Coatings World - May 2010

Fresh Paint
• Access to its ISO certified test lab
as well as routine QC training.

DEMAND FOR ARCHITECTURAL
PAINT TO REACH 22. 8 MILLION TONS

World demand for architectural paint is forecast to rise 3. 6 percent per year through 2013 to 22. 8 million metric tons, valued at $51 billion, according to “World Architectural Paint,” a new study from The Freedonia Group, Inc., a Cleveland-OH-based industry research firm. Growth will slow in comparison to the performance of the 2003 to 2008 period due to a deceleration in global building construction growth through 2013. Gains will nevertheless remain strong by long term historical standards as a result of healthy global economic growth and continuing gains in the world’s urban population that will put a strain on the existing housing stock.

As was the case over the past decade, the most rapid gains will arise in the world’s emerging markets, most prominently in Asia. Gains in Asia are based primarily on continued healthy expansion in the large Chinese and Indian markets. Although Japan is projected to post gains that will significantly lag the global average through 2013, the country’s architectural paint market will see a reversal of the declines experienced during the 1998-2008 period.

North America will post slightly
above-average gains through 2013.
Going forward, the housing and mort-
gage crisis that has plagued the U.S.
since 2006 will subside, providing
opportunities for paint sales to the new
homes market. Moreover, sales to the
much larger home repainting segment
will also benefit as sales of existing
homes improve because existing homes
are often repainted when they are to be
sold. A rebound in the large U.S. market
will benefit growth in the North
American region. In 2008, Western
Europe accounted for 21 percent of total
architectural paint demand. Western
Europe’s share of the global market will
continue to slip as the region registers
weak gains, due to below-average eco-
nomic and building construction expen-
diture growth, mortgage sector weak-
nesses in some constituent nations and
stagnant regional population gains.
Nevertheless, Western Europe will
remain the world’s leading regional net
exporter of architectural paint, due
largely to the presence of Germany. CW