Table of Contents
India, China, and ASEAN Participants to Drive Growth
Demand for paints and coatings from Asia-Pacific will continue to be positive and is likely to gain impetus from macroeconomic factors. Key drivers include the forecasted recovery of the global economy in 2013, population growth, an increased focus by governments on infrastructure development, and the growth of the construction industry in emerging Asian economies. In this market outlook, Frost & Sullivan provides a snapshot of the Asia-Pacific paints and coatings market highlighting the future trends in the region. In addition, this research service analyses the key countries and paint segments which are driving growth so that paint companies can align their growth strategies along these trends.
• The paint and coatings industry is sensitive to the growth of gross domestic product (GDP), and tends to grow at X to Xtimes that of Asia-Pacific’s GDP.
• In 2012, global GDP was estimated to increase by X%, led by strong growth from China, India, and the Association of Southeast Asian Nations (ASEAN 5), which includes Malaysia, Indonesia, Thailand, Vietnam, and the Philippines.
• The developing countries in Asia had the highest GDP growth in 2012, with China and Indonesia driving the region’s growth at roughly % to % per annum. The developing countries are forecasted to maintain their growth in 2013 by having a GDP growth rate of X%.
• The overall paint and coatings demand from Asia-Pacific (APAC) will continue to be positive and is likely to gain impetus through macroeconomic factors such as the forecasted recovery of the global economy in 2013, population growth, an increase in government focus on infrastructure development, as well as the growth of the construction industry in the emerging Asian economies.
• Per capita consumption of paint and coatings was betweenX kilogram (kg) and X kg in Asia’s populous regions such as India, China, Indonesia, and Vietnam. The low paint consumption is indirectly showing a higher potential for growth from domestic demand.
• In 2013, the decorative coatings segment is projected to be the largest application area, accounting for approximately X% of the total market, followed by protective and marine coatings, making up X%, and automotive coatings accounting for X%.
• The Asia-Pacific paints and coatings market is projected to be worth $Xbillion in 2013, growing at X% year-over-year (YoY) from 2012. Revenue growth is likely to be fuelled by volume growth as well as increases in prices.
• In rapidly developing markets such as China and India, market leaders are dominating by focusing on volume sales at affordable prices. This helps build brand awareness and gain popularity and recognition amongst the masses.
• Nevertheless, premium products are also sold to boost profitability.
• Much of the focus is now shifting towards emerging markets, mainly Vietnam and Indonesia. Volume is the name of the game in these markets.
• Domestic suppliers resort to competitive pricing as the sole competitive strategy.
• Established paint manufacturers are leading through product offering and quality but also ensure they have a reasonably wide product range to cater to both low- and high-price needs.
• This Market Insight focuses on the Asia-Pacific paints and coatings market outlook.
• Different types of paints and coatings have diversified functionalities and application areas.
Therefore, the market can be segmented into the following in the region:
- Automotive original equipment manufacturers (OEMs)
- Automotive refinishing
- Can coatings
- Coil coatings
- Marine coatings
- Decorative coatings
- Powder coatings
- Protective coatings
- Wood coatings
- Other industrial coatings
This research service covers the following Asia-Pacific countries:
• Hong Kong
• New Zealand
• The Philippines
• South Korea
Global Economic Trends
• Growth in developing Asia has slowed down but is expected to grow at X% in 2013, which is X times that of global growth rates.
• Global growth slowed down in 2012 and will remain the same in 2013 at X%. Meanwhile Europe saw negative growth.
Market Drivers Explained
Buoyant Economic Conditions in Emerging Countries Such as China, India, Indonesia, and Vietnam will Increase Paint Consumption
• In 2012, Asia-Pacific experienced the highest GDP growth globally, with China driving the region’s growth at about X% to X% per annum. This growth will be sustained through 2013.
• The paints and coatings market in Asia-Pacific is faring well due to the impressive growth in the construction, commercial, public buildings, and residential real estate end-user segments. The optimistic economic conditions in most Asia-Pacific countries, especially China and India, have caused these segments to witness buoyant growth, thereby influencing the paints and coatings market.
• When the ASEAN Economic Community (AEC) comes into existence in 2015, the ASEAN region is likely to witness the doubling of foreign direct investments to about $X billion annually.
• The impact of this driver is expected to be high in the short term.
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