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Wood Preservation Chemicals to Witness Widespread Application, Thanks to Uptick in Construction Activity, reports TMR

Posted on Nov 09, 2015

With a number of players operating internationally, the global wood preservation chemicals market exhibits a highly diversified structure, finds a study by Transparency Market Research (TMR). In 2014, the top four manufacturers of wood preservation chemicals held a share of 48.7%, pointing towards a medium degree of competition. The scenario is likely to remain very much the same over the next few years. 

Hitherto, the leading players were competing in terms of product differentiation due to low price sensitivity. However, there is a strong possibility of these players entering into mergers, acquisitions, joint ventures, and exclusive agreements in the near future in order to expand their reach.

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Busy Construction Sector in Emerging Economies Creates Demand for Wood Preservation Chemicals

“The global rise in the construction industry, especially in Asia Pacific, is the key driving force behind the growing demand for wood preservation chemicals,” says an analyst at TMR. The strengthening global economy, the augmenting number of government-funded infrastructure projects, the rising population, and the increasing trend of urbanization have fueled construction activities across the world.

Wood, being an important building material, is witnessing widespread application in these activities. As wood preservation chemicals increase the resistance of various varieties of wood from being affected by fungus or insects, enhancing their durability, the demand for these chemicals has rocketed and is likely to increase further over the next few years. Apart from this, the growth in the wood furniture industry is also projected to influence the demand for these chemicals greatly in the near future.

USEPA Regulations Negatively Impact Demand for Wood Preservation Chemicals

The future of the worldwide market for wood preservation chemicals, on the whole, looks teeming with opportunities; however, certain restraints may prevent the market from reporting steady growth in the years to come. Among the restraining factors, the regulations enforced by the United States Environmental Protection Agency (USEPA) has the most significant impact on the demand for these chemicals.

USEPA conducted a risk assessment study on the three most widely utilized wood preservation chemicals, namely chromated copper arsenate (CCA), creosote, and pentachlorophenol (PCP). Of these, PCP and CCA and were identified as excessively toxic chemicals and their usage has been limited to non-residential applications or for applications with minimal exposure to humans. As a result, the sales of these chemicals have been declining since then. No significant improvement is expected in the situation over the coming years.

Asia Pacific to Remain Leading Regional Market for Wood Preservation Chemicals

“The global market for wood preservation chemicals will report steady growth in the coming years,” states TMR. According to TMR’s estimations, the opportunity in this market, which stood at US$1.6 bn in 2014, is projected to expand at a CAGR of 3.40% from 2015 to 2023 and reach US$2.15 bn by the end of the forecast period. In terms of volume, the market is anticipated to rise at a CAGR of 3.0% between 2015 and 2023.

Headed by China, Asia Pacific has emerged as the leading producer as well as consumer of wood preservation chemicals across the world. The region is expected to continue its leading streak in the forthcoming years. In 2014, it accounted for a share of 36.6% in the overall market. Following Asia Pacific was North America with a share of 29.6%.

Over the next few years, the construction industry is projected to remain the main end user of wood preservation chemicals in the near future and water-borne preservatives will continue to lead the demand among all types of wood preservation chemicals.

The study presented here is based on a report by Transparency Market Research (TMR) titled Wood Preservation Chemicals Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015- 2023.”

Key Takeaways

  • The top four wood preservation chemical manufacturers held a share of nearly 50% in 2014
  • Asia Pacific has emerged as the leading producer as well as consumer of wood preservation chemicals across the world
  • In terms of volume, the wood preservation chemicals market is likely to increase at a CAGR of 3.0% between 2015 and 2023, globally

This report segments the global wood preservation chemicals market as follows:

By Product

  • Water-borne preservatives
  • Oil-borne preservatives
  • Light organic solvent preservatives
  • Others (Including fire retardants, etc.)

By End User

  • Furniture & decking
  • Marine
  • Construction
  • Others (Including utility poles, etc.)

By Region

  • North America
    • U.S.
    • Rest of North America
  • Europe
    • U.K.
    • Spain
    • France
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC countries
    • South Africa
    • Rest of MEA

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