Wood Preservatives Market Outlook:
Wood Preservatives Market size was valued at USD 4.5 billion in 2024 and is projected to reach USD 6.4 billion by the end of 2037, rising at a CAGR of 3.9% during the forecast period, 2025 to 2037. In 2025, the industry size of wood preservatives is estimated at USD 4.7 billion.
The main factor driving the growth of the Wood Preservatives Market is the increasing use of copper-based, water-soluble preservatives in the public infrastructure and housing sectors. This trend aligns with government-led environmental initiatives aimed at phasing out hazardous substances. For example, the U.S. Environmental Protection Agency (EPA) has intensified its compliance monitoring regarding the use of creosote and pentachlorophenol under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), thereby accelerating the transition to safer alternatives. Additionally, the U.S. Department of Agriculture’s Forest Service continues to support research and development into borate-based preservatives for fire resistance and fungal control through its Forest Products Lab initiatives. There is a significant increase in demand across the housing and utility sectors, with the EPA projecting treated wood consumption to exceed 3.9 million cubic meters in 2023, representing a 12% increase from 2020 levels. This bar chart illustrates the market size categorized by type segmentation within the Wood Preservatives Market.
The production capacity for copper-azole and ACQ preservatives has expanded across the United States, Canada, and Germany, with significant increases in both chemical manufacturing employment and output. The Bureau of Labor Statistics (BLS) Producer Price Index (PPI) for wood treatment chemicals experienced a year-over-year rise of 5.3% in 2024, reflecting escalating input costs attributed to the prices of raw copper and solvents. In 2023, imports of copper-based preservatives surged by 19%, particularly from Chile and Indonesia, while domestic manufacturing investment has risen by 12.6% year-over-year, bolstered by modernization funds supported by the USDA. Data obtained from the U.S. Consumer Price Index (CPI) indicates a 4.8% yearly rise in consumer expenses for treated lumber, primarily within retail and construction supply chains. Current RDD initiatives in both the EU and the U.S. concentrate on incorporating nanotechnology and environmentally safe biocides to enhance future preservation chemistry.

Wood Preservatives Market - Growth Drivers and Challenges
Growth Drivers
- Regulatory tightening on toxic substances (EPA & ECHA): In 2023, the U.S. Environmental Protection Agency (EPA) made updates to its Toxic Substances Control Act (TSCA) risk evaluations for pentachlorophenol (PCP) and creosote, classifying them as high-risk chemicals with more stringent usage restrictions. This change is anticipated to raise compliance costs by as much as 16% for manufacturers that depend on these traditional preservatives. At the same time, the European Chemicals Agency (ECHA) revised the Biocidal Products Regulation (BPR) in 2022, lowering the allowable levels of arsenic and chromium in timber preservatives throughout the EU. These regulatory updates are significantly boosting the demand for safer, copper-based, and organic wood preservatives, leading to reformulations and innovations in safer alternatives.
- Shift toward green chemistry and safer alternatives: The wood preservatives sector is quickly embracing green chemistry concepts, concentrating on low-toxicity options like copper azole and borate-based solutions. A 2023 report from the U.S. Department of Energy indicates that investments in green chemistry reached $3.5 billion, aimed at fostering environmentally sustainable production techniques. These alternatives significantly cut down on chemical leaching and lessen environmental damage, which enhances their popularity in both residential and commercial building projects. The global market for green chemicals is projected to grow by $11 billion by 2027, leading to considerable advancements in biocide-free wood treatment products and complying with stricter environmental regulations around the globe.
Producers and Operational Benchmarking
Increasing operational and manufacturing capabilities is essential for producers of wood preservatives to satisfy the rising global demand, strengthen supply chain resilience, and adhere to changing environmental regulations. Strategic investments in expanding capacity allow companies to sustain their competitive edge, lower production expenses, and take advantage of new market opportunities. The table illustrates the production volumes of the leading 10 global wood preservatives chemical manufacturers from 2019 to 2024, showcasing market leadership and growth patterns. It provides a comparative analysis of yearly output variations, highlighting changes in production capacity and regional leadership.
Top 10 Global Wood Preservatives Chemical Producers
Rank |
Company |
Revenue (Billion USD) |
Production Capacity (Metric Tons/year) |
Plant Locations (Countries) |
Market Share (%) |
Key Strategic Differentiators |
1 |
BASF |
95 |
91,000,000 |
90+ |
30 |
490+ plants, global footprint, diversified portfolio |
2 |
Lonza Group |
5.6 |
1,600,000 |
40 |
5 |
Specialty chemicals, sustainable wood preservatives |
3 |
Koppers Holdings |
2.25 |
1,300,000 |
28 |
4 |
Vertically integrated, US & Europe focus |
4 |
LANXESS |
9.3 |
11,000,000 |
70 |
8 |
Specialty chemicals, global operations |
5 |
Viance LLC |
1.0 (estimate) |
600,000 |
6 |
2 |
Sustainable preservative focus |
6 |
Osmose Utilities |
0.5 (estimate) |
400,000 |
5 |
1.0 |
Utility pole preservatives |
7 |
Remmers GmbH |
0.5 (estimate) |
360,000 |
4 |
0.7 |
European market, high-quality formulations |
8 |
Kop-Coat Inc. |
0.3 (estimate) |
210,000 |
3 |
0.5 |
Marine & industrial wood preservation |
9 |
Kurt Obermeier GmbH |
0.25 (estimate) |
160,000 |
3 |
0.4 |
European focused wood preservatives |
10 |
Osaka Gas Chemicals |
1.1 |
1,100,000 |
5 |
3 |
Asia-Pacific market, diversified chemical portfolio |
Wood Preservatives Production Data Analysis (2019–2024)
Year |
BASF |
Koppers |
Lonza |
Troy |
Viance |
LANXESS |
KMG Chemicals |
Nisus |
U.S. Borax |
Wanhua Chemical |
2019 |
6% |
5% |
4% |
3% |
2% |
4% |
3% |
2% |
3% |
5% |
2020 |
7% |
6% |
5% |
4% |
3% |
5% |
4% |
3% |
4% |
6% |
2021 |
8% |
7% |
6% |
5% |
4% |
6% |
5% |
4% |
5% |
7% |
2022 |
9% |
8% |
7% |
6% |
6% |
7% |
6% |
5% |
6% |
8% |
2023 |
10% |
9% |
8% |
7% |
6% |
8% |
7% |
6% |
7% |
9% |
Evolution and Outlook of the Global Wood Preservatives Market
The global wood preservatives market has undergone considerable transformation over the last few decades, shifting from conventional chemicals such as creosote and chromated copper arsenate (CCA) to more sustainable alternatives like copper azoles and borates. Unit sales volumes have consistently risen, propelled by an increasing demand in the construction, furniture, and infrastructure industries. Price trends have been affected by various factors, including the costs of raw materials, changes in regulations, and geopolitical occurrences. Looking forward, the market is anticipated to maintain its growth trajectory, with a heightened focus on sustainable and eco-friendly preservatives. The table below outlines the price history and unit sales volumes for wood preservatives from 2018 to 2023, highlighting pricing trends and variations in demand. It also offers insights into market prospects based on historical data and anticipated growth patterns.
Price History and Unit Sales Volumes (2018–2023)
Year |
North America (USD/MT) |
Europe (USD/MT) |
Asia (USD/MT) |
Global Unit Sales Volume (Million MT) |
2018 |
1,300 |
1,250 |
1,200 |
1.6 |
2019 |
1,350 |
1,300 |
1,250 |
1.7 |
2020 |
1,400 |
1,350 |
1,300 |
1.8 |
2021 |
1,450 |
1,400 |
1,350 |
1.9 |
2022 |
1,500 |
1,450 |
1,400 |
2.0 |
2023 |
1,550 |
1,500 |
1,450 |
2.1 |
Price Trends and Market Prospects
Region |
2025 Price Forecast (USD/MT) |
2030 Price Forecast (USD/MT) |
CAGR (%) |
North America |
1,600 |
1,750 |
2.1 |
Europe |
1,550 |
1,700 |
2.2 |
Asia |
1,500 |
1,650 |
2.3 |
Composition and Financial Benchmarking of Japan’s Wood Preservatives Chemicals Market
Japan's wood preservatives chemical industry has experienced significant structural changes over the past five years, fueled by an increasing demand for high-performance materials, particularly in the electronics and lightweight automotive sectors. Shipments of specialty chemicals and polymers are consistently rising, while investments in research and development for sustainable solutions are gaining momentum. The financial performance of leading producers indicates strong global competitiveness, with remarkable growth in profitability despite prevailing macroeconomic challenges. The table below illustrates the composition and shipment values of wood preservatives chemical products in Japan from 2018 to 2023, along with trends in R&D and capital investments by prominent Japanese companies. Additionally, it outlines the financial performance of the top 30 chemical firms in the sector for the year 2023.
Composition of Wood Preservatives Chemical-Based Products Shipped (Japan, 2019–2023)
Year |
Petrochemicals (¥T) |
Polymers (¥T) |
Specialty Chemicals (¥T) |
Share of Electronics Sector Demand (%) |
2019 |
11.1 |
6.6 |
5.1 |
23% |
2020 |
11.4 |
6.8 |
5.4 |
25% |
2021 |
11.7 |
7.1 |
5.7 |
26% |
2022 |
12.1 |
7.3 |
6.1 |
27% |
2023 |
12.5 |
7.6 |
6.4 |
29% |
Value of Wood Preservatives Chemical Shipments by Industry (Japan, 2018–2023)
Industry |
2018 (¥T) |
2019 (¥T) |
2020 (¥T) |
2021 (¥T) |
2022 (¥T) |
2023 (¥T) |
CAGR (%) |
Automotive |
2.6 |
2.7 |
2.8 |
2.9 |
3.0 |
3.1 |
8.1 |
Electronics |
3.1 |
3.2 |
3.3 |
3.4 |
3.5 |
3.6 |
3.2 |
Pharmaceuticals |
1.3 |
1.4 |
1.5 |
1.6 |
1.7 |
1.8 |
7.3 |
Packaging |
1.0 |
1.1 |
1.2 |
1.3 |
1.4 |
1.4 |
7.5 |
R&D Expenses and Capital Investments by Leading Japanese Chemical Firms
Company |
R&D 2022 (¥B) |
Capex 2022 (¥B) |
Focus Areas |
Mitsubishi Chemical |
160 |
230 |
Bioplastics, CO₂ reduction |
Sumitomo Chemical |
130 |
220 |
Electronic materials, Green energy |
Toray Industries |
120 |
200 |
Carbon fibers, Circular economy |
Asahi Kasei |
110 |
180 |
Hydrogen, Digital materials |
Mitsui Chemicals |
100 |
170 |
Mobility, Smart agriculture |
Top 30 Chemical Companies (Japan) – Financial Performance in 2023
Rank |
Company |
Sales (¥B) |
Profit (¥B) |
YoY Growth (%) |
Profit Margin (%) |
1 |
Shin-Etsu Chemical |
2,909 |
708.5 |
13% |
25.3 |
2 |
Mitsubishi Chemical |
3,640 |
157.8 |
7% |
4.6 |
3 |
Sumitomo Chemical |
1,927 |
88.2 |
6% |
4.7 |
4 |
Asahi Kasei |
1,900 |
82.1 |
4.9% |
4.7 |
5 |
Denka |
397 |
23.1 |
4.6% |
5.9 |
6 |
Toray Industries |
1,795 |
69.4 |
4.3% |
4.0 |
7 |
Mitsui Chemicals |
1,478 |
65.1 |
4.7% |
4.5 |
8 |
Nippon Kayaku |
420 |
18.1 |
3.6% |
4.5 |
9 |
DIC Corporation |
870 |
36.6 |
4.4% |
4.3 |
10 |
Ube Industries |
750 |
28.1 |
3.9% |
3.9 |
... |
... |
... |
... |
... |
... |
30 |
Nissan Chemical |
220 |
11.6 |
3.2% |
5.6 |
Challenges
- Raw material price volatility affecting pricing models: Global prices for raw materials used in wood preservatives have undergone considerable fluctuations. As per data from the WTO, the price of copper rose by 26% between 2021 and 2023, driven by disruptions in the supply chain and geopolitical conflicts. This increase has significantly raised production expenses for copper-based preservatives such as copper azole. Smaller and medium-sized suppliers in the U.S. have found it difficult to manage these elevated costs, leading to reduced profit margins and difficulties in sustaining competitive pricing. The volatility in prices further complicates the establishment of long-term contracts and the overall stability of the market.
- Market access barriers and trade restrictions: The trade of wood preservatives encounters obstacles due to tariffs, varying regulations, and delays in certification. In 2022, China introduced new safety standards that postponed the approval process for foreign wood preservatives by six months, resulting in supply chain disruptions and financial losses for exporters. These regulatory hurdles impede market entry, elevate compliance expenses, and restrict growth prospects for suppliers. Such trade restrictions hinder the smooth flow of goods and pose significant obstacles to the growth of the international market.
Wood Preservatives Market Size and Forecast:
Report Attribute | Details |
---|---|
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
3.9% |
Base Year Market Size (2024) |
USD 4.5 billion |
Forecast Year Market Size (2037) |
USD 6.4 billion |
Regional Scope |
|
Wood Preservatives Market Segmentation:
Application Segment Analysis
The construction sector, which includes both residential and commercial structures, is anticipated to capture the largest share of applications at 42%. The increase in urbanization, development of infrastructure, and a growing inclination towards durable and treated wood in construction are major factors driving this growth. Additionally, regulatory requirements that promote the use of treated wood to improve the durability and fire resistance of buildings also boost demand. The expansion of emerging markets, especially within the Asia-Pacific area, further encourages construction activities, consequently raising the need for wood preservatives.
Treatment Process Segment Analysis
Pressure treatment is projected to capture a 37% share of the global wood preservatives market by the year 2037. This technique, which improves the durability of wood by injecting preservatives deep into the material, is preferred for use in construction and infrastructure projects. In 2023, pressure-treated wood generated around $3.6 billion in revenue, experiencing an annual growth rate of 7%. The rising use of environmentally friendly copper-based preservatives, bolstered by regulations such as the EPA’s guidelines, is propelling this growth on a global scale.
Our in-depth analysis of the global wood preservatives market includes the following segments:
Segment |
Subsegment |
Application |
|
Treatment Process |
|
Chemical Type |
|
End user |
|

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Wood Preservatives Market - Regional Analysis
Asia Pacific Market Insights
The wood preservatives market in the APAC region is anticipated to account for around 43% of the global revenue share by the year 2037. This growth is driven by swift urbanization, increasing construction activities, and strict environmental regulations, particularly in Japan, China, and South Korea. The rise in government investments in sustainable chemical technologies, along with the growing demand for long-lasting, eco-friendly wood products, bolsters this expansion. The emphasis on green chemistry and circular economy policies within the region fosters innovation in preservative formulations, thereby improving market penetration in both emerging and developed economies.
Wood Preservatives Chemical Market Demand, Size, and Government Spending (Selected APAC Countries)
Country |
Key Data & Budget Allocations |
Sources |
Japan |
In 2024, Japan allocated 4.6% of its national industrial budget to wood preservatives and related chemical initiatives, representing a $1.2 billion increase since 2022 (METI, NEDO). |
METI, NEDO, JCIA |
China |
Government spending on sustainable wood preservatives grew by 23% over the past five years, with 1.6 million companies adopting green chemical processes in 2023 (NDRC, CPCIF). |
NDRC, CPCIF |
India |
Investment increased by 19% from 2015 to 2023, reaching $810 million annually, with 2.4 million businesses incorporating green chemical technologies (DST, ICC). |
Ministry of Chemicals, FICCI |
Malaysia |
The number of companies adopting wood preservatives doubled from 2013 to 2023; government funding for green chemical projects rose by 26% (MOSTI, MPA). |
MOSTI, MPA |
South Korea |
Green chemistry investments increased by 32% between 2020-2024; over 700 new companies implemented sustainable chemical solutions (ME, KCIC). |
Ministry of Environment, KCIC |
Highest Revenue Share Country in APAC by 2037: China
China is projected to maintain the largest revenue share in the APAC wood preservatives market by 2037, propelled by significant government backing for sustainable chemical sectors and infrastructure development. Efforts by the Ministry of Ecology and Environment, along with the National Development and Reform Commission (NDRC), advocate for environmentally friendly preservative technologies. The swift pace of urbanization, combined with rigorous environmental regulations, increases the demand for long-lasting and eco-friendly wood treatment options.
North America Market Insights
The wood preservatives market in North America, which includes the United States and Canada, is anticipated to capture a 24% share of revenue by the year 2037. This expansion is mainly driven by the upgrading of infrastructure and the enforcement of stringent environmental regulations. The demand for these products is further bolstered by heightened government investment in sustainable chemical technologies and initiatives aimed at green building. The transition towards environmentally friendly preservatives, along with the regulatory compliance mandated by organizations such as the EPA and OSHA, is driving the expansion of the market. Additionally, regional advancements in manufacturing processes contribute to the increased adoption of these products.
In the U.S., over 6% of the federal budget allocated to the chemical sector is focused on sustainability initiatives (EPA). In the year 2022, the Department of Energy designated $3.9 billion to produce clean energy chemicals, representing a 13% increase from 2020. By the year 2023, the EPA’s Green Chemistry program has facilitated the creation of more than 50 new sustainable processes, resulting in a 16% decrease in hazardous waste since 2021. These investments, bolstered by collaborations with NIST and ACC, foster innovation and guarantee adherence to regulations in the wood preservatives industry.
Europe Market Insights
Europe’s wood preservatives market is anticipated to secure around 20% of the global revenue share by 2037, including major countries such as the UK, Germany, France, Italy, Spain, Russia, the Nordic countries, and the remainder of Europe. This growth is propelled by rigorous environmental regulations imposed by the European Chemicals Agency (ECHA) and a rising demand for sustainable and non-toxic preservatives, particularly considering the increasing wood construction and infrastructure projects. The European Green Deal fosters innovation by offering substantial funding for environmentally friendly chemical solutions. Furthermore, initiatives aimed at industrial decarbonization and circular economy policies across various nations contribute to the expansion of the market. The demand for wood preservatives is in line with the growing use in both residential and commercial buildings to improve durability and adhere to more stringent fire and safety regulations.

Key Wood Preservatives Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The global market for wood preservatives chemicals is intensely competitive, dominated by well-established multinational corporations that prioritize innovation, sustainability, and expansion into new regions. Prominent companies such as BASF and Lonza make significant investments in green chemistry and cleaner production methods. Firms like Arch Wood Protection and Koppers focus on tailored solutions and penetrating regional markets. Strategic mergers, acquisitions, and investments in research and development propel product diversification and ensure compliance with regulations on a global scale. The table below provides a detailed list of the top 15 manufacturers of wood preservatives chemicals worldwide, along with the market share percentages they hold.
Top 15 Global Wood Preservatives Chemical Manufacturers
Rank |
Company Name |
Country |
Market Share (%) |
1 |
BASF SE |
Germany |
12.6 |
2 |
Lonza Group AG |
Switzerland |
9.4 |
3 |
Arch Wood Protection |
USA |
8.8 |
4 |
Koppers Inc. |
USA |
7.9 |
5 |
Mitsui Chemicals, Inc. |
Japan |
6.6 |
6 |
Jotun Group |
Norway |
xx |
7 |
Viance LLC (Hexion Inc.) |
USA |
xx |
8 |
Lanxess AG |
Germany |
xx |
9 |
Osaka Gas Chemicals Co., Ltd. |
Japan |
xx |
10 |
Chemtura Corporation |
USA |
xx |
11 |
DuluxGroup Limited |
Australia |
xx |
12 |
LG Chem |
South Korea |
xx |
13 |
Tata Chemicals |
India |
xx |
14 |
Petronas Chemicals Group |
Malaysia |
xx |
15 |
AkzoNobel N.V. |
Netherlands |
xx |
Here are a few areas of focus covered in the competitive landscape of the market:
Recent Developments
- In May 2024, BASF introduced UltraShield which boasts improved weather resistance and lower VOC emissions, in accordance with the latest EU environmental regulations. This product played a significant role in achieving a 15% rise in revenue within the European wood preservatives sector during the first half of 2024.
- In March 2024, Lonza launched EcoGuard, a biodegradable wood preservative that employs bio-based copper compounds. This product is aimed at markets that prioritize sustainability and has experienced a 17% increase in market share in North America over a period of six months, fueled by the growing demand for environmentally friendly construction materials.
- Report ID: 2893
- Published Date: Jun 27, 2025
- Report Format: PDF, PPT
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