Global Wood Coatings Market: Snapshot
The global wood coatings market is choc-o-bloc with players and this has served to intensify the competition over the years. Product differentiation is a key tool leveraged by players to steal a march over their competitors. Key factors promoting growth in the market are the soaring construction activities across the globe and the increasing spending capacity of people which has stoked sales of furniture.
Another factor catalyzing growth in the global wood coatings market is the environmental concerns which has led to framing of rules to curb emissions from volatile organic compounds (VOCs). On the flipside, posing a roadblock to the market is the volatility in raw material prices such as acrylic and polyurethane. Since both are derived from crude oil, fluctuations in the latter’s prices affects prices of the final products thereby creating an uncertainty. This definitely does not bode well for the wood coatings market.
A report by Transparency Market Research forecasts the revenue in the global wood coating market to reach a value of US$17.595 bn by 2025 from US$8.625 bn in 2016 by rising at a healthy CAGR of 8.3% from 2017 to 2025 to. Volume-wise, the report expects the market to register a CAGR of 7.5% in the forecast period.
Resistance to Humidity and Scratch Propels Demand for Polyurethane
The different types of resins used in the global wood coatings market are polyurethane, nitrocellulose, acrylics, melamine formaldehyde, etc. Of them, the segment of polyurethane held the maximum share of 39.2% in the market in 2016. The dominant market share of the segment is primarily on account of its properties of humidity and scratch resistance. Other advantages of polyurethane is its non-yellowing property and ability to retain light colors. The segment is expected to grow its leading share further to 40.6% by 2025 by clocking maximum CAGR of 8.8% from 2017 to 2025.
The acrylics segment trails the polyurethane segment in the global wood coatings market. In 2016, the segment held a share of 25.7% and by 2025 that share would likely expand marginally to 26%. The unique perceived benefit of acrylic which has led to its second-most prominent position in the market is its ability to cross link with other resins to yield improved properties.
The other two segments – melamine formaldehyde and nitrocellulose – are predicted to pare some of their market shares in the forecast period.
Increasing Spending Capacity of People Makes Asia Pacific Dominant Market
From a geographical standpoint, Asia Pacific leads the global wood coatings market with a majority of the share owing to the increasing wealth of people in the region which has spurred sales of furniture dramatically. The value of the market in the region stood at US$3.89 bn in 2016 and its share in the market was worth 45.1% in the same year. Rising at a healthy 8.9% CAGR from 2017 to 2025, the region will likely become worth US$8.35 bn by 2025 and its market share will likely grow to 47.4% in 2025.
Europe trails Asia pacific in the global wood coatings market. In 2016, the region’s share was about 26.5% and by 2025, the region will pare that slightly to account for 26.4% of the market. The market in the region will be primarily driven by acrylic and water-based technology.
Some of the key players operating in the global wood coatings market are Akzo Nobel N.V, BASF SE, Nippon Paint Holding Co., Ltd, PPG Industries, Inc., RPM International Inc., The Sherwin Williams Company, and The Dow Chemical Company.
Source: Transparency Market Research