Wood Coatings Market Size, Share & Trends Analysis Report By Resin Type (Polyurethane, Acrylic, Nitrocellulose, Unsaturated Polyester), By Technology, By Application, By Region, And Segment Forecasts, 2023 - 2030

Wood Coatings Market Size & Trends

The global wood coatings market size was estimated at USD 10.90 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 4.9% from 2023 to 2030. The growth of the market can be attributed to several key factors, including the surging demand for home furniture and a growing consumer emphasis on aesthetics. Factors such as the rise in the global population and the recovery of the housing market have led to a heightened need for various furniture items such as beds, chairs, shelves, tables, and cabinets, among others. Furthermore, the escalating demand for interior design and decoration, particularly in residential spaces, hotels, and corporate offices, is contributing to increased furniture demand, thereby driving market growth.

Wood coatings are extensively used in the refinement and protection of wooden products. These coatings help increase the lifespan of wooden products by providing aesthetic appeal and protective layers that shield wood surfaces from various environmental factors, such as UV radiation, temperature fluctuations, moisture, and abrasion. This protection aids in improving the lifespan of wooden products or furniture. Wood coatings can significantly enhance the durability of wood products by reducing the likelihood of warping, rot, and decay, and by preventing wear and tear. This is particularly important for outdoor applications, such as fences and decks.

Various companies are incorporating low VOC (volatile organic compound) content and non-toxic products into their wood coating formulations, making them environmentally friendly. The demand for such eco-friendly products is increasing due to the growing consumer focus on sustainability. In response, numerous companies are launching bio-based and environmentally friendly wood coating products. For example, in February 2022, Synthos, a Poland-based manufacturer of chemical raw materials, announced the launch of its first bio-based acrylic dispersion, SYNEXIL AW90CX. This product is specifically designed for use in transparent and pigmented wood coatings.

Application Insights

The furniture segment accounted for the maximum revenue share of over 58.0% in 2022. The demand for furniture is increasing due to numerous factors such as rising urbanization, expanding residential spaces, a growing number of nuclear families, and an increasing consumer focus on home décor and aesthetics. According to Invest India (National Investment Promotion & Facilitation Agency), the furniture market in India is expected to reach USD 37 billion by 2026, up from USD 17 billion in 2021. This growth in the furniture industry in developed and developing economies is expected to drive the growth of the segment.

The flooring and decking segment is expected to grow at a CAGR of 4.1% over the forecast period. The increasing demand for eco-friendly flooring products is gaining considerable attention and is anticipated to create opportunities for the expansion of the wooden decking market. Consequently, this growth in the wooden decking market is expected to drive the segment’s growth.

Resin Type Insights

Based on resin type, the polyurethane segment held the highest revenue share of over 41.0% in 2022. The majority of wooden furniture manufacturers incorporate polyurethane as a coating material in their furniture manufacturing. This is due to the ready availability of the product and the numerous advantages of polyurethane over other counterparts. Polyurethane offers exceptional durability, good chemical resistance, ultraviolet protection, and longevity.

In addition, polyurethane coatings are available in various formulations, including water-based and oil-based options, as well as different finishes such as high-gloss, semi-gloss, matte, and satin. This versatility allows consumers to choose the type of polyurethane that suits their specific needs and desired appearance. Polyurethanes are easy to apply and have quick-drying capabilities. Furthermore, polyurethane adheres well to wood surfaces, creating a strong bond that ensures the coating stays in place and provides long-lasting protection.

In 2021, AkzoNobel India Ltd. Launched its first polyurethane wood coating, Sadolin Luxurio PU. This product offers luxurious aesthetics and exceptional performance and protection. It provides a range of superior benefits, including up to 7X enhanced protection, outstanding resistance against scratches, stains, and cracks, and a fast drying time, and is available in both clear gloss and clear matte finishes.

The nitrocellulose segment is expected to grow at a CAGR of 5.5% over the forecast period. Nitrocellulose is one of the most commonly used resin types in the wood coating industry. Nitrocellulose coatings are relatively easy to apply, making them a preferred choice for do-it-yourself enthusiasts and small-scale woodworkers. They can be sprayed, brushed, or wiped onto the wood surface with ease. Nitrocellulose coatings have high reparability; they are relatively easy to repair or touch up. If a part of the coating gets damaged, it can be repaired without the need to strip the entire surface. In addition, these coatings are more budget-friendly compared to some high-end polyurethane coatings.

Technology Insights

The solvent-borne segment accounted for the maximum revenue share of over 65.1% in 2022. Solvent-borne coatings are very popular in the paints and coatings industry. Solvent-borne coatings are easy to apply and have been traditionally thought to provide a better finish. These coatings often provide superior performance characteristics compared to water-based coatings. They offer excellent durability, adhesion, and resistance to wear, chemicals, and environmental factors.

In addition, they offer typically faster drying times compared to water-borne coatings. This rapid drying enables quicker turnaround times in manufacturing and construction, reducing labor and energy costs. Solvent-borne coatings are known for their ability to withstand harsh environmental conditions, such as exposure to extreme temperatures, UV radiation, and moisture. The release of VOCs during the application of solvent-borne coatings has led to an increased focus on the development and adoption of environmentally friendly, low-VOC alternatives such as water-borne and powder coatings. This shift towards eco-friendly options may pose potential challenges to the future growth of the solvent-borne coatings market.

The water-borne segment is expected to grow at the fastest CAGR of 5.5% over the forecast period. Water-borne coatings contain lower levels of VOCs and are considered environmentally friendly compared to solvent-borne coatings. In addition, water-borne coatings have milder odor compared to their counterparts, creating a more pleasant working environment for applicators and reducing indoor air pollution. Water-borne solvents have fewer hazardous chemicals, typically containing 70% water, 20% solids, and only 10% solvent. As a result, they are generally safer to handle and store due to their reduced flammability.

Regional Insights

Asia Pacific dominated the market and accounted for a revenue share of 46.2% in 2022. The market is being driven by the increasing demand for home furnishings in countries such as India, China, Japan, and South Korea. The regional market is experiencing growth due to rising disposable incomes, expanding populations, and rising living standards, particularly in countries such as India and China. According to Invest India (National Investment Promotion & Facilitation Agency), India's furniture exports from April-January 2022-23 have tripled compared to the same period in 2013-14, underscoring the robust growth in the region's market.

Europe is expected to grow at a CAGR of 5.2% during the forecast period. European consumers are increasingly conscious of environmental issues and are seeking environmentally friendly and sustainable furniture options made from renewable or recycled materials. Wooden furniture is being increasingly adopted in the European region owing to its environmentally friendly nature. In addition, the rise in remote working has increased the demand for home office furniture, which, in turn, is expected to drive the market.

Key Companies & Market Share Insights

The market is highly competitive, with a large number of manufacturers accounting for a majority of the market share. Mergers, acquisitions, capacity expansions, and innovations are just a few of the important business strategies used by market participants to maintain and grow their global reach. For instance, In November 2019, a significant groundbreaking ceremony marked the beginning of approximately USD 52 million investment at AkzoNobel's North American Wood Coatings facility in North Carolina. This investment is set to bring about a transformation in the site's manufacturing capability.

In October 2018, Axalta celebrated the grand opening of its new Learning and Development Center, located in Pomona, California. This new facility is specifically designed for advancing industrial wood coatings technology. This facility represents a cutting-edge environment for learning and training, featuring a newly equipped classroom, conference room, and hands-on training equipment.

Wood Coatings Market Report Scope

Global Wood Coatings Market Report Segmentation

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global wood coatings marketreport based on resin type, technology, application, and region:

• Resin Type Outlook (Volume, Kilo Tons; Revenue, USD Million, 2018 - 2030)

  • Polyurethane

  • Acrylic

  • Nitrocellulose

  • Unsaturated Polyester

  • Others

• Technology Outlook (Volume, Kilo Tons; Revenue, USD Million, 2018 - 2030)

  • Waterborne

  • Solvent-borne

  • Powder Coating

  • Radiation Cured

  • Others

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2018 - 2030)

  • Furniture

  • Joinery

  • Flooring & Decking

  • Siding

  • Others

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Turkey

    • Netherlands

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • Thailand

    • South Korea

    • Indonesia

    • Malaysia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East and Africa

    • Saudi Arabia

    • South Africa

    • UAE