Wood Coatings Market Trends: Growth, Challenges, and Opportunities

Growth Markets for Wood Coatings

There are plenty of opportunities for growth in the wood coatings sector. Maddie Tucker, senior brand manager for woodcare at Minwax, said one key growth market in the industry is the increasing demand for durable and high-performance products that offer long-lasting protection and aesthetics to various surfaces.

“Once consumers complete a project, they want it to last, and customers are looking for interior wood coatings that can withstand daily wear and tear, stains, dirt, mildew, and corrosion,” Tucker observed. “A polyurethane wood finish can help with interior projects as it’s one of the most durable coatings for wood protection – protecting against scratches, spills, and more – and is a clear coat. It’s also very versatile as the Minwax Fast-Drying Polyurethane Wood Finish can be used on both finished and unfinished wood projects and is available in a variety of sheens.”

“The wood coatings market is experiencing growth driven by factors such as construction and real estate developments, increasing global demand for furniture, interior design trends, renovation projects, and a focus on eco-friendly options, including technological advancements like UV-curable coatings and water-based formulations,” said Rick Bautista, director of product marketing for the Wood & Floor Coatings Group at BEHR Paint. “These trends indicate a dynamic market with opportunities for manufacturers and suppliers to cater to diverse consumer needs and preferences while addressing environmental considerations.”

“The wood coatings market correlates with the housing market, and we expect the housing market to be very regionalized and local in 2024,” Henderson noted. “In addition to staining a deck or house siding, a trend that is seeing a resurgence is staining outdoor furniture projects.”

Salahuddin pointed out that wood coatings serve critical segments such as building products, cabinets, flooring, and furniture.

“These segments continue to have strong underlying trends in the long term that will continue to grow the market,” Salahuddin added. “For example, we operate in many markets that have growing populations and a housing shortage. Furthermore, in many countries, existing homes are aging and require remodeling and renovation.

“Technology is also shifting, which provides an opportunity to continue to promote wood as a material of choice,” added Salahuddin. “Customer demands and requirements have been evolving with a consistent focus on key areas outlined in previous features. In 2022, subjects such as indoor air quality, formaldehyde-free products, fire retardants, UV curing systems, and anti-bacteria/anti-virus solutions remained important. The market demonstrated a growing awareness of wellness and sustainability.

“In 2023, these topics maintained their relevance with a notable increase in the adoption of waterborne technology,” Salahuddin noted. “Additionally, sustainable solutions, including bio-based/renewable products, low-energy curing solutions, and products with extended durability, have become more important. The emphasis on these technologies underscores a commitment to future-proof solutions, and substantial R&D investments continue in these areas. AkzoNobel aims to be a genuine partner for customers, supporting them in their sustainability journey and providing innovative solutions aligned with evolving industry needs.”

Trends in Wood Care Coatings

There are some interesting trends to note. For example, Bautista said that in the realm of wood care coatings, the latest trends emphasize a combination of vibrant colors, enhanced performance, and user-friendly application methods.

“Consumers are increasingly drawn to bold and unique color options to personalize their spaces, alongside coatings that offer superior protection against wear and scratches,” Bautista said. “Simultaneously, there’s a growing demand for coatings that are easy to apply, whether through spray, brush, or wipe-on methods, catering to both professionals and DIY enthusiasts.”

“The current trends in coatings development reflect a careful consideration of the latest design preferences,” said Salahuddin. “AkzoNobel’s technical service and global color and design teams collaborate closely to ensure that the finishes are not only robust, but also suitable for industrial applications worldwide.

“In response to contemporary influences and high-end design preferences, there’s an acknowledgment of the need for belonging and reassurance in the face of an uncertain world. People are seeking environments that exude calmness while providing moments of joy in their everyday experiences,” said Salahuddin. “AkzoNobel’s Color of the Year for 2024, Sweet Embrace, embodies these sentiments. This welcoming pastel pink, inspired by soft feathers and evening clouds, aims to evoke feelings of peace, comfort, reassurance, and lightness.”

“Colors are trending away from pale blonde colors, toward darker browns,” Adley reported. “In fact, PPG’s woodcare brands kicked off the busiest time of year for exterior stains on March 19 by announcing PPG’s 2024 Stain Color of the Year as Black Walnut, a color that encompasses the trend in colors right now.”

“There is a trend in wood finishes right now that leans into warmer midtones and ventures into darker shades,” said Ashley McCollum, PPG marketing manager and global color expert for architectural coatings, in announcing the Stain Color of the Year. “Black Walnut bridges the gap between those tones, exuding warmth without going into red hues. It’s a versatile shade that exudes elegance and welcomes guests with a warm embrace.”

Adley added that easier cleaning is of interest to users.

“Customers are trending toward lower VOC products, which provide easier cleanup after staining by simply using soap and water,” Adley noted.

“The wood coatings industry is trending toward making stain easier and safer,” Adley said. “PPG’s woodcare brands, including PPG Proluxe, Olympic, and Pittsburgh Paints & Stains, intend to ensure that pro and DIY customers have the information and tools they need to make the right purchase and feel comfortable using our products.”

“In terms of trending colors, we’re seeing a rise in the popularity of earthy hues with gray colors,” said Sue Kim, director of color marketing at Minwax. “This trend is pushing wood floor colors to lighten up and ensure the natural look of the wood comes through. As a result, consumers are turning to products like Minwax Wood Finish Natural, which has a hint of warmth with transparency that brings out the natural wood.

“Light gray on wood floors also pairs best with the earthy tone of living spaces. Combine grays with multiple colors on furniture or cabinets to bring in playful looks with Minwax Water Base Stain in Solid Navy, Solid Simply White, and the 2024 Color of the Year Bay Blue,” Kim added. “Additionally, demand for water-based wood stains, such as Minwax’s Wood Finish Water-Based Semi Transparent and Solid Color Wood Stain, is increasing due to their better drying time, ease of application, and reduced odor.”

“We continue to see the trend of ‘open space’ living expanding into the outdoors, including TV, entertainment, cooking – grills, pizza ovens, etc.,” said Henderson. “With this, we also see the trend of homeowners wanting their interior colors and spaces to match their exterior areas. From a product performance perspective, consumers are prioritizing ease of use and maintenance in order to keep their spaces beautiful.

“The rise in popularity of warm colors is another trend that we have seen in wood care coatings,” added Henderson. “This was one of the reasons why we added Chestnut Brown as one of the ready-made color options in our Woodluxe Translucent opacity.”

DIY Trends

During the pandemic, DIY projects flourished, but the trend of increased DIY spending as a result of people spending more time at home has slowed down a bit.

“The activity has somewhat slowed due to a confluence of various factors such as generally high inflation, high interest rates, and a difficult housing market with low units exchanged but at very inflated prices,” said Salahuddin. “However, we believe the fundamentals haven’t changed and spending will pick up after this period of stabilization.”

“We saw a large spike in the DIY segment when everyone was spending 100 percent of their time at home,” Henderson said. “Recently, the DIY segment has decreased as consumers have prioritized other necessities and experiences over home improvement.”

Adley noted that while the DIY stain market is still growing, the rate has slowed since the pandemic. Meanwhile, the Pro customer demand continues to be strong.

Michelle Bangs, senior brand manager at Dutch Boy Paints, noted that homeowners are staying put longer.

“Interest rates are playing a key role in keeping these owners with low rates in their homes, which is being coined the ‘lock-in effect’,” Bangs observed. “As homeowners stay in place, they will continue to seek affordable home updates, continuing to use paint as an easy and inexpensive way to make a big impact to transform their space.”