WOOD PRESERVATIVES MARKET ANALYSIS

The high costs associated with wood preservatives are definitely acting as a restraint on the growth of the wood preservatives market. In the modern world where costs are a key consideration for businesses and consumers alike, the inflated pricing of wood preservatives makes them inaccessible for widespread use. Wood preservative products come with high research and development costs attached to them as developing effective and safe wood preservatives requires extensive scientific testing and trials. Manufacturers have to invest heavily in R&D to come up with formulations that can resist microbial degradation over long periods without damaging the wood or posing health and environmental hazards. Moreover, the production process of wood preservatives is complex with multiple chemical treatment steps involved, driving up manufacturing costs.

Opportunities: Emerging economies with increasing construction spending

The growing construction spending in emerging economies provides immense opportunities for growth in the wood preservatives market. Construction activities have been steadily rising in nations like India, China, Brazil and several Southeast Asian countries fuelled by rapid urbanization and industrialization. As per data from the World Bank, construction spending as a percentage of GDP increased from 4.2% in 2010 to 5% in 2021 for India and from 4.6% to 5.3% during the same period for China. With ongoing infrastructure projects and expansion of real estate and commercial buildings, the demand for wood and wood products is surging in these developing nations. Wood continues to be one of the most widely used construction materials due to its inherent advantages including availability, workability and affordability. However, wood also requires preservation treatments to protect it from decay caused by fungi, molds or insects during service life. This is where wood preservatives play a major role by preventing wooden structures and components from damages over time.