Allied Market Research03.18.21
Egyptians have a long history of offering the world something as innovative as Egyptian Blue. Thanks to the boom in R&D and novel technologies, the Egypt paints & coatings industry is on the verge of revolution.
The rise in adoption of novel technologies and increased R&D to improve the performance and durability of paints & coatings are the key drivers for the growth of the market in the Middle East. According to Allied Market Research, the Egypt paints & coatings industry is expected to reach $3.6 billion by 2027, growing at a 7.9% CAGR from 2020 to 2027. The sharp rise in construction activities and a surge in demand for heat and UV-resistant coating products open lucrative opportunities for the market players in the region. However, the Covid-19 outbreak surely made things difficult for market growth.
Covid-19 impact on Egypt paints & coatings market
For more than one year, the world has been dealing with unprecedented circumstances. No government had a roadmap to deal with the outbreak of coronavirus and as a result majority of the countries had to take extreme steps to curb the spread of the virus. Furthermore, several governments declared a complete lockdown, which potentially hampered the growth of the paints & coating industry.
The prolonged lockdown and the sudden decline in the growth rate of industries including construction, transportation, automotive, and oil & gas, and energy was witnessed across the Middle East. What’s more, ongoing construction projects came to standstill or were canceled altogether. This severely hampered the demand for paints & coatings as these industries play an instrumental part in interior & exterior coating applications.
Apart from this, the international ban on travel resulted in a significant reduction in trade activities and tourism, which are prime aspects of the country’s GDP. The Covid-19 pandemic is responsible for decreasing Egypt’s national GDP by 0.7–0.8% for every month in 2020, as per the International Food Policy Research Institutes, Egypt. However, the gradual end of the lockdown is estimated to revive the economy and fuel the declining growth of the Egypt paints & coatings industry.
Novel developments in the paints & coating industry
While the market players have experienced ups and downs during the pandemic, some companies considered the pandemic as an opportunity to launch new products. For instance, PPG Industries, Inc., recently partnered with Corning Inc. to develop a paint product that kills coronavirus. Corning’s novel glass-ceramic technology is said to kill more than 99.9% of the virus, including Covid-19. The technology underwent EPA-approved tests to demonstrate its antimicrobial properties.
Apart from this, the company unveiled several products such as PPG SANISHIELDTM and PPG AQUACOVER. The PPG SANISHIELDTM 3000/5000 two-part polyurea coating systems were recently launched for those areas where easy maintenance and quick installation is vital. The coating systems enable to fill minor cracks and improve surface durability and integrity along with gloss retention for the brighter surface.
PPG AQUACOVER is a waterborne coating system that delivers excellent build quality and anti-corrosion property for shipping containers. As per the company, the waterborne coating system can offer a smooth finish and high gloss. In addition, the coating is odorless and toxic, which enables around 65% reduction in emission of volatile organic compounds (VOCs).
Future of paints & coatings industry
The success of paints & coatings lies with the adoption of the latest technology to meet customer demands. The shift in consumer demand for eco-friendlier products and the surge in popularity of sustainable products is expected to create a major impression on the innovations in paints & coatings. Currently, the demand for smart coating is on the rise, and anti-corrosion and anti-bacterial coatings are regarded as the next-big-thing in the coatings market.
Similarly, the demand for interior decoration has increased across the Middle East due to a rise in disposable income and an increase in the standard of living. This has increased the demand for low-odor interior paints. Thus, companies must consider the odor and aesthetic aspects of the decorative paints along with their performance to meet customer requirements.
On the other hand, customers demand smart functionality, high performance, enhanced productivity, and the long life of paints & coatings. In addition, the market players have invested big bucks in reducing maintenance costs. On the other hand, environmental concerns have drastically changed the use of raw materials in paints and coatings. More and more companies have launched waterborne decorative and automotive coatings.
The major market players in the industry have focused on reducing carbon footprint without compromising the quality of the product. Thus, the launch of waterborne, powder-based, and even plant-based coatings have increased. These paints and coatings are lower in carbon footprint compared to their traditional alternatives. Thus, in the future, the switch to green technology is inevitable.
For more information click here.
The rise in adoption of novel technologies and increased R&D to improve the performance and durability of paints & coatings are the key drivers for the growth of the market in the Middle East. According to Allied Market Research, the Egypt paints & coatings industry is expected to reach $3.6 billion by 2027, growing at a 7.9% CAGR from 2020 to 2027. The sharp rise in construction activities and a surge in demand for heat and UV-resistant coating products open lucrative opportunities for the market players in the region. However, the Covid-19 outbreak surely made things difficult for market growth.
Covid-19 impact on Egypt paints & coatings market
For more than one year, the world has been dealing with unprecedented circumstances. No government had a roadmap to deal with the outbreak of coronavirus and as a result majority of the countries had to take extreme steps to curb the spread of the virus. Furthermore, several governments declared a complete lockdown, which potentially hampered the growth of the paints & coating industry.
The prolonged lockdown and the sudden decline in the growth rate of industries including construction, transportation, automotive, and oil & gas, and energy was witnessed across the Middle East. What’s more, ongoing construction projects came to standstill or were canceled altogether. This severely hampered the demand for paints & coatings as these industries play an instrumental part in interior & exterior coating applications.
Apart from this, the international ban on travel resulted in a significant reduction in trade activities and tourism, which are prime aspects of the country’s GDP. The Covid-19 pandemic is responsible for decreasing Egypt’s national GDP by 0.7–0.8% for every month in 2020, as per the International Food Policy Research Institutes, Egypt. However, the gradual end of the lockdown is estimated to revive the economy and fuel the declining growth of the Egypt paints & coatings industry.
Novel developments in the paints & coating industry
While the market players have experienced ups and downs during the pandemic, some companies considered the pandemic as an opportunity to launch new products. For instance, PPG Industries, Inc., recently partnered with Corning Inc. to develop a paint product that kills coronavirus. Corning’s novel glass-ceramic technology is said to kill more than 99.9% of the virus, including Covid-19. The technology underwent EPA-approved tests to demonstrate its antimicrobial properties.
Apart from this, the company unveiled several products such as PPG SANISHIELDTM and PPG AQUACOVER. The PPG SANISHIELDTM 3000/5000 two-part polyurea coating systems were recently launched for those areas where easy maintenance and quick installation is vital. The coating systems enable to fill minor cracks and improve surface durability and integrity along with gloss retention for the brighter surface.
PPG AQUACOVER is a waterborne coating system that delivers excellent build quality and anti-corrosion property for shipping containers. As per the company, the waterborne coating system can offer a smooth finish and high gloss. In addition, the coating is odorless and toxic, which enables around 65% reduction in emission of volatile organic compounds (VOCs).
Future of paints & coatings industry
The success of paints & coatings lies with the adoption of the latest technology to meet customer demands. The shift in consumer demand for eco-friendlier products and the surge in popularity of sustainable products is expected to create a major impression on the innovations in paints & coatings. Currently, the demand for smart coating is on the rise, and anti-corrosion and anti-bacterial coatings are regarded as the next-big-thing in the coatings market.
Similarly, the demand for interior decoration has increased across the Middle East due to a rise in disposable income and an increase in the standard of living. This has increased the demand for low-odor interior paints. Thus, companies must consider the odor and aesthetic aspects of the decorative paints along with their performance to meet customer requirements.
On the other hand, customers demand smart functionality, high performance, enhanced productivity, and the long life of paints & coatings. In addition, the market players have invested big bucks in reducing maintenance costs. On the other hand, environmental concerns have drastically changed the use of raw materials in paints and coatings. More and more companies have launched waterborne decorative and automotive coatings.
The major market players in the industry have focused on reducing carbon footprint without compromising the quality of the product. Thus, the launch of waterborne, powder-based, and even plant-based coatings have increased. These paints and coatings are lower in carbon footprint compared to their traditional alternatives. Thus, in the future, the switch to green technology is inevitable.
For more information click here.
