According to a market research report titled, ‘Strategic Analysis of the Paint and Coatings Market,’ available from Research and Markets, the paint and coatings market in the Asia Pacific region valued at $43.52 billion will attain $53.55 billion in 2011 when it grows at a CAGR of 11%.
The end-user segments of the residential, commercial and construction markets in the Asia Pacific region experienced a robust growth. The optimistic economic scenario in most of the nations in the Asia Pacific region, particularly in India and China, was the driver for these end-user segments. The low operating costs and soaring inflow of foreign investments in these two nations are assisting the producers to boost their profit margins.
Countries such as the Philippines, Indonesia and Vietnam have lower purchasing power, which decreases the demand for high-performance and premium-grade paints in those regions. The increase in raw material pricing will also affect the margins of the paint manufacturers.
Majority of the decorative coating products offered in the market are water-based products and have very low concentrations of volatile organic compounds. Heat-reflective and dirt-resistant paints are major revenue generators in the tropical countries. The analyst noted that the producers will be seeking to develop an OEM coating that can be used in various environmental conditions.
As per the report, the participation of offshore firms can be improved via merger and acquisitions with the regional firms. Such partnerships will decrease their cost of developing a distribution network in the nation and improve the penetration of their products in the local market. Increasing demand and environmental consciousness from the middle-class people has increased the popularity of eco-friendly coatings and paints.