Wood Preservatives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Wood Preservatives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Wood Preservatives Market size is evaluated at USD 2,427.71 million in 2020 and is projected to register a CAGR of over 4% during the forecast period (2021-2026).

The market was negatively impacted by the COVID-19 pandemic in 2020. The pandemic has resulted in challenges to the forest sector’s ability to operate, market recovery, supply chains, and labor conditions due to various reasons such as trade restrictions and consumption decline owing to lockdowns imposed by governments globally. For instance, Top wood processing company Weyerhaeuser implemented project mitigation measures that included reducing operating capacity. In April 2020, the company reduced its operating capacity by 20% for lumber, 15% for oriented strand board, and around 15 to 25 percent for engineered wood products by introducing mill curtailments and reduced shift postures.

Key Highlights

• Over the medium term, the factors driving the growth of the market studied are increasing demand for wood in different applications​ and increasing furniture production​.
• On the flip side, stringent government regulations on various wood preservatives and unfavorable conditions arising due to the COVID-19 outbreak may act as barriers to the growth of the market studied.
• North America region dominated the market studied across the globe with the largest consumption from the countries such as the United States and Canada.

Key Market TrendsIncreasing Demand from Residential Construction Sector

• Wood is used for a wide range of applications from furniture, walls, flooring, doors, roofs, cabinets, columns, beams, and staircases, among others. Wood preservatives products are those that claim to control wood degradation problems due to fungal rot or decay, sap stain, molds, or wood-destroying insects.
• Wood preservatives include various chemicals such as copper-based chemicals, borates, creosote oils, and other chemicals.
• Wood preservatives are used in the manufacturing of outdoor products for residential purposes such as utility poles, fence posts, rails, lawn furniture, and internally, such as structural members, log homes.
• The increasing demand for residential projects across the world is expected to drive the market for wood preservatives through the forecast period. ​
• The construction sector in the Asia-Pacific region is the largest in the world and is increasing at a healthy rate, owing to the rising population, increase in middle-class income, and urbanization.​
• In South Korea, the government outlined its plan to build 300,000 housing units at the end of 2018, which will be delivered to the public by the end of 2021 onwards, with plans to build 35,000 housing units in the first phase. ​
• Furthermore, India is likely to witness an investment of around USD 1.3 trillion in housing over the next seven years, during which it is likely to witness the construction of 60 million new homes. The rate of availability of affordable housing is expected to rise by around 70%, in 2024. The Indian government's ‘Housing for All by 2022’ is also a major game-changer for the industry. This initiative aims to build more than 20 million affordable homes for the urban poor by 2022. This will provide a significant boost to residential construction.
• Furthermore, Glue laminated beams (Glulam) which are used as straight beams, columns that include lintels, purlins, ridge beams, and floor beams, tied rafters, trusses in the construction of buildings where the application of wood preservatives are in prominent use.
• Therefore, growing residential construction activity in countries such as China, Japan, United Kingdom, United States, and India are driving the market for wood preservatives during the forecast period.

North America Region to Dominate the Market

• North America region is expected to dominate the market for wood preservatives during the forecast period. With growing construction sector in countries such as the United States, Canada, and Mexico, the utilization of wood preservatives is increasing in the region.
• The North American region is one of the largest consumption markets for wood preservatives. According to the US Census Bureau, the United States public residential construction spending in the year 2020 was increased to USD 9.15 billion in the year 2020 compared to 6.55 billion in the year 2019. The construction spending in the United States in both private and public construction in 2020 is around USD 1400 billion. ​​
• Furthermore, According to the Canadian Construction Association, the construction sector is one of Canada’s largest employers and a major contributor to the country’s economic success. The industry and contributes to 7% of the country’s Gross Domestic Product (GDP).
• In Canada, the residential and commercial sectors have been witnessing a steady growth in the recent past. The country witnessed some of the largest construction projects, such as Panda Condominium, Harwood Condominium, Power and Adelaide Condominium, and Amazon Distribution Centre/Ottawa, among others.
• Apart from furniture, wood preservatives are also used in flooring & decks, plywood, cabinet, particleboard, windows & doors and others.
• As part of the ‘Investing in Canada Plan’, the government has announced plans of making an investment of nearly USD 140 billion for major infrastructure developments in the country by 2028. In 2019-20, the government was in plans to approve investments valuing USD 5.6 billion for new infrastructure projects in the country. ​
• The aforementioned factors, coupled with government support, are contributing to the increasing demand for wood preservatives over the forecast period.

Competitive Landscape

The global wood preservatives market is partially fragmented in nature owing to the presence of a large number of players occupying an insignificant share in the market studied. Some of the major companies are Koppers Performance Chemicals, Lonza Specialty ingredients, LANXESS, Wolman Wood and Fire Protection GmbH, and Troy Corporation, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Advance Agrisearch Limited
Wolman Wood and Fire Protection GmbH
Copper Care Wood Preservatives Inc.
Dolphin Bay
Janssen Pharmaceutica NV
Rio Tinto
Jubilant
Koppers Performance Chemicals
Kurt Obermeier GmbH & Co. KG
LANXESS
Lonza Specialty Ingredients (Bain Capital and Cinven)
Nisus Corporation
Changchun Wood Preservative Manufacturing Co. Ltd
Sanyu Chemical (Shenzhen) Co. Ltd
Remmers Gruppe AG
TIMBERLIFE(PTY) LTD
Troy Corporation
Viance
Wykamol Group Ltd
BERKEM
Impra Wood Protection Ltd

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