Asia Pacific
August 2015 www.coatingsworld.com Coatings World | 33
coatings industry is the decorative sector, representing less then
one-fourth of the total volume. This is a small percentage compared to most other countries in Asia Pacific. For example, the
decorative sector represents approximately twice that amount
( 45 percent) of the total Asia Pacific coatings industry. The next
largest coatings segment in South Korea is a close second, general industrial, at 20 percent of the total. The marine coatings
segment is important for South Korea. South Korea’s marine
coatings segment is second in size only to China. This segment is
the third largest sector for coatings in South Korean, representing roughly 15% of its total volume.
Australia:
Australia and New Zealand (Oceania) both have a mature paint
industry with a similar end use structure. Since they are mature economies, rapid growth within the Oceania region of Asia
Pacific is not expected. The coatings market in Australia is a
smaller and more mature market ($1,078 million on 198 million liters) relative to the leading countries in the region. The
Australian coatings industry resembles, in many ways, the mature markets of North America and Western Europe. Australia
has struggled in recent times with its negative coatings growth
(volume) occurring between 2008 and 2013. The value of
Australia’s coatings industry is forecast to grow from its 2013
value of $1,078 million to $1,251 million in 2018 – growth of
about 16 percent over that five year period.
Southeast Asia:
This group of countries is often referred to as the ASEAN coun-
tries (Association of Southeast Asian Nations), which is a po-
litical and economic organization of ten countries including
Indonesia, Vietnam, Philippines, Thailand, Malaysia, Myanmar,
Cambodia, Laos, etc. They are, for the most part, high growth
countries where significant opportunities exist for paint and
coatings. These countries are experiencing positive growth in
the decorative, protective, industrial, wood, automotive and ma-
rine sectors.
Although China, South Korea and Japan represent close to
80 percent of the marine coatings industry, new shipping hubs
are being established in Southeast Asia, particularly in Vietnam
and the Philippines. Southeast Asia has been the beneficiary of
the rising costs in Chinese manufacturing operations. This has
resulted in OEM plants, and therefore coatings plants, being established in or relocated to Southeast Asia. The movement of
investment into low cost countries within Southeast Asia has
increased opportunities for paint companies in the region to
expand into ASEAN countries like Vietnam, Laos, Myanmar
and Cambodia. Vietnam is one of the fastest-growing economies in the Asia Pacific region. Vietnam has been attracting significant investment from industry in recent years. Much of this
investment is in construction and infrastructure. The accession
of Vietnam into the World Trade Organization (WTO) back in
2007 is proving to be a good move for Vietnam’s business sector. As a member of WTO, Vietnam’s commitments have been to
eliminate protectionism in terms of international trade and foreign investment. This has translated into accelerated industrial
development, especially in sectors such as automotive and other
manufacturing segments which have had, and will continue to
have, a positive impact on coatings growth.
Indonesia is also emerging as a strong growth market for
coatings. Indonesia has enjoyed an increase in confidence and
has been attracting investments from international corporations
in recent years, giving a boost to the coatings industry. The establishment of economic development zones, coupled with increased tourism to this country, will help to drive growth in the
Indonesian coatings industry over the next several years.
Singapore is also an attractive market for coatings. Singapore
actually has one of the highest per capita paint consumption
rates in the Asia Pacific region and in the world.
Strong growth of the decorative, protective and marine
