Market Trends of Pakistan Paints and Coatings Industry
This section covers the major market trends shaping the Pakistan Paints & Coatings Market according to our research experts:
Acrylic Resins to Dominate the Market
- Acrylic resins are one of the most widely used polymers in the paint and coatings industry. The two principal types of acrylics used are thermoplastic and thermoset.
- Thermoplastic acrylic resins are of two types: solution acrylics and acrylic latex coatings. Thermoset acrylic resins are used in product finishes for metal furniture coatings, automotive topcoats, maintenance coatings, appliances, and other original equipment manufacturer finishes.
- Acrylic resins offer transparency, high color ability, and UV resistance in coating solutions. They are often used in waterborne systems, resulting in low VOC emissions.
- The application of acrylic coatings is primarily found in the construction industry for high-end finishing on roofs, decks, bridges, floors, and other surfaces. Water-based acrylic coatings are in high demand due to environmental concerns, such as the negative impact of VOCs on the air quality in the environment.
All of the aforementioned factors are expected to drive demand for acrylic resin types, which will also boost demand for paints and coatings in Pakistan over the forecast period.
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The Architectural Coatings Segment to Dominate the Market
Paints and coatings are used in the interiors of houses to add color or for decorative purposes. They also perform a wide range of functions, which vary depending on the type of environment and room.
- Paints and coatings are applied on the exterior of the house to give it a new look and protect it from harsh and changing weather conditions and UV radiation without fading, peeling away, or cracking.
- Architectural and decorative coatings are the most significant type of coatings used in Pakistan, where residential and commercial construction activities extensively drive demand. These decorative paints are either oil- or water-based paints for aesthetic purposes for interior and exterior applications.
- The Pakistan Bureau of Statistics (PBS) estimated that the public Gross Fixed Capital Formation (GFCF) in construction increased by 18% in FY 2021 (July 2020-June 2021) due to increased infrastructure investment by the Lahore Development Authority and the Capital Development Authority.
- According to the State Bank of Pakistan (SBP), the amnesty scheme and government subsidies boosted housing and construction finance by 84% in FY2021, with total outstanding debt reaching PKR 305 billion (USD 1.35 billion) in September 2021, up from PKR 166 billion (USD 0.64 billion) in September 2020.
- According to the Board of Investment (BOI), Construction Industry Value Projections in 2021 were PKR 1095.8 billion (USD 4.87 billion), compared to PKR 944 billion (USD 4.19 billion) in 2020.
All of the aforementioned factors are expected to drive the architectural coatings market, which will boost demand for Pakistan paints and coatings during the forecast period.
