Press release
Africa Creosote Oil Market foreseen to grow exponentially over 2027
Africa Creosote Oil Market: IntroductionThe creosote oil market in Africa was valued at ~US$ 32 Mn in 2018 and is anticipated to expand at a CAGR of ~3% from 2019 to 2027. Creosote oil is an extensively used wood preservative substance in Africa. It helps protect wood from environmental degradation and enhances its overall resistance from insect species. In terms of demand, South Africa held a dominant share of the creosote oil market in Africa in 2018. In terms of value, the creosote oil market in South Africa is expected to expand at a CAGR of more than 2.8% during the forecast period.
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Key Drivers of Africa Creosote Oil Market
Africa is a developing region with expanding population. Therefore, demand for electricity infrastructure is high in Africa. Increase in electricity infrastructure is driving the demand for utility poles for electricity transmission. Creosote oil is primarily used to treat timber poles that are used for a wide variety of applications such as utility poles and poles for fences. Thus, increase in demand for treated timber is anticipated to fuel the demand for creosote oil in the near future. This is estimated to propel the creosote oil market in Africa in next few years.
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Coal Tar Creosote to Hold Major Share of Africa Creosote Oil Market
Based on source, the creosote oil market in Africa has been segmented into coal tar creosote and wood tar creosote. The coal tar creosote segment is expected to hold major share of the creosote oil market in Africa during the forecast period. The growth of the coal tar creosote oil can be ascribed to its beneficial properties such as weather resistance and termite resistance. The wood tar creosote segment is also anticipated to expand due to the increase in demand for wood tar creosote in medical applications. Demand for wood tar creosote is anticipated to expand at a considerable pace during the forecast period, owing to various health benefits offered by this creosote oil.
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South Africa to Dominate Africa Creosote Oil Market
South Africa is anticipated to dominate the creosote oil market in Africa during the forecast period. The creosote oil market in the country is projected to expand at a CAGR of more than 2.7% during the forecast period. The country accounted for major share of the creosote oil market in Africa in 2018. High share of South Africa can be ascribed to the presence of key manufacturers of creosote oil in the country. Additionally, countries other than South Africa do not have the facilities to treat timber using creosote oil. Rest of Africa constituted a relatively smaller share of the creosote oil market in Africa in 2018. This can be ascribed to the extensive usage of chromated copper arsenate (CCA) for the treatment of timber poles in countries in Rest of Africa. However, the sub-region is anticipated to offer lucrative opportunities for importers of creosote-treated poles in the near future due to the expanding building & construction sector in countries such as Zambia and Ethiopia. This is expected to drive the demand for creosote oil in Rest of Africa in the near future.
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Market Share of Prominent Players
Key players operating in the creosote oil market in Africa are FFS Refiners (Pty) Ltd, ArcelorMittal South Africa Ltd., and Industrial Distillers & Refiners. The creosote oil market in the region is highly consolidated. Major players are extensively engaged in new product launches to increase their presence in the market. FFS Refiners (PTY) Ltd. constituted significant share of the creosote oil market in Africa in 2018, led by the company’s constant efforts toward production optimization and new product launches. Furthermore, the company is the largest producer of creosote oil for wood preservation in South Africa. It manufactures creosote oil at the Evander facility in South Africa.
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