Wood preservation chemicals offer protection from insects and fungi that attacks the surface of the wooden surface. There are various types of active ingredients are used in wood preservative chemicals and coatings such as organic and inorganic ingredients. Under organic ingredients composed tebuconazole, cyproconazole, propiconazole, etc. whereas inorganic ingredients, include chromium, copper, and arsenic. The active ingredient of Wood preservation chemicals and coatings also enhances the life span of wood by keeping it safe from various environmental factors such as mechanical abrasion, UV rays, and household chemical attacks.
The global wood preservative chemicals and coatings active ingredient market is projected to surpass US$ 250 million by the end of 2027, in terms of revenue, growing at CAGR of 3.6% during the forecast period (2019 to 2027).
Drivers
The growing popularity of wood and wood-based products across indoor and outdoor applications due to their versatility and abundance is primarily fueling the market growth of wood preservative chemicals and coatings active ingredients. Wood is cost-effective, offer ease and efficiency in construction and sustainability make wood material of choice for many end-uses. Growing need to enhance the service life of wood against harsh environmental factors and insects is projected to create the demand for wood preservative chemicals and coatings and active ingredients, which in turn accelerating the market growth over the forecast period.
Expanding chemical industry around especially in Asia Pacific region is estimated to propel the market growth of wood preservative chemicals and coatings active ingredients. According to the report published by The Economic Times in October 2018, The Indian chemical industry is projected to grow at around 9% per annum to reach US$ 304 billion by 2025, from US$ 163 billion in 2018. The growth is likely to be driven by rising demand in end-use segments for specialty chemicals and petrochemicals intermediates.
Regionally, Asia-pacific dominated the global wood preservative chemicals and coatings active ingredient market in 2018, reporting 45% market share in terms of revenue, followed by North America and Europe, respectively.
Figure 1. Global Wood Preservative Chemicals and Coatings Active Ingredient Market, Revenue Share (%), By Region, 2018
Market Restraints
Changing environmental rules and regulations regarding wood preservative chemicals and coatings active ingredient across developed economies such as the U.S., Germany, and France, for example, Biocidal Products Regulation (BPR), REACH, Classification, Labelling and Packaging (CLP), VOC’s is restricting market growth. Moreover, these changes in rules and policies negatively impact the production of the active ingredient, which is further anticipated to hinder the market growth.
Wood preservative chemicals and coatings active ingredients have released toxic odor which harmful for humans as well as animal health. Also, some coatings provide less physical protection to wood as compared to creosote. Moreover, the wood preservative chemicals and coatings active ingredient does not offer protection from extremely harsh weather conditions. Therefore, the aforementioned factors are expected to hinder the market growth over the forecast timeframe.
Market Opportunities
Expanding furniture industry especially in U.S. region is expected to foster the market growth of wood preservative chemicals and coatings active ingredient. According to the US Census Bureau, approximately over 87,000 establishments are bringing in annual revenue of US$ 120 million a year and the total market size of the furniture industry, accounting for related accessories, floor coverings and draperies operate within a US$ 30 billion industry. The value of all furniture and furnishing store sales in the U.S. was estimated around US$ 9.8 billion in 2019.
Growing demand for treated wood in infrastructure projects due to growing need for furniture protection against fungi and insects is estimated to offer immense growth opportunity to the market of wood preservative chemicals and coatings active ingredient. Growing population base rate accelerating the growth of residential buildings. Aforementioned factors are expected to foster the market growth of the wood preservative chemicals and coatings active ingredient over the forecast period.
Figure 2. Global Wood Preservative Chemicals and Coatings Active Ingredient Market – Opportunity Analysis
Market Trends
Increasing the use of water-borne coatings especially in U.S. and Canada is expected to augment the market growth of wood preservative chemicals and coatings active ingredient. Moreover, rising awareness among the consumers regarding the benefits of eco-friendly products such as fast curing and high production efficiency is further anticipated to foster the market growth of wood preservative chemicals and coatings active ingredient over the forecast period.
Rising demand for active ingredients for outdoor application is expected to propel the market growth of preservative chemicals and coatings active ingredient over the forecast period. Due to the growing environmental and public concern overuse of bioactive chemicals, the various manufacturer has increased their focus on the development of organic wood preservatives especially for residential applications and other construction applications. This factor is expected to foster market growth.
Figure 3. Global Wood Preservative Chemicals and Coatings Active Ingredient Market, Revenue Share (%), By Use Class, in 2018
On the basis of use class, in 2018, UC 3 – Outdoor segment accounted the largest market share of 56% in terms of revenue, followed by UC 1/2 – indoor and UC 4 – outdoor with ground contact, respectively
Regulations
Regulations for Storage of Preservatives (Europe)
Figure 4. Global wood preservative chemicals and coatings active ingredient Market – Value Chain Analysis
Competitive Section
Key players operating in the global wood preservative chemicals and coatings active ingredient market are Lanxess AG, Janssen Pharmaceutica NV, Lonza Group AG, Akzo Nobel N.V., PPG Industries, Inc., BASF Wolman GmbH, Kurt Obermeier GmbH & Co. KG, RUTGERS Organics GmbH, Sarpap & Cecil Industries, Koopers Holdings Inc., and Troy Corporation
Wood preservative chemicals and coatings are the products that are used to control degradation of wood which is caused due to different factors such as decay, fungal rotting, sapstain, parasites, and wood destroying insects. Companies involved in manufacturing of the active ingredients used in formulation of wood preserving chemicals and coatings, are focusing on usage of environment friendly organic ingredients.
Market Dynamics
The global wood preservative chemicals and coatings active ingredient market has witnessed a surge of growth in terms of revenue in recent past years, owing to the rising infrastructural activities in the Asia-pacific region. The growth of development in emerging economies is driving the demand for treated wood in the region. Consumers are now preferring environment friendly ingredient based products which in turn is expected to provide lucrative growth to the market in the forthcoming years.
Among active ingredient type, the global wood preservative chemicals and coatings active ingredient market is bifurcated into inorganic, organic and others. Organic active ingredients segment is anticipated to grow substantially in the next few years, owing to the rising concerns among consumers regarding the harmful environmental effects of chemicals.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
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