Demand for wood protection coatings and preservatives is expected to advance 4.5 percent per year through 2018 to $4.8 billion. Growth in the industry will primarily be driven by a rebound in residential construction activity, which in turn benefits the major applications in which wood coatings and preservatives are used -- namely furniture, decking, and siding. These and other trends are presented in Solvents, a new study from The Freedonia Group, Inc., a Cleveland-based market research firm.

Analyst Katherine Brink stated that, “Further advances will be restrained by the rising use of non-wood materials in several key applications. Coatings and preservatives will be limited in siding, where wood is forecast to account for a shrinking share of demand and faces fierce competition from alternative materials.” In decking applications, although wood still dominates, plastic composite decking continues to erode wood’s share, which also puts a dent in wood protection product sales.

Demand for coatings is projected to rise 4.7 percent annually through 2018. Maintenance end uses account for a slightly higher share of coatings demand, driven by the needs of the large existing base of wood items. Even so, demand for new coatings in construction-related applications will be the primary impetus for accelerating demand gains through 2018. Demand for wood preservatives is expected to increase 2.7 percent annually through 2018. Gains will be supported by the rising production of pressure-treated lumber as construction activity rebounds. Faster advances will be restrained by the maturity of a number of applications, such as railroad products and utility poles.

Wood protection product usage varies depending on the application. For instance, paint is the dominant product in siding and window and door applications, but stains and sealers are more widely used on decks, cabinets, furniture, and flooring. Similarly, oil-based preservatives including creosote and penta tend to be utilized in industrial applications such as railroad products and utility poles, while water-based types such as copper azole and ACQ are used to treat wood intended for residential and non-industrial applications.

                                                                                                                                               

US WOOD PROTECTION COATINGS & PRESERVATIVE DEMAND

(million dollars)

 

% Annual Growth

Item     

2008

2013

2018

2008-

2013

2013-

2018

 

 

 

 

 

 

Wood Protection Demand

3820

3850

4790

0.2

4.5

Furniture

919

800

1040

-2.7

5.4

Decking

735

755

870

0.5

2.9

Siding

691

755

880

1.8

3.1

Fencing

435

460

545

1.1

3.4

Other Applications

1040

1080

1455

0.8

6.1

 

 

 

 

 

 

 © 2014 by The Freedonia Group, Inc.

Wood Protection Coatings & Preservatives (published 06/2014, 329 pages) is available for $5100 from The Freedonia Group, Inc.  For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by phone 440.684.9600440.684.9600 or e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.

Source: The Freedonia Group

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