Creosote Oil Market Industry Overview, Business Strategies and Forecast 2026

Posted by anagha on February 28th, 2019

Creosote oil is produced from distillation of tar and pyrolysis of plant sourced products such as wood or fossil fuel.  It is extensively used for oil paint, wood aseptic, carbon black, printing ink, latex filling, and pharmaceuticals. It can be classified depending upon the source from which it is derived such as wood, coal and/or creosote bush. Creosote oil is widely used as a remedy against diabetes, hemorrhoids, tooth decay, gallstones, kidney stones, acne and pimples, wounds, and body pain. Other applications of creosote oil include food preservation and fuel for lighting lamps. Creosote oil derived from creosote bush has different compounds and nutrients with medicinal value due to its high antioxidant properties. Creosote oil derived from creosote bush is herbal oil and is associated with antiseptic, analgesic and diuretic properties.

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Market Dynamics 

Increasing demand for creosote oil in the industrial sector is expanding its spectrum of application throughout industries such as paint, printing, and furniture. According to a study by the North Carolina State University in 2014, the home furniture market in the U.S. was expected to reach over US$ 85 billion by 2017. Environmental consciousness among the educated populace is increasing the demand for sustainable product, due to which wood furniture is gaining maximum preference over metal and plastic products. The study also stated that, in 2012, European Union imported around $ 4,122 million worth wood furniture products. Wood furniture manufacturers in China generated revenue of around US$ 100 billion in 2017, an increase by 12% from 2016.

Wood preservation is a major application of creosote oil, as creosote oil treated wood is widely used in railroad sleepers, poles of electric or telephone lines. Coal tar is more efficient than wood tar for wood preservation.

Properties of creosote oil vary depending on its source and application. Creosote oil derived from wood tar is used as a food preservation agent for meat. Coal tar creosote oil is toxic and hence is not used for medicinal purposes, however, widely used for preservation of wood and wooden furniture.

Creosote oil is widely used in the printing industry for printing inks and carbon black

Creosote oil is widely being adopted in the pharmaceutical industry, owing to its antiseptic, laxative anesthetic, expectorant, anti-acne, analgesic, anti-neuritic, and astringent properties. It can also be used as a protection from the sun.

Creosote oil is not harmful to human health when it is properly disposed off. However, accidental spillage, misuse, and improper disposal may lead to potential hazards to human health like skin and eye irritation.

Market Outlook

Among end-use industries, the pharmaceuticals segment is projected to gain significant traction in the market over the forecast period, owing to rising demand in the medical industry.

Wood aseptic industry is also reaching a new horizon with expanding construction industry due to increasing population.

Among source type, the creosote bush segment holds a dominant position, owing to its wide medicinal use spectrum.

North America accounted for highest revenue share in the global creosote oil market in 2017 due to increasing commercial and residential construction in the region and is projected to lead the market size throughout the forecast period. In North America, the U.S. is most lucrative market for creosote oil. Forecast report published by Oldcastle Business Intelligence in October 2017, stated that U.S. Construction industry is expected to grow almost 5% in 2018.

Europe accounted for the second-largest market due to emerging central and eastern European countries’ medical and construction industry and the trend is projected to continue over the forecast period.

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Key players in Global Creosote Oil Market

Key players operating in the global creosote oil market include Cooper Creek, ArcelorMittal S.A., Mitsubishi Chemical, RUTGERS Group, Sandvik Materials Technology, Epsilon Carbon, Himadri Chemicals & Industries, JFE Chemical Corporation, Stella- Jones, KMG Chemicals, Sceneys, Jalan Chemicals & Carbons, Huanghua Xinnuo Lixing, Konark Tar Products, AVH Pvt. Ltd, and Ganga Rasayanie

Leading market players are seeking source suppliers to manufacture creosote oil, to satisfy rising demand from consumers. For example, ArcelorMittal announced in January 2017 that, Koopers and ArcelorMittal entered into a long-term contact for coal tar supply through 2026. Koppers will purchase coal tar, which is a byproduct of ArcelorMittal coke plants located in the U.S. This contracted volume is expected to meet the growing demand for domestic raw material to manufacture creosote.

Consumption of coal tar derived creosote oil has been witnessing rapid growth because of wood and wooden furniture applications to meet the need from construction industry.

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