Wood Preservatives Coatings Market Report

Wood is considered to be the least energy-intensive construction material when compared to other construction materials such as plastic, steel, concrete, and so on, that require more energy to transform raw materials to finished products. Furthermore, factors such as the accessibility of wood at lower costs than alternatives, the vast range of types and sizes available, and the high material stiffness of wood all contribute to the increased usage of wood preservation coatings. For instance, the demand for wood by "plywood and other wood-based industries" increased significantly from 15 million m3 in 2021 to more than 57 million m3 in 2030, according to a report released by the International Tropical Timber Organization. As a result, the increased demand for wood in numerous applications drives the market for wood preservative coatings.

The volume share of water-borne wood preservation coatings is increasing in all areas. Water-borne coating types are expected to become more popular as a result of stringent environmental restrictions and growing awareness of the benefits of water-borne coatings. For instance, the Dow Chemical Company has developed water-borne novel alkyd composition coatings that work excellently. Water-borne system types that influence the local economy have low toxicity, low HAPs and VOC emissions, high adhesion, and flammability, and lower air pollutants.  Wood preservative coatings are essential for increasing product life span due to its inherent benefits of decay protection, insect repellent is anticipated to occupy a large proportion of the market in terms of both value and volume among other preservatives. Consumers choose insect preservatives such as borates, azoles, and pentachlorophenol. The market for stains and varnishes is very fragmented, with several domestic players involved. The necessity for wood preservation coatings for both protection and decorative purposes has an influence on the stains and varnish segments.

Changing environmental regulations that regulate wood preservative chemicals and coating active ingredients in developed economies such as the United States, Germany, and France, such as the Biocidal Products Regulation (BPR), REACH, Classification, Labelling, and Packaging (CLP), and VOC's, are limiting market growth. Furthermore, these rules and policy changes have a negative impact on active ingredient production, which is expected to hinder market growth. However, growing consumer awareness about the health risks linked to conventional wood preservatives is shifting demand towards natural or low-toxicity alternatives, potentially stalling the growth of traditional products. Developing effective, sustainable wood preservatives that meet stringent performance and environmental standards presents a complex challenge, necessitating substantial research and development. Additionally, the rise of alternative materials, such as engineered wood products and composites, which often do not require traditional preservatives, further curtails demand. The emerging market for eco-friendly preservatives is hindered by limited availability and higher costs, particularly affecting price-sensitive segments.

Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. In June 2024, Axalta Coating Systems unveiled its ground-breaking Zenamel range, tailored for cabinet manufacturers. This new lineup, featuring Zenamel SP and Zenamel T, has received acclaim, winning the prestigious Edison Award for innovation. Zenamel SP consolidates a three-coat system into one, enhancing efficiency and reducing SKUs. Zenamel T simplifies processes by merging primer and enamel into a single application, cutting down from four coats. These advancements offer substantial improvements in operational efficiencies and greater performance for wood coatings. Wade Arnold of Axalta highlights the transformative impact of these innovations.

Moreover, Koppers Holdings Inc., a top supplier of treated wood products and carbon compounds worldwide, disclosed the successful acquisition of Brown Wood Preserving Company, Inc. and its affiliated entities in April 2024. This US$100 million cash transaction, completed with the involvement of Koppers Utility and Industrial Products Inc. (UIP), will incorporate Brown Wood's pressure-treated wood utility poles into Koppers' collection. This strategic acquisition strengthens Koppers' position in the wood preservatives market, expanding their capabilities in high-quality wood treatment solutions.

The North American region accounted for a sizable portion. Water-borne coatings are a key trend in the North American wood preservative coatings market. Consumers are becoming more aware of the advantages of using environmentally friendly coating products. UV wood preservative coatings are commonly used in industrial applications due to their quick drying time and excellent manufacturing efficiency. In North America, high-solid technology, which requires less solvent and more solids, is also now leading the wood preservative coatings industry. In the North American market for wood preservative coatings, consumers are increasingly favouring coatings with minimal odour and strong durability. Europe is expected to grow significantly during the forecast period. Increased construction and infrastructure investments, rising interior demand, increased use of sustainable and eco-friendly building materials, and rising interest in green building are all driving this region forward. Several infrastructure projects are being started in the Asia Pacific region as a result of economic and overall development. The use of treated wood in these infrastructure projects is also increasing, paving the way for high demand for wood preservative coatings.