Abstract
Demand to grow more than 3% annually through 2011
US demand for wood protection coatings and preservatives is forecast to
increase 3.1 percent per year to $3.2 billion in 2011, despite a challenging
market environment. Continued weakness in the key siding market is prompting
coating and preservative manufacturers to place greater emphasis on growing
applications such as flooring and cabinets. In addition, demand will benefit
from a shift in the product mix to higher value items, steady production of
pressure treated lumber and solid levels of construction-related repair and
improvement spending. Nevertheless, a decline in housing starts and
deceleration in residential building spending will limit aggregate gains.
In markets such as siding, and windows and doors, wood has sustained
substantial losses to alternative materials, in particular plastics, due to a
range of factors, including relatively frequent maintenance requirements and
environmental concerns over the products used in the wood preservation
process. However, opportunities for growth still exist based in part on the
favorable qualities of wood (e.g., high aesthetic and insulating value), and
protective coatings and preservatives will play an important role in future
market success.
Environmental concerns impact shift in product mix
A shift in product mix to higher value formulations will occur in both
coatings and preservatives, mainly due to environmental issues. Concerns over
the release Reliable analysis from Freedonia China team; details at
www.freedoniagroup.com of VOCs during the coating process have initiated a
gradual switch to more environmentally friendly formulations. Concerns over
the environmental impact of certain preservative raw materials -- arsenic, for
example -- spurred producers of chromated copper arsenate (CCA), the dominant
preservative in treated lumber, to voluntarily withdraw their product from
decking and other residential uses as of December 2003. Alkaline copper
quaternary and copper azole are the successors to CCA, both of which maintain
a higher pricing structure than CCA. However, third generation wood
preservatives, primarily centered around all-organic formulations that do not
contain arsenic, chromium or copper, are beginning to surface on the
marketplace. In addition to all-organic preservatives, borates and
organometallics will also likely post favorable gains through 2011.
Study coverage
It presents historical demand data for 1996, 2001 and 2006 as well as
forecasts for 2011 and 2016 by wood protection product, application and
market. This study also reviews trends, treatments and materials in the wood
industry, considers market environment factors, evaluates company market
shares and profiles 36 US industry competitors.
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