AT $20.5 BILLION IN 2004
According to a new study by Kusumgar,
Nerlfi & Growney, Asian coating consumption
surged to 7.9 MM metric tons
(MT) with a sales value of $20.5 billion
in 2004. An eight percent annual
growth rate (AGR) is forecast for the
region through 2009.
China, Japan, South Korea and India
are the major coating consumers in
Asia, representing just over 80% of the
volume and dollars in Asia in 2004.
Japan’s and South Korea’s share of the
Asian coating market is projected to
decline. In 2004, the two countries combined
represented 27% of the tonnage,
but their share is forecast to fall to 20%
by 2009. During that time, the combined
share of coating tonnage for China and
India will rise from 54% to 63%.
China has recently surpassed Japan
to become the largest coating market in
Asia, accounting for 42% of the volume
and one-third of the dollars in the
region in 2004, according to the firm.
Demand in China is being propelled by
a strong housing market, infrastructure
building, the increased domestic consumption
of goods and growing exports.
Indian coating usage is also
expanding because of a strong housing
market and infrastructure building.
In addition, vehicle production in
India is rapidly increasing. However,
India is significantly behind China in
the manufacture of most goods utilizing
paint, according to the report.
Although Japan is currently the
largest consumer of automotive coatings
in Asia, China will surpass it by
2009. Japan has also lost its leadership
position in shipbuilding to
Korea, while both countries are facing
stiff competition from China.
Responding to low domestic growth
in recent years, Japanese coating
producers have expanded their presence
in other Asian countries,
according to the company.
For more information on the
report, contact Kusumgar, Nerlfi &
Growney at (973) 439-0030. CW