Coatings revenues in Europe
to reach nearly € 28 billion
Paints and varnishes are not only pretty,
but they also protect houses, vehicles and
other objects against corrosion and decay.
Even their mere material value is considerable. “Revenues in Europe will increase
to € 27. 7 billion by 2018,” said Oliver
Kutsch, CEO of Ceresana Research. The
market research institute is currently publishing a new study on the European paint
and varnish market.
The transport industry is of special significance. Although this sector accounts
for less than eight percent of the entire
paint and varnish market, its share in
terms of value totals almost 15 percent.
Car series paints, refinish coatings and
ship paints enjoy above-average growth.
Demand for industrial varnishes, the sec-ond-largest field of application behind the
construction industry, is especially increasing in Russia, Poland and Turkey. But
also some West European countries, like
the Netherlands, record above European
average growth, which amounts to 1.6
percent per year. Powder coatings, acryl
varnishes and epoxy-based products are
also gaining importance.
The construction industry’s influence on
the paint and varnish market continues to
decline. While the construction industry accounted for approximately 59 percent of
European demand in 2002, its share is anticipated to drop to 56 percent by 2018.
However, this trend is weakened by rising
sales of dispersion paints in Eastern Europe.
Many manufacturers develop solvent-free and environmentally friendly paints
and varnishes that are, for example, suitable for steel containers or internal coatings. This allows reducing environmental
pollution by VOC emissions. A great number of companies are working on product
solutions, which offer special properties:
apart from heat insulation, especially nanotechnology is a topic of the future, e.g.
when it comes to self-cleaning of antibacterial coatings.
The market report of Ceresana Research
provides an overview of the different coat-
ing products. The paint and varnish market
in 30 European countries is analyzed in detail, i.e. demand and production as well as
import, export and revenue. Each important field of application is examined individually: construction industry, wood
processing, transport industry, but also
coatings for plastics, corrosion protection
varnishes, and ceramics and glass coatings.
A useful list of producers in Vol. II offers
profiles of the 138 largest manufacturers of
paints and varnishes. The report, available
in English or German, forecasts market opportunities and risks until 2018.
The boom in the construction
and automotive sectors steps-
up growth in the Southern
African paint market
The paint and coatings market is primarily driven by the construction sector. The
construction industry slowed down drastically during 2008 and 2009 due to the
economic crisis and started to gradually
recover in the third quarter of 2009.
However, Namibia and Zambia, are now
witnessing a rise in construction activities,
according to new analysis from Frost &
Sullivan’s “Southern African Paints and
Coatings Market.” The research firm reported that the market earned revenues of
$603.0 million in 2009 and estimates this
to reach $765.3 million by 2016. The
products covered in this research report
include decorative coatings, automotive
and refinish coatings, industrial protective
coatings and other coatings.
“The thriving building industry and
the growing automotive sector are stepping up the demand for decorative paints
and automotive coatings in Southern
Africa,” said Frost & Sullivan chemicals,
materials and food research analyst Dil-shaad Booley. “The decorative paints segment accounts for more than 50 percent
of the total paints and coatings market in
Southern Africa, implying that the total
market growth will significantly increase.”
Due to the economic crisis, the con-
struction industry saw losses in very few
building projects being commissioned while
the automotive sector declined as fewer vehicles were being sold. However, Southern
Africa has many infrastructural opportunities and the government has taken initiatives to provide enhanced and greater
infrastructure to the locals by commissioning these building projects themselves.
However, the paints and coatings market in Southern Africa is highly fragmented with low barriers to entry. Several
small paint manufacturers are establishing
themselves in the market, thus increasing
the competition and range of brands in
the market. This leaves the market with
greater brand choices and takes away the
potential sale of the initial, older brand,
thereby reducing revenues of the existing
market participants.
“For local manufacturers, having to import large amounts of raw material increases the manufacturing costs, making
way for the import of cheaper paints and
coatings, creating added competition and
price sensitivity,” said Booley. “The starting
capital to manufacture decorative paints is
low, easing market entry and increasing
competition among local manufacturers.”
The local manufacturers should establish good customer relations and offer a
wide range of cost-effective products to
successfully maintain and develop their
market share.
“In an attempt to widen the market de-
mand, manufacturers and distributors
should educate consumers on the benefits
of purchasing superior quality paints,”
said Booley. “Although quality paints cost
more, they save the consumer from hav-
ing to recoat more often and provide an
aesthetic finish.”
If you are interested in more informa-
tion on this study, send an e-mail to Christie
Cronje, corporate communications, at
christie.cronje@frost.com, with your full
name, company name, title, telephone num-
ber, company e-mail address, company
website, city, state and country. CW
