Wood Coatings Market

Wood Coatings Market Outlook (2022-2032)

The global wood coatings market is expected to continue its upward trend with an estimated value of US$ 9.7 billion in FY 2022, indicating growth from its 2021 valuation of US$ 9.2 billion.

In the past year, the industry witnessed a significant 5.4% year-on-year increase. Over the next decade, from 2022 to 2032, the wood coatings market is predicted to experience a Compound Annual Growth Rate (CAGR) of 6.2%, potentially reaching a value of US$ 17.7 billion by the end of 2032.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 9.2 Billion
Expected Market Value (2022)	US$ 9.7 Billion
Projected Forecast Value (2032)	US$ 17.7 Billion
Global Growth Rate (2022-2032)	6.2% CAGR
Growth Rate of the U.S Market (2022-2032)	4.2% CAGR
Expected Market Value of China (2032)	US$ 17.2 Billion
U.K Market Expansion Rate (2022-2032)	~6% CAGR
Key Companies Profiled	BASF SE The Dow Chemical Company Nouryon Sherwin-Williams Company Hempel A/S Valspar Corporation

Demand for solvent-borne wood coating will continue to thrive, with a documented CAGR of 6% during the 2015-2021 historical period of assessment, while demand for stain wood coatings proliferated at a rate of 6% during the same time period.

China will dominate the global market, registering a growth opportunity worth US$ 17.2 Billion from 2022 to 2032. Furthermore, Fact.MR’s analysis shows that the top 5 players in the wood coatings market account for nearly 40% share.

2015 to 2021 Wood Coatings Market Revenue Analysis vs. Market Outlook 2022-2032

Fact.MR has forecasted the wood coatings market to rise at a 6.2% CAGR between 2022 and 2032, in comparison to the 5% CAGR from 2015-2021. The rising need for strengthening existing infrastructure against external abiotic and biotic forces is driving demand.

Manufacturers are capitalizing on improving living standards across key developing nations including India and China. This increase in purchasing power is one of the prominent reasons driving demand for contemporary furniture, promoting the growth of the market for wood coatings.

Key Drivers Stimulating Wood Coatings Industry Expansion

Globally Increasing Furniture Production Drives the Wood Coatings Market

Rapid urbanization in response to development and population increase has increased the demand for housing on a large scale. Consequently, the need for furniture such as chairs, tables, beds, sofas, shelves, and cupboards has skyrocketed. Furthermore, as the service sector expands, a large section of the population is migrating to new areas, fueling the development of hostels, co-living, guest houses, and official premises. This is projected to increase the demand for a variety of furniture goods.

Interior design concepts for homes, businesses, and apartments are always evolving in the furniture market. This is encouraging innovation and development, particularly in terms of design, size, and color, and is projected to increase the global production volume of furniture. Wood coatings are widely utilized in the furniture business. As a result, the rising volume of furniture manufacturers throughout the world is boosting the expansion of the market under consideration.

Preservative Applications of Wood Coatings Attracts Positive Growth

Because of its importance in preventing the wood from decay, the preservatives sector leads the market in terms of both value and volume. Interior wood applications such as cabinetry and flooring will benefit the most from preservatives.

The expansion is being fueled by a fast surge of housing constructions as well as considerable increases in maintenance and upgrade investment. An increase in home repair is expected to enhance demand for preservatives and promote market development.

Key Challenges to Wood Coatings Industry Expansion

Stringent Environmental Restrictions Act as a Prominent Restraining Factor

Stringent environmental restrictions established by the government and other regulatory organizations on the use of volatile organic compounds (VOC) in the manufacturing of wood coatings impede the market's growth.

Usage of VOCs in the manufacture of wood coatings has a negative influence on the environment. Furthermore, unpredictable raw material prices impede the expansion of the wood coatings industry.

On the other hand, the wood will face intense competition from several nonwooden alternatives, such as plastic, wood-plastic composites, and fiber cement.

Country-wise Analysis

How Opportunistic are Growth Prospects across the U.S Market?

Soaring Investment in Residential and Commercial Construction Driving Growth

In North America, rising demand for custom home decor products, along with rising customer spending, would largely fuel demand for the wooden furniture sector.

Fact.MR anticipates that the demand for wood coatings in the U.S registered a market hike of 4.2% and estimates nearly US$ 4.9 Billion in 2022. The market is anticipated to yield an expected dollar opportunity of nearly US$ 7.6 Billion by 2032. Wood construction materials will foresee noteworthy gains through 2032 as housing completions significantly increase. Prevailing wood products also support demand for solvent-borne wood coatings, as wood entails regular recoating to maintain its integrity and appearance.

Increased investment in residential and commercial properties in the region is expected to enhance the market. According to estimates projected by Fact.MR, a market share worth 40% is anticipated for the U.S market across the forthcoming forecast period.

Why are Wood Coatings Providers Venturing into China?

Sales of Wood Coatings and Paints Boosted by Infrastructure Growth in China

The Asian region controlled the majority of the worldwide market in 2021 and is likely to witness robust growth in the forthcoming future. On account of market revenue contribution, China boasts the world's largest furniture business, which is prospering due to rising local and global demand. Nearly 1/4th of total demand is likely to be sustained by East Asia.

Fact.MR’s recent market analysis report summarizes that the Chinese market for wood coatings is estimated at nearly US$ 10.55 Billion in 2022 and likely to expand at an annual rate of 6.1% throughout the forecast period 2022-2032.

Both the furniture and construction industries in China have seen significant expansion in recent years. Some of the major causes driving this expansion include increased investment in the residential and commercial sectors, as well as government efforts such as "Housing for All." The arrival of large furniture firms, such as IKEA, is also projected to help the expansion of the furniture sector.

How Lucrative is the Market for Wood Coatings in Europe?

Water-Borne Wood Coatings Market driven by Ongoing Renovation Projects in Europe

Europe is a significant global furniture producer, being a consumer of wood-based panels combined with wood-sliced veneers. The home office business is expanding as a result of shifting working habits and an increase in home computer ownership. The market is anticipated to yield a dollar opportunity worth US$ 3.2 Billion to reach a value of US$ 5.9 Million, following a CAGR of 6% through 2032.

With the upsurge in the residential sector, the market for wood coatings has foreseen substantial growth. The growth of the residential sector has been directed to the advent of Do-It-Yourself (DIY) coatings. The Wood Coating Manufacturers expect the market to continue to cultivate as these do-it-yourselfers gradually look for unique projects that include wood stains and surfaces.

As concealed personal computers are customized to fit other household furnishings, wood is gaining traction. In the United Kingdom, for example, the living room business is doing well. As a replacement for low-cost metal and plastic stands, the new home entertainment technology necessitates well-designed, high-quality hardwood storage solutions.

Country-wise Value CAGRs for Wood Coatings (2022-2032)

U.S	4.2%
U.K	6%
China	6.1%
Japan	6.2%
South Korea	6.4%

Category-wise Insights

Which Product Type is Most Preferred in the Wood Coatings Market?

Solvent-Borne Wood Coatings are Likely to Gain Highest Traction

According to Fact.MR, solvent-borne wood coating material contributes over 66% share of the global revenue collection. The demand for solvent-borne wood coatings is forecast to expand at an annual rate of 6.4% over the assessment period. Aside from being derived from crude oil, the low price of conventional solvent-borne wood coatings is owing to the simple availability of hydrocarbon solvent basis.

Solvent-borne coatings consistently produce a high gloss finish. As a result, rising demand for factory-finished goods is expected to drive up demand for solvent-borne wood coatings. The advantages of water-borne coatings, as well as tight environmental requirements for VOC emissions, are likely to boost demand even higher.

By Type, which Wooden Coating is expected to Dominate?

Stain wood Coatings Finishes are becoming the Favorites of DIY Enthusiasts

Modern indoor and outdoor furniture has a snowballing array of functions that require different kinds of coatings. Significant properties of resins such as Superior resistance to dirt, abrasion, and water are adding value to the wooden coating market. Furthermore, exceptional chemical resistance to stains and blemishes on the wooden furniture increases the sales revenues of stain wood coatings across the globe.

There is an upsurge in demand for modern as well as traditional furniture all over the world and the demand for furniture is directly proportional to the demand for wood coating resins. Fact.MR forecasts that the demand for stain wood coatings resins is likely to increase at a significant pace through 2032.

Competitive Landscape

Prominent wood coatings providers are reliant on partnerships, collaborations, acquisitions, and new software launches so as to stay afloat in the global market. Constant innovations to ensure a seamless client-customer relationship are the main focus of prominent market players.

• In Nov 2020, BASF introduced the new Joncryl 953X portfolio with five acrylic dispersions for protective wood grain enhancement. This portfolio will offer sustainable solutions for low to zero VOC levels.
• The Dow chemical company recently introduced the ACRYSOL™ DR-180 Rheology Modifier which is a high-efficiency hydrophobically modified alkali-soluble emulsion (HASE). It offers a partial or complete replacement for hydroxyethylcellulose HEC technology and coupling excellent sag/flow balance with exceptional spray, roller, and brushes application properties for desired performance in contractor quality paints.

Key Segments Covered in the Wood Coatings Industry Survey

• By Product type

  • Water Borne
  • Solvent-Borne
  • Powder

• By Type

  • Preservative
  • Stain
  • Shellac

• By End Use

  • Furniture
  • Construction
  • Marine Applications
  • Other End Uses

• By Sales Channel

  • Institutional Channels
  • Retail Channels
  • Sales via Online Channels
  • Sales via Home Improvement Stores
  • Sales via Hardware Stores
  • Sales via Franchised Paints & Coating Stores

• By Region

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa