US Plastic & Composite Fencing

Report Overview

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This Freedonia industry study analyzes the $1.2 billion US market for plastic and composite fencing. It presents historical demand data (2012, 2017, and 2022) and forecasts (2027 and 2032) as well as annual data for years 2019-2026. Unit demand and value demand data is shown for Fencing by material (plastic, composite), product type (vinyl fencing, hdpe fencing, polypropylene fencing) and market (new, improvement, and repair demand in both residential and commercial applications).

Durability & Aesthetics Allow Plastic to Gain Market Share at Wood’s Expense

Plastic fencing (primarily vinyl) has increased in popularity in the residential market as it is recognized as a more durable and lower maintenance alternative to wood. Plastic fencing’s share of the market will continue to rise as its aesthetics improve, with new vinyl fencing designs and colors that more closely resemble wood. In addition, a greater variety of vinyl fencing products at a wider range of price points will become available as suppliers invest more in this burgeoning fencing material.

Sustainability, Performance & Greater Availability Bolster Demand for Composite Fencing

Although it will continue to account for a small share of demand, sales of composite fencing will rise, boosted by:

• its sustainability image, as composite fencing does not rely on virgin wood, can incorporate recycled materials into its production, and is perceived as being more environmentally friendly than plastic fencing

• more consumer awareness of better performing composite products, including capstock-coated composite lumber, which resists decay and mold growth

Demand will also be supported by the greater availability of these products from a wider variety of sources. Many of the companies who offer composite fencing are primarily decking companies, as the production of composite decking boards can also be tailored to make composite fencing. Companies are expected to sell more of their composite boards as fencing, and other decking companies will be able to enter the composite market with relative ease.

Historical Market Trends

• the size and age of the US housing stock
• trends in average property size
• levels of housing starts, particularly in the single-family housing segment, and existing home sales
• the number and types of commercial buildings erected or repaired in any given year
• levels of home renovation activity
• interest rates – low interest rates may encourage home and business owners to take out lines of credit to fund new fence installations or repairs

• weather conditions, especially outbreaks of severe weather – such as hurricanes and tropical storms, tornadoes, and winter storms – that can cause widespread damage to fences
• changes and modifications to state and local building codes
• changes in the price of raw materials (e.g., plastic) that can cause the per-square cost of fencing materials to increase or decrease sharply
• consumer preferences for stay-at-home activities such as gardening, swimming, or outside entertaining, which may require fencing for security or privacy

Markets Overview

• their similarities to the appearance of natural wood fencing, which is most used in residential applications
• homeowners being less price-focused than commercial users, making them more willing to buy plastic and composite fencing products despite a higher initial cost due to the fencing’s low maintenance and durability

Plastic and composite fencing is used less commonly in other markets because its lack of strength compared to metal makes it ill-suited for security fencing, especially in the nonbuilding market. However, its durability and minimal maintenance requirements will lead to its use in such commercial applications as hotels, restaurants, and resorts, where a residential feel is desired. In the agricultural market, HDPE fencing is used as a wood fencing replacement for corrals and other containment areas.

Pricing & Installation Costs

• fencing material used
• design, style, and shape of the fence
• ease of cutting and assembling the fencing
• number of gates
• use of automatic operators for the gates

Material Trends

Demand by Material

Buildings included in this segment are used for such purposes as manufacturing, offices, retail or wholesale trade, public safety, healthcare, education, or public assembly. as prices moderate significantly from high levels in 2021 and 2022 that resulted from supply chain issues and rising raw material costs. However, volume demand is expected to grow as vinyl fencing gains share in the residential market, where its durability and low maintenance requirements make it an attractive alternative to wood for homeowners.

Other plastics such as HDPE and polypropylene will also see increased demand but will remain niche products for the most part due to its cost and application.