THE PAINTS AND COATINGS INDUSTRY AND RISING RAW MATERIAL COSTS
Paint is a coloured substance commonly used to preserve, decorate surfaces and protect them from damage.
Paints can be used in a wide variety of applications such as interior and exterior building painting, planes, toys, furniture, cars, wood, metal and many other things where protection and appeal are needed.
DOWNLOAF PDF COPY
(Use corporate Email Address to access the PDF)
Traditional solvent-borne paints comprise of three main components: the pigment, the binder, and the solvent. Additives are also used in small quantities to enhance the paint’s properties and performance in various ways. For example, additives can be used to provide mold resistance, scuff resistant and help with brushing and drying.
Water-borne paints, which have dominated the marketplace in recent years, have similar components to solvent-borne paints. However, they differ as they use water as the primary solvent to disperse the resin added to it.
THE PAINTS AND COATINGS INDUSTRY
As an overview, the paints and coatings industry is one of the most heavily regulated industries in the world.
The sector consists of manufacturers of paints, varnishes, lacquers, shellacs, stains and a variety of other specialty coatings. It can be divided into three major groups which are:
- Architectural segment
- Industrial paints and coatings segment
- Major appliances, industrial equipment, and specialty paints and coatings.
WHAT’S DRIVING THE GROWTH IN THE MARKET?
According to a report by The Insight Partners, in the next five years, the global paints and coatings market is set to experience extensive growth. The market is projected to reach USD XXX billion by the end of 2027, growing at a CAGR of XX% during the forecast period 2020-2027.
This growth is largely being fueled by factors such as increasing strength in the building and construction markets, widespread urbanization, rising household expenditure, and surging economic growth.
At the same time, increasing demand from the construction sector in the Asia-Pacific region is also expected to boost the growth during the forecast period.
CHALLENGES FACING PAINT AND COATINGS MANUFACTURERS
Despite the positive outlook for the industry, the sector continues to face numerous challenges, which pose a considerable risk to the profitability of paint and coatings manufacturers.
Some of the challenges include continuously rising raw material costs and stringent environmental regulations due to the presence of volatile organic compounds (VOCs) in paints and coatings products.
However, this blog article is focusing on the rising raw material costs and how paint and coatings manufacturers can respond to this challenge. For information about the paints and coatings industry and VOC environmental regulations, then check out the following blog articles:
RAW MATERIAL COSTS HAVING AN IMPACT ON PRICES
One of the biggest issues currently facing the paints and coatings industry is volatile raw material prices.
The reason for the volatility is due to the unexpected high demand in regions such as Asia as well as uncertainty in Western Europe and North America. The closure of some production plants in The USA, Europe, and Asia, due to failures, maintenance work and accidents, have also resulted in the prices of raw materials increasing.
In turn, these factors have resulted in the raw material supply markets gradually tightening, which has impacted raw material pricing.
MARKET SCOPE
The "Global Paints & Coatings Market Analysis to 2027" is a specialized and in-depth study of the chemicals and materials industry with a special focus on the global market trend analysis. The report aims to provide an overview of paints & coatings market with detailed market segmentation by resin type, technology, end-use industry and geography. The global paints & coatings market is expected to witness high growth during the forecast period. The report provides key statistics on the market status of the leading paints & coatings market players and offers key trends and opportunities in the market.