The wood preservatives market is estimated to be valued at USD 1.57 Billion in 2024 and is expected to exhibit a CAGR of 4.9% over the forecast period 2024-2031. Rapid urbanization and industrialization have boosted infrastructure development activities worldwide. This has significantly increased the demand for wood and wood products in the construction sector. Wood being a perishable material is prone to damages from fungi, insects, and marine borers when used outdoors. Furthermore, extensive R&D activities focused on developing eco-friendly and non-toxic wood preservatives will support the market growth during the forecast period.
The demand for wood preservatives is primarily driven by the expansion of the construction industry globally. Rapid infrastructure development projects such as roads, bridges, railways, and commercial complexes are increasing the consumption of wood. According to the World Bank, the global infrastructure spending is expected to increase by over 80% to 2040. Additionally, stringent government regulations regarding the use of toxic wood preservatives and regulations supporting the use of eco-friendly wood preservatives are prompting manufacturers to develop bio-based and organic wood preservatives. This is expected to create growth opportunities for sustainable
Major Demand from Construction Industry Driving Growth in Wood Preservatives Market
The global construction industry has shown steady growth over the past few years and is expected to further expand in the coming years. This growing construction activity is generating significant demand for wood and wood products which require preservatives to protect them from termites, fungus and other microorganisms. Wood is widely used in construction for applications like framing, flooring, decking, fencing etc. and all wood used in construction needs to be preserved to increase its lifespan. The construction industry remains the largest end-user of wood preservatives and its continued expansion is fueling the growth of the global wood preservatives market.
Increasing Infrastructure Development Projects also Boosting Wood Preservative Sales
Governments around the world are investing heavily in improving and expanding infrastructure like bridges, railways, ports etc. Much of the infrastructure development involves extensive use of wood and wood-based products. For example, wood is a preferred material for bridges, pilings, rail ties etc. due to its strength, workability and relatively lower cost. All wood used in infrastructure faces exposure to various weather elements as well as microbial decay and needs long-lasting protection provided by wood preservatives. The rising infrastructure investment globally is resulting in growing demand for wood from the infrastructure sector, thereby driving the sales of wood preservatives.
Implementation of Stringent Environmental Regulations a Key Challenge
One major restraint affecting the wood preservatives market is the implementation of stringent environmental regulations regarding the use of certain preservative chemicals. Regulatory bodies are continuously tightening restrictions on preservatives containing heavy metals like arsenic and chromium due to environmental and health concerns. For example, the EU banned the use of CCA (Chromium, Copper, Arsenate) in 2003 for residential wood treatment. Similarly, the EPA in the U.S. is also increasing regulations for heavy metal-based wood preservatives. The regulatory pressure is pushing manufacturers to invest in developing alternative bio-based and eco-friendly wood preservatives to comply with changing rules, which adds to their costs.
Rising Environmental Awareness Reducing Wood Consumption
With growing environmental awareness, consumers as well as commercial users are increasingly preferring sustainable and eco-friendly building materials over conventional wood-based products. Alternate materials like engineered wood, recycled plastic and composites are gaining popularity as they have low maintenance needs and eliminate the requirement for preservatives. For example, in Europe strict environmental certifications like Forest Stewardship Council and Programme for the Endorsement of Forest Certification are boosting the demand for certified sustainable wood, reducing the off-take of conventionally treated wood. The shifting preferences towards green materials pose a threat to the long-term sales potential of the wood preservatives industry.
Development of Bio-Based and Nano Preservatives opening New Avenues
To comply with tightening regulations as well as satisfy consumer demand for eco-friendly products, companies are investing heavily in developing novel bio-based and nanotechnology-based wood preservative formulations. Natural bioactive compounds extracted from various plants with pesticidal properties are being evaluated as wood preservatives. Similarly, nanotechnology allows encapsulating preservatives to control their slow release for long-lasting protection. The commercialization of such green wood preservatives provides new opportunities for manufacturers as they help address the challenges of regulations and environmental awareness.
Rising Export Opportunities in Developing Countries
Developing regions in Asia Pacific, Latin America, Middle East and Africa are witnessing steady economic growth and infrastructure expansion. This drives the demand for wood and wood products in these markets where wood preservative penetration is currently low compared to developed nations. At the same time, environmental protection awareness is also increasing in developing countries enabling commercialization of eco-friendly wood preservatives. This provides ample export opportunities for global preservative manufacturers to tap into the relatively untapped growth potential in emerging markets. Focusing on these high growth exporting avenues can help boost overall sales prospects.
Link: https://www.coherentmarketinsights.com/market-insight/wood-preservatives-market-1032
Key Developments
- Arch Chemicals announced in March 2023 that it is developing a new wood preservative product in partnership with a Chinese company, which is expected to launch in 2024.
- In 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.
- In 2022, Archroma introduces new biocide-free wood protection technology
- In 2020, Koppers Holdings Inc., an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds, announced plans to enter the copper naphthenate wood preservative market.
Key Players
Lada Organics Pvt. Ltd., Advance Agrisearch Limited, Jubilant, Dolphin Bay, Rio Tinto, LANXESS, Shree Evid Sons, Viance, Nisus Corporation, BERKEM, Troy Corporation, Dolphin Bay, Impra Wood Protection Ltd., Wykamol Group Ltd, Lonza Specialty Ingredients, Koppers Performance Chemicals, and Dattashri Enterprises
