Yogender Singh, India, Asia-Pacific Correspondent02.26.25
Established in April 1948 as a voluntary organization of the paint manufacturers industry, the Japan Paint Manufacturers Association (JPMA) plays an important role in the Japanese paint and coating industry. Consisting of approximately 258 members, including leading paint producers and companies engaged in paint-related industries, JPMA has enabled the industry to achieve ambitious goals in recent years.
Coatings World spoke with Yoshio Kojima, executive director of JPMA, to learn about the current status, the challenges facing the Japanese paint and coating industry, and the outlook for 2025 in this interview.
CW: What is the general outlook of the paints and coating industry in Japan?
Yoshio Kojima: In Japan, the production volume of paints significantly declined after the collapse of Lehman Brothers in 2008 and has since remained stagnant without much recovery. The market was severely impacted by the COVID-19 pandemic in 2020. Though social activities are now back to pre-pandemic status, paint production and sales are still struggling at a lower level.
Aiming for 2025, Japan Paint Manufacturers Association will engage in the promotion of functional paints such as thermal insulation coatings, the cultivation of new markets such as nurturing specialists on color designing, and the development of training tools targeting reduction of workplace accidents in paint manufacturing sites. However, we foresee the tough situation to continue for some time.
CW: What is the approximate current size (volume and value) of the Japanese paint and coating industry? What is the split between the architectural and industrial segments?
Yoshio Kojima: Paint shipment volume was 1.29 million tons and shipment value 622.2 billion JPY in FY 2023. Architectural paint was 26.5% in volume and 26.9% in value. Industrial paint was 23% in volume and 23.9% in value.
CW: Historically, the automotive paints and marine paints sub-segments have played a key role in the Japanese paint and coating industry. How have these segments performed in the last three years?
Yoshio Kojima: It is true that these segments have played an important role in the development of the Japanese paint and coating industry. However, during the last two decades, the architectural segment has also played a vital role in the growth of the overall industry. Actually, the growth rate of the automotive sector and marine sector are not higher than the architectural sector.
For example, if you take the shipment value of pre-pandemic year 2019 at 100, it dropped to 77 for the automotive sector, 93 for the marine sector and 89 for the architectural sector in the first year of COVID. The latest FY 2023 data show recovery, 96 for the automotive sector, 135 for the marine sector and 100 for the architectural sector.
The shipment volume has not reached the 2019 level yet, but the value reached the 2019 level, owing to the price hikes due to raw material cost increases and the weakening of the JPY. For marine paints, in addition to price hikes, the increase of docking contributed to the recovery.
CW: What are some of the largest challenges facing the Japanese paint and coating industry? How is JPMA helping the domestic producers to overcome them?
Yoshio Kojima: Currently, the largest challenge facing the industry are the continuously soaring raw material prices. JPMA members are making efforts to cover the price rise, as well as increasing paint product prices to pass on the raw material price increases.
The second challenge involves the strengthening of regulations, such as the increase in the number of regulated substances in chemical management and stricter requirements for the use of protective equipment when handling these substances. In response, JPMA organizes training courses for chemical management personnel, actively acquires updates, and provides accurate and timely information to our members.
Third is the expansion of workplace accident prevention measures at paint production sites. JPMA is working on the development of a training tool using a VR system, planning to provide it to our members in FY 2025.
CW: Has the paint production (on a volume basis) in Japan in 2023 surpassed the production volume achieved in 2019, the pre-COVID era?
Yoshio Kojima: The weakening JPY has increased raw material prices and energy costs, leading to a significant increase in the production costs for Japanese paint producers. As a result, almost all JPMA members were forced to review the pricing of products. The shipment value has reached the pre-COVID era, but the production volume is still 10% short of the 2019 levels.
CW: The pressure of rising input costs has been one of the key challenges of the global and regional paint and coating industry. How are Japanese paint and coating producers overcoming this challenge?
Yoshio Kojima: The environment surrounding Japan’s paint manufacturing industry is extremely challenging due to surging raw material prices, energy costs, and labor expenses. In addition to self-help efforts such as reviewing operations, the industry has been forced to implement price adjustments. This is not an issue unique to the paint manufacturing industry but a common challenge faced by the entire domestic manufacturing sector. The Japanese government is also implementing measures to promote appropriate price adjustments, including the transfer of labor costs.
References: (Both are in Japanese)
The Small and Medium Enterprise Agency: https://www.chusho.meti.go.jp/keiei/torihiki/shien_tool.html
Fair Trade Commission
https://www.cas.go.jp/jp/seisaku/atarashii_sihonsyugi/seiroushi/dai4/shiryou2.pdf
CW: What is the share of exports out of the total domestic output of the Japanese paint and coating industry?
Yoshio Kojima: The export volume of paints from Japan is not significant; in fact, it would be more accurate to say it is rather small. Especially for general-purpose paints, the principle of local production for local consumption prevails, and the reality is that only a limited range of paints are exported.
CW: Electric vehicles (EV) have started to become a formidable sub-segment in the automotive industry. Is coating demand for the EV sub-segment markedly different than the internal combustion engine sub-segment of the automotive industry?
Yoshio Kojima: The impact of vehicle electrification on automotive painting is considered to be minimal. While the demand for lighter materials to extend the driving range of EVs may lead to variations in the types of paints used depending on the materials of the car body, the overall proportion of such changes is expected to remain small. CW
Coatings World spoke with Yoshio Kojima, executive director of JPMA, to learn about the current status, the challenges facing the Japanese paint and coating industry, and the outlook for 2025 in this interview.
CW: What is the general outlook of the paints and coating industry in Japan?
Yoshio Kojima: In Japan, the production volume of paints significantly declined after the collapse of Lehman Brothers in 2008 and has since remained stagnant without much recovery. The market was severely impacted by the COVID-19 pandemic in 2020. Though social activities are now back to pre-pandemic status, paint production and sales are still struggling at a lower level.
Aiming for 2025, Japan Paint Manufacturers Association will engage in the promotion of functional paints such as thermal insulation coatings, the cultivation of new markets such as nurturing specialists on color designing, and the development of training tools targeting reduction of workplace accidents in paint manufacturing sites. However, we foresee the tough situation to continue for some time.
CW: What is the approximate current size (volume and value) of the Japanese paint and coating industry? What is the split between the architectural and industrial segments?
Yoshio Kojima: Paint shipment volume was 1.29 million tons and shipment value 622.2 billion JPY in FY 2023. Architectural paint was 26.5% in volume and 26.9% in value. Industrial paint was 23% in volume and 23.9% in value.
CW: Historically, the automotive paints and marine paints sub-segments have played a key role in the Japanese paint and coating industry. How have these segments performed in the last three years?
Yoshio Kojima: It is true that these segments have played an important role in the development of the Japanese paint and coating industry. However, during the last two decades, the architectural segment has also played a vital role in the growth of the overall industry. Actually, the growth rate of the automotive sector and marine sector are not higher than the architectural sector.
For example, if you take the shipment value of pre-pandemic year 2019 at 100, it dropped to 77 for the automotive sector, 93 for the marine sector and 89 for the architectural sector in the first year of COVID. The latest FY 2023 data show recovery, 96 for the automotive sector, 135 for the marine sector and 100 for the architectural sector.
The shipment volume has not reached the 2019 level yet, but the value reached the 2019 level, owing to the price hikes due to raw material cost increases and the weakening of the JPY. For marine paints, in addition to price hikes, the increase of docking contributed to the recovery.
CW: What are some of the largest challenges facing the Japanese paint and coating industry? How is JPMA helping the domestic producers to overcome them?
Yoshio Kojima: Currently, the largest challenge facing the industry are the continuously soaring raw material prices. JPMA members are making efforts to cover the price rise, as well as increasing paint product prices to pass on the raw material price increases.
The second challenge involves the strengthening of regulations, such as the increase in the number of regulated substances in chemical management and stricter requirements for the use of protective equipment when handling these substances. In response, JPMA organizes training courses for chemical management personnel, actively acquires updates, and provides accurate and timely information to our members.
Third is the expansion of workplace accident prevention measures at paint production sites. JPMA is working on the development of a training tool using a VR system, planning to provide it to our members in FY 2025.
CW: Has the paint production (on a volume basis) in Japan in 2023 surpassed the production volume achieved in 2019, the pre-COVID era?
Yoshio Kojima: The weakening JPY has increased raw material prices and energy costs, leading to a significant increase in the production costs for Japanese paint producers. As a result, almost all JPMA members were forced to review the pricing of products. The shipment value has reached the pre-COVID era, but the production volume is still 10% short of the 2019 levels.
CW: The pressure of rising input costs has been one of the key challenges of the global and regional paint and coating industry. How are Japanese paint and coating producers overcoming this challenge?
Yoshio Kojima: The environment surrounding Japan’s paint manufacturing industry is extremely challenging due to surging raw material prices, energy costs, and labor expenses. In addition to self-help efforts such as reviewing operations, the industry has been forced to implement price adjustments. This is not an issue unique to the paint manufacturing industry but a common challenge faced by the entire domestic manufacturing sector. The Japanese government is also implementing measures to promote appropriate price adjustments, including the transfer of labor costs.
References: (Both are in Japanese)
The Small and Medium Enterprise Agency: https://www.chusho.meti.go.jp/keiei/torihiki/shien_tool.html
Fair Trade Commission
https://www.cas.go.jp/jp/seisaku/atarashii_sihonsyugi/seiroushi/dai4/shiryou2.pdf
CW: What is the share of exports out of the total domestic output of the Japanese paint and coating industry?
Yoshio Kojima: The export volume of paints from Japan is not significant; in fact, it would be more accurate to say it is rather small. Especially for general-purpose paints, the principle of local production for local consumption prevails, and the reality is that only a limited range of paints are exported.
CW: Electric vehicles (EV) have started to become a formidable sub-segment in the automotive industry. Is coating demand for the EV sub-segment markedly different than the internal combustion engine sub-segment of the automotive industry?
Yoshio Kojima: The impact of vehicle electrification on automotive painting is considered to be minimal. While the demand for lighter materials to extend the driving range of EVs may lead to variations in the types of paints used depending on the materials of the car body, the overall proportion of such changes is expected to remain small. CW
