The global wood coatings market features a highly competitive landscape owing to the presence of a plethora of companies competing against one another, notes Transparency Market Research (TMR). Top players in the wood coatings market increasingly resort to forward integration strategies to gain substantial competitive benefits, which may help them to retain their stronghold over the assessment period. Several players are also focusing on product differentiations to attract more consumers and consolidate their positions in various regions. This is especially the trend among small- and medium-scale manufacturers who find this a key strategy to gain a foothold in the wood coatings market.
TMR finds that the wood coatings market is also fairly consolidated as the top four players held a combined share of nearly 60.0% in 2016. These companies are RPM International Inc., Akzo Novel N.V., PPG Industries Inc., and The Sherwin Williams Company. Of these, The Sherwin Williams Company alone accounted for the leading share of 21.3% in 2016. Some of the other companies operating in the global wood coatings market are the Dow Chemical Company, Nippon Paints Holdings, the Asian Paints, and BASF SE.
The global wood coating market stood at US$8.625 billion in 2016 and is projected to rise at a promising 8.3% CAGR during 2017–2025. Rising at this pace, the global market is anticipated to reach a worth of US$17.595 billion by the end of 2025.
Among the various types of resins, the polyurethane led the global wood coatings market presently. Rising at a robust CAGR of 8.8% from 2017–2025, the segment is likely to hold its sway throughout the forecast period. The growth is driven by the use of these resins in the myriad applications, attributed to them being largely scratch- and humidity- resistant.
Of all the key regional markets, Asia Pacific held the majority of share in the global market for wood coatings. The growth is increasingly fueled by the burgeoning demand for wood coating applications, largely from the sales of furniture across. The regional market is estimated to retain its dominant share that will rise to 47.4% by 2025 end.
Substantial Use in Range of Applications in Construction Materials drive demand for Wood Coatings
The global wood coatings market is primarily driven by the substantially rising demand for the resin coating for the wood used in a wide range of construction materials. The widespread demand is supported by the vast strides being taken by the building and construction activities, world over. A large chunk of the demand comes from the residential construction activities. The market growth is also fueled by the burgeoning demand for wood coatings in a variety of furniture, especially those meant for residential purposes.
Over the past several years, environmental norms pertaining to discouraging the use of volatile organic compounds (VOCs) in various end-use industries has gained momentum in various parts of the world. Stringent implementations of such norms is fueled by the rising awareness about the use of low-VOC wood coatings coatings. This is a notable factor catalyzing the expansion of the wood coatings market.
Advent of Alternative Materials crippling Wood Coatings Market Prospects
However, the notably growing use of non-wood materials in numerous applications in end-use industries is a discerning factor that has hampered the steady growth of the wood coatings market. The advent of alternative materials is emerging as potential bottleneck in this regard. Moreover, the frequent fluctuations in the prices of key raw materials prices, particularly of acrylic and polyurethane, is a factor adversely affecting the prospects of the market.
Nevertheless, the constant industry efforts to develop functionally-advanced wood coatings are expected to create large lucrative avenues for vendors and manufacturers. The rising need for versatile resins as coatings has propelled the demand for polyurethane in the construction industry.