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Wood Preservative Chemicals - Global Market Trajectory & Analytics

  • ID: 2832317
  • Report
  • April 2021
  • Region: Global
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • BASF Wolman GmbH
  • Borax, Inc.
  • Janssen PMP
  • KMG Chemicals, Inc.
  • Kop-Coat, Inc.
  • Koppers, Inc.
  • MORE
Construction Crumbles. Hit by the Domino Effect, Wood Preservative Chemicals Suffers a -6.3% Decline

The global market for Wood Preservative Chemicals is expected to slump by -6.3% in the year 2020 highlighting a US$115.7 Million erosion in market value. Thereafter the market is expected to recover and reach US$2.3 billion by the year 2027 trailing a post-COVID-19 CAGR of 4.4% over the analysis period 2020 to 2027. The human cost of the pandemic is continuing to grow and is expected to deal an unprecedented blow to people, businesses and economies worldwide. Seven months into the pandemic, infections worldwide are continuing to spiral. Continuing lockdowns, labor shortages, mobility challenges, supply chain disruptions, financial distress and plummeting investments have impacted a bulk of construction activity worldwide. Diversion of government funds from infrastructure development to pandemic firefighting has additionally impacted the construction industry, which is dependent to a large extent on infrastructure projects. In several countries, all non-essential construction projects have been put on hold with the exception of building emergency hospitals for COVID-19 care. The world is in a race to boost hospital bed capacity to navigate the pandemic with minimal morality rates. Increasing hospital beds and throughput per bed remains the focus of healthcare systems across the world. Residential construction is taking a beating with millions of people worldwide pushed into unemployment as businesses either go bankrupt or layoff workforce to stay afloat. Unemployment rates are climbing to worrisome levels in both developed and developing economies alike.

In the United States, the worst hit by the pandemic, the devastation wreaked on the country`s economy can be put into perspective by the fact that currently over 50% of the country`s population is now unemployed. Over 33 million Americans are unemployed and the share of population unemployed dropped sharply from a recent high of 62% in January 65.7% in July 2020. With the labor market in doldrums, consumer spending is plummeting. The loss in consumer confidence and erosion of household wealth and discretionary spending will impact virtually every industry and business worldwide. The COVID-19 pandemic has therefore pushed consumers to conserve cash. With unemployment rates rising amid the virus induced economic crisis, consumers are cutting spending budgets. Social outlook against this background remains grim with households expected witness erosion in wealth. Personal financial outlook, community, economy, job security confidence, purchasing and investment confidence are all tumbling as the human and economic cost of the global pandemic rises. For the construction industry, this brings bad news as new housing starts go into deep freeze. The long shadow of the coronavirus is thwarting home-buying plans of consumers. With countries seeing a second wave of infections, the Covid-19 resurgence is likely to undermine the much awaited chances of a V-shaped recovery. Challenges of maintaining social distancing at construction sites is resulting in difficulties in obtaining project clearances from regulatory authorities. Ensuring raw material availability still remains a challenge for most construction contractors. Under this scenario, demand for wood in construction is therefore declining, sending knock-on effects into the wood preservative chemicals market.

In the post COVID-19 period, the market will once again see the growing use of wood in construction, given its evergreen attractiveness as a sustainable, renewable building material with the lowest carbon footprint and the highest positive impact on comfort and emotional well-being. Use of wood in construction ranges from framing and roofing timbers, wall linings, cladding, fascia boards, poles, posts and stumps, sub-floor timbers, bridges, marinas and boardwalks, railings, rural fending, farms and vineyards, pergolas, carports, outdoor furniture to fencing. Wood is vulnerable to damage and rotting by fungi, insects and moisture and therefore needs to be preserved to increase service life. When used for load-bearing in buildings, untreated wood raises the risk of structural instability. Benefits of wood preservation include helps in conserving forest resources by reducing wastage and over demand; opens up commercial opportunities for non-durable wood species especially in construction; protects against multitude of factors that degrade wood such as water, moisture and humidity, mold, mildew, algae and moss, dirt and contamination, termites and woodworm, temperature, frost damage; and versatility in use in above ground, underground and underwater applications. Future growth in the market will be driven by the increased focus on renovation and remodeling initiatives, recovering construction activity in developed and developing economies alike, rapid pace of industrialization and increasing investments in infrastructure development projects by government agencies as well as private organizations. Environmental and health hazards caused by traditional wood preservatives are shifting the focus on new technologies low on chemical toxicity. There are significant commercial opportunities for natural alternatives for copper, boron, phosphorus, and creosote which are used as active ingredients in conventional chemicals. The United States represents the largest market worldwide supported by the traditional dominance of wood in American architecture. Asia-Pacific including China will grow led largely by population growth, recovery in commercial housing activity; recovery in industrial production and increase in industrial construction; cultural significance of wooden craft and interior ornamentation in Asia; rising standards of living, increasing disposable income and growing investments in premium wooden furniture among the growing base of affluent middle class population with aspirational lifestyle goals.

Select Competitors (Total 62 Featured):
  • BASF Wolman GmbH
  • Borax, Inc.
  • Janssen PMP
  • KMG Chemicals, Inc.
  • Kop-Coat, Inc.
  • Koppers, Inc.
  • Kurt Obermeier GmbH & Co. KG
  • LANXESS AG
  • Lonza Group Ltd
  • RÜTGERS Organics GmbH
  • Viance LLC
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • BASF Wolman GmbH
  • Borax, Inc.
  • Janssen PMP
  • KMG Chemicals, Inc.
  • Kop-Coat, Inc.
  • Koppers, Inc.
  • MORE
I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Influencer Market Insights
  • World Market Trajectories
  • Impact of Covid-19 and a Looming Global Recession
  • Wood Preservative Chemicals to Take a Hit as the Construction Industry Reels Under the Pandemic
  • Exhibit 1: World Construction Industry (in US$ Trillion) for the Years 2017, 2019 & 2022
  • Wood Preservative Chemicals: An Introduction
  • Types of Wood Preservative Chemicals
  • Select End-Use Applications
  • Rising Use of Wood and Wood-based Products Spurs Demand for Wood Preservative Chemicals
  • Developed Nations Lead, Developing Regions to Drive Future Growth
  • Waterborne Formulations: The Preferred Type of Wood Preservative Chemical
  • Sustained Demand for Myriad End-Use Applications Supports Market Growth
  • Competition
  • Recent Market Activity
2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS
  • Rising Concerns over Toxicity Push Global Demand for Eco-Friendly Wood Preservative Chemicals
  • Nanotechnology Gains Significance in Wood Preservation and Protection
  • High Demand for Wooden Furniture Sustains Demand for Preservative Chemicals
  • Exhibit 2: GLOBAL Wooden Furniture Market in US$ billion: 2017-2025
  • Expanding Wood Flooring Market Spells Growth for Wood Preservatives
  • Exhibit 3: Global Flooring Market by Type:2019
  • Wooden Railroad Crossties Drive the Need for Wood Preservatives
  • Wood Composites to Drive Demand
  • FRT Wood Benefits from Rise in Mid-Rise Constructions
  • Quest for Viable Alternatives Continues
  • Emergence of Boron-Based Systems
  • Micronized Copper Wood Treatments
  • Biocides: Steady Demand from Wood Preservatives Market
  • Renovation & Remodeling Open Opportunities for Wood Preservative Chemicals
  • Exhibit 4: Global Remodeling Market in US$ Billion for the Years 2017, 2019, 2021, 2023 and 2025
  • Demand for Interior Wood Applications to Outshine Exterior Applications
  • Rapid Urbanization and Ensuing Demand for Wood & Wood Products Drive Prospects for Wood Preservative Chemicals Market
  • Exhibit 5: World Urban Population in Million and as Percentage of Total Population for the Period 1950-2050P
  • Burgeoning Middle Class Population Worldwide Spurs Market Growth
  • Exhibit 6: Global Middle Class Population (in Millions) and as a Percentage of Total Population: 2005, 2015, 2025 & 2035
  • Environmental & Regulatory Issues
  • EPA Prohibits Domestic Use of ACC-Treated Wood
  • Pressure Treated Wood - Key Concerns
  • Impact of CCA on the Environment
  • Environmental Concerns Over ACZA Treated Wood
  • Use of Creosote and Risks Associated
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS
  • UNITED STATES
  • Market Overview
  • New Formulations to Spur Demand
  • Revision of AWPA Standards Benefits Demand for Wood Preservatives
  • Slower Growth in Railway Industry Affects Preservatives Demand
  • Water Borne Preservatives: The Dominance Continues
  • Construction Industry Dynamics Influence Wood Preservative Chemicals Market
  • Exhibit 7: Key Indicators for US Residential Construction Market
  • United States Construction Spending Growth: July 2019-May 2020
  • Exhibit 8: NAHB/Wells Fargo Housing Market Index: July 2019 - July 2020
  • Home Repair and Improvement Spending Levels Influence Demand for Wood Products and Preservative Chemicals
  • Wood Decking Sustains Competition from Alternatives
  • Exhibit 9: Decking Market in the US (2019): Percentage Breakdown of Volume Demand by Material - Wood, Wood Plastic Composites, and Plastics & Others
  • Exhibit 10: Pressure-Treated Wood Decking Market in the US (2019): Percentage Breakdown of Volume Demand by Type of Wood - Douglas & Hemlock Fir, Ponderosa Pine, Southern Yellow Pine and Others
  • Borates Find Use in House Frames
  • Exhibit 11: Borates Demand for Wood Preservation in the US (2019): Percentage Breakdown of Value Sales by Application
  • Utility Pole Treatment: A Major Application for Wood Preservatives
  • Exhibit 12: Wood Utility Poles in the US: Percentage Breakdown of Number of Poles (in Service) Treated by Type of Wood
  • Pentachlorophenol to Face a Phase Out
  • Exhibit 13: Wood Utility Poles in the US (2019): Percentage Breakdown of Number of Poles (in Service) Treated by Type of Wood Preservative Chemical
  • Concerns Associated with Preservative-Treated Wooden Utility Poles
  • Crossties: A Major End-Use Market
  • Exhibit 14: Railroad Crossties Market in the North America (2018): Percentage Breakdown of Installed Base of Crossties by Type of Material
  • Demand on Rise for Dual-Treated Wood Crossties in Railroads
  • Emerging Need for New Application Markets
  • EPA Bans Domestic Use of ACC-Treated Wood
  • CCA Alternatives: Rise of Copper-Based Wood Preservatives
  • Organics Preservatives Gain Momentum
  • Increasing Use of Non-Wood Materials Restrains Market Growth
  • Market Analytics
  • CANADA
  • Market Overview
  • Market Analytics
  • JAPAN
  • Market Overview
  • CHINA
  • Market Overview
  • Rising Demand for Outdoor Wooden Furniture: Potential for Wood Preservation Market
  • Focus Grows on New Technologies
  • Challenges Facing Wood Preservatives Market
  • Construction Industry Trends and Demand for Wood Preservatives
  • Market Analytics
  • EUROPE
  • Market Analytics
  • Market Overview
  • Product Trends
  • Waterborne Vs Solvent-based Preservatives
  • EU Imposes Tighter Restrictions on Creosote Use
  • Creosote Use in Wooden Sleepers: Affected by Restrictions on Creosote
  • Exhibit 15: Wooden Sleepers in Europe (2018) - Percentage Breakdown of Number of Wooden Sleepers in Use by Type of Wood
  • Chromium-based Preservatives: Under the Scanner
  • Construction and Growth Prospects for Wood Preservative Chemicals Market
  • European Decking Market: An Insight
  • Exhibit 16: Western Europe Decking Market (2018): Percentage Breakdown of Volume Demand by Material
  • Exhibit 17: Eastern Europe Decking Market (2019): Percentage Breakdown of Volume Demand by Material
  • European Fencing Market: An Overview
  • Exhibit 18: Western Europe Fencing Market (2019): Percentage Breakdown of Volume Demand by Type of Material
  • Exhibit 19: Eastern Europe Fencing Market (2019): Percentage Breakdown of Volume Demand by Type of Material
  • Europe Transitions from Wood Preservation to Wood Protection
  • Timber Preservation Standards in Europe
  • Regulatory Environment
  • Biocidal Products Regulations (BPR)
  • Biocidal Products Directive (BPD)
  • FRANCE
  • GERMANY
  • ITALY
  • UNITED KINGDOM
  • SPAIN
  • RUSSIA
  • REST OF EUROPE
  • Wood Preservation in Nordic Region: An Overview
  • Commonly Used Wood Preservation Chemicals
  • Emerging Wood Preservation Technologies and Chemicals
  • Sweden: A Major Market for Wood Preservation
  • Market Analytics
  • ASIA-PACIFIC
  • AUSTRALIA
  • INDIA
  • Construction Industry Trends Impact Demand
  • SOUTH KOREA
  • REST OF ASIA-PACIFIC
  • LATIN AMERICA
  • ARGENTINA
  • BRAZIL
  • MEXICO
  • REST OF LATIN AMERICA
  • MIDDLE EAST
  • IRAN
  • ISRAEL
  • SAUDI ARABIA
  • UNITED ARAB EMIRATES
  • REST OF MIDDLE EAST
  • AFRICA
IV. COMPETITION
  • Total Companies Profiled: 62
Note: Product cover images may vary from those shown
  • BASF Wolman GmbH
  • Borax, Inc.
  • Janssen PMP
  • KMG Chemicals, Inc.
  • Kop-Coat, Inc.
  • Koppers, Inc.
  • Kurt Obermeier GmbH & Co. KG
  • LANXESS AG
  • Lonza Group Ltd
  • RÜTGERS Organics GmbH
  • Viance LLC
Note: Product cover images may vary from those shown
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