The Rise of Architectural Coatings: The market size is expected to grow to 32 million tons in 2024

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08 May,2021

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　　Global Coatings Network News: In terms of quantity, architectural coatings are the largest segment of the coatings industry. However, in previous years, the market stagnated. In 2020, the sector overcame the crisis in the paint and coatings industry, allowing architectural coatings manufacturers to look back on a successful fiscal year. However, it remains uncertain how long this positive development will last.

　　What is the situation of architectural coatings in the market?

　　It has been proven that the architectural coatings market performed strongly during the pandemic. Since the beginning of the corona crisis, many people have begun to value their homes, and their own four walls have become increasingly important. Researchers call cocooning the trend of making one's home beautiful and comfortable during times of crisis. The market certainly benefited from altered or adapted leisure behavior. Current leisure monitors show the activities Germans particularly engaged in during the corona period. In this study, the market research institute GfK, commissioned by the Hamburg-based Stiftung für Zukunftsfragen (Foundation for Future Research), surveyed a representative sample of over 2,000 people aged 18 to 74 on their leisure behavior.

　　The results showed that many people carried out repairs at home, finally repainting the kitchen or laying new flooring in the hallway. A quarter of those surveyed said they had renovated their own homes. About 39% started new DIY projects. However, this trend is not unique to Germany. Bank of America surveyed over 1,000 US residents on their attitudes and shopping habits during the pandemic, and they found that 70% of respondents this year undertook home improvement projects, with more planned for 2021. Per capita consumption of architectural coatings. According to data from the consulting firm Kusumgar, Nerlfi & Growney (KNG), they weigh 10.4 kilograms, significantly higher than the average of 7.8 kilograms in Canada and 7.2 kilograms in the EU.

　　The share of water-based systems further increases

　　According to KNG, over the past decade, the volume growth of water-based architectural coatings has been approximately 80%, while solvent-based coatings have grown by 38%. Water-based systems are already established in the EU and North America and are growing at a steady pace in those regions. However, in the Asia-Pacific emerging markets, the penetration rate of water-based coatings is lower and the growth is faster. KNG's market researchers estimate an annual growth rate of 6% for water-based coatings by 2024, compared to only 3% for solvent-based coatings.

　　Water-based systems account for 93% of the total volume of architectural coatings in the EU and 90% in North America. In the Asia-Pacific region, water-based systems account for 78% of the total, while in Russia it is only two-thirds. KNG experts expect this trend to continue, with the share of water-based systems increasing further.

　　Global market grows by 4% annually

　　KNG estimates the total global architectural coatings market at 26.1 million tons, worth €44.06 billion. The growth forecast is 4% per year. Therefore, by 2024, the market size will grow to 32 million tons, worth €53.2 billion. The consulting firm assumes that nearly 60% of the market share will be distributed among 25 companies. The top five, PPG, Sherwin-Williams, AkzoNobel, Nippon Paint, and Asian Paints, already account for over 38%.

　　The Asia-Pacific region is the largest market for architectural coatings, with sales of nearly 11.7 million tons and €18.4 billion in sales. The Chinese market alone accounts for 5.6 million tons, exceeding the total volume of Europe (5.5 million tons) or North America (4.1 million tons). In the Asia-Pacific region, KNG experts also found the highest growth rate, averaging 7% per year. The strongest growth rate is expected in India at 10%. In contrast, the forecast for Europe looks less positive. Here, only 1% growth is assumed.

　　Future opportunities

　　Sustainability and transparency, as well as sustainable solutions, are on the rise in terms of carbon footprint. According to Mortensen analysis, customers, investors, and governments increasingly expect companies to take greater responsibility. "Architectural coatings manufacturers have enormous potential not only to comply with regulations but also to further participate, going beyond compliance and committing to developing sustainable products, packaging, and solutions that benefit customers and the entire industry," Jimmi Mortensen of the Danish coatings manufacturer Flügger can confirm.

　　Tomasz Kosiński of the Polish company nie?ka believes that further development potential in the decorative paint sector comes from the specialization of the market and the further increase in the importance of non-price criteria among consumers. He says: "The demand for more expensive, higher-quality products that meet the growing demands and expectations of well-informed customers is increasing." Kosiński believes that another area with development potential is product innovation that aligns with the trend towards health-conscious, ecological, and responsible businesses.

　　For Rachel O'Connor of the Irish coatings manufacturer General Paints, there is considerable room for coatings manufacturers to adapt to market trends. She relates this to the online demand for products and services, the increasing importance of sustainable products, and the assumption of greater responsibility by companies to meet higher ESG standards. She emphasizes: "We also need to convey the message that coatings have a huge positive impact on our lives and the environment."

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Hubei Weiyang Polymer Material Co., Ltd.

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Yichang promotes the green development of its chemical industry along the Yangtze River