WOOD PRESERVATIVES MARKET ANALYSIS

Wood preservatives such as copper azoles, synthetic pyrethroids, creosote and various other preservatives, are the chemicals applied on wood to preserve it from fungi, insects, termites, ants, and other microbes. These preservatives also prevent the wood from decomposition, degradation and decay, and provides a longer life, thereby increasing its durability. Growth of wood preservatives market is fueled by the use of wood in marine piling, utility fencing, decking, and in infrastructure.

The Wood Preservatives market was valued at US$ 1,377.8 Million in 2021 in terms of revenue, exhibiting a CAGR of 5.6% during the forecast period (2022 to 2030).

Drivers

Demand for wood preservatives is increasing owing to shifting preference of consumers towards using eco-friendly wood preservatives. For instance, Ammonium Copper Quaternary (ACQ), a new generation compound, is extensively being used as an alternative to Chromated Copper Arsenate (CCA), which are wood preservatives. ACQ is being used for treatment of wood used in agriculture poles and structural timber. It aids in improving the durability of the wood being treated. Rapidly expanding infrastructure activities acroos the globe is expected to boost the demand for wood preservatives. For instance, in The U.K. government invested US$ 26.43 Bn on infrastructure development in 2020, which in turn is expected to boost the demand for wood, thereby, propelling growth of the wood preservatives market.

Among region, North America region held highest market share of global wood preservatives market in 2021Growth in this region is attributed to rising infrastructural activities, increasing commercial housing activities, and increasing industrial construction. Moreover, growing investments in premium furniture backed by rising renovation and reconstruction activities, especially of the U.S. and Canada are other factors expected to drive growth of the market in the region

Figure 1. Global Wood Preservatives Market Value Share (%), By Region, 2021

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Market Restraints

Limited availability of wood and stringent government regulations on the usage of synthetic wood preservatives, are some of the major factors restricting growth of global wood preservatives market. For instance, the manufacturers of Chromated arsenical stopped the residential use of Chromated Copper Arsenate (CCA), and the wood products that are treated with CCA, including children’s play sets and decks in North America, as they were harmful to humans as well as environment. CCA is being rapidly replaced by copper azole (CA) and copper quaternary (ACQ).

Market Trends

Growing demand for modern interior design is boosting demand for wood preservatives. Modern interior design is available in various forms such as wall body, wooden mural, wood carving, wood trim, skirting line, baluster, wood floor, and armrest and ceiling. For construction of such modern interior designs demand for wood is increasing, which in turn is boosting demand for wood preservatives.

Figure 2. Global Wood Preservatives Market Value Share (%), By Application, 2021

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Among applications, the residential and commercial segment accounted for a dominant market share of 78.69% in 2021. This is attributed to increasing demand for wood from the infrastructure sector for flooring and wooden furniture. Furthermore, rising popularity of wood as a renewable and sustainable building material with lowest carbon footprint has led to its rampant use in the construction industry. This is another factor expected to drive growth of the wood preservatives market.

Global Wood Preservatives Market - Impact of Coronavirus (COVID-19) Pandemic

Market was negatively impacted by the effect of COVID-19 pandemic. Major manufactures such as BASF Wolman GmbH, Borax Inc., KMG Chemicals Inc. and Koppers Inc are operating market have their manufacturing & supply chain bases across the globe. These players have halted the production of wood preservatives in first and second wave of COVID 19 due to the lowered demand, lockdown measures, supply chain bottlenecks, and to protect the safety of their employees.

Recent Developments

• In January 2021, Specialty chemicals company LANXESS AG is expanded its position as one of the world's leading manufacturers of biocides and antimicrobials by acquiring French company INTACE SAS. The France-based biocide company is a manufacturer of specialty fungicides for the packaging industry. LANXESS and the INTACE SAS have signed an agreement to this effect on January 14, 2021. The parties have agreed not to disclose the purchase price.
• In January 2022, Specialty chemicals Company LANXESS AG and Matrìca, have partnered to produce sustainable biocide preservatives from renewable raw materials. Matrìca is a joint venture between Versalis (Eni) and Novamont. Through this partnership the Matrìca plant at Porto Torres (Sardinia, Italy) will supply LANXESS with bio-based raw materials from vegetable oils which LANXESS AG will use to manufacture a new series of industrial preservatives broadening its preventol range.
• In January 2022, LANXESS announced the expansion of its production capacity for the active ingredient Preventol CMK (chlorocresol) at the Krefeld-Uerdingen, Germany, site by around 50 percent in response to the continuing strong demand for disinfectants and industrial & wood preservatives. The specialty chemicals company has invested a single-digit million US$ mount for the expansion. This is expansion has been completed in the first quarter of 2022.

Competitive Section

Major players operating in the global wood preservatives market include LANXESS AG, Cabot Microelectronics, BASF Wolman GmbH, Borax Inc., KMG Chemicals Inc., Kop-Coat Inc., Koppers Inc., Kurt Obermeier GmbH & Co. KG, Arxada, Remmers AG .