The global market for Wood Preservative Chemicals is expected to slump by -6.3% in the year 2020 highlighting a US$115.7million erosion in market value. Thereafter the market is expected to recover and reach US$2.3 billion by the year 2027 trailing a post-COVID-19 CAGR of 4.4% over the analysis period 2020 to 2027. The human cost of the pandemic is continuing to grow and is expected to deal an unprecedented blow to people, businesses and economies worldwide. Seven months into the pandemic, infections worldwide are continuing to spiral. Continuing lockdowns, labor shortages, mobility challenges, supply chain disruptions, financial distress and plummeting investments have impacted a bulk of construction activity worldwide. Diversion of government funds from infrastructure development to pandemic firefighting has additionally impacted the construction industry, which is dependent to a large extent on infrastructure projects. In several countries, all non-essential construction projects have been put on hold with the exception of building emergency hospitals for COVID-19 care. The world is in a race to boost hospital bed capacity to navigate the pandemic with minimal morality rates. Increasing hospital beds and throughput per bed remains the focus of healthcare systems across the world. Residential construction is taking a beating with millions of people worldwide pushed into unemployment as businesses either go bankrupt or layoff workforce to stay afloat. Unemployment rates are climbing to worrisome levels in both developed and developing economies alike.

In the United States, the worst hit by the pandemic, the devastation wreaked on the country`s economy can be put into perspective by the fact that currently over 50% of the country`s population is now unemployed. Over 33 million Americans are unemployed and the share of population unemployed dropped sharply from a recent high of 62% in January 65.7% in July 2020. With the labor market in doldrums, consumer spending is plummeting. The loss in consumer confidence and erosion of household wealth and discretionary spending will impact virtually every industry and business worldwide. The COVID-19 pandemic has therefore pushed consumers to conserve cash. With unemployment rates rising amid the virus induced economic crisis, consumers are cutting spending budgets. Social outlook against this background remains grim with households expected witness erosion in wealth. Personal financial outlook, community, economy, job security confidence, purchasing and investment confidence are all tumbling as the human and economic cost of the global pandemic rises. For the construction industry, this brings bad news as new housing starts go into deep freeze. The long shadow of the coronavirus is thwarting home-buying plans of consumers. With countries seeing a second wave of infections, the Covid-19 resurgence is likely to undermine the much awaited chances of a V-shaped recovery. Challenges of maintaining social distancing at construction sites is resulting in difficulties in obtaining project clearances from regulatory authorities. Ensuring raw material availability still remains a challenge for most construction contractors. Under this scenario, demand for wood in construction is therefore declining, sending knock-on effects into the wood preservative chemicals market.

In the post COVID-19 period, the market will once again see the growing use of wood in construction, given its evergreen attractiveness as a sustainable, renewable building material with the lowest carbon footprint and the highest positive impact on comfort and emotional well-being. Use of wood in construction ranges from framing and roofing timbers, wall linings, cladding, fascia boards, poles, posts and stumps, sub-floor timbers, bridges, marinas and boardwalks, railings, rural fending, farms and vineyards, pergolas, carports, outdoor furniture to fencing. Wood is vulnerable to damage and rotting by fungi, insects and moisture and therefore needs to be preserved to increase service life. When used for load-bearing in buildings, untreated wood raises the risk of structural instability. Benefits of wood preservation include helps in conserving forest resources by reducing wastage and over demand; opens up commercial opportunities for non-durable wood species especially in construction; protects against multitude of factors that degrade wood such as water, moisture and humidity, mold, mildew, algae and moss, dirt and contamination, termites and woodworm, temperature, frost damage; and versatility in use in above ground, underground and underwater applications. Future growth in the market will be driven by the increased focus on renovation and remodeling initiatives, recovering construction activity in developed and developing economies alike, rapid pace of industrialization and increasing investments in infrastructure development projects by government agencies as well as private organizations. Environmental and health hazards caused by traditional wood preservatives are shifting the focus on new technologies low on chemical toxicity. There are significant commercial opportunities for natural alternatives for copper, boron, phosphorus, and creosote which are used as active ingredients in conventional chemicals. The United States represents the largest market worldwide supported by the traditional dominance of wood in American architecture. Asia-Pacific including China will grow led largely by population growth, recovery in commercial housing activity; recovery in industrial production and increase in industrial construction; cultural significance of wooden craft and interior ornamentation in Asia; rising standards of living, increasing disposable income and growing investments in premium wooden furniture among the growing base of affluent middle class population with aspirational lifestyle goals.