Welcome Guest to Coatings World    Login || Register
Last Updated Friday, October 31 2014
Print

$43.52 billion Asia Pacific paints and coatings market to grow at 11 percent



Published August 17, 2011
Related Searches: Market Trends & Forecast
Research and Markets has reported in Frost & Sullivan's "Strategic Analysis of the Paint and Coatings Market" that the $43.52 billion paints and coatings market in the Asia Pacific region will to grow at a steady compound annual growth rate (CAGR) of 11 percent to reach $53.55 billion in 2011.

The report says the paints and coatings market in the Asia Pacific has struck a purple patch due to the impressive growth in the end-user segments of construction, commercial, public buildings and residential real estate. The buoyant economic conditions in most Asia Pacific countries, especially in China and India, have had a bearing on the fortunes of these sectors and thereby on the paints and coatings market. The high inflow of foreign investments in these two countries and their reduced operating costs are greatly helping to increase the profit margins of operators in those countries. However, in countries such as Vietnam, Indonesia and the Philippines that have lower purchasing power, there is insubstantial demand for premium-grade and high-performance paints. Paint manufacturers' margins will also feel the pinch of the rising prices of raw materials.

Stringent environmental regulations have a role to play in limiting global paint trade, as the restriction on the use of hazardous materials in the paint composition limits product innovation, the report also says. Foreign investors will also be deterred by the unstable social, economic and political situation in a country. Domestic participants will have to find a way around investors' hesitation, as they will be eager for higher spending on brand development and management of products as Asians prefer well-recognised brands. One way to engage foreign companies is through merger and acquisitions with the local companies, says the analyst of this research. Such alliances will reduce foreign investors' cost of setting up a distribution hub in the country and enhance their product penetration in the local market. Companies could collaborate with national research centres to reduce the cost of R&D and ensure that product quality meets international standards.

Manufacturers in the more affluent countries have a more optimistic outlook, as consumers are highly appreciative of product innovations. Rising environmental awareness and the demand from the middle class population have popularised eco-friendly paints and coatings. Most of the decorative products available in the market are water-based and have low or almost zero levels of volatile organic compound (VOC) emissions. Dirt-resistant paints that are more durable are proving to be significant revenue generators, as are innovative heat-reflective paints in the tropical countries. Manufacturers will be looking to create a type of OEM coating product that can withstand various temperature and humidity conditions, notes the analyst. This will save manufacturers time and costs on the production of customized industrial products.


blog comments powered by Disqus
Receive free Coatings World emails
Sign up now to receive the weekly newsletter, and more!

Enter your email address:
Company Spotlight
Siltech Corporation
225 Wicksteed Avenue
Toronto, ON, M4H 1G5
Canada
View Profile
Houchi Chemical Co., Ltd
No.56, Fu Chow Street
Taipei, Taipei, 100
Taiwan
View Profile
Lubrizol Advanced Materials, Inc.
9911 Brecksville Road
Cleveland, OH, 44141
US
View Profile
AZ Electronic Materials Co., Ltd.
No. 458-6, Sinsing Road Hu Kou Township Hsinchu Country 303, Taiwan
Hsinchu Country, Taiwan, 303
Taiwan
View Profile
Sunin Machine Co., Ltd.
No.96, Chiao Ho Rd ,Chungho Dist
New Taipei City, Taiwan , 235
Taiwan Roc
View Profile
Shamrock Technologies, Inc.
Foot of Pacific Street
Newark, NJ, 07114
USA
View Profile
BASF Corporation
100 Campus Drive
Florham Park, NJ, 07932
US
View Profile
Keeneyes
18F, No.85, Sec. 1, Chung-Shiao E. Rd.
Taipei, Taiwan, 100
R.O.C.
View Profile
Micro Powders, Inc.
580 White Plains Rd.
Tarrytown, NY, 10591
US
View Profile
Follow Coatings World On