing period during the 13th Five-Year plan.
Most WPC composite uses polyethylene (PE) or polyvinyl chloride (PVC) as base materials. PE-based WPC has good aging resistance properties and is mainly used for outdoor decorating materials. PVC-based WPC is light and with good dimensional stability. However, its weather resistance is relatively poor and is largely used for indoor decorating materials.
The four driving force - technology, market, policy and standard
WPC consumption grew quickly in the 12th Five-Year Plan period due to the following reasons:
1. Product performance improved significantly along with rapid advancement in processing technologies, raw materials, molds, post-treatments, etc. WPC’s mechanical performance, weather resistance and aesthetics have moved to a whole new level.
2. Winning recognitions from the majority of consumers, especially in municipal gardening, real estate, tourist resort and household decoration, the market developed quickly and soon entered a fast growth period.
3. Chinese government support with a series of policies such as R&D support and tax subsidies.
4. Progress in product design and R&D, coupled with comprehensive industry standards, have pushed China’s WPC industry into elite level, with strong competitiveness in the global market.
China has now become the world’s largest WPC producer in the world. In the future, more efforts are required to improve product performance, such as creeping, thermal expansion, weather resistance and weight. Moreover, the development of accessories, such as equipment for product installation, is also needed.
Domestic consumption needs a boost
At present, major WPC manufacturers in China focus on exports, especially to Europe. One reason is that North America, having developed WPC at an early stage, is a matured market that is difficult to break into.
In recent years, Asia has shown the fastest growth, and China is one of the driving forces behind.
What the future holds?
The WPC industry is expected to continue its rapid growth during the 13th Five-Year Plan period. Products will become more matured and diversified. New innovations such as PE co-extruded overmolding, easy-to-install foamed PVC wall panels, etc, will lift the industry further. Chinese WPC products will gain a bigger share in the global market.
The recent developments of Chinese WPC industry were summarized below:
Market
Despite the economy slowed down, the WPC industry still experienced strong growth. According to statistics, domestic sales revenue rose by more than 20%.
As for exports, according to feedbacks from major domestic enterprises, overseas buyers and raw material suppliers, the global WPC market began its revival in the second half of 2015 from a relatively stagnant period two years ago.
The annual export growth rate of calendar year 2015-16 is projected at 30%. Export volume of PE-based products totaled approximately 400,000 tons.
For the calendar year 2016-2017, another 30% rise of export is predicted for the calendar year 2016-17.
Industry scale
With the addition of about 25 new players in 2016, there are roughly 200 manufacturers of PE-based WPC products in China. About five of them have an annual production volume of 20,000 tons, while 15 reach 10,000 tons. Total production volume of PE-based WPC exceeded one million tons.
From a geographical point of view, nearly 50% of WPC manufacturers are distributed around the Yangtze River Delta area. In recent years, developments have also accelerated in other areas, especially in the Southwestern and Northwestern China, where more and more WPC producers are established.
Product structure and new innovations
In the past year, product developments have speeded up, evidently demonstrated by the number of new products that were introduced in different exhibitions. Generally speaking, manufacturers have increased their efforts on R&D, which was rather inspiring for the industry.
For enhancement of product performance and appearance, overmolding process and inline embossing technology are widely adopted, leading to the birth of second generation PE-based WPC.
As leading manufacturers like NewTechWood, Sentai, Wallong, HonorWood and Huabang spending enormous effort in the development and marketing of second generation PE-based WPC, they will quickly become the mainstay in the market, replacing older, first-generation products.
Moreover, the Chinese products can now claim to be on par with leading players such as the US.
Development of foaming and co-extrusion technology will be the future trend in China’s PE-based WPC industry, for they are capable of reducing weight, enhancing weather resistance while reducing raw material costs.
▲ Co-extruded WPC products are long-lasting and aesthetically pleasing.
As for indoor application, easy-to-install PVC wall panels were launched in the market two years ago. Since they are inexpensive, easy to install, and aesthetically pleasing, these products are quickly accepted by the market, revolutionizing the indoor decoration industry.
