Revenue forecast

The revenue estimate for the base year 2023 is $2,125.5 million, with a CAGR of 6.3% for the study period 2023–2030

The Impact of the Top 3 Strategic Imperatives on the North American Wood Coatings Industry

Transformative Megatrends

Why

• Wood coating raw material suppliers and manufacturers are witnessing a demand for formulations and products that are sustainable.
• Currently, only a limited share of wood coatings meet the health, safety, and environmental standards that enable sustainability.

Frost Perspective

• Wood coating manufacturers need to develop more sustainable formulations for their products over the next 5 years. To this end, the use of bio-based feedstocks, such as plant-based resins, for wood coatings will be a key focus of research and development (R&D) for industry stakeholders.
• The preference for water-based wood coating solutions over solvent-based ones will also increase in North America.

Geopolitical Chaos

Why

• The wood coatings industry, like several other industries in the chemicals space, has been affected by the COVID-19 pandemic, compelling stakeholders to implement long-term changes to their supply chain strategies to manage raw material supply and product distribution effectively.

Frost Perspective

• During the next 2 to 3 years, wood coating suppliers in North America need to strategize to diversify their raw material suppliers' basket across regions, such as Asia-Pacific (APAC), Europe, and the Middle East, Africa, and South Asia (MEASA), to ensure smooth supply and control raw material costs.
• Diversifying their wood product raw material procurement will be key to end-use industries stabilizing their business supply chain. This, in turn, will also favor the market's value chain stability.

Disruptive Technologies

Why

• Color visualization is gaining increasing importance for end consumers and wood product companies when it comes to selecting the desired shade from several options.
• The advent of digital solutions for better color selection capabilities is a disruptive technology, influencing customer decision-making in the North American wood coatings industry.

Frost Perspective

• Customer-interactive virtual panel studios for color matching and digital color simulation will become a unique selling proposition (USP) for wood coating manufacturers.
• Wood coating manufacturers will need to provide innovative digital solutions that enable their customers to make more informed choices about colors for wood coatings.

Scope of Analysis

• Wood coatings offer multiple benefits, such as augmented durability, superior aesthetics, ultraviolet (UV)- and fire-resistant properties, and easy-to-clean features.
• Wood coatings have seen a significant boost due to the growth of the construction sector, where they have significant demand due to their diverse applications.
• Sustainability and efficient application techniques are the key ongoing trends that will significantly influence the North American wood coatings industry. More flexible manufacturing processes and just-in-time business models are being adopted by the furniture & kitchen cabinetry, doors & windows, flooring, siding, and decking end-use industries, which enables them to achieve higher levels of customization. This trend, in turn, translates into end-use industry growth and, eventually, demand growth for wood coatings.
• This study segments the market by end-use applications, each represented as a separate chapter. The study also briefly discusses the chemistries and formulation technologies.

Segmentation

North American Wood Coatings Industry

• By Application and Sub-application
  • Furniture & Kitchen Cabinetry
    • Furniture
    • Kitchen Cabinetry

  • Doors & Windows

    • Exterior
    • Interior
  • Flooring

  • Siding

    • Exterior
    • Interior
  • Decking
• By Country
  • United States
  • Canada
  • Mexico

Growth Drivers

•  The growth of the furniture & kitchen cabinetry, doors & windows, flooring, siding, and decking end-use industries will drive market growth.
• The rising popularity of off-site, modular furniture & kitchen cabinetry design will lead to an increase in the volume of wood coating used per unit of surface area.
• Architectural design trends of larger and higher numbers of wooden doors & windows per unit of housing will drive the growth of the wood coatings industry.
• The rising popularity of multi-level wooden deck designs and outdoor wooden deck kitchens will propel the demand for wood coatings.

Growth Restraints

• Furniture & kitchen cabinetry designs that need minimal wood coating are witnessing demand growth.
• Alternatives to wood coatings, such as wood wax, linseed oil, and masonry paint, will slightly dampen volume growth.
• Efficient application techniques will reduce waste and the volume consumption of wood coatings required per unit of product.
• Siding material alternatives to wood will affect the demand growth rate for wood coatings.