Wood Preservative Market - Forecasts from 2024 to 2029

The global wood preservative market is anticipated to grow at a CAGR of 5.29% during the forecast period (2024-2029).

Wood preservatives are chemicals that slow the deterioration of the wood by environmental agents, fungal groups, or insects. They range from industrial tar-like coatings on utility poles to brush-on treatments suitable for patio furniture. All chemical preservatives used in treated wood are registered pesticides and thus controlled by the US EPA. The American Wood Protection Association (AWPA) develops guidelines that specify the usage levels of wood preservative formulas and their compatibility for the intended end-use in treated timber.

GLOBAL WOOD PRESERVATIVE MARKET DRIVERS:

• With more focus on using renewable and natural products, wood has been used frequently. Wood preservatives extend the life of the wood, and sustainable construction’s goal of creating low-maintenance, durable buildings can be facilitated. The Office of Federal High-Performance Green Buildings (OFHPGB), created by Congress through the Energy Independence & Security Act, develops best practices, guidance, and tools for government-wide use. This further advances federal building innovations in planning, design, and operations to reduce costs, enable agency missions, enhance human health and performance, and minimize environmental impacts.

Besides, the introduction of Building Research Establishment’s Environmental Assessment Method, or BREEAM, the world’s first green building grading mechanism, made the sustainable movement even bigger. The United States Green Building Council (USGBC) got on board, too, and in 2023, it issued standards to increase the environmental impact of structures by using the LEED grading system for new constructions.

It is assumed that the concept of sustainable construction will likely have positive implications for the wood preservative industry. Another factor that will fuel the demand for wooden products is the demand for more durable materials and innovations in environment-friendly goods. In line with this, the Department for the Environment, Food, and Rural Affairs (Defra) has developed the 25YEP, which establishes environmental goals, as well as the Greening Government Commitments (GGCs), which provide specific targets and a delivery framework for departments and other governmental organizations to improve sustainability.

• New product development and investment are the main factors in the wood preservatives market. Established formulae increase market coverage, the addition of new ones contributes to the introduction of high-performance products, and environmental choices respond to trends. Technological advancement is very important in creating superior products in organizations. Besides, manufacturing capacity rises to meet demand, and efficient marketing leads to increased sales.

For instance, Tanasote® offered by Arxada is a real breakthrough that aims to drive sustainability in industrial wood protection. It has a published Life Cycle Analysis and also invests in a cradle-to-gate Environmental Product Declaration (EPD) that timber treaters may utilize in their EPDs. Tanasote®-treated timber is a contemporary alternative to creosote that is easy to apply, has a long service life of up to 40 years, has a low smell, and is supported by commercial trial data in important sectors such as agricultural fences, utility poles, and railway sleepers.

In addition, in July 2024, a Rundvirke Industrier AB Group subsidiary, Octowood, invested in the new Tanasote® treatment plant to ensure that their fence and power line clients had another option for long-term wood protection. This is considered a major statement from one of the premier creosote treaters in Europe to offer new manufacturers of wood protection that will act as the centerpiece of sustainability. The Horizon Europe project, led by the Institute of Communications and Computer Systems (ICCS), began with a gathering in Athens, Greece, in February 2024, marking a crucial milestone in the company’s commitment to sustainability.

Further, Great Southern Wood Preserving, best known for its YellaWood® brand pressure-treated pine, invested $22.5 million in April 2022 to increase the range of wood treatments manufactured at its Avoyelles Parish factory. In addition to residential and marine goods, the expansion enables the business to enter new commercial and industrial sectors in Louisiana. These advancements further indicate that a cooperative link between innovation and investment is crucial for market growth.

GLOBAL WOOD PRESERVATIVE MARKET SEGMENT ANALYSIS:

In terms of application, residential construction is expected to have the highest growth rates.

The residential sector significantly influences the growth of the wood preservative market. The global phenomenon of urbanization and population growth has led to the expansion of the housing needs. According to the United Nations, it is presumed that by 2047, India’s population will be approximately 1.64 billion, with the predicted urban population share being 51% of the overall population.

This results in demand for construction, which leads to the consumption of wood preservatives immediately after it starts. For instance, a notice was released by the Ministry of Housing and Urban-Rural Development (MOHURD) for the implementation of urban renewal actions in 2020. The notice stated that in 2022, to support the improvement of the living conditions in cities, the government’s urban regeneration plan was initiated to develop green and efficient cities. Moreover, there is a tendency to prefer new designs of houses, new fashionable amenities, and larger living spaces, which pushes the demand for new houses. These factors lead to the anticipated steep increase in robust expansion in the residential building industry.

Alongside this, green construction has a long history in the UK and is supported by both the public and commercial sectors. The voluntary Building Research Establishment Environmental Assessment Method (BREEAM) approach for assessing the sustainability of non-residential building projects was developed decades ago. Most local planning authorities in the UK mandate that new structures be certified and have high BREEAM ratings.

In summary, increased demands for housing, wood usage in construction, and the need for protection-endowed residential buildings are fueling the wood preservative market growth.

North America’s wood preservative market is anticipated to grow significantly.

Market growth in the wood preservative industry is expected to rise in North America. First and foremost, the growing construction market of the region, especially in the spheres of the house- and building-making, is the main driving force. In the United States, construction spending is forecasted to be $2.13 trillion in May 2024, according to seasonally adjusted estimates. Construction spending reached $836.3 billion in the first five months of the aforementioned year, up 8.8% from $768.6 billion in 2023. In May, residential buildings reached a seasonally adjusted annual pace of $918.2 billion.

Wood is also one of the most preferred building materials due to its beautification and insulating properties. Hence, there is always a steady market for preservatives that enhance the life of wood.

In addition, the strict recommendations for intense construction and environmental standards are pushing the demand for eco-friendly and durable building materials. Such goals can be achieved with the help of wood preservatives since they make it possible to extend the life span of wood products and reduce waste. LEED has grown in popularity and currently incorporates grading systems for existing buildings, interiors, and entire neighborhoods. The increased awareness and demand for sustainable design, such as the Green Building Initiative (GBI), which was established to help the National Association of Homebuilders (NAHB) promote Green Building Guidelines for Residential Structures. GBI, originally established for Canada, helped make Green Globes available in the United States. Additional grading systems have emerged, influenced by these early programs but suited to their particular national aims and limitations or seeking to go beyond the limits of present legislation and construction standards to address greater sustainability challenges.

These factors add up to positive growth for the North American wood preservative industry, which has tremendous development potential in the future.

Global Wood Preservative Market Key Developments:

• In March 2024, Octowood, part of the Rundvirke Industrier AB Group, invested in a new Tanasote® treatment plant to provide their fence and powerline clients with an extra option for long-term wood preservation. This is considered a big commitment from one of Europe's top creosote treaters to provide new wood protection technologies that will drive sustainability into the heart of its operations.
• In March 2024, Arxada, a worldwide, science-based leader in specialty chemicals, announced that their wood protection solution Tanasote® S40 has been approved for use under the GB Biocidal Product Regulation (BPR).
• In February 2024, Koppers Holdings Inc., an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds, announced that Koppers Utility and Industrial Products Inc. (UIP), a wholly owned subsidiary of Koppers Holdings, has signed an agreement to acquire substantially all of the assets of Brown Wood Preserving Company, Inc. and certain of its affiliates (Brown Wood) in exchange for approximately $100 million in cash.

The global wood preservative market is segmented and analyzed as follows:

By Type

• Water Based
• Solvent Based
• Oil Based

By Application

• Residential
• Commercial
• Industrial

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Rest of South America
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Rest of Europe
• Middle East and Africa
• Saudi Arabia
• United Arab Emirates
• Rest of the Middle East and Africa
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Taiwan
• Thailand
• Indonesia
• Rest of Asia-Pacific