APAC Decorative Paints & Coatings Market - Forecast(2023 - 2028)

APAC decorative paints & coatings market is forecast to reach $36,513.5 million by 2025, after growing at a CAGR of 6.4% during 2020-2025. The APAC decorative coatings market is shifting towards water-borne coatings, which has proven to be a successful approach aimed at reduction of Volatile Organic Compound (VOC) emissions. Stringent environmental regulations regarding the use of toxic chemicals in coating formulations in Asia Pacific is boosting the market growth. In addition, the governments initiatives such as “Housing for All” and “One Belt, One Road” is flourishing the residential and commercial building sector in Asia Pacific, which is anticipated to play a key role in driving the APAC decorative paints & coatings market during the forecast period.

The report: “APAC Decorative Paints & Coatings Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the APAC decorative paints & coatings Industry. 

By Resin Type: Epoxy, Acrylics, Polyester, Alkyd, Polyurethane, and Others

By Formulation: Water-Based Coatings, Solvent-Based Coatings, and Powder Coatings

By Substrate: Metal, Concrete, Wood, and Others

By User Type: DIY, and Professional

By Application: Residential Buildings (Roofing, Facades, Walls and Ceilings, Floors, Furnishings, and Others), Commercial Buildings (Airports, Hospitals, Clinics and Healthcare Institutions, Hotel, Restaurants and Cafes, Office Buildings, Educational Institutes, Shopping Malls & Supermarkets, Sports Stadiums, and Others), and Industrial Buildings

By Country: China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Hong Kong, and Rest of APAC

The acrylics segment held the largest share in the APAC decorative paints & coatings market in 2019. Acrylic decorative surface coatings are used in various coatings market categories including architectural, protective, decorative and more. The main benefits of acrylic industrial coatings are the ease of use, physical properties, and their low costs. They are fungus resistant, provide longer than average pot life, and have excellent moisture protection. According to International Trade Centre (ITC), the world export of acrylic resins was worth USD 13,490,819 thousand in 2016, and USD 15,291,934 thousand in 2017, which further increased to USD 17,152,076 thousand in 2018. Their durability, coupled with their ability to decrease the monthly energy bill, is two of the main advantages that an acrylic resin provides. Thus, all these factors are boosting the demand for acrylic based decorative paints and coatings during the forecast period. 

The water-based coatings segment held the largest share in the APAC decorative paints & coatings market in 2019.  Water-based coatings use water as a solvent to disperse a resin, thus making these coatings eco-friendly and easy to apply. The key advantages to using water-based industrial coatings are that they are ideal primers as they possess good resistance to heat and abrasion. In addition, they provide excellent adhesion, low toxicity and flammability due to low VOC levels and HAP emissions, and thus allow coating manufacturers to meet clean air regulations. The solvent-based industrial coatings contain harmful volatile organic compounds (VOCs) and hazardous air pollutants (HAPs) including toluene, xylene, ethyl benzene, and methyl ethyl ketone, owing to which the water-based coatings is a preferred formulation for decorative paints and coatings. Currently, due to COVID-19 pandemic, various other manufacturers who have also planned to expand their production across Asian countries have postponed due to lockdown and other issues, due to this, the growth of water based decorative coatings seems to be low, which tends to constrain the growth of the market.

The concrete segment held the largest share in the APAC decorative paints & coatings market in 2019. Concrete resurfacing is a way to make damaged or dated concrete look new again. A concrete coating is applied over the old surface, offering a variety of color, texture and pattern options. This type of decorative refinishing can be done on driveways, patios, pool decks and even indoor floors. The usage of decorative coatings for completely resurfacing concrete with an overlay is one way to upgrade the look. The best thing about this coating is that; it provides wide variety of color and pattern options. The best attribute of decorative coatings on concrete is that each installation is totally unique. Concrete can assume nearly any shape, design, pattern or texture. But concrete with decorative coatings, whether used subtly to blend with nature or boldly to make a dramatic design statement, is by far the most popular enhancement. All these factors are anticipated to boost the APAC decorative paints & coatings market growth during the forecast period.

The professional segment held the largest share in the APAC decorative paints & coatings market in 2019. Professional decorative painters consist the huge market in APAC region, as the APAC countries majorly do not prefer DIYs. The countries such as India and China, where, the infrastructure is at rapid pace, and the market of DIYs is low, the demand of professional decorative paints and coatings is much higher. The market is moving toward more premium systems due to the forecasted shift from DIY to contactor-applied. Professional painters are currently going through a difficult time with householders hesitant to get decorators in their homes during a pandemic. In addition, construction sites have been shut down in many APAC countries, excluding those operating on critical projects such as hospitals.

The residential building segment held the largest share in the APAC decorative paints & coatings market in 2019 and is growing at a CAGR of 7.1%. Decorative paints and coatings are long-lasting, have low odor, and hygienic coats that are perfect for every unique residential building. New painting and repainting include decorative paints and coatings for application in residential construction. Thus, this drives the demand for decorative paints and coatings in residential areas. Government initiatives in India such as ‘Smart City Mission’ and ‘Housing for All’ are projected to drive the growth in the construction sector which, in turn, will benefit the APAC decorative paints and coatings market during the forecast period. Increasing use of decorative paints & coatings in residential buildings owing to its various functional benefits, such as conduction, light absorption, insulation, anti-skid property, and reflection, is anticipated to substantially drive the APAC decorative paints & coatings market over the forecast period.

China held the largest share in the APAC decorative paints & coatings market in 2019 up to 42%, owing to the increasing residential and commercial buildings in the region. According to the International Trade Administration (ITA), China is the world’s largest construction market. And the Chinese construction industry is forecasted to grow at an annual average of 5% in real terms between 2019 and 2023. China is also looking to shift away from large scale infrastructure projects toward more locally oriented projects.  Projects such as water supply and treatment plants, road improvements, urban metro systems, and public parks align with the 13th Five-Year Plan's (FYP) goals of reducing road traffic and pollution, redeveloping dilapidated housing, and promoting the growth of small and medium-sized cities.  Replacing old heating infrastructure in cities also provides a niche opportunity. Increasing national priorities on stability and sustainability have helped China in reducing greenhouse gas emissions through green construction. In 2018, LEED-certified Grade A office buildings exceeded 523 million square meters across greater China, an increase of 7.3% from the previous year, and accounted for over 27% of the total market share in ten prominent cities. The increasing population and rapid urbanization in China is flourishing the construction industry thereby, accelerating the growth of the decorative paints & coatings market in China during the forecast period. 

According to World Health Organization report, by 2050, the global population aged 60 and over is projected to hit a total of 2 billion, up from 900 million in 2015. By 2050, nearly as many (120 million) people will live in China alone, and 434 million in this age group worldwide. Hence, there is an upsurge in the construction of new residential building that can provide space for accommodating the increasing population. Therefore, decorative coatings are demanded in the residential building to provide better and long-lasting products utilized widely into kitchen, interior and exterior walls and bathrooms. Construction activity remains a large percentage of China’s GDP as the country is one of the swiftly evolving provinces in the APAC region. China’s construction market is tremendous and hence has become a cornerstone for the revenue generation of the economy. Residential construction is an important source of Chinese growth. Further, increased focus on affordable housing by both public and private sector will drive growth in residential building construction sector. This in turn has increased the demand for decorative paints and coatings. 

Industry of paint and coatings focuses on sustainability and being "green" there is also a lot of consensus defining the green coating. In addition, the coating industry tends to be ahead of the standards of the consumer when considering the environmental effects of both processes and products. Cost and performance continue to be key drivers of purchasing decisions, and green products are only considered if they provide added value commensurate with any cost premium. Green, however, is no longer a movement but a well-established way of doing business for the industry, and there has been a major change from concentrating exclusively on-air quality to an approach that incorporates all aspects of processes and goods that lead to sustainability. The collective efforts of global regulatory agencies and coating technologists have significantly enhanced the environmental impact of the coating industry over the last few decades. Important decreases in dangerous air emissions, releases of volatile organic compounds (VOCs) and radioactive waste have been achieved.

The prices of paints largely depend on the cost of raw material. About 30% of the raw materials of paints and coatings are petroleum-based derivatives. Thus, any rise in the price of crude oil would lead to a shift in the price of raw materials. The main raw materials are titanium dioxide, phthalic anhydride and canarithrithol. They reflect about 50 percent of the overall cost. Titanium dioxide alone contributes 30% of the cost. The raw materials, such as linseed, castor, soya bean oils, etc., contribute up to 70% of the overall cost of the raw material. Over the last few years, there have been a lot of increases in crude oil prices that have impacted the margins of the painting firms. Pressure rose further as a result of the recession and thereafter of the fall in demand. According to, BP Statistical Review of World Energy, In the recent year there is been an increase in the price volatility of crude oil, such as the crude oil price decreased from $98.95 in 2014 to $52.39 in 2015 and increased from $43.73 in 2016 to $71.31 in 2018. Thus, paint prices are very much dependent on raw materials, and any increases in the price of raw materials would eat up the company's profits. Thus, the unstable market for raw materials represents a major restraint to the stability of APAC decorative paints & coatings market. 

However, the COVID-19 pandemic outbreak is having a huge impact on the building and construction industry in Asia Pacific. COVID-19 has exposed challenges for the APAC decorative paints and coatings market by impacting the construction sectors. Major economies of each country in the APAC region is affected due to pandemic and resulted in a slowdown in the manufacturing activities of residential buildings owing to which declination in revenue is expected for the year 2020. In addition, due to the export and import restrictions by various governments, there has been a downfall in the export and import of commodities, which is limiting the decorative paints & coatings market growth in Asia Pacific during the pandemic.

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the APAC decorative paints & coatings market. In 2019, the market of APAC decorative paints & coatings has been consolidated by the top five players accounting for 27% of the share. Major players in the APAC decorative paints & coatings market are Nippon Paint Holdings Co., Ltd., Asian Paints, AkzoNobel N.V., PPG Industries, Inc., Kansai Paint Co Ltd., Jotun A/S, BASF SE, The Sherwin-Williams Company, Axalta Coating Systems, LLC, and Noroo Paint & Coatings Co., Ltd.