US Decking Demand to Exceed $6 Billion in 2014

US demand for decking is forecast to rise 2.7 percent per year to 3.5 billion lineal feet in 2014, valued at $6.2 billion.  This pace will represent a rebound from the 2004-2009 period, when demand fell less than one percent annually, reflecting the collapse of the housing market between 2007 and 2009.  Through 2014, decking demand gains will be driven by an expected advance in housing completions from their low 2009 base.  These and other trends, including market share and product segmentation, are presented in Wood & Competitive Decking, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Wood-plastic composite and plastic lumber decking materials are expected to experience double-digit demand gains through 2014.  Indeed, composite decking will account for nearly 70 percent of demand growth in lineal foot terms through 2014.  In addition to its low maintenance requirements, composite decking’s resemblance to wood decking, consumer perception of it as being an environmentally friendly option, and the introduction of hidden fastener systems that facilitate installation will boost demand gains.

Wood decking will continue to account for the majority of decking demand in volume and value terms.  However, demand for wood decking is forecast to rise only one-half of one percent annually to 2.7 billion lineal feet in 2014.  While gains will be restrained by competition from composite and plastic decking materials, interest in tropical hardwoods, such as ipe, will provide growth opportunities in the residential building and nonbuilding construction markets.

The residential market accounted for 59 percent of decking demand in 2009, a lower share than the historical average and indicative of the low level of housing activity in that year.  Through 2014, decking demand in the residential market is forecast to advance at the most rapid pace of all markets.  Rebounding housing completions and improvement and repair expenditures will spur gains.  Growth will also be supported by homeowner desire for larger decks.  Decking demand in the nonresidential market is projected to rise 2.4 percent annually through 2014, as rebounding office and commercial construction expenditures drive growth. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.