Penetration Regaining Speed

Wood-alternative decking sales, including wood-plastic composites and cellular PVC products, took off dramatically during the early 2000s largely due to the category’s superior weatherability, lower maintenance and high aesthetics.  Share of these products during that timeframe increased rapidly from 4% to a peak of 17% immediately prior to the housing downturn.

During the downturn, as prices of these synthetic products increased and pressure-treated lumber prices dropped, the price spread between the products increased and property owners’ preferences shifted back to wood products.

Expected to Exceed 40% of Market Demand

Post-recession, composite suppliers developed a new class of products, namely capped composites. The innovative products provide superior weathering properties, highly attractive aesthetics and ultra-low maintenance and product volumes have grown with the uptick in the market.  While share of composites and cellular PVC has been stable over the last few years, Principia’s view is that within the next few years penetration will surpass the historic peak and reach the 20% penetration level on a volume basis and over 40% on a value basis.