December 2014 by SAI
Coating consumption in Asia Pacific was 16.45 million tons and worth $48.3 billion in 2013. The architectural sector accounted for about 50% of the consumption in volume and 30% of the value, of which 70% is water-based and 30% is solvent-based. The industrial OEM segment accounted for 35% of the volume and 47% of the value; and the special purpose segment consumed 15% of the volume and 20% of the value. Globally, Asia Pacific is the largest consumer of paints and coatings followed by Europe, North America and Latin America. China accounts for 58% of the region’s consumption in volume and 55% of the value. India is the second-largest in volume with a 13% share, and the third in value with a 10% share. Japan is the second in value, comprising 12% of the total, but it is expected to be displaced by India within the next two years. Korea is the fourth-largest consumer in both volume and value. These four countries accounted for 84% of the region’s volume and 85% of the value. Indonesia, Thailand and Vietnam each consumed about 2-3% of the regional volume, however the ASEAN region’s share is growing. Australia, Taiwan and Singapore are mature markets for coatings.
The competition is intense in the coating market. In addition to pre-sale, delivery and technical service, coating suppliers customize formulation to meet customer’s specific application requirements. Nippon Paint, AkzoNobel, Kansai Paint, PPG and Asian Paints are the five largest suppliers of coatings in the Asia-Pacific region, and comprising 28% of the coating sales in 2013.
AkzoNobel and Nippon Paint are the leading architectural paint suppliers. Dulux (Australia), Kansai Paint, Valspar and Berger Paint (India) are in the next tier of architectural paint suppliers. Kansai Paint and Nippon Paint are the largest industrial paint suppliers, each with about an 8% market share. AkzoNobel and PPG are the second in size and followed by Jotun and KCC (Korea).
Paint manufacturers are constantly introducing technologically advanced products in the market. Companies are focusing on zero VOC (volatile organic compounds) and green paints that are particularly in high demand among customers. To play successfully in the coatings industry, it’s critical to develop in-depth intelligence to assist strategy development and implementation. SAI, with widespread experience in China’s coatings market and a large experienced team of professionals based in Asia, has been offering extensive research and analysis for over 35 years in Asia Pacific.
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