Over the years, composite decking has grown in popularity, deriving appeal from its durability, long lifespan, aesthetic quality, and perception as an eco-friendly alternative to wooden decking.
Demand for composite decking is tied to the overall building and construction industry, which means it is not immune to the impacts of broader economic trends and confidence levels. Other factors that impact the market include growing environmental awareness and demand for customization, as well as technological innovations and the introduction of new manufacturing processes and features.
Although there is currently a level of economic uncertainty, with the ongoing implementation of tariffs by the United States and its trade partners, as well as concerns about rising costs of living and inflation, the construction and remodeling industries seem to be holding steady.
Data from the Home Improvement Research Institute shows how growth in spending on home improvement products by both homeowners and professionals is expected to be softer through the end of 2025.
What are Key Trends in the Composite Decking Market?
Several factors impact the size and strength of the composite decking market in the U.S., which is fragmented with a few major players, including Trex Company, Fiberon, Envision Outdoor Living, TimberTech, DuraLife, MoistureShield, Deckorators, and Eva-Last.
The composite decking market is typically divided into two segments: capped composites and uncapped composites. With a protective layer that mitigates the impact of external elements, capped composite decking has been growing in popularity, as it promises less maintenance and upkeep and better longevity. On the other hand, uncapped composite decking tends to be more affordable up-front, although it is more susceptible to environmental wear over the long run so can have higher maintenance costs.
Here is a look at some of the trends influencing the composite decking market in 2025:
1. Residential Market Provides Highest Demand for Composite Decking Products
The residential sector is the most dominant portion of the composite decking market. Demand for outdoor spaces and home improvement activities, we see composite decking utilized for homes and apartment dwellings. However, commercial application is also growing, with composite decking finding use for restaurants, hotels, and other establishments. Looking ahead, remodeling activity is expected to remain less volatile than new home construction, according to LIRA data from the Joint Center for Housing Studies (JCHS). There may be a decrease in annual expenditures for improvements and repairs to owner-occupied homes in the first part of 2025, but we expect to see growth within the second and third quarters.
2. Customers are Growing in Awareness of Environmental Impacts
Over the years, there’s been a growing push against the installation of traditional wooden decks. Composite decking is becoming seen as a more eco-friendly alternative, especially with the influx of decking and railing products made from recycled materials, or incorporating a high percentage of recycled materials. Even still, industry players also have to contend with the environmental challenges associated with composite materials, such as disposal and recycling, and mitigate any long-term environmental impacts of these materials.
3. Rise in Competition and Advances in Technology Influence Market
With the ready availability of substitutes, manufacturers in the composite decking industry are exploring innovative processing techniques to stay competitive and address common composite decking problems and challenges. For example, modified wood—which is perceived as an alternative to traditional lumber—is another option for decking that is growing in demand. With its durability and aesthetic appeal, it is often seen as a viable alternative to composite decking and, therefore, siphons off a portion of the market that might otherwise be captured by that segment. Innovation is key to keeping up with restraints and challenges in the U.S. market, with advancements in manufacturing technologies enabling manufacturers to increase the quality and diversity of available products.
4. Customers are More Concerned with Brand Than Supplier for Decking Options
Our study into pro purchase behaviors of decking, fencing, and railing materials more broadly, revealed that pros work with multiple different decking, fencing, and railing brands on an annual basis. Further, about 10% of homeowners had reported purchasing some type of outdoor living product—such as decking, railing, gazebos, sheds, and fencing—in the past 90 days. 1 in 3 customers felt that brand was more important than supplier when purchasing decking materials, compared to 1 in 5 who cared more about supplier. About half of buyers find them to be equal considerations. These types of product purchase behaviors should inform manufacturers and suppliers who are striving to increase awareness and also capture a larger portion of consumer spending for decking products and materials.
5. Brand Awareness and Brand Use Don’t Always Align
Brand awareness measures how well a particular building products brand is ingrained into the lifestyles and purchasing behaviors of customers. However, we don’t always see a direct correlation between brand awareness and brand use, which measures how well a brand is performing tangibly in the marketplace.
For example, when it comes to composite decking brands, our 2024 research found that brand preference and performance don’t always match up. Pros may use a particular brand because a client requested it, but the overall brand performance—and average of brand characteristics—isn’t always directly proportional. Our research revealed that even when a brand had both high preference and strong overall performance, it was still sometimes less preferred than competing brands it consistently outperformed in the field.For example, from our research.
6. Quality and Availability Dominate Product Selection for DIYers and Pros
When it comes to building products for outdoor living - including decking materials - we know that DIYers’ top traits when selecting brands include high quality, availability, ease of use, low price, and brand reputation and familiarity. Building professionals are motivated by similar features, although they are more inclined to take warranties into consideration than homeowners, and they’re also less concerned about ease of use than DIYers. Manufacturers are tasked with balancing these motivating factors and diversifying product lines to meet the varying demands of both professionals and homeowners, as well as creating more refined product marketing strategies to serve each unique customer segment.
7. Expanding Features to Align with Consumer Preferences
Another trend we’re seeing is the introduction of new and innovative composite decking with enhanced features, from UV protection and higher durability to slip resistance and integrated lighting solutions. A prime example is the capped composite decking materials, which incorporate advanced protective layers to provide protection against environmental elements.
Additionally, with the idea of customization gaining traction, and homeowners looking to personalize their outdoor spaces, manufacturers have introduced modular decking systems that give an array of options for colors and designs. Decking companies who invest in research about consumer usage and attitudes will be able to more effectively strategize their approach to product development and marketing. For example, major players in the composite decking market are regularly expanding their portfolio with new features. In 2023, Trex added two colors to their luxury Transcend Lineage line in 2023 that included heat-mitigating technology and a 50-year warranty to back the claim of superior performance. More recently, MoistureShield expanded the color selection for their Meridian composite decking and Traverse composite deck railing lines to appeal to current aesthetic trends among customers.
8. Collaborations and Partnerships Help Manufacturers Expand Reach
The composite decking market is fairly fragmented, with numerous small- and medium-sized entities in the playing field. One effect is heightened competition. On the other hand, collaborations and partnerships can be mutually beneficial for manufacturers and distributors, enabling both to augment their reach and capture a greater market share. For instance, at the end of 2024, Trex Company partnered with Alexandria Moulding to expand its distribution network in Canada.
Taking Your Research and Insights to an Individual Level
Staying up to date with broad industry trends will help you get a directional sense of where to dig in and get deeper insights to inform your decision making and stay competitive in the market.
For that valuable, primary research and insights from your customers, about your brand, and about your market, consider partnering with our team at The Farnsworth Group to conduct customized market research. You’ll be able to dig into the specifics of your target audience and how they’re interacting with various channels, their product purchase behaviors, and their attitude toward the market, among answering other research objectives you have.
