March 1, 2024

Wood Preservatives Market is Expected to be Flourished by Increasing Need for Durable Wood

Wood preservatives are chemical formulations that are applied to wood products to protect them from damage caused by insects, fungi, mold, and other microorganisms. Wood preservatives are used in a variety of structural and outdoor applications where resistance to decay and insect damage is required. Common wood preservatives include pyrethroids, copper azole, cypermethrin, and permethrin. These wood preservatives are applied through pressure processes or open tank processes, providing long lasting protection even in harsh environments. Wood treated with preservatives is widely used in decking, fencing, lumber, utility poles, and marine constructions.

The global wood preservatives market is estimated to be valued at US$ 1,377.8 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. The increasing commercial and residential construction activities drive the demand for durable and long-lasting wood products treated with preservatives.

Market Dynamics:

Increasing need for durable wood: As mentioned in the heading, the increasing requirement of wood products that last long even in harsh outdoor conditions is driving the growth of the wood preservatives market. Wood preservatives treated lumber is increasingly being used in outdoor constructions like decks, gazebos, fences due to its ability to withstand rot, fungi, moisture and termite damage for years.

Growing construction industry: The rapid growth of commercial and residential construction activities worldwide is augmenting the demand for treated wood across applications like fencing, decking and marine industries. Especially in developing regions, infrastructure development and building new homes are translating to increased consumption of wood preservatives.

Segment Analysis

The wood preservatives market can be segmented into water-based, oil-based and solvent-based. The water-based segment currently dominates the market and accounts for over 40% of the share. This is because water-based preservatives are easy to use, have low toxicity and are environment-friendly. They provide long-lasting protection against insects, fungus and decay. The oil-based segment is expected to witness growth during the forecast period due to increasing demand for heavy-duty wood preservatives that work for a longer duration in extreme weather conditions.

PEST Analysis

  • Political: Stringent environmental regulations in Europe and North America regarding the use of toxic chemicals in wood preservatives are boosting demand for eco-friendly alternatives.
  • Economic: Growth in the construction industry especially in developing nations of Asia Pacific is driving demand for wood and consequently wood preservatives.
  • Social: Increasing consumer preference for wood products that do not emit toxic fumes indoors is elevating demand for low VOC wood preservatives.
  • Technological: Nanotechnology is helping develop new generations of wood preservatives that penetrate deep, provide long-lasting protection and require fewer coatings. Concentrated formulations are also gaining popularity.

Key Takeaways

The global wood preservatives market is expected to witness high growth on account of increasing construction activities worldwide and rising spending on home improvement projects.

Regional analysis: The Asia Pacific wood preservatives market is projected to grow at over 6% during 2023-2030 on back of high construction spending, fast urbanization rate and warm weather conditions necessitating robust wood protection chemicals. China leads the regional market owing to its huge construction industry while India is identified as an emerging hotspot.

Key players operating in the wood preservatives market are 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. Players are focused on product innovation and geographical expansion to consolidate their position.