February 25, 2024

Wood Preservatives Market Driven by Increasing Demand for Treated Wood Products

Wood preservatives are chemical substances that are used to protect wood from decay and microbial damage. They are commonly used on fencing, decking, utility poles, marine pilings and other exterior wood applications to prevent premature rotting and increase durability. Wood preserving chemicals predominantly include azoles, copper-based preservatives, creosote and alkaline copper quaternary. These preservatives are applied through pressure treatment and non-pressure processes such as open tank, thermal and brushing/spraying methods.

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 construction of residential, industrial and commercial infrastructures has driven the demand for treated wood products like wooden fences, decks and utility poles. Wood preservatives effectively increase the lifespan of wood used in outdoor applications by preventing fungal decay and insect damage. Their use helps reduce maintenance costs and wastage associated with premature wood failure.

Market key trends:

One of the major trends prevailing in the global wood preservatives market is the rising popularity of bio-based and eco-friendly wood preservatives. With growing environmental regulations regarding the use of heavy metals and chemicals, manufacturers are increasingly investing in developing sustainable wood protection solutions. Some of the natural preservatives gaining traction include zinc borate, propiconazole and quaternary ammonium compounds. Their bio-degradable properties and low toxicity offer an environment-friendly alternative to traditional chemical-based wood preservatives.

Porter’s Analysis

  • Threat of new entrants: The wood preservatives market requires large capital investments for R&D, production facilities and distribution network. This poses potential barriers for new entrants.
  • Bargaining power of buyers: The global wood preservatives market is fragmented with presence of numerous buyers. This provides buyers with bargaining power over suppliers in terms of pricing and purchase quantity.
  • Bargaining power of suppliers: The market has presence of many raw material suppliers which reduces their individual bargaining power. Suppliers also have to adhere to strict guidelines regarding chemical compositions.
  • Threat of new substitutes: Alternatives such as chemically or thermally modified wood offer minimal substitution threat as they have limitations over wood preservatives.
  • Competitive rivalry: The market has presence of numerous global and regional players. Intense competition exists in terms of product offerings, pricing and technical expertise.

Key Takeaways

The global wood preservatives market is expected to witness high growth over the forecast period supported by increasing demand in construction and wood industries.

Regional analysis: North America holds the largest share of the global wood preservatives market led by the United States. Growing renovation and remodeling activities are driving demand. Asia Pacific is expected to witness highest growth on account of rapid urbanization and infrastructure development in China and India.

Key players: 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. These players are focused on new product development and capacity expansion strategies to strengthen their market position.