The market value is projected to reach $57.8 billion by 2024, exhibiting a CAGR of 6.4 percent during 2019-2024.
The interior coatings market grew at a moderate rate in 2019, with improved growth forecasted for 2020, according to Erin Lageman, PPG associate marketing manager. “Homeowners are increasingly leaving the painting to the professionals, and we expect this segment to outpace the do-it-yourself (DYI) segment in 2020 and beyond. The total market continues to grow, driven by commercial construction, and commercial and residential maintenance. The slight rebound in the existing housing market in the last quarter of the year will also have a positive impact.”
Referring to the EMEA, Latin America and Asia regions, Kathryn Ledson, AkzoNobel global marketing director noted that demand trends differ per region and segment in an uncertain macro-economic environment. “For our decorative paints business, our Q3 results showed that revenue was up in all regions and pricing initiatives were offsetting higher raw material costs, resulting in a return on sales up at 13.8 percent.”
Lageman said there are various factors driving growth in the interior coatings market. The move from DIY to pro is one factor.
The aging Generation X is now more likely to hire a pro, the easiest way to get the job done quickly with the best possible results. Dual-income families who have more disposable income but are pressed for time are also hiring pros.
“Of note, homeownership rates have dropped over the last decade in every age group,” Lageman added. “Millennials tend to live at home or rent longer before purchasing their first home. Housing inventory for entry-level homes is low, which has delayed homeownership among younger generations but driven volume in maintenance. However, in the next few years, millennials will be the largest generation to enter the housing market, which should greatly affect the home improvement and paint categories. While the housing market is still healthy, we expect the number of new builds to start to slow down.”
“A strong economy also sustains ongoing maintenance cycles for commercial buildings such as offices, hotels and retailers,” Lageman noted. “We anticipate that professional sales will outpace DIY and that the commercial and institutional construction market will still be in growth mode. Due to these factors, economic indicators are favorable for the interior architectural coatings industry in 2020.”
“Market demand differs per region, but the environmental and societal impacts of urbanization are generally leading to smaller and flexible living and working spaces, where our design expertise and products are really helping people make the most of their environments,” said Ledson. “As with many other industries, we are also finding that people’s expectation to have instant solutions is growing, and tools such as our Visualizer app are helping consumers and decorators narrow down color choice in the comfort of their homes.”
Emerging markets such as India, SE Asia and Africa continue to have an impact on the interior coatings market.
“The increase in disposable income in India, Southeast Asia and Africa has had a positive but limited impact on the interior coatings market,” said Brad Wheeler, director – Alternate Channels at Dunn-Edwards. “First the limited impact – it is unknown how much of the disposable income is going into interior finishes such as architectural coatings resulting in an increase in sales for interior coatings. However, it is known that American-made brands such as Dunn-Edwards and others are often considered to be makers of high quality and eco-efficient products with highly desirable color palettes. It is quite common for the super-wealthy in those economies to showcase imported luxury interior finishes in private residences as well as high-end commercial spaces. Further, Western design sensibilities are also becoming more of a curiosity, and there is evidence of increasing the promotion of broadening design aesthetics in those markets. There are malls in China for the super-wealthy and high-end commercial real estate elite showcasing everything from $500 doorknobs to $150 per gallon paint.”
According to Wheeler, “the positive impact is two-fold: paint companies exporting to those economies are enjoying incremental sales – just how much is anyone’s guess and in time, the tastes of the wealthy often find their way down to the mass market – particularly when the benefits of higher quality and healthier products become increasingly desirable and affordable to the majority of consumers. This will likely be true with interior coatings. Whether exporters of U.S. paint brands want to make a brand extension to target other income segments in those economies remains to be seen; the costs of freight will always put a premium on such goods; indeed, most export manufacturers will be concerned that a lower-priced product will alienate their high-end niche customers. Local manufacturers will likely pick up that slack and start making higher quality and environmentally friendlier coatings – which is overall, a positive impact in the long term for the interior coatings market.”
“There will be a positive impact on the interior coatings market in the Asia Pacific region due to growing disposable income, therefore driving demand from the DIY customer and pro painters,” added Mae Tan, PPG strategic planning manager, Asia Pacific. Consumers will have the means to paint or repaint more often, by either DIY or hiring a professional.”
With an increased focus on sustainability and stricter regulations in regions such as China, Western Europe and the U.S., consumers are becoming more aware of the benefits of buying premium paint products. Sustainability is increasingly becoming more important in consumer’s day to day lives.
“At PPG, our scientists and engineers come together to develop breakthrough technologies to protect and beautify the products and surroundings that we all rely on every day,” said Lageman. “PPG has several products that are UL GREENGUARD Certified for low chemical emissions to reduce indoor air pollution. We ensure these products are unmistakably labeled for consumers who are seeking eco-friendly protection.”
One example is PPG Paints PURE PERFORMANCE paint. This premium low-odor, zero VOC* paint is formulated to provide excellent hiding and application properties.
Designed to meet the performance requirements of the institutional, commercial and residential markets, this product is ideal for use in occupied areas such as homes, schools and government facilities. (*Colorants added to this base paint may increase VOC level significantly depending on color choice.)
“As a leader in sustainability, AkzoNobel has a continuous commitment to sustainability, and as such, there are a number of exciting new innovations across the globe that have been launched to meet the needs of customers,” said Ledson. “For a number of years, China has been leading the way with advanced and eco-friendly paint formulas where we have introduced international environmental protection certifications, pushing the standards for eco-friendly paints to an even higher level. Besides plant-based formulations, our Dulux paint brand has also exclusively developed an additive-free formula, promising no formaldehyde, benzene or other volatile organic compounds (VOCs) are added in the raw materials, product formulation and production process.”
AkzoNobel has also become the first major manufacturer to launch recycled paint, thanks to a partnership in the UK with resource management experts Veolia.
The Evolve matt white emulsion contains 35 percent recycled paint but has been re-engineered and tested to meet the same standards expected from Dulux Trade.
Benjamin Moore is dedicated to developing products that are effective, safe and minimize impacts on the environment and are committed to the long-term sustainability of the environment.
For example, Benjamin Moore has been working to reduce VOC emissions from its paints by reducing the VOCs in its paints, reformulating various product lines and discontinuing high VOC product lines. Benjamin Moore’s lowest VOC paints include Aura, Regal Select, ben, Natura, Waterborne Ceiling Paint, Eco-Spec WB and Ultra Spec 500.
While sustainability and quality are important factors for consumers to consider when choosing an interior coating, color choice tops the list. Coatings makers need to stay ahead of the latest color trends.
In September, AkzoNobel announced its Color of the Year 2020 – which captures this year’s theme of the “human touch.”
“2020 marks the start of a new decade and in an increasingly hectic and digital world, there is a desire for meaning,” explained Ledson. “Inspired by the colors of the morning sky, our color experts have created an inspiring new shade, Tranquil Dawn. It is somewhere between green, blue and grey and is a versatile color that seems to change according to the tones that it’s used with – it can work in different ways in a warm, neutral, soft or bright palette. It is being marketed across the globe under our well-known decorative paints brands such as Dulux, Coral, Levis and Flexa.”
While Color of the Year is of major significance for the decorative paints market, the insight that is gathered is also highly relevant to the company’s coatings portfolio, Ledson noted.
“For example, the Specialty Coatings business translates the annual trend research for customers in the consumer electronics and automotive markets. Meanwhile, color stylists in Wood Coatings use the information to offer on-trend color selections for product developers and designers in major markets such as furniture, cabinetry, flooring and building products.”
Color experts at Benjamin Moore report that for 2020, colors that are upbeat and fresh while easy to live with are showing up in everything from wall colors, to furnishings and fabrics
The Color Marketing team at Benjamin Moore took note of many colors in its travels, but the hues that stood out the most are First Light 2102-70, a soft blush hue that has been named its Color of the Year 2020, along with soft greens such as Crystalline AF-485 and Cushing Green HC-125, and from the blue family Windmill Wings 2067-60, Oxford Gray 2128-40, and Blue Danube 2062-30 captured the color sensibility observed across design shows and industries.
Dunn-Edwards Color Expert + Stylist, Sara McLean, said to expect to see an explosion of bright, deep colors next year as we welcome in a new decade that promises to be filled with optimism and joyful life experiences.
“Our 2020 Color and Design Trends Report, Optimistic Endeavors, defines five key themes of how culture has influenced the design world: The Silk Road, where East meets West, evoking exotic ornamentation and riches,” McLean said. “With influences from Asia and historic royal Russian cultures, we’ll see Neo-Baroque and Art Deco expressed in both simplicity and extravagance; Fresh and Free reflects a healthy lifestyle with comfortable denim and chambray, and a clean, light palette. Think dreamy soft, milky, mint green and ice blue; Neu Traditions.
Feminine softness paired with girl power. This trend embodies a desire for history and vintage looks, with glamour redefined. Modern and traditional emerge bold and sophisticated, yet somewhat feminine. This is the story of neutrals; Co-Habitants. Especially strong is a global influence, with a snapshot of cultures and nature from around the world – neutral palettes eco-colors, animal patterns and masks. Textures of cotton, wood, bamboo and even snakeskin will rule; and Playtime, inspired by summer vibes with tropical, Caribbean and Mexican influences. Think bright, fruity colors.”
According to Dee Schlotter, PPG senior color marketing manager, with society’s need for simplicity and escapism from technology on the rise, PPG’s global color experts hand-selected Chinese Porcelain (PPG1160-6), an energetic blend of moody, ink blue as the PPG paint brand’s 2020 Color of the Year.
“Inspired by nature, Chinese Porcelain imparts calmness and restful sleep while also offering the spirit of hopefulness into any space in the home,” she said. This blue is the entry point from a world of neutrals to the world of color.
“This rich, traditional hue provides the perfect, agreeable backdrop for vivacious colors to pop,” she added. “It can also act as a feature color in a bedroom with crisp white bedding and crown molding to provide a sharp contrast. In living room space, layer the hue with additional blues in tufted and velvet furniture, or pair with leather accents and dusty sand tones for an attention-grabbing look.”
Other key colors for 2020 include Nutmeg (PPG1068-6), a muted, rusty orange; Life Lesson (PPG1128-3), a soft, neutral, pasture green; Kangaroo Paw (PPG1060-3), a soft, millennial pink; Gooseberry (PPG1048-7), a dark, shaded, raspberry chocolate purple; and Cool Concrete (PPG1023-2), a light, gray, yellow greige with a green undertone. All these colors represent a connection to nature and a botanical and nostalgic style.
Interior paint and coatings have launched several new products.
AkzoNobel said it consistently innovates to give its customers choice and competitive advantage through product and service offerings designed to bring tangible benefits.
“In addition to pioneering products with recycled content like Dulux Evolve and the first bio-based interior wall paint in China, Dulux Forest Breath, we have been continuously improving our durable ranges, Dulux Easycare & Sikkens Rezisto,” said Ledson.
“We have also been proud this year to launch New Best-in-Class water-based trim formulations for both consumers and decorators, meeting the growing demand for sustainable customer solutions as well as launching Xtreme stay clean technology for woodcare. In addition to these formulation launches, customers who rely on super-accurate and color matching can now take advantage of a newly launched digital Color Sensor, which helps professional painters match their clients’ color choices in seconds. This is a perfect addition to our award-winning
In 2019, Benjamin Moore launched Ultra Spec SCUFF-X Semi-Gloss and its Benjamin Moore and The Alpha Workshops Capsule Collection. Award-winning Ultra Spec SCUFF-X is a revolutionary, single-component paint that resists scuffing before it starts, according to the company. Built for professionals, it is engineered with cutting-edge protection against scuffs.
The Alpha Workshops Capsule Collection consists of 15 wallpapers – five patterns realized in three lustrous colorways – featuring Benjamin Moore premium paints.
A team of dedicated artisans from nonprofit decorative arts studio The Alpha Workshops collaborated with longstanding partners Benjamin Moore to create a collection of hand-painted wall coverings. Engineered with design industry professionals in mind, the collection includes CENTURY, Aura and Studio Finishes paints.
In 2019 Dunn-Edwards added an additional sheen (Low Sheen) to its ARISTOSHIELD paint line. ARISTOSHIELD is an ultra-premium, interior/exterior, ultra-low VOC enamel formulated with advanced water-based urethane alkyd. The entire line has superior chalking resistance, gloss loss resistance, blocking resistance, and corrosion resistance (can be applied as DTM).
ARISTOSHIELD has excellent application properties that produce and oil-like finish. With the addition of the new Low Sheen finish, it is now available in Eggshell, Low Sheen, Semi-Gloss, and High Gloss finishes, making it one if not the most complete line of hybrid technology coatings in the industry, according to the company.
PITTSBURGH PAINTS AND STAINS by PPG has increased productivity with a new technology that is the solution to tough paint projects, FASTDRY – available exclusively at Menards retailers. FastDry is a premium, fast-drying waterborne acrylic that covers nearly everything inside and outside the home.
This paint dries to the touch in 15 minutes and can be recoated in about two hours, making it ideal for cabinets, doors, trim, window frames, shelving and other intricate projects.
The highly block-resistant formula also provides a tack-free finish that prevents sticking and delivers a durable protective shell to shield against everyday wear and tear on the most difficult substrates including fiberglass, wood, ceramic tile, laminate and metal. FastDry stands up against repeated exposure to most light-duty industrial cleaners and is for professional use only.