ACA publishes “U.S. Paint and Coatings
Industry Market Analysis”
The American Coatings Association
(ACA) has published the "U.S. Paint &
Coatings Industry Market Analysis: 2010-
2015," which profiles the coatings industry’s 21 market sectors over the past two
years, offering analysis, and providing
projections for sector performance for the
five-year period following the most recent
industry Census figures. The report also
incorporates interviews with industry experts whose insights provide a solid base
for analyzing the impact of trends and issues in major market segments along the
paint and coatings supply chain.
Prepared for ACA by The ChemQuest
Group, Inc., the study finds that the U.S.
paint and coatings industry is expected to
reach a value of $23.6 billion in 2015. As
the U.S. continues to emerge from the effects of the deep 2007-2009 recession,
when both manufactured goods output
and construction spending declined
sharply, the paint and coatings market is
expected to respond to improvements in
both manufacturing and construction with
significant increases in both volume and
value. Both increased domestic demand
and favorable export opportunities will
fuel the demand for increased U.S. paint
and coatings production the report says.
At 56 percent of the volume, and 49
percent of the value in 2010, the architectural segment continues to account for the
largest “slice of the pie” with regard to
U.S. paints and coatings demand. Aided
by renewed strength in construction, and
specifically in the residential housing market, ChemQuest is forecasting a 2010-
2015 compound annual growth rate
(CAGR) of 6.1 percent for value, and 2.9
percent for volume in the architectural
segment, versus 4. 9 percent and 1.8 percent for value and volume, respectively, in
original equipment manufacturing finishes
and 3. 8 percent for value and 1.2 percent
for volume in special purpose finishes.
The report says the architectural segment will face both opportunities and
challenges as we head toward 2015, with
the use of vinyl siding decreasing the need
for exterior architectural paint, but with
the growing market for fiber cement siding increasing the need. Since fiber cement
siding is very likely to take market share
from vinyl siding, this should be a plus for
the architectural paint segment.
This latest edition of the market analysis offers several new features, including an
industry structure assessment of each market segment using Porter “Five Forces”
analysis. This analysis offers purchasers a
"snapshot in time" of each market segment, and allows for direct comparisons
among coatings market segments.
A profile of the Middle Eastern
and African paint industries
IRL has published the fourth edition of its
report, “A Profile of the Middle Eastern
and African Paint Industries.”
The political and social uprising initi-
ated at the end of 2010 known as the
Arab Spring had and is continuing to have
a huge impact on the political, social and
economic systems of many Middle East-
ern and North African economies, and the
paints industry has not been immune to
this unrest the firm said.
The Middle Eastern paint market has
been estimated at more than 1.8 million
tons in 2011, and is dominated by the
huge Saudi paint and coatings market and
the smaller Emirati and Qatari markets,
according to the report. As well as being
the leaders in size, these countries also
offer significant growth opportunities, in
particular Qatar. Qatar’s winning bid to
host the Football World Cup in 2022 will
likely accelerate many large-scale infrastructure projects.
Many Middle Eastern markets are
showing positive economic growth rates
despite the turmoil in many of the global
economies—not least in the Eurozone—
and have demonstrated their ability to recover relatively quickly from the economic
crisis of 2008-09.
The African paint market is estimated at
just above one million tons in 2011 based
on the countries researched for this report.
In Africa there is good growth mainly in the
north of the continent, despite all the North
African countries having been directly or
indirectly affected by the Arab Spring.
Many paint companies have recently
targeted Egypt for investment and with
good reason. Egypt has enjoyed a really
strong economic growth—up to 10 percent in recent years—and has become an
increasingly important supply base for
coatings, in particular to Libya. Despite
recent political and social unrest, Egyptian GDP is expected to grow by around
3. 5 percent in 2012 the report says.
In the African region, paint market
growth is expected to be at around four
percent per annum in the medium term,
which seems to reflect many of the GDP
growth rates found across the region, despite large inequalities between countries
and sometimes within the same country.
The key trends that stand out from this
report include:
• After a massive drop in GDP growth
over the last couple of years (GDP
grew by only 0.6 percent in 2010),
Saudi Arabia is now experiencing
moderate growth thanks to the cur-
rently very high oil price and the on-
going construction of the new
economic cities;
• After being badly hit by the recession,
the construction industries in the
United Arab Emirates are now moving
forward but at a slower pace com-
pared to the past; and
• South Africa experienced a significant
economic downturn in 2009-2010
and it is still recovering. As a result,
the paint market has moved in favor
of low-medium quality products.
GIA forecasts the global
market for epoxy resins to
reach 3.03 million tons by 2017
The worldwide market for epoxy resins is
slated to reach 3.03 million tons by the
