Wood Preservative Coatings Market

Wood Preservative Coatings Market Overview

[297 Pages Report] Demand for wood preservatives coatings is 653,844 tonnes in 2021. It is set to grow at 4.9% CAGR by volume through 2027.

By product type, the preservative coating segment is expected to project a CAGR of 5.4% in terms of volume. Fire retardant coating segment is expected to grow at a CAGR of 6% during the forecast period.

The fire retardant is expected to expand at 6% CAGR in terms of volume. The varnishes segment will show a growth of 5.4% CAGR over the forecast period.

Furniture segment is expected to reach US$1.6 Bn by 2027 end.

North America wood preservative coatings demand will reach 868,047 tonnes by 2027.

Asia Pacific excluding Japan (APEJ) accounts for nearly 32% of the global wood preservative coatings market.

Wood preservative coatings are the coatings applied on the wood for its interior as well as exterior protection. Interior protection includes protection from decay and insect/fungi/mold and exterior protection includes protection from harsh weathering condition.

The choice of wood preservative coatings depend on the type of wood and upon the biological hazards to which the wood is to be exposed. In this report, wood preservative coatings are considered as a whole for both internal as well as for external protection of wood products.

The wood preservative coatings are primarily based on two types of systems (solvent-borne and water-borne) which can also be called as technology. When a solvent is used to disperse a resin (binder) it is called as solvent-borne and when water is a dispersing medium for a resin (binder) it is called as water-borne.

Growth in wood preservative coatings industry is expected to be driven by a rebound in residential and construction industry, which in turn will benefit the key applications in which wood preservatives and coatings are used such as furniture, decking and siding. Further market growth for wood preservative coatings is anticipated to be restrained by increasing use of non-wood materials. Wood preservations and coatings product adoption varies depending on the application.

Paint is a dominant product category in window, door and siding applications. Sealers and stains are more widely used on cabinets, decks, flooring and furniture. Similarly, oil-based wood preservative coatings including penta and creosote tend to be utilized in applications such as utility poles and railroad products, while water-based wood preservative coatings types such as ACQ and copper azole are used to treat wood intended for non-industrial and residential applications.

The rise in single family homebuilding in the U.S. is likely to foster growth in the consumption of wood preservative coatings in North America

The single family housing model accounts for a major share in the U.S. housing constructions. The growth in single family housing is becoming prevalent in the U.S over multi-family housing, thereby increasing the demand for lumber, which in turn drives the wood preservative coatings market.

Wood is considered to be a least energy intensive building material as compared to other building materials such as plastic, steel, concrete etc., that require more energy to convert the raw materials to the end product. Also, factors such as the availability of wood at cheaper costs compared to its substitutes, wide range of types and sizes and high material stiffness of wood further fuel the consumption of wood preservative coatings.

Canada has around 30% of the world’s boreal forest that consists of trees such as larch, poplar, pine etc. Production of soft wood constitutes a major share in Canada, wherein the conversion of wood to various products is significant. According to the Canadian Wood Council, the forests in Canada are more protected than any other country in the world with independent certifications.

Soft wood from Canada is exported to the U.S, representing one-third consumption. A large production of lumber necessitates the requirement of wood preservative coatings in order to prevent the wood from decaying due to environmental factors such as climatic conditions. The presence of robust forestry coupled with sustainable forestry management fuels the wood preservative coatings market in North America.

In April 2017, Trump administration announced to impose a tariff of 20% on the soft woods which enter the U.S state from Canada. Earlier, the trade between U.S and Canada were easy and not strict. In 2016, according to the U.S Commerce Dept., imports of the soft wood were about US$ 5.7 Bn. However, the recent change in the trade affair between the two countries is expected to impose barrier to the consumption of wood preservative coatings.

The consumers in the states would have to pay more in building or renovating their homes, owing to this tariff imposition. Hence, it is expected that the wood preservative coatings market in North America is expected to grow at steady growth rate of 5.8% Y-o-Y till 2018, after which it is expected to fall.

The Energy and Environmental Design programme of the U.S. Green Building Council certifies wood preservative coating products that have low VOCs and are formaldehyde free. Also, the presence of toxins and carcinogenic ingredients in the products are verified and if present, restrictions are imposed. These stringent standards and regulations help in driving revenue growth of the wood preservative coatings market in North America.

The high solid technology involves less solvent use and more solids which is currently a prominent trend in the North American wood preservative coatings market. Also, the low odor and high durable coatings are more preferred by the consumers in North American wood preservative coatings market.

High solid technology and low odor and high durability products for interior wood preservative coatings is the new trend in North America

The trend of usage of water-borne coatings is significant in the North America wood preservative coatings market. An increasing awareness among consumers regarding the usage of eco-friendly coating products is prevailing. Also, UV wood preservative coatings are being used for industrial applications owing to the fast curing and high production efficiency offered by such coatings.

Besides, high solid technology involving less solvent and more solids use is currently a prominent trend in the North America wood preservative coatings market. Also, low odor and high durable coatings are increasingly preferred by consumers in the North America wood preservative coatings market.

Nikhil Kaitwade

Principal Consultant

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Insect repellent segment is estimated to hold major share both in terms of value and volume

Wood preservative coatings products are essential for increasing the product life span. Among various preservatives, insect repellent is estimated to hold major share both in terms of value and volume owing to its inherent advantages of protection from decay.

The borates, azoles, pentachlorophenol etc. type of insect preservatives are more preferred by consumers. The market for stains and varnishes is quite fragmented with the presence of several domestic players. The demand for wood preservative coatings for protective as well as decorative purposes influences the stains and varnishes segments.

Segmentation analysis of the wood preservative coatings market

Volume share of water-borne wood preservative coatings is higher among all the regions. The increasing awareness about the benefits of water-borne coatings and strict environmental regulations is expected to boost the water-borne system type. However, currently the solvent borne system type dominates the wood preservative coatings market owing to its flexibility and technical advantages. The ongoing developments in the water-borne system type to increase its competitiveness is expected to drive the growth for water-borne system types.

For instance, Dow Chemical Company developed a water-borne type new alkyd composition coatings with excellent performance. Some of the advantages of water-borne system type wood preservative coatings, helping to drive the market in the region are low toxicity and flammability, low HAPs and VOCs emissions, reductions in air emissions and excellent adhesion.

Increasing awareness about environmental concerns because of low quality and harmful additive in the wood preservative coatings, the market in matured markets such as North America and Eastern Europe are turning towards adoption of sustainable wood preservative coatings. UV- curing and water-based wood preservative coatings are trending in the regions with the companies such as BASF SE, AkzoNoble N.V, the Dow Chemical company increasing its penetration of eco-friendly product portfolio.

The APAC wood preservatives coatings market is expected to represent significantly high incremental opportunity between 2017 and 2027. The market of wood preservatives coatings in APAC is expected to represent market value of US$ 7,439.2 Mn by end of 2027.

Key players in the global wood preservative coatings market

Detailed profiles of the providers are also included in the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent developments in the global wood preservative coatings market space. Key competitors covered are Akzo Nobel N.V., BASF SE, The Dow Chemical Company, The Sherwin-Williams Company, PPG Industries, Inc, Valspar Corporation, Industrias Quimicas Kupsa S.L., RPM International Inc., Lonza Group Ltd, KMG Chemicals, Inc.

The global wood preservative coatings market is highly fragmented. Akzo Nobel N.V., BASF SE and The Dow Chemical Company constitute a major share in the global wood preservative coatings market, together contributing more than 30% value share. Companies such as The Sherwin-Williams Company, PPG Industries, Inc. and Valspar Corporation contribute around 21% share to the global wood preservative coatings market.

Other local and regional players such as HMG Paints Limited, Bergolin GmbH & Company KG, Chugoku Marine Paints, Ltd., Morrells Wood Finishes etc. hold around 30% market share.

Research process to arrive at the market numbers

We have taken a systematic research approach while inspecting this market. In-depth secondary research is used to arrive at overall wood preservative coatings market size, top industry players, top products and industry associations.

Our analysts have formulated a detailed discussion guide in order to conduct expert and industry interviews with experts, industry players, distributors and retailers. Data is validated using the triangulation method, wherein primary and secondary research data along with Future Market Insights’ analysis contribute to the final data.

Market analysis has been done in terms of Basis Point Share and Y-o-Y growth projections for all segments of the global wood preservative coatings market. Market attractiveness analysis and market size and value of each segment has been incorporated in the report. Factors such as production capacity, consumption capacity, wood preservative coatings market industry growth and wood preservative coatings market industry growth have been considered while examining this market.

For each system type, weighted average selling price (ASP) has been considered to deduce market values. Average selling price varies by system type and is varied for Chinese, regional and global players. Top-down approach has been used to assess market numbers for each category, while bottom-up approach has been used to counter validate the market estimations.

Additional questions answered

• Key concerns related to regulatory standards for wood preservative coatings
• What trends are impacting the sales of wood preservative coatings and how can wood preservative coatings manufacturers leverage them?
• Which is the most lucrative regional market with respect to the wood preservative coatings adoption and demand?
• Why are the sales of wood preservative coatings highest in North America?
• Why is APEJ attracting most of the leading wood preservative coatings manufacturers?
• How logistics and supply chain management is critical element (as it requires compliance from source to customer) in wood preservative coatings supply chain?
• Which end-user base to target in wood preservative coatings?

Key Segments Covered

The next section of the report includes analysis of the global wood preservative coatings market on the basis of region. The global wood preservative coatings market is segmented into seven key regions:

• North America
• Latin America
• Eastern Europe
• Western Europe
• Asia-Pacific Excluding Japan
• Japan
• Middle East and Africa

The section that follows analyses the market on the basis of product type and presents the forecast in terms of volume and value for the next 10 years. System type of wood preservative coatings covered in the report are:

• Solvent borne
• Water borne

Another section included in the report is on the basis of coating type that analyses the market and presents the forecast in terms of volume and value for the next 10 years. Applications of wood preservative coatings covered in the report are:

• Preservative
  • Water Repellant
  • Fire Retardant
  • Insect/Fungi Repellant
• Stains
• Varnishes
• Shellacs
• Others (Oil, Wax, etc.)