by Wood preservatives are chemical or natural formulations that are applied to wood or wood-based products to protect them from damage caused by insects, fungi, and other organisms. Wood preservatives contain active ingredients including copper, chromium, arsenic, creosote, organic insecticides, fungicides, water repellents, and boron compounds. Wood preservatives are widely used to treat various wood products such as utility poles, fence posts, decking materials, structural lumber used in housing construction, among others.
Traditional wood preservatives contain hazardous chemicals like creosote, chromium, and arsenic that can be harmful to humans and the environment. However, growing environmental and health concerns have boosted the demand for eco-friendly wood preservatives. Some of the commonly used environment-friendly wood preservatives include organic solvent type preservatives, inorganic boron compounds, azole type fungicides, and pyrethroid insecticides.
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.
Market Dynamics
Rising demand for environment friendly wood preservatives (as mentioned in the heading) is one of the major drivers propelling the growth of the global wood preservatives market. Stringent regulations imposed by regulatory bodies like EPA and REACH on preservatives containing harmful substances like arsenic and creosote has boosted the demand for ecological wood preservatives. Growing awareness about sustainable wood treatments is also fueling the adoption of eco-friendly wood preservatives.
Another key driver is the increasing construction and infrastructure development activities around the world. Significant investments in construction of bridges, roads, railroads, utility poles, and residential & commercial buildings have augmented the demand for treated wood, thus propelling the wood preservatives market growth.
Segment Analysis
The wood preservatives market is dominated by the residential segment, which accounts for nearly 40% share of the overall market. Wood preservatives are widely used in fencing, decking, siding and other outdoor wood structures used in residential applications. The growing home improvement and remodeling activities across major countries is driving the demand for wood preservatives from the residential segment. The non-residential segment, which includes applications in industrial, agricultural and other commercial sectors, is another major consumer of wood preservatives. Rapid infrastructural development and growth of the construction industry over the years have augmented the demand from the non-residential segment.
PEST Analysis
- Political: Stringent environmental regulations regarding the use of hazardous chemicals in wood preservatives are influencing product innovation. Various countries and regions have banned the use of arsenic and certain other carcinogenic preservatives.
- Economic: Growth of the global construction industry coupled with rising renovation and remodeling activities is fueling the demand for wood and wood products. This in turn is driving the wood preservatives market.
- Social: Increasing spending power and consumer preference for wooden furniture and outdoor furnishings made from preserved wood is positively impacting the market growth.
- Technological: Major players are focusing on developing bio-based and eco-friendly wood preservative formulations to comply with changing environmental norms. New production technologies are also helping reduce manufacturing costs.
Key Takeaways
The global wood preservatives market is expected to witness high growth over the forecast period of 2023 to 2030. The growth can be attributed to factors such as expanding construction industry worldwide, rising home improvement & renovation expenditures, and increasing preference for wooden furnishings.
Regional analysis – North America represents the largest as well as the fastest growing regional market for wood preservatives. Stringent environmental regulations pertaining to the use of toxic preservatives and greater acceptance of eco-friendly products are driving innovation and demand in the North America market. Growth in the Asia Pacific market is backed by increasing construction spending in major countries like China and India.
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, and Remmers AG. Key players are focusing on developing bio-based and environmentally compliant product ranges through sustained R&D efforts to strengthen their position in the industry.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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