Coatings World - February 2015

Catherine Diamond, Associate Editor

Thanks to a rise in the housing market, the wood coat- ings market has seen steady gains in recent years. In fact, according to Phil Phillips, president of CHEMARK Consulting, a growth of about 3.1 percent over the next 15 years is expected for the aggregate of wood protective and preservatives from $3100 million in 2013 to $4900 million by 2028.

“Currently wood coatings represent 84 percent, while wood
preservatives hold a 16 percent SOM, Phillips said. “By 2023,
the shares will shift three percentage points to 81 percent for
coatings and 19 percent for preservatives.”
The key segments for this market include siding and deck-
ing, furniture and cabinets. In 2013, sliding and decking made
up $698 and $673 million ( 22. 5 percent & 21. 7 percent) of the
market, while furniture made up at $304 million and cabinets
$332 million ( 9. 8 percent & 10. 7 percent).

“However,” Phillips said, “in 15 years we project the follow-
ing: siding will grow at below 2 percent to $852 ( 17. 4 percent);
decking will grow aggressively at 4. 3 percent to $1288 million
( 26. 3 percent); furniture will go from 9. 8 to 9.2 percent in 2028;
and cabinets will go up from 10. 7 to 11. 8 percent in 2028. Those
classified as ‘other’ will remain the same at 35percent SOM at a
3.1 percent AGR.”
According to Jacquelyn Ferrara, director of marketing at
Minwax, improvements in the housing market have lifted sales
in many related categories.

“Homeowners are once again investing in their homes, whether
to make improvements or to ready them for sale. Do-It-Yourselfers
and pros are refinishing floors, updating doors, molding and trim
which contributed to the increased sales of stains and clear protec-
tive finishes in 2014,” said Ferrara. “We expect to see this growth
continue in both the housing and coatings market in 2015.”
Chris Connelly, director of Brand Management at Benjamin
Moore, said that the nature of the U.S. housing market is re-
sponsible for the upswing seen in 2014.

“Growth of the wood coatings market is directly related to
an improved housing market,” Connelly said. “Traditionally,
homes in the U.S. are built with wood, from exterior siding,
decks, and fences to interior cabinetry, furniture and flooring.
An improved housing market has had a positive impact on the
wood coating market. Although we do not have the numbers in
yet for 2014, we expect positive growth when compared to the
previous five years.”
While the entire wood coatings market saw growth in the
past year, Mike Kozlowski, director of marketing at Thompson’s
WaterSeal Brand said that one area in particular has seen growth
because of heightened competition.

“The deck stain segment of the market definitely saw growth in 2014, and it’s clear that retailers and consumers are feeling more confident. But a stronger economy isn’t the only driver for growth in this segment,” Kozlowski said. “This category is very responsive to product innovation, which we delivered in the form of a brand-new line of waterproofing stains. That innovation drove a strong, robust year for Thompson’s WaterSeal exterior stains.”