Asia-Pacific Paints and Coatings Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Asia-Pacific Paints and Coatings Market is segmented by Technology (Water-borne, Solvent-borne, Powder, and UV-cured), Resin Type (Acrylic, Alkyd, Polyurethane, Epoxy, Polyester, and Other Resin Types), End-user Industry (Architectural/Decorative, Automotive, Wood, Protective Coatings, General Industrial, Transportation, and Packaging), and Geography (China, India, Japan, Australia, Indonesia, Thailand, Malaysia, Vietnam, Singapore, Philippines, and Rest of Asia-Pacific).

Market Snapshot

Asia-Pacific Paints and Coatings Market Overveiw
Study Period: 2016 - 2026
Base Year: 2020
CAGR: >5 %
Asia-Pacific Paints and Coatings Market Major Players

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Market Overview

The Asia-Pacific paints and coatings market was estimated at over USD 60 billion in 2020, and the market is projected to register a CAGR of around 5% during the forecast period (2021-2026).

The market was negatively affected due to COVID-19. Owing to the pandemic scenario, several countries in the region went into lockdown, which halted all the manufacturing and construction activities, thus creating a negative impact on the demand in the paints and coatings market. However, the condition is expected to recover in 2021, thereby restoring the growth trajectory of the market studied.

  • Over the short term, the accelerating growth of the construction industry and increasing demand for protective coatings in Malaysia are driving the market's growth.
  • On the flip side, rising environmental concerns and regulations in India, slowdown of automotive production, and negative impact of COVID-19 pandemic are likely to have a negative impact on the market for the short to medium term.
  • The use of nanotechnology in the paints and coatings industry and accelerating demand for bio-based and eco-friendly coatings are likely to act as an opportunity for the market studied.
  • By resin, the acrylic segment accounted for the largest share, and it is estimated to witness the fastest CAGR over the forecast period.

Scope of the Report

Paints and coatings can be defined as a liquid material that, when spread over a surface as a relatively thin film, subsequently dries to form a solid, cohesive, adhesive, decorative, and protective layer. Paints and coatings find major applications in the architectural industry as decorative and protective coating. The market is segmented by technology, resin type, end-user industry, and geography. By technology, the market is segmented into water-borne, solvent-borne, powder, and UV-cured. By resin type, the market is segmented into acrylic, alkyd, polyurethane, epoxy, polyester, other resin types. By end-user industry, the market is segmented into architectural/decorative, automotive, wood, protective coatings, general industrial, transportation, and packaging. The report also offers the market size and forecasts for ten countries across the region. For each segment, the market sizing and forecasts have been done on the basis of value (USD million).

Technology
Water-borne
Solvent-borne
Powder
UV-cured
Resin Type
Acrylic
Alkyd
Polyurethane
Epoxy
Polyester
Other Resin Types
End-user Industry
Architectural/Decorative
Automotive
Wood
Protective Coatings
General Industrial
Transportation
Packaging
Geography
China
India
Japan
Australia
Indonesia
Thailand
Malaysia
Vietnam
Singapore
Philippines
Rest of Asia-Pacific

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Key Market Trends

Water-borne Segment to Drive the Market Growth

  • Water-borne is the fastest growing technology in the overall paints and coatings market. The major reason for their gain over solvent-borne is due to their eco-friendly nature, as it is generally lower in volatile organic compounds (VOCs), which degrade the environment. Additionally, other properties, like low odor, more durability, and block resistance, make water-borne paints preferable.​
  • Water-borne coatings constitute a major portion of water as solvent, binders, pigments, and performance additives, as per the requirements. The proportion of additives and resins are variable, as per the application of the coatings. ​
  • The increasing eco-friendly nature, along with the versatile properties of water-borne coatings, is increasing the demand for water-borne coatings across the region. The market is mainly driven by architectural coatings applications. The water-borne coatings in the architectural segment are expected to show healthy growth in the next five years, especially from the developing economies, driven by huge investments in infrastructure developments, housing projects, and renovation of existing residential and commercial buildings.​
  • Water-borne coatings are also commonly required in automotive paints. There has been a steady shift toward water-borne acrylics, especially in the automotive basecoats, due to environmental concerns. Many of the coating's companies have already converted several assembly lines to water-borne basecoats, and the automotive players are expected to convert their production lines to water-borne basecoats from solvent-borne technology. Additionally, with the increase in the automotive refinishing market in the region, the market for water-borne coatings may also benefit.​
  • In recent times, there has been a propensity to seek coatings with low odor, usability, and water clean-up characteristics, among the end users. Water-borne coatings meet these requirements and also facilitate low viscosity without the addition of low-molecular-weight monomers. However, water-based coatings cannot be as easily applied as solvent-borne coatings, and they pose other challenges, including the complexity of fluids, system compatibility as per application, and higher reactivity.​
  • The market share of water-borne systems has grown rapidly, owing to their favorable properties, such as mild odor, increased availability, and fast-drying. Furthermore, the UV-curable technology for water-borne coatings has received widespread attention in industrial research. The initial developments were witnessed in the graphic arts industry. Concerns over environmental, health, and safety issues are driving the demand for water-borne coatings in the Asia-Pacific region.​
Asia-Pacific Paints and Coatings Market Revenue Share

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China to Dominate the Market

  • In Asia-Pacific, China is the largest economy in terms of GDP. The country witnessed about 6.1% growth in its GDP during 2019, even after the trade disturbance caused due to its trade war with the United States.​ However, due to the onset of COVID-19 in 2020, the economic growth of China is estimated to contract to 1.90%, and it is expected to witness recovery at a rate of 8.20% in 2021.
  • China hosts a vast construction sector. The developments in the commercial and residential sectors in the past two years have supported the construction sector's growth at large, both in terms of volume and value.​
  • China has been majorly driven by the ample developments in the residential and commercial construction sectors supported by the growing economy. In China, the housing authorities of Hong Kong launched several measures to push-start the construction of low-cost housing. The officials aim to provide 301,000 public housing units in 10 years till 2030.​
  • In Asia-Pacific and across the world, countries such as China, Japan, and South Korea are the leading in marine coatings. China is the largest market for marine coatings due to the increasing new shipbuilding and repair activities.​
  • The oversupply of ships has disturbed the entire shipbuilding industry in the country. The Chinese government is trying to cut the subsidies on over-capacity. This has had an impact on marine OEMs for building new ships.​
  • The adoption of green tax by the Chinese government, along with other initiatives to reduce emissions, has pushed coatings companies to adopt high solid, solvent-less, and waterborne coatings. Despite a negative trend in the global marine industry relatively, China was the light bearer, as compared to other countries, in the marine-related markets, including coatings and shipbuilding, thus, boosting the demand in the market studied.​
  • Furthermore, cheap labor and easy access to the steel industry are some other factors attracting shipbuilding activities in the country.​
  • China is the world's largest automotive producer. However, in 2018, the country witnessed a 4.16% decline in vehicle production, accounting for 27,809,196 units of motor vehicles. The automotive industry's performance was affected by economic shifts and China's trade war with the United States. This trend sustained during 2019 as well, as the domestic automotive production and sales declined by 7.5% and 8.2%, respectively.​ In 2020, the number of passenger cars produced from January to November was down by 8.1% year-on-year compared to the same period last year, while commercial vehicle production increased by 22.2%. The uncertainties in the automobile industry are expected to impact the market studied.
  • China is expected to remain the largest consumer of rigid metal packaging in Asia-Pacific, accounting for ~40% share. Unlike the European and American markets, where metal packaging usually constitutes a greater share than glass, and metal accounts for approximately ~8% of China's total packaging output value, which is less than glass packaging output. The food and beverage market is the largest market in the country. However, canned food and drinks are comparatively unpopular among the Chinese population.​
  • China's packaging industry is expected to register tremendous growth, with a CAGR of nearly 6.8% to reach around CNY 2 trillion by 2025. This positive momentum in the packaging industry is expected to ignite the market demand for packaging coatings. However, China's plastic ban is hindering the growth of the packaging industry, and this is forcing FMCG companies to use metal and glass packaging. Thus, this is expected to aid the market's growth.​
  • China has the world's largest electronics production base, and it offers tough competition to the existing upstream producers, such as South Korea, Singapore, and Taiwan. Electronic products, such as smartphones, OLED TVs, and tablets, have the highest growth rates in the consumer electronics segment of the market in terms of demand. With the increase in the disposable incomes of the middle-class population, the demand for electronic products is projected to increase steadily in the future, thereby driving the coatings' demand.​
  • However, the outbreak of coronavirus impacted the overall performance of the country in 2020. As the country experienced an extended shutdown to avoid the spread of coronavirus, the manufacturing sector operations were severely affected.​ The conditions are expected to recover in 2021, thereby driving the market's growth over the forecast period.
  • All the aforementioned factors are expected to act as driving factors for the paints and coatings during the forecast period.​
Asia-Pacific Paints and Coatings Market Growth

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Competitive Landscape

The Asia-Pacific paints and coatings market is highly fragmented in nature, with no player having a significant share in the market. Although mergers and acquisitions have started to gain significance in the Asia-Pacific market, it, however, continues to be less than other regions of the world. Key players in the Asia-Pacific paints and coatings market include Akzo Nobel NV, Asian Paints, Kansai Paint Co. Ltd, Nippon Paint Holdings Co. Ltd, and PPG Industries Inc., among others.

Recent Developments

  • In August 2020, Nippon Paint Holdings Co. Ltd announced the acquisition of Asian JVs and Indonesian businesses to increase global business growth.
  • In November 2019, Akzo Nobel NV completed the acquisition of French aerospace coatings manufacturer, Mapaero, further strengthening its position in the aerospace coatings industry.
  • In July 2019, Asian Paints started commercial production of paints and intermediaries in the Mysuru plant. The paint manufacturing plant in Mysuru has a capacity of 6 lakh KL p.a.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Accelerating Growth of the Construction Industry

      2. 4.1.2 Increasing Demand for Protective Coatings in Malaysia

    2. 4.2 Restraints

      1. 4.2.1 Rising Environmental Concerns and Regulations in India

      2. 4.2.2 Slowdown of the Automotive Production

      3. 4.2.3 Negative Impact of the COVID-19 Pandemic

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION (Market Size by Value)

    1. 5.1 Technology

      1. 5.1.1 Water-borne

      2. 5.1.2 Solvent-borne

      3. 5.1.3 Powder

      4. 5.1.4 UV-cured

    2. 5.2 Resin Type

      1. 5.2.1 Acrylic

      2. 5.2.2 Alkyd

      3. 5.2.3 Polyurethane

      4. 5.2.4 Epoxy

      5. 5.2.5 Polyester

      6. 5.2.6 Other Resin Types

    3. 5.3 End-user Industry

      1. 5.3.1 Architectural/Decorative

      2. 5.3.2 Automotive

      3. 5.3.3 Wood

      4. 5.3.4 Protective Coatings

      5. 5.3.5 General Industrial

      6. 5.3.6 Transportation

      7. 5.3.7 Packaging

    4. 5.4 Geography

      1. 5.4.1 China

      2. 5.4.2 India

      3. 5.4.3 Japan

      4. 5.4.4 Australia

      5. 5.4.5 Indonesia

      6. 5.4.6 Thailand

      7. 5.4.7 Malaysia

      8. 5.4.8 Vietnam

      9. 5.4.9 Singapore

      10. 5.4.10 Philippines

      11. 5.4.11 Rest of Asia-Pacific

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 4Oranges

      2. 6.4.2 Akzo Nobel NV

      3. 6.4.3 Asian Paints Limited

      4. 6.4.4 Avian Brands

      5. 6.4.5 Axalta Coating Systems

      6. 6.4.6 Beger Co. Ltd

      7. 6.4.7 Berger Paints India

      8. 6.4.8 Boysen Paints

      9. 6.4.9 Davies Paints Philippines Inc.

      10. 6.4.10 Haymes

      11. 6.4.11 Jotun

      12. 6.4.12 Kansai Paint Co. Ltd

      13. 6.4.13 Kova Group

      14. 6.4.14 Nippon Paint Holdings Co. Ltd

      15. 6.4.15 PPG Industries Inc.

      16. 6.4.16 PT. Propan Raya ICC

      17. 6.4.17 The Sherwin-Williams Company

      18. 6.4.18 TOA Paint Public Company Limited

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Use of Nanotechnology in the Paints and Coatings Industry

    2. 7.2 Accelerating Demand for Bio-based and Eco-friendly Coatings

**Subject to Availability

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Frequently Asked Questions

The Asia-Pacific Paints and Coatings Market market is studied from 2016 - 2026.

The Asia-Pacific Paints and Coatings Market is growing at a CAGR of >5% over the next 5 years.

Asian Paints, Kansai Paint Co., Ltd., Nippon Paint Holdings Co., Ltd , PPG Industries, Inc., Akzo Nobel N.V. are the major companies operating in Asia-Pacific Paints and Coatings Market.

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