Report ID: PMRREP3259
Report Type: Ongoing
Format: PPT*, PDF, EXCEL
Industry: Chemicals and Materials
The global wood preservative chemicals market is estimated to value at US$2.5 Bn by the end of 2031 from US$1.7 Bn to be recorded in 2024. The market is expected to secure a CAGR of 5.8% in the forthcoming years from 2024 to 2031.
Key Highlights of the Market
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Market Attributes |
Key Insights |
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Wood Preservative Chemicals Market Size (2024E) |
US$1.7 Bn |
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Projected Market Value (2031F) |
US$2.5 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
5.8% |
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Historical Market Growth Rate (CAGR 2019 to 2024) |
4.7% |
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The global wood preservative chemical market is experiencing a steady and significant growth, due to its pivotal role in protecting wood from decay and other environmental factors.
The demand for interior design is on the rise, particularly emphasizing wood as a crucial raw material for structural components and displays within residential spaces.
With treated wood being extensively utilized in residential and commercial construction for its durability and reduced maintenance costs, the demand for these preservatives is on the rise.
Essential for various applications like decking, fencing, siding, and structural framing, wood preservative chemicals, containing combinations of chromium, copper, and arsenic, are applied to freshly cut logs, lumber, and a range of wood products.
Wood preservative chemicals, crucial for outdoor use to maintain wood quality, find application across diverse sectors such as seasoned building materials, utility poles, fence posts, decks, and playground equipment.
Furthermore, they not only prolong the operational life of timber structures but also enhance their resistance against insects and fungi, contributing to the evolving landscape of the wood preservative chemicals market.
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The emergence of the COVID-19 pandemic had a negative impact initially, but the market showed substantial recovery in 2021, maintained by increased consumption in both residential and commercial sectors.
Over the forecast period spanning from 2024 to 2031, the wood preservative market is poised for significant expansion, with a projected CAGR of 5.8%. This growth translates into a substantial absolute dollar opportunity of around US$ 817.5 million.
Over the past few years, the Asia Pacific and Middle East regions have underscored the importance of robust industrial and infrastructure development, positioning themselves to emerge as global economic powerhouses. These markets are thus anticipated to experience even higher growth rates.
Growth of Construction sector
Wood preservative chemicals are pivotal in fortifying the structural integrity of the construction sector, augmenting wood's durability and lifespan.
Pressure-treated wood, a prevalent choice across various construction applications, undergoes impregnation with preservatives under high pressure to shield against decay, pests, and weather-induced deterioration.
Furthermore, protective coatings such as paints, varnishes, stains, and water repellents serve to enhance wood's resilience against environmental wear and tear.
The escalating global population drives demand spikes in residential, commercial, and industrial infrastructure, catalysing the expansion of the construction industry and consequentially propelling growth within the wood preservative chemicals market.
In the US, the construction budget for 2024 is approximately more than US$2 Bn with a quarter of this amount allocated for government projects. This budget marks a notable growth of about 10% compared to figures recorded in 2023.
Noteworthy is the significant portion earmarked for the residential sector, accounting for approximately 40% of the total construction budget.
Adoption of a Variety of Wood Products Across Industries
The burgeoning demand for home furnishings, particularly wooden furniture like beds, sofas, tables, and chairs, is a significant catalyst propelling the application of wood in diverse industries and, consequently, driving the wood preservative chemicals market.
As consumers increasingly seek durable and aesthetically pleasing furniture solutions, the need to preserve the integrity of wood becomes paramount.
Wood preservative chemicals play a vital role in ensuring the longevity and resilience of wooden furniture against decay, pests, and environmental factors, thereby meeting the stringent quality standards demanded by authorities.
The structural integrity of wood makes its role indispensable when it comes to providing support in construction projects, while its naturally beautiful aesthetics add a touch of elegance and warmth to interior spaces.
This dual functionality of wood, coupled with a growing preference for natural and sustainable materials, fuels its continued adoption across various industries, and eventually drives demand for wood preservative chemicals.
Widespread Availability of Alternate Products
The wood preservation chemical market is underscored by the growing demand for alternative materials such as wood-plastic composites, iron, plastics, and steel.
These alternatives are increasingly sought after due to their superior durability and strength compared to traditional wood.
Wood-plastic composites, for instance, offer a blend of wood fibers and plastics, providing a material that is resistant to decay, insects, and moisture while retaining the natural appearance of wood.
Similarly, iron, plastics, and steel boast inherent strength and longevity, making them attractive substitutes for wood in various applications.
As the demand for alternative materials rises, particularly in construction and furnishing industries, the market for wood preservation chemicals faces the challenge of retaining its market share.
Consumers, and industries alike are drawn to these alternative materials for their enhanced performance characteristics and longevity, potentially reducing the reliance on wood and, by extension, the need for wood preservation chemicals.
This shift towards alternative materials poses a significant restraint on the growth of the wood preservation chemical market, compelling industry players to innovate and develop new strategies to remain competitive in the face of changing market dynamics.
Attention Towards Improved Wood Preservatives
Acrylic-based wood preservatives present a promising solution for enhancing the durability of wood products. These formulations, containing acrylic resins, offer superior protection against decay, insects, and weathering compared to traditional options.
The acrylic resins create a robust barrier on the wood surface, sealing it from moisture and preventing fungal growth and insect infestation.
One major benefit of acrylic-based preservatives lies in their versatility and compatibility with various wood types and finishes. They can be applied indoors and outdoors, providing enduring protection while maintaining the wood's natural appearance.
Furthermore, their low toxicity and eco-friendly nature make them an appealing choice for environmentally conscious consumers and industries.
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Technology |
Projected CAGR through 2031 |
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Waterborne |
7.2% |
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Oil borne |
3.2% |
Waterborne Preservatives to be the Most Widely Sought-After Category
The water-based chemicals segment, which acquired nearly 47% of the global market earnings in 2024, is anticipated to exhibit the most rapid annual growth rate of 7.2% throughout the forecast period.
Water-based wood preservatives are further classified into copper-based and non-copper-based variants. The demand for copper-based chemicals remains notably higher, a trend expected to persist in the foreseeable future.
The copper-based category includes ammoniacal copper zinc arsenate, chromated copper arsenate, copper azole, alkaline copper quaternary compounds, and the non-copper-based category includes triadimefon and borates.
Anticipated expansion of water based preservatives is estimated to be driven by heightened demand for copper arsenate as a wood chemical preservative, particularly within industrial and residential sectors.
Oil-Based Preservatives Top the Preferences
Oil-based wood preservative is one of the most used chemicals for many years. It holds around 14% of the wood preservative market.
The government stringent regulations reduced the oil based preservatives market due to environmental concerns which led the CAGR of 3.2%. It is categorized as creosote solutions and formulations, provide robust protection against decay and weathering.
Creosote solutions, derived from coal tar distillation, offer deep and enduring wood treatment without the need for additional solvents.
While effective, creosote's limitations, including its oily surface, odour, and incompatibility with painting or gluing, restrict its usage to hazardous environments like marine structures.
Concerns over environmental and health impacts have led to restrictions on creosote use in Europe, prompting the exploration of alternative preservation methods such as heat and pressure treatments.
However, these alternatives often lack comprehensive protection against fungi and insects.
In contrast, water-based preservatives and hot oil-based copper treatments emerge as a promising solution, effectively addressing preservation needs while offering environmental sustainability.
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End User |
Projected CAGR through 2031 |
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Residential |
6.7% |
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Commercial |
5.6% |
Residential Sector Contributes the Largest Revenue Share
The residential application segment dominated the market with a revenue share of 63.7% in 2024.
In residential application the product is used in doors, staircases, roofs, cabinets, columns, and beams. The shift of people from rural to urban areas globally is further driving the demand for construction activities which is further increasing the consumption of wood and the product.
The Confederation of Real Estate Developers' Associations of India predicts that the demand for housing units will rise by 93 million by the year 2036. This is one of the drivers and an opportunity for the product market in the region.
Greater portion of preserved wood is used in the construction of houses, buildings, and outdoor structures. Rising global population has fueled the demand for housing units and related infrastructure development.
Expanding urbanization in developing regions has accelerated residential construction activities.
Protection of wood from biotic and abiotic degradation factors ensures longer lifespan of frameworks, fixtures, decking, and furnishing installed in residential spaces.
Readily available wood preservative formulations are suitable for outdoor applications like fencing, window frames, and outdoor flooring.
Wood Preservation Gains Significance in Commercial Sector
The commercial sector is witnessing robust growth in demand of wood preservative chemicals due to the thriving use of wood in various commercial construction projects. The sector is projected to grow at 5.6% CAGR.
Mass timber construction and traditional wood frame structures are becoming increasingly popular choices for commercial buildings, driven by factors such as sustainability, cost competitiveness, and aesthetic appeal.
Mass timber construction especially offers an energy-efficient alternative to conventional building materials like steel and concrete, while traditional wood frame construction remains a cost-effective solution for establishments such as shopping malls and restaurants.
Wood preservative chemicals play a crucial role in these construction activities by protecting wood from degradation ensuring the longevity and structural integrity of commercial buildings.
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Region |
CAGR through 2034 |
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North America |
5.2% |
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Asia Pacific |
7.9% |
North America's Dominance Prevails
The North American wood preservative chemical market, valued at approximately US$690.2 Mn in 2024 with a projected CAGR of 5.2%, is witnessing a moderate growth fueled by burgeoning construction and infrastructure sectors globally.
In the US, where the construction budget for 2024 reaches around US$2 Bn, a notable portion allocated for government projects, the market is surging, particularly in the residential sector, which commands about 40% of the total budget.
The escalating demand for treated wood, known for its durability and resistance to decay and pests, serves diverse industries including construction and furniture.
The North American market is shifting towards sustainability, accentuating the importance of wood preservation.
With increasing environmental consciousness among consumers and industries, there is a growing preference for eco-friendly wood preservative chemicals aligned with green building practices.
This trend is marked by the adoption of eco-friendly formulations and the integration of renewable resources in preservation techniques, driven by educational campaigns and a deeper understanding of the economic and environmental implications of untreated wood degradation.
Asia Pacific to Witness a Solid Growth in Adoption
The Asia Pacific region has emerged as the most growing market for wood preservatives globally. The market is expected to persist throughout the forecast period, with a projected CAGR of 7.9% from 2024 to 2031.
This expansion is largely driven by the swift urbanization and industrialization in nations like India, and China, which have spurred substantial growth in the construction sector.
Government investments in infrastructure have further propelled wood consumption, with the region also serving as a significant exporter of treated wood products to developed markets.
Favorable government policies, particularly in infrastructure development through initiatives like smart city programs, are further bolstering market advancement.
The construction industry in India is forecasted to witness the fastest growth globally by 2030, contributing significantly to the expansion of the wood preservative chemicals industry in the region.
Market leaders prioritize growth through acquisitions and partnerships, emphasizing the development of innovative wood preservatives and expanding production capabilities. Their commitment to research drives the creation of eco-friendly and effective solutions.
January 2022
LANXESS, and Matrìca joined forces to produce sustainable preservatives using renewable raw materials sourced from vegetable oils. This strategic collaboration underscores the industry's dedication to sustainability and innovation, aiming to meet evolving market demands for environmentally conscious wood preservation solutions.
January 2023
BASF announced the launch of a new wood preservative product called Wolman 5X. Wolman 5X is a water-based preservative that is designed to be more environmentally friendly than traditional oil-based preservatives.
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2018 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization & Pricing |
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The wood preservative chemicals market is expected to be valued at US$1.7 Bn in 2024.
The market is expected to grow with forecast CAGR of 5.8% during 2024 to 2031.
The market will reach US$2.5 Bn by the end of 2031.
KMG Chemicals, BASF SE, Koopers Inc., and LANXESS are some of the top players in the market.
The residential sector is the fastest growing application area in the market.
