Australia Architectural Coatings Market Analysis by Mordor Intelligence
The Australia Architectural Coatings Market size is estimated at USD 1.13 billion in 2024, and is expected to reach USD 1.25 billion by 2028, growing at a CAGR of 2.56% during the forecast period (2024-2028).
The Australian architectural coatings industry is experiencing significant transformation driven by evolving consumer preferences and sustainability initiatives. The market has shown a strong inclination towards environmentally conscious products, particularly evident in the dominance of waterborne coatings technology. This shift is supported by Australia's voluntary VOC requirements, which have encouraged manufacturers to develop and promote eco-friendly coating solutions. The industry has witnessed increased investment in research and development focused on developing low-emission and sustainable building coatings technologies. Manufacturers are increasingly incorporating renewable raw materials and bio-based components into their formulations to meet growing environmental concerns.
The residential construction sector continues to be the primary growth driver for architectural coatings in Australia. The country has been experiencing a sustained boom in residential construction activities, with higher volumes of residential building floor area compared to commercial spaces. This trend has led to increased demand for interior and exterior decorative paints specifically designed for residential applications. The renovation and remodeling segment has shown particular strength, with homeowners investing significantly in property improvements and maintenance projects. Local manufacturers have responded by developing specialized coating solutions that cater to specific residential applications, including weather-resistant exterior paints and low-odor interior finishes.
The market dynamics are significantly influenced by resin preferences, with acrylic resins maintaining their position as the dominant technology platform. The superior performance characteristics of acrylic-based coatings, including excellent durability, weather resistance, and color retention, have contributed to their widespread adoption. The combined market presence of epoxy and polyurethane resins remains smaller than that of alkyd resins, reflecting the specific application requirements and cost considerations in the Australian market. Manufacturers are focusing on developing hybrid resin systems that combine the benefits of different resin types to meet evolving performance requirements.
The distribution landscape for architectural coatings in Australia has evolved with changing market demands and consumer behavior. Major paint manufacturers have established strong relationships with key distribution partners, including specialized paint stores, hardware chains, and home improvement centers. The industry has witnessed increased adoption of digital platforms for product selection and purchasing, with manufacturers investing in online tools and visualization technologies to assist consumers in color selection and product choices. Professional painters and contractors continue to be significant influencers in product selection, leading manufacturers to develop dedicated professional lines and support programs. The market has also seen the emergence of specialized coating solutions for specific applications, such as heat-reflective wall coating for energy efficiency and anti-microbial coatings for healthcare facilities.
Australia Architectural Coatings Market Trends and Insights
Residential is the largest segment by Sub End User.
- The growth rate of architectural coatings in Australia and New Zealand has been on volatile streak since 2016, in the same year commercial architectural paints and coatings consumption observed a 23% increase, while in the next year the segment observed a growth rate of -0.50%. The growth registered in 2020 is due to sales increase from the DIY segment, influenced by COVID enhanced home improvement activity.
- The regions residential sector held the highest share, which oscillates around 63.5%. This has enabled the total architectural paint and coatings consumption to witness a CAGR of 2.10% in the period 2016-2021, even though both residential and commercial sector has observed a few negative growth rate years in the said period.
- The commercial sector's share in the region of Australia and New Zealand, is expected to increase during the forecast period, as the region is attracting a lot of strategic corporate partnerships due to the QUAD alliance. This has affected the overall growth of the country, similarly, the overall architectural paints and coatings market is expected to continue at CAGR of 1.34% between the period 2022-2028
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Segment Analysis: Sub End User
Residential Segment in Australia Architectural Coatings Market
The residential segment dominates the Australia Architectural Coatings Market, driven by robust housing construction activities and increasing home renovation projects across major cities like Sydney, Melbourne, and Brisbane. The growing trend of DIY home improvement projects, particularly following the shift towards remote work, has significantly boosted the demand for house paint and interior architectural coatings in the residential sector. Australian homeowners are increasingly focusing on weather-resistant and environmentally friendly coating solutions due to the country's diverse climate conditions. The segment's growth is further supported by the rising property values and the cultural emphasis on home ownership in Australia, leading to regular maintenance and renovation activities.
Commercial Segment in Australia Architectural Coatings Market
The commercial segment is experiencing rapid growth in the Australia Architectural Coatings Market, fueled by increasing infrastructure development projects and commercial construction activities across the country. The expansion of office spaces, retail establishments, and institutional buildings has created substantial demand for high-performance exterior architectural coatings. The segment's growth is particularly driven by the adoption of advanced coating technologies that offer superior durability, aesthetic appeal, and environmental compliance. Commercial property developers are increasingly prioritizing sustainable and low-VOC coating solutions to meet green building standards and environmental regulations.
Segment Analysis: Technology
Waterborne Segment in Australia Architectural Coatings Market
Waterborne coatings represent the largest segment in the Australian architectural coatings market, holding approximately 65% market share in 2024. This dominance is primarily driven by stringent environmental regulations in Australia that favor low-VOC coating solutions. The segment's strong position is further reinforced by increasing consumer awareness about environmental sustainability and health concerns. Waterborne architectural coatings have gained significant traction in both residential and commercial applications, particularly in interior architectural coatings, ceiling coatings, and exterior architectural coatings. The superior performance characteristics of waterborne coatings, including better durability, quick drying times, and easier application properties, have made them the preferred choice among professional painters and DIY enthusiasts in Australia. Additionally, technological advancements in waterborne formulations have improved their weather resistance and overall performance, making them suitable for Australia's diverse climate conditions.
Solventborne Segment in Australia Architectural Coatings Market
The solventborne coatings segment continues to maintain its presence in specific applications where high performance and durability are paramount. Despite environmental concerns, these coatings are projected to show steady growth from 2024-2029, particularly in specialized applications such as metal protection and high-performance wood finishes. The segment's growth is supported by ongoing innovations in formulation technology that aim to reduce VOC content while maintaining performance characteristics. Manufacturers are investing in research and development to create more environmentally acceptable solventborne solutions that comply with increasingly strict regulations. The segment finds particular application in exterior architectural coatings where extreme weather resistance is required, especially in coastal areas and regions with harsh environmental conditions. The development of hybrid technologies that combine the benefits of both solventborne and waterborne systems has also contributed to maintaining the segment's relevance in the market.
Segment Analysis: Resin
Acrylic Segment in Australia Architectural Coatings Market
The acrylic paint segment dominates the Australia architectural coatings market, holding approximately 40% market share in 2024. This significant market position is attributed to acrylic's exceptional versatility, superior weathering properties, and excellent adhesion characteristics that make it ideal for Australia's diverse climate conditions. The segment's strength is further bolstered by the increasing adoption of water-based coating systems, where acrylic paint excels in performance. Acrylic resins offer superior UV resistance, color retention, and durability, making them particularly suitable for exterior architectural coatings. The segment's growth is also driven by the rising demand for eco-friendly coating solutions, as acrylic-based coatings typically have lower VOC emissions compared to other resin types. Additionally, the segment benefits from acrylic's compatibility with various substrates and its ability to provide excellent aesthetic properties while maintaining long-term performance.
Polyurethane Segment in Australia Architectural Coatings Market
The polyurethane resin segment is projected to exhibit the highest growth rate in the Australia architectural coatings market during the forecast period 2024-2029. This growth is primarily driven by the increasing demand for high-performance coatings in premium architectural applications. Polyurethane coatings are gaining significant traction due to their superior chemical resistance, exceptional durability, and outstanding aesthetic properties. The segment's expansion is further supported by technological advancements in polyurethane formulations, leading to improved application properties and enhanced performance characteristics. The growing focus on sustainable building practices and the development of bio-based polyurethane resins are also contributing to the segment's rapid growth. Moreover, the increasing adoption of polyurethane coatings in high-end residential and commercial projects, particularly in coastal areas where superior weather resistance is crucial, is fueling the segment's expansion.
Remaining Segments in Resin
The other resin segments, including alkyd, epoxy, and polyester, continue to play vital roles in the Australia architectural coatings market, each serving specific application needs. Alkyd resins remain popular in traditional architectural applications due to their excellent gloss retention and durability. Epoxy resins are predominantly used in specialized architectural applications where chemical resistance and superior adhesion are paramount. Polyester resins find their niche in architectural applications requiring excellent mechanical properties and weather resistance. These segments are continuously evolving with new technological developments and formulation improvements, particularly in areas of sustainability and performance enhancement. The market also sees ongoing innovation in hybrid systems that combine the benefits of different resin types to meet specific performance requirements.
Competitive Landscape
Top Companies in Australia Architectural Coatings Market
The Australian architectural coatings market is characterized by intense competition among both domestic and international players, with companies focusing heavily on product innovation and sustainable solutions. Major players are investing significantly in research and development to develop eco-friendly coating solutions that meet stringent environmental regulations while maintaining high-performance standards. Companies are also expanding their distribution networks across metropolitan and regional areas to enhance market presence. Strategic partnerships with builders, contractors, and retail chains have become increasingly important for market penetration. Digital transformation initiatives are being implemented to streamline operations and improve customer service, while manufacturers are also focusing on developing weather-resistant and energy-efficient architectural coatings solutions suitable for Australia's diverse climate conditions.
Market Structure Shows Strong Regional Players
The Australian architectural coatings market demonstrates a moderate level of consolidation, with a mix of global conglomerates and strong regional players competing for market share. Local manufacturers have established strong footholds in specific regions and market segments, leveraging their understanding of local weather conditions and consumer preferences. These regional players often compete effectively with global giants through specialized product offerings and strong distributor relationships. The market has witnessed several strategic acquisitions as larger companies seek to expand their presence and product portfolio in the Australian market.
The competitive dynamics are further shaped by the presence of specialized coating manufacturers who focus on specific market segments such as premium decorative coatings or industrial applications. Recent years have seen increased merger and acquisition activities, particularly involving medium-sized companies being acquired by larger corporations looking to expand their market presence. This consolidation trend has been driven by the need for economies of scale and the desire to acquire innovative technologies and established distribution networks.
Innovation and Sustainability Drive Future Success
Success in the Australian architectural coatings market increasingly depends on companies' ability to innovate and adapt to changing environmental regulations and consumer preferences. Manufacturers need to focus on developing sustainable products with lower VOC emissions while maintaining high-performance standards. Building strong relationships with key stakeholders, including architects, builders, and contractors, is crucial for market success. Companies must also invest in digital capabilities to enhance customer experience and streamline operations. The ability to provide technical support and custom solutions for specific applications will become increasingly important for maintaining market position.
Market players must also consider the growing influence of sustainability certifications and green building standards in their product development strategies. Companies need to balance premium pricing with value propositions as end-users become more price-sensitive while demanding high-quality, environmentally friendly products. The regulatory landscape is expected to become more stringent regarding environmental standards, requiring manufacturers to stay ahead of compliance requirements. Success will also depend on the ability to manage supply chain challenges and raw material costs while maintaining product quality and competitive pricing. Building strong brand recognition through effective marketing and demonstration of product performance will remain crucial for both established players and new entrants. Additionally, the integration of professional paint and construction paint solutions can enhance product offerings, catering to the evolving demands of the market.
Australia Architectural Coatings Industry Leaders
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Hempel A/S
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Jotun
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Nippon Paint Holdings Co., Ltd.
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PPG Industries, Inc.
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Resene Group
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- February 2021: Hempel A/S acquired Wattyl, one of Australia and New Zealand's leading and highly distinguished manufacturers of paint for the decorative and protective segments
- January 2021: Nippon Paint Holdings Co., Ltd. Holdings Co. has acquired a 100% share in DuluxGroup Ltd., a prominent Australian paint manufacturer. Through this acquisition, Nippon Paint Holdings Co., Ltd. aims to boost its paints and coatings business in Australia and New Zealand.
Australia Architectural Coatings Market Report Scope
Commercial, Residential are covered as segments by Sub End User. Solventborne, Waterborne are covered as segments by Technology. Acrylic, Alkyd, Epoxy, Polyester, Polyurethane are covered as segments by Resin.
Sub End User
| Commercial |
| Residential |
Technology
| Solventborne |
| Waterborne |
Resin
| Acrylic |
| Alkyd |
| Epoxy |
| Polyester |
| Polyurethane |
| Other Resin Types |
| Sub End User | Commercial |
| Residential | |
| Technology | Solventborne |
| Waterborne | |
| Resin | Acrylic |
| Alkyd | |
| Epoxy | |
| Polyester | |
| Polyurethane | |
| Other Resin Types |
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Market Definition
- COMMERCIAL - The Commercial Sector includes the paints and coatings used for hotels, hospitals, educational institutions, government institutions and malls among others. The scope does not include paints and coatings used for infrastructure applications.
- RESIDENTIAL - This section includes interior and exterior paints and coatings used on residential buildings.
- FLOOR AREA - The total floor area comprises of both existing and new floor area for the sub end users considered in the study.
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: The quantifiable key variables (industry and extraneous) pertaining to the specific end-user segment and country are selected from a group of relevant variables & factors based on the desk research & literature review; along with primary expert inputs.
- Step-2: Build a Market Model: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built based on these variables.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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