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September 7, 2015
By: Catherine Diamon
U.S. demand for paint and coatings is forecast to grow 3.8 percent annually to 1.4 billion gallons in 2019, valued at $31.5 billion. Gains will be driven by a strong rebound in construction activity, which will stimulate demand in the architectural market. Environmentally-friendly, low VOC paint and coating products will continue to see particularly strong growth as manufacturers develop new products to meet stricter government regulations and changing consumer tastes. Additionally, new technological advances, such as nanostructured coatings, will drive future growth as they open new applications by providing antimicrobial, self-cleaning, sound-dampening, anticorrosive, and light-emitting functions. These and other trends are presented in Paint & Coatings, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm. Architectural markets for paint and coatings will continue to be the main outlet for the industry, growing at an above average rate through 2019 as demand is driven by an improved outlook for both residential and nonresidential construction. According to analyst Joseph Kocian, “The fastest growth for paint is expected in new residential construction as housing completions rise at a double-digit annual pace, but demand in improvement and repair applications will increase as well.” Overall, demand for interior paint, which accounts for about two-thirds of the market, will outpace demand for exterior paint due to increased use of siding materials that do not require painting. Manufacturing coatings demand is forecast to reach nearly 400 million gallons in 2019, on annual gains of 2.4 percent. A rebound in construction spending will propel demand for related paint and coatings. The metal building components market will exhibit the fastest growth among manufacturing markets, benefiting from industrial and commercial expansion. The furniture and fixtures market will continue to account for the largest share of manufacturing coatings and will also grow at an above average pace. The motor vehicle market will experience subpar gains due to weak growth in light vehicle production. Maintenance and specialty coatings demand will exhibit below average growth going forward. Marine coatings will rise at the quickest rate, bolstered by increased commercial shipping activity and new antifouling technology.
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