Chemically Modified Woods Market Forecast, Trend Analysis and Competition Tracking - Global Market insights 2015 to 2031

Demand for Chemically Modified Woods from 2015 to 2020 Vs. Future Market Projections for 2021-2031

From 2015 to 2020, sales of chemically modified woods have increased at a stable rate, expanding at over 6% CAGR.

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Wood is a natural renewable resource, non-toxic, and an easily accessible material that is predominantly used in building and construction. It is a natural product derived from different species of trees, and restrictions are imposed on its use. Certain species of woods are easily vulnerable to swelling, rot, and shrinkage and can become susceptible to termites and other insects. Modification of wood materials is necessary to overcome the weaknesses mainly related to humidity, low dimensional stability, hardness and abrasion resistance, low biodegradability against fungi, termites, marine borers, and low resistance ultraviolet radiation. Wood modification refers to a method used to improve the physical, mechanical, and aesthetic properties of timber, veneers, and wood particles used to produce wood composites.

Acetylation of the wood changes the properties of wood on a molecular level. The process is non-toxic, and the end-product is entirely recyclable. Acetic anhydride is reacted with wood polymers, resulting in the esterification of the accessible hydroxyl groups in the cell wall and acetic acid formation (by-product). Acetylated wood exhibits increased natural resistance to brown- and white-rot fungi and obtain a fiber saturation point, making the cell wall highly hydrophobic. It is mainly used for applications such as exterior windows, doors, decking, cladding, etc.

Wood furfurylation is executed by impregnating wood with a mixture of furfuryl alcohol and catalysts, followed by heating to cause polymerization. The purpose of furfurylation is to improve hardness, bio-degradation resistance and dimensional stability by applying a non-toxic furfuryl alcohol polymer. The industrial process of wood furfurylation consists of storage and mixing chemicals, impregnation, curing, drying, and cleaning. When furfuryl alcohol polymer is used to treat the wood, it enhances the mechanical properties such as hardness, brittleness, elastic and rupture moduli.

Global Chemically Modified Woods Market Revenue Outlook:

The global chemically modified woods market is valued at US$ 317 Mn in 2020 and projected to register а САGR of close to 7% by 2031.

The market is segmented on the basis of Product Type, Application and Region. On the basis of the product type, the acetylated wood segment is expected to hold a majority share and register a higher growth rate over the forecast period. With respect to the applications, the exterior segment is anticipated to dominate the market in the coming years.

The concept of green building has gained significant traction over the last few years, owing to the growing awareness among the public regarding the potential environmental benefits over conventional buildings. Most of the focus of green buildings is to reduce the energy consumption of the building (such as the deployment of insulation, appliances, and HVAC systems) and reduce the adverse effects on human health. Nevertheless, the selection of building materials that exhibit positive ecofriendly attributes is also a major area of focus. Wood has many positive characteristics, including low carbon impact, low embodied energy, and sustainability, which has given rise to its wide adoption in the U.S. and European countries.

Chemically modified woods have a long shelf life; they are durable and last longer than raw wood as they are manufactured using certain preservatives that are considered eco-friendly. Additionally, the rising number of infrastructure activities across developed and developing countries and numerous home improvement and renovation activities are expected to augment the demand for chemical modified woods.

However, the high cost of chemical modified wood, coupled with rigidity issues and impact under heavy load, are factors expected to hamper the demand for chemical modified wood in different applications.

Import-Export Analysis of Chemically Modified Woods, under H.S. code 440710, 2016-2020

The import of chemically modified woods (H.S. Code – 440710), including coniferous wood sawn or chipped lengthwise, decreased by 27.5% in 2020 to reach a value of US$ 1.08 Bn, while the export decreased by 38.6%. Major importing countries in this category include Egypt, accounting for 56.7% of the total global imports. Egypt is followed by Mexico, Tajikistan, Phillippines, and Saudi Arabia. Major exporting countries of chemically modified woods include Ukraine, Phillippines, Benin, Mexico and Belarus.

Import (US$ ‘000) of Chemically Modified Woods (H.S. Code – 440710) by Country, 2016-2020

Export (US$ ‘000) of Chemically Modified Woods (H.S. Code – 440710) by Country, 2016-2020

The imports of chemically modified woods declined by 38.4% during the Q2 of 2020 compared to the previous quarter due to the trade restrictions imposed to contain the coronavirus. Nonetheless, the imports stabilized in the Q3-2020, increasing to US$ 9 Mn, gaining by 56.6% from the previous quarter. On the other hand, the exports declined by 28.5% in Q2-2020 of the prior quarter and, post the lockdown relaxations, noted a subsequent growth of 80.8% in Q3-2020.

Regional Analysis:

Europe is anticipated to hold a significant share of the global chemically modified woods market. The region is also expected to register the highest growth rates over the forecast period. Growing housing, commercial construction and infrastructure activities in developed and developing economies in the region are expected to increase demand for chemically modified woods. The robust growth of remodeling projects is also likely to provide lucrative opportunities for the development of the market.

COVID-19 Impact Analysis:

The initial lockdown during Q1 and Q2 2020 caused severe disruptions in the supply chain of chemically modified woods. Lack of raw materials from major suppliers and halts in the movement of finished products stagnated the market growth. The closure of outlets and interrupted construction activities further exacerbated the situation. Relaxation of regulations post the initial lockdown, and resumption of construction activities helped the market to normalcy.

Nonetheless, various industry players in the global chemically modified woods market are increasingly focusing on establishing successful collaborations, acquisitions, and joint venture activities to enhance their respective customer bases. These players are also growing their supply capabilities to meet customer requirements on a local and global scale. This factor, paired with promising industrialization prospects in developing economies of the Asia-Pacific region, such as China, India, Taiwan, Indonesia, etc., are expected to create massive business opportunities for key players over the forecast period.

Competitive Landscape:

The chemically modified woods market landscape appears highly fragmented, with a significant chunk of it being dominated by players in European countries.

• Lonza Group AG
• Accsys Technologies
• Adolf Münchinger Holz-Import- Export-GmbH & Co. KG
• Kebony AS
• Abodo Wood Limited
• LIGNIA Wood Company Limited
• Foreco Dalfsen B.V.
• Other Key Players

Report Scope

• Forecast Period: 2022-2031
• Actual Year: 2021
• Historical Data Available for: 2015-2020

Key Regions Covered

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Segments Covered

Chemically Modified Woods Market, By Product Type

• Acetylated Wood
• Furfurylized Wood
• Other Product Types

Chemically Modified Woods Market, By Application

• Interior
• Exterior

• Lonza Group AG
• Accsys Technologies
• Adolf Münchinger Holz-Import- Export-GmbH & Co. KG
• Kebony AS
• Abodo Wood Limited
• LIGNIA Wood Company Limited
• Foreco Dalfsen B.V.
• Other Key Players