By Liz White, UT editor
Palo Alto, California-"Growing domestic demand for wood furniture along with the spurt in wood furniture exports," are likely to promote growth in the Chinese wood coatings markets, says market research group Frost & Sullivan.
F&S said the Chinese furniture association estimates the value of furniture exports at $13000 million for 2005, with a year-on-year growth rate of 37 percent. A closer examination reveals wood furniture to be dominant in Chinese exports, adds F&S, while wood furniture also accounts for "a significant proportion of a rapidly expanding domestic market." All of this promises "healthy demand for wood coatings," said F&S, whose new analysis (www.chemicals.frost.com ), 'Chinese Wood Coatings Markets,' reveals that revenue in this market totaled $1680 million in 2005 and could reach $3580 million in 2012.
"In addition to the growing demand for wood furniture, the rapid development of the Chinese real estate market is also likely to drive the demand for wood coatings in China," notes Frost & Sullivan research analyst Louise Zhao, in the company statement.
"Increasing urbanisation of urban and metropolitan areas is giving rise to new commercial, residential and entertainment-related constructions that will require wood coatings for their furniture and interior decoration needs," Zhao added.
Polyurethane coatings took 60 percent of the domestic wood coatings market in 2005, and are expected to maintain, and even increase this share over the forecast period.
F&S said nitro cellulose coatings dominated in wood furniture exported to the US. Water-based coatings, still in an early development stage, are seen to hold "tremendous growth potential for the future," the group adds.
Challenges in the business include "the imposition of rigorous new regulations, especially in relation to environment protection," F&S pointed out.