Lacquer Tree Processing Market

Lacquer Tree Processing Market Synopsis

Lacquer Tree Processing Market Size Was Valued at USD 125.0 Million in 2023, and is Projected to Reach USD 237.7 Million by 2032, Growing at a CAGR of 7.4% From 2024-2032.

The Lacquer Tree Processing Market which encompasses activities such as cultivation, extraction and processing of the lacquer tree is the most popular type of pearlescent DPS pigment produced mainly from the lacquer tree (Toxicodendron verticillium). The purified version of this sap is then utilised in the fabrication of natural lacquer coatings so effective for durability, appearance and protective purposes. It also includes synthetic substitutes and various products applied in furniture making, musical instruments, and industrial varnish making among other areas thereby making the global market important in the economy.

The Lacquer Tree Processing Market is a significantly rare yet vital category of the worldwide coatings sector founded on the ancient practice of ornamental art in East Asia. Today the market fulfills the purpose of separating modern industrial era demands and still maintaining its cultural core values by providing separated functional and artistic lacquerware forms. Natural lacquer which is characterizes by its bright, high-gloss sheen, inherent durability, water and chemical repellent properties are still valued in high end segments of furniture. However, synthetic lacquers serve necessities of high volume production because of efficiency of the product and variety of its usage.

The driving forces of the market are frequently identified as the prevalence of innovations based on environmentally friendly and green coatings, the renewed interest in the craft of traditional art, and the developments in the technological sector of lacquer processing. Some of the key end user industries include furniture where lacquer improves durability and appearance, musical instruments because of superior finish and several industrial coatings application that require high end product. This ability to appeal to tradition and contestation makes the market for lacquer tree processing to be seen as a dynamic actor in the coatings industry attracting the attention of artisans, manufacturers and industrial consumers.

Lacquer Tree Processing Market Outlook, 2023 and 2032: Future Outlook

Lacquer Tree Processing Market Trend Analysis

Trend: Rising Demand for Eco-Friendly Lacquer Products

Consumers’ awareness of sustainability increases gradually and affects various industries, including the lacquer one. Conventional lacquer derived from natural lacquer trees forms part of these environmental trends due to biodegradable influence in the manufacture of environmentally friendly apparels. This has led to reviving of interest in traditional craft of using lacquer especially in high end furniture and crafts. The actors interested in this trend are using marketing communication to appeal to consumers to buy natural lacquer products because they are authentic and environmentally friendly.

In addition, new advances in synthetic lacquer are aimed at minimizing VOC output of the product. Low VOC and water borne synthetic lacquers have a growing market in the industrial and commercial segments due to environment friendly coating with equal or higher efficiency compared to other coatings. This is not only being driven by regulatory change, but by a broad change in the consciousness of the consumer in relation to the sustainability of brands.

Opportunity: Expanding Applications in Industrial Coatings

The industrial segment is the most promising for lacquer products because of their superior quality characteristics such as high-gloss, durability and chemical resistance. As there is a large capital investment on infrastructure and manufacturing facilities especially in the developing world, the use of protective and decorative coatings is on the rise. Organosilicon and acrylic-based lacquer products are widely used in industrial machinery, automotive applications and construction products, where functionality, as well as appearance is a crucial factor.

Another of its uses is for insulating and protection of parts in electronics and telecommunication through the application of lacquered coatings. The market is experiencing a lot of mergers between the lacquer producers and the industrial manufacturing companies where they work together to provide specific solutions for special market segments. Such affiliations do not only improve product development but also help the market to penetrate into new growth sectors.

Driver: Resurgence of Traditional Art and Craftsmanship

In our processing of the lacquer tree market, it is important to indicate that there is growing interest in traditional art works or products in the art producing countries of the world such as Japan, China and Korea. There is an increasingly popular trend in the appreciation of craft and concern with cultural heritage which is becoming more and more prominent. High class consumers and luxury items producers have chosen natural lacquer due to the best quality, historical and beautiful outlook of the product making natural lacquer a valuable material for hand crafted furniture and artwork.

Nevertheless, there are positive changes that have driven lacquer artisans forward government support for culture exportation in many Asian countries. Besides such trends, this cultural renaissance is also fuelling attempts at reviving lacquer art with modern techniques. Consequently, the market is always in constant demand for superior quality of their lacquer products that have embraced tradition with modern fashion.

Restraints: High Cost and Limited Availability of Natural Lacquer

For all its desirable attributes natural lacquer presents one major set of economic problems here it is expensive to extract and the source of supply is restricted because of the scarcity of lacquer trees. Therefore, natural lacquer is made using highly skilled labor and techniques thus making its cost quite high and not suitable for the lowest ends. Additionally, Due to deforestation, and global warming and change in climate, the sources of raw material for the making of this product such as lacquer trees has reduced in some places.

The better substitute is the synthetic lacquers which are cheaper but do not possess many of the characteristics of natural lacquer and therefore are  not demanded in the higher price segment. These factors lead to a familiar market sensitivity of price that nullifies any perceived value accorded to natural products.

Lacquer Tree Processing Market Segment Analysis

Lacquer Tree Processing Market Segmented on the basis of product type, application and processing technique.

By Product Type

o   Natural Lacquer

o   Synthetic Lacquer

o   Others

By Application

o   Furniture

o   Musical Instruments

o   Industrial Coatings

o   Others

By Region

o   North America (U.S., Canada, Mexico)

o   Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)

o   Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)

o   Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)

o   Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)

o   South America (Brazil, Argentina, Rest of SA)

By Product Type, Natural Lacquer segment is expected to dominate the market during the forecast period

Natural Lacquer continues to maintain its near monopoly in the higher end of the market where consumers are willing to pay premium price for the product’s look and feel in addition to its sustainability characteristics. However, the high cost and availability are extremely confined to constrain the use of this material in restricted application like in the luxury furniture and some selective inventions of artisans. Further investigations are being conducted in cultivating and extracting methods in order to support the large-scale production of natural lacquer.

It must be noted that currently Synthetic Lacquer has a fairly extensive offer in the mass market due to the availability and applicability of this coating. As technology in polymer science improved, various synthetic lacquers were formulated to give the almost similar properties to the natural lacquer. They are broadly employed in industrial and commercial settings, as they provide a usability-based product to the consumer.

By Application, Furniture segment expected to held the largest share 

Furniture remains the largest application segment because the utilization of lacquer offers a protective and aesthetic value. Thus, from among the furniture manufacturers, the ones who produce expensive furniture use natural lacquer because of the glazing effect and the look of it, whereas synthetic lacquers dominate among the inexpensive furniture manufacturers.

Industrial Coatings are rapidly gaining market significance as more users require robust durable and high performance coatings for portions of machinery, auto parts and construction equipment among others. For synthetic lacquers, their multipurpose nature along with continuing improvements in the varnish’s kinds, makes them increasingly used in this segment. 

Lacquer Tree Processing Market Regional Insights

Asia Pacific  is Expected to Dominate the Market Over the Forecast period

The leading regional market for the lacquer tree processing is the Asia-Pacific region because of the region’s history, resources, and development of manufacturing industries. China, Korea and Japan are the most important producers of natural lacquer; their traditions boast of hundreds of years and still determine the quality of the material. These countries are also involved in exporting lacquer products to international market, as is evident from the following table.

The position is also supported by the fact that the region’s consumers’ demand for lacquer-based products grows in industrial and artisanal fields. Other factors such as government incentives to promote cultural export and investments into experimenting over sustainable lacquer source also fuel the growth of the market in this region.

Lacquer Tree Processing Market Share, by Geography, 2023 (%)

Active Key Players in the Lacquer Tree Processing Market

o   Nihon Urushi Co., Ltd. (Japan)

o   Jiangxi Jinhu Lacquer Co., Ltd. (China)

o   Kansai Paint Co., Ltd. (Japan)

o   Asian Paints Ltd. (India)

o   PPG Industries, Inc. (United States)

o   Sherwin-Williams Company (United States)

o   Akzo Nobel N.V. (Netherlands)

o   Axalta Coating Systems (United States)

o   BASF SE (Germany)

o   Nippon Paint Holdings Co., Ltd. (Japan)

o   RPM International Inc. (United States)

o   Tikkurila Oyj (Finland)

o   Other key Players

Global Lacquer Tree Processing Market Scope