The demand for paint and coatings in the United States is expected to rise nearly eight percent annually through 2015, according to a study by The Freedonia Group, a Cleveland-based market research firm. The market is expected to expand strongly in both volume and value terms, rebounding from the declines of the recession-impacted 2005 to 2010 period.
However, the U.S. paint and coatings industry will continue to be impacted by the trend toward sustainability, and growing environmental concerns will subject manufacturers to increasingly stringent government regulations. As a result, paint and coating suppliers will continue to invest heavily in the development of innovative, higher-value formulations.
The large architectural market will grow at an annual rate of close to 11 percent through 2015, reaching more than $14 billion.
Demand will be promoted by renewed strength in the housing market, particularly as home-building activity rebounds from low 2010 levels. The interior paint market will remain larger and grow faster than its exterior counterpart.
Sales of paint and coatings in manufacturing markets will expand at a respectable rate through 2015, reversing the downward trend of the 2000 to 2010 period. Among the various market segments, furniture and fixtures will enjoy one of the best growth prospects, and will remain the leading outlet for coatings over the forecast period, according to the report.
In 2010, the global market scale of coatings hit about USD$90 billion and is expected to grow around 10 percent to USD$99 billion in 2011. Building decorative coatings accounts for approximately 45 percent of the total market, the most among all coatings.
Vehicle coatings present the second largest application area, making up roughly 15 percent, of which, OE and refinish coatings occupying about 50 percent and 45 percent respectively.
Protective and marine coating represents the third largest application field, accounting for about 12 percent. General industrial coating makes up roughly 10 percent, followed by powder coating, wood coating, coil coating and packaging coatings.
Geographically, China topped the world in terms of infrastructure and real estate investment, as well as automotive manufacturing, so China is no doubt the world’s largest coatings market. The market scale of coatings in China is approximated at USD$18.9 billion in 2011, 54 percent of which was attributable to decorative coatings. In 2011, although the Chinese market was suppressed by national policy, real estate still remained strong. From Jan. to Sep. 2011, the domestic real estate investment totaled RMB4.42 trillion, up 32 percent from the year before.
During the five-year period 2011-2015, the Chinese government plans to complete 36 million suites of affordable housing. Among them, 10 million suites will be built in 2011 and 2012 respectively, and the remaining 16 million suites will be established between 2013 and 2015. It is estimated that China’s real estate market is likely to rebound after the long-term suppression, and the market size of decorative coatings in China will exceed USD$12 billion.
While China is the world’s largest coating market, its domestic coating enterprises are small-scale, the market being dominated by large multinational firms. The number of domestic coating companies surpasses 2,500, while their revenue together only accounts for 11 percent of the Chinese coatings market. Among them, Guangdong Carpoly Chemical Co., Ltd. is the largest one and its revenue in 2011 is expected to register roughly USD$350 million.
AkzoNobel, the world's largest coating manufacturer, is well known for its Dulux paint in China, which occupied the second largest share in the Chinese market and ranked No.1 in the real estate pre-decoration area.
Valspar is the controlling company of Guangdong Huarun Paints, one of the largest coating manufacturers in China.