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Creosote oil is produced from distillation of tar and pyrolysis of plant sourced products such as wood or fossil fuel.  It is extensively used for oil paint, wood aseptic, carbon black, printing ink, latex filling, and pharmaceuticals. It can be classified depending upon the source from which it is derived such as wood, coal and/or creosote bush. Creosote oil is widely used as a remedy against diabetes, hemorrhoids, tooth decay, gallstones, kidney stones, acne and pimples, wounds, and body pain. Other applications of creosote oil include food preservation and fuel for lighting lamps. Creosote oil derived from creosote bush has different compounds and nutrients with medicinal value due to its high antioxidant properties. Creosote oil derived from creosote bush is herbal oil and is associated with antiseptic, analgesic and diuretic properties.

Market Dynamics 

  • Increasing demand for creosote oil in the industrial sector is expanding its spectrum of application throughout industries such as paint, printing, and furniture. According to a study by the North Carolina State University in 2014, the home furniture market in the U.S. was expected to reach over US$ 85 billion by 2017. Environmental consciousness among the educated populace is increasing the demand for sustainable product, due to which wood furniture is gaining maximum preference over metal and plastic products. The study also stated that, in 2012, European Union imported around $ 4,122 million worth wood furniture products. Wood furniture manufacturers in China generated revenue of around US$ 100 billion in 2017, an increase by 12% from 2016.
  • Wood preservation is a major application of creosote oil, as creosote oil treated wood is widely used in railroad sleepers, poles of electric or telephone lines. Coal tar is more efficient than wood tar for wood preservation.
  • Properties of creosote oil vary depending on its source and application. Creosote oil derived from wood tar is used as a food preservation agent for meat. Coal tar creosote oil is toxic and hence is not used for medicinal purposes, however, widely used for preservation of wood and wooden furniture.
  • Creosote oil is widely used in the printing industry for printing inks and carbon black
  • Creosote oil is widely being adopted in the pharmaceutical industry, owing to its antiseptic, laxative anesthetic, expectorant, anti-acne, analgesic, anti-neuritic, and astringent properties. It can also be used as a protection from the sun.
  • Creosote oil is not harmful to human health when it is properly disposed off. However, accidental spillage, misuse, and improper disposal may lead to potential hazards to human health like skin and eye irritation.

Market Outlook

  • Among end-use industries, the pharmaceuticals segment is projected to gain significant traction in the market over the forecast period, owing to rising demand in the medical industry.
  • Wood aseptic industry is also reaching a new horizon with expanding construction industry due to increasing population.
  • Among source type, the creosote bush segment holds a dominant position, owing to its wide medicinal use spectrum.
  • North America accounted for highest revenue share in the global creosote oil market in 2017 due to increasing commercial and residential construction in the region and is projected to lead the market size throughout the forecast period. In North America, the U.S. is most lucrative market for creosote oil. Forecast report published by Oldcastle Business Intelligence in October 2017, stated that U.S. Construction industry is expected to grow almost 5% in 2018.
  • Europe accounted for the second-largest market due to emerging central and eastern European countries’ medical and construction industry and the trend is projected to continue over the forecast period.

Key players in Global Creosote Oil Market

  • Key players operating in the global creosote oil market include Cooper Creek, ArcelorMittal S.A., Mitsubishi Chemical, RUTGERS Group, Sandvik Materials Technology, Epsilon Carbon, Himadri Chemicals & Industries, JFE Chemical Corporation, Stella- Jones, KMG Chemicals, Sceneys, Jalan Chemicals & Carbons, Huanghua Xinnuo Lixing, Konark Tar Products, AVH Pvt. Ltd, and Ganga Rasayanie
  • Leading market players are seeking source suppliers to manufacture creosote oil, to satisfy rising demand from consumers. For example, ArcelorMittal announced in January 2017 that, Koopers and ArcelorMittal entered into a long-term contact for coal tar supply through 2026. Koppers will purchase coal tar, which is a byproduct of ArcelorMittal coke plants located in the U.S. This contracted volume is expected to meet the growing demand for domestic raw material to manufacture creosote.
  • Consumption of coal tar derived creosote oil has been witnessing rapid growth because of wood and wooden furniture applications to meet the need from construction industry.

Market Taxonomy

On the basis of source type, the global creosote oil market is segmented into:

  • Wood Tar
  • Coal Tar
  • Creosote Bush

On the basis of application, the global creosote oil market is segmented into:

  • Oil paint
  • Wood aseptic
  • Carbon black
  • Printing ink
  • Latex filling
  • Medical

On the basis of region, the global creosote oil market is segmented into:

  • North America
  • South America
  • Europe
  • Asia Pacific
  • Middle East & Africa

Creosote Oil Market Key Developments

Major players functioning in the market are undertaking various strategic initiatives such as production capacity expansion and mergers & acquisitions in order to maintain their competitive position in the market.

For instance, in November 2019, Mitsubishi Chemical Corporation announced the acquisition of thermoplastic polyurethane elastomer (TPU) business of AdvanSource Biomaterials Corporation, a U.S. based company.

In December 2019, ArcelorMittal announced the acquisition of Essar Steel India Limited and established a joint venture with Nippon Steel Corporation to form new company ArcelorMittal Nippon Steel India Limited. The acquisition aimed towards expanding the product portfolio of the company to meet the requirement of the company clients.


Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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