U.S. Demand For Wood Coatings to Reach $3.0 Billion
September 8, 2009
CLEVELAND - Demand for wood-protection coatings and preservatives is forecast to increase 2.2 percent per year to $3.0 billion in 2013. A rebound in the housing market will promote growth, as the residential segment is a key outlet for wood products that utilize coatings and preservatives. Demand will also benefit from a shift in product mix to higher-value items, a slight upswing in pressure-treated lumber production, and solid levels of residential repair and improvement spending. These favorable factors, however, will not overcome continued weakness in the key wood siding market. These and other trends are presented in Wood Protection Coatings & Preservatives, a new study from The Freedonia Group Inc., a Cleveland-based industry research firm.
In general, wood-protection products will achieve the best gains in interior wood applications, such as flooring and cabinets. In these applications, gains will be promoted by a rebound in housing starts and growth in residential improvement spending, as the purchase of these items is common during both homebuilding and remodeling activity. In order to maintain wood’s position in interior applications, wood coatings suppliers will strive to develop product lines that feature a wider range of colors, improved efficiency and enhanced durability. In addition, wood coatings suppliers are addressing demands for “green” materials with the development of environmentally friendlier formulations. The longevity of interior wood limits gains in coatings demand, as maintenance requirements are infrequent.
In exterior applications, wood will continue to suffer losses to competitive materials, resulting in an extremely difficult market environment for wood-protection coatings and preservatives suppliers, especially as high maintenance requirements are a key factor in wood’s gradual market losses. This is especially the case in siding, where the use of wood-based products continues to decline. However, maintenance coatings demand will continue to be supported by the large installed base of wood-based home exteriors and decks. Demand will be boosted by the greater use of higher value coatings, featuring enhanced durability and greater ease of use.