Market Challenges And Opportunities

Market Restraints

Changing environmental rules and regulations regarding wood preservative chemicals and coatings active ingredient across developed economies such as the U.S., Germany, and France, for example, Biocidal Products Regulation (BPR), REACH, Classification, Labelling and Packaging (CLP), VOC’s is restricting market growth. Moreover, these changes in rules and policies negatively impact the production of the active ingredient, which is further anticipated to hinder the market growth.

Wood preservative chemicals and coatings active ingredients have released toxic odor which harmful for humans as well as animal health. Also, some coatings provide less physical protection to wood as compared to creosote. Moreover, the wood preservative chemicals and coatings active ingredient does not offer protection from extremely harsh weather conditions. Therefore, the aforementioned factors are expected to hinder the market growth over the forecast timeframe.

Market Opportunities

Expanding furniture industry especially in U.S. region is expected to foster the market growth of wood preservative chemicals and coatings active ingredient. According to the US Census Bureau, approximately over 87,000 establishments are bringing in annual revenue of US$ 120 million a year and the total market size of the furniture industry, accounting for related accessories, floor coverings and draperies operate within a US$ 30 billion industry. The value of all furniture and furnishing store sales in the U.S. was estimated around US$ 9.8 billion in 2019.

Growing demand for treated wood in infrastructure projects due to growing need for furniture protection against fungi and insects is estimated to offer immense growth opportunity to the market of wood preservative chemicals and coatings active ingredient. Growing population base rate accelerating the growth of residential buildings. Aforementioned factors are expected to foster the market growth of the wood preservative chemicals and coatings active ingredient over the forecast period.

Figure 2. Global Wood Preservative Chemicals and Coatings Active Ingredient Market – Opportunity Analysis