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Global Surge Seen in Coating Demand

Friday, February 10, 2012

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Rebounding global construction and manufacturing will spur steadily growing demand for paint and coatings through 2015, a new market forecast reports.

Global demand should surge by 5.4 percent per year, to 45.6 million metric tons, in 2015, according to World Paint & Coatings, a new study from The Freedonia Group Inc., a Cleveland-based industry market research firm.

The Freedonia Group

Notable exceptions include marine and solvent-based products, where the outlook is somewhat dimmer.

‘Strong Acceleration’

“Advances will be driven by a strong acceleration in world building construction spending, particularly residential construction, which is expected to rebound in North America and Western Europe,” Freedonia reports.

“Healthy growth in global manufacturing activity will also fuel increased demand for coatings used in the production of motor vehicles and other durable goods, as well as industrial maintenance applications.”

On the other hand, solvent-based paint and coatings will continue to see their market share shrink in all markets, with efforts increasing worldwide to limit and reduce VOC emissions.

Regional Highlights

Asia/Pacific will remain the leading, and fastest-growing, consumer of paint and coatings through 2015, the report says. China and India, the region’s two largest markets, are also among the world’s fastest-growing coatings markets. Demand should also increase in Japan.

Above-average advances are also forecast for North America, which should see a turnaround from the declining demand of 2005-2010. Coatings demand in that region should follow “a greatly improved outlook for building construction and manufacturing activity in the U.S.,” the report says.

© 2012 by The Freedonia Group Inc.

While paint and coatings demand in Western Europe will also recover from recent declines, the region will be the world’s slowest-growing regional market. 

Sector Ups and Downs

After years of decline, paint and coatings demand in architectural markets will be “fueled by healthy growth in residential construction spending, particularly in the U.S., Western Europe and Japan,” Freedonia said.  Architectural markets will continue to account for the majority of paint and coatings demand.

Coatings demand in manufacturing applications will benefit from a pickup in world motor vehicle production, as well as improvement in building construction activity, which will drive demand for furniture coatings.

Maintenance and specialty coatings markets will see moderately slower gains, Freedonia forecast, restrained by a downturn in marine applications and a diminished outlook for vehicle refinish coatings in developed countries.