Wood Preservative Market Expected to Reach $2.1 Billion by 2033

According to a new report published by Allied Market Research, titled, “Wood Preservative Market," The wood preservative market size was valued at $1.3 billion in 2023, and is estimated to reach $2.1 billion by 2033, growing at a CAGR of 5.5% from 2024 to 2033.

Introduction

Wood preservatives are substances or treatments used on wood to safeguard it against decay, fungal growth, insect infestation, and other types of damage and deterioration. These treatments are designed to enhance the durability, lifespan, and resistance of wood to environmental factors, thereby extending its usability and reducing maintenance costs. Wood preservatives can be categorized based on their active ingredients and application methods and play a crucial role in various applications such as construction, landscaping, outdoor furniture, railway sleepers, and utility poles.

Wood preservatives are used in various applications such as construction, landscaping, outdoor furniture, railway sleepers, utility poles, marine and water-contact structures, furniture, and agricultural structures to protect wood from decay, fungal growth, insect damage, and other forms of deterioration. The application methods for wood preservatives include pressure treatment, dip treatment, brush or spray application, and vacuum treatment, depending on the type of preservative and the specific requirements of the wood treatment process.

Market Dynamics

The wood preservative industry is driven by numerous factors such as rise in construction activities, infrastructure development, consumer preference for durable products, stringent regulations, and environmental concerns. Treated wood is extensively used in various construction applications due to its enhanced durability, and resistance to decay, insects, and fungi. The increasing construction of residential, commercial, and infrastructure projects worldwide contributes significantly to the demand for wood preservatives.

Rapid urbanization and population growth lead to increase in demand for housing, commercial spaces, and infrastructure. As urban areas expand, there is a growing need for construction materials, including treated wood, to meet the demand for new buildings and infrastructure projects. Also, government investments in infrastructure development and public works projects contribute to the growth of the construction sector. Infrastructure projects such as roads, bridges, railways, and utilities require significant quantities of treated wood, driving the demand for wood preservatives.

However, fluctuations in the prices of raw materials such as chemicals, solvents, and wood can impact the profitability of manufacturers. When the prices of raw materials rise, manufacturers face higher production costs as it becomes more expensive to acquire the necessary materials to produce wood preservatives and treated wood. Rise in production costs without a corresponding increase in product prices can reduce profit margins, impacting the overall profitability of manufacturers in the wood preservative industry.

Moreover, innovation in product formulations and the development of new and advanced wood preservatives with enhanced properties such as improved resistance to decay, termites, and fungi can help companies gain a competitive edge and expand their market share. The focus on R&D to develop innovative and sustainable wood preservatives presents a significant opportunity for the wood preservative market growth .

Segments Overview

The wood preservative market is segmented on the basis of type, end-use, and region. By type, it is categorized into water-based, solvent-based, and oil-based. By end-use, it is categorized into residential, commercial, and industrial. Region-wise, the wood preservative market share is studied across North America, Europe, Asia-Pacific, and LAMEA.

Competitive Analysis

The major players operating in the global Wood Preservative Market are BASF SE, Lonza Group, Koppers Inc., Viance, LLC, Remmers Group, Troy Corporation, Borax Inc., Lanxess AG, Dolphin Bay Chemicals, and Kop-Coat, Inc.

Public Policies

• The U.S. Environmental Protection Agency (EPA) regulates wood preservatives under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).
• The American Wood Protection Association (AWPA) develops standards for the treatment and use of preserved wood products.
• The European Union's BPR regulates the placing on the market and use of biocidal products, including wood preservatives.
• The Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) regulation applies to the production and use of chemical substances, including those used in wood preservatives.
• The Australian Pesticides and Veterinary Medicines Authority (APVMA) regulates the use of wood preservatives in Australia.
• Health Canada's Pest Management Regulatory Agency (PMRA) regulates wood preservatives under the PCPA.

Key Findings of the Study

• By type, the solvent-based segment is projected to be the fastest growing segment in terms of revenue during the forecast period.
• Depending on end-use, the residential segment accounted for the largest share in 2023, contributing to more than two-thirds of the global wood preservative market revenue, and is projected to maintain its lead position during the forecast period and is projected to grow at a CAGR of 5.4% from 2024 to 2033.
• Region-wise, Asia-Pacific garnered a major share in 2023 in terms of revenue.