Asia-Pacific Paints & Coatings Market Outlook, 2028

The Asia Pacific has evolved as a manufacturing hub over the past few years. Many global players are likely to invest in the Asia-Pacific region for its geographic presence, diverse population, and increased consumer spending due to emerging economies. The players also base their manufacturing footprint to serve customer demand, especially in the Asia Pacific region, owing to favourable policies, the availability of skilled labour at competitive remuneration, and stable raw material availability. Besides this, the paints and coatings market is also witnessing some advancement in technologies such as nanotechnology in coatings and many more. This factor will open up promising future opportunities in the Asia-Pacific over the forecast period. The increasing government rules over the use of paints and coatings. The regulations associated with the production of paints and coatings may hinder the market’s growth. Many companies are inclined toward low VOC content when manufacturing paints and coatings. Rising construction activities and growing demand from the automotive sector in emerging countries, such as China, India, Japan, and Southeast Asia, are expected to drive the market over the forecast period. Thus, the growing number of manufacturing facilities is boosting the construction activities in the region, which, in turn, is anticipated to propel the demand for paints and coatings over the forecast period. Initiatives toward newer product developments, including driverless cars, are the major factors expected to increase investments in the industry. In addition, emerging trends to cut down vehicle emissions and develop cleaner cars lead to electric car development. All these factors are expected to have a positive impact on the growth of the automotive industry in the country, which, in turn, is anticipated to propel the demand for paints and coatings over the forecast period.

According to the research report, Asia-Pacific Paints & Coatings Market Outlook, 2028 the market is anticipated to grow with 5.94% CAGR by 2023-28. The growing population and rising growth in urban housing, especially in China and India, are driving the growth of the Asia-Pacific Paints and coatings market. The growing investment in infrastructure and the increasing demand for green and environmentally-friendly coatings. Additionally, in India Government initiatives taken such as ‘Smart City Mission’ and ‘Housing for All’ are projected to drive the growth in the construction sector which in turn results in demand for paints and coatings market. In India, the shift in consumer preferences from traditional whitewash to quality paints for indoor and outdoor applications will increase the demand for paints and coatings in the Indian market, which will indeed boost the demand for Asia-Pacific paints and coatings market. Asia-Pacific has a large and wide geographic presence and diverse population along with emerging economies are the main reason behind the Asia-Pacific growth. Rising demand for furniture coatings in China and increasing construction activity are driving market demand over the forecast period. The increasing construction activities in emerging economies such as China and India will also lead to market growth. The increasing demand for decorative coatings in houses, for greater aesthetics, is projected to push the demand for paints and coatings in architectural coatings in the next few years. Also, rising demand for low maintenance and high-performance vehicles coupled with long-lasting and economical coatings among consumers will propel the market growth.

Rising per capita income and increasing spending power of middle-class families in Asia Pacific is increasing the demand for affordable vehicles in the region. This factor has also increased the bulk production of vehicles in China and India as well as export of automobiles, driving the automotive coatings market revenue. Companies are focusing on strategic initiatives such as acquisition, agreement, and merger to expand their presence into the market. In September 2020, BASF launched novel waterborne basecoat line. The product developed is an eco-friendly automotive refinish coating owing to low value of volatile organic compounds (VOCs). New product will increase the efficiency of body shops as well as will improve the environmental footprint. China is renowned for its manufacturing sector's industrialization and needs for paints and coatings. Automotive, industrial, and construction are a few major industries in the nation that use paints and coatings. Additionally, it is anticipated that the nation’s demographics will continue to fuel the expansion of residential construction. The country's demand for residential construction is anticipated to be driven by rising household income levels and an increase in the number of people moving from rural to urban areas. Infrastructure that is not residential is anticipated to expand significantly. The nation's aging population is driving the need for new hospitals and healthcare facilities. Colossal commercial and office buildings have been built due to the structural changes in the Chinese economy over the past few years, which have seen the service sector account for a more significant portion of the GDP overall. Developments in the residential and commercial construction sectors, supported by the country's expanding economy, primarily drive China's economy. However, Japan is a leader in skyscrapers and high-rise buildings, making it a significant market for the consumption of architectural paints and coatings. The country hosts high-rise buildings (nearly 290), with Tokyo being a central hub for such buildings. The planning and construction of such buildings are witnessing decent growth in Japan in the short term. Some construction projects include two high-rise towers for Tokyo Stations, a 37-story and 230 m tall office tower, and a 61-story and 390 m tall office tower, due for completion by 2027.

The Asia-Pacific region is a significant player in the global paints and coatings market, driven by several factors such as rapid urbanization, infrastructure development, and industrial growth. Waterborne paints and coatings have gained significant popularity in recent years due to their low VOC (volatile organic compound) content and environmental friendliness. The Asia-Pacific region has witnessed a growing demand for waterborne coatings due to increasing environmental regulations and consumer awareness. Countries like China, India, and Japan are major contributors to the waterborne technology segment, driven by stringent environmental regulations and a shift towards sustainable solutions. Although waterborne technology is gaining traction, solvent-borne paints and coatings still hold a significant market share in the Asia-Pacific region. These coatings offer excellent performance characteristics and have a long-standing presence in the market. Countries like India, Indonesia, and Vietnam still rely on solvent-borne technology due to factors such as cost-effectiveness, specific application requirements, and availability of raw materials. Powder coatings are also a popular choice for industrial applications due to their durability, resistance to corrosion, and excellent finish. The Asia-Pacific region has witnessed robust growth in the powder coatings segment, primarily driven by the automotive, appliances, and construction industries. China, Japan, South Korea, and India are major contributors to the powder coatings market, owing to their extensive manufacturing activities and infrastructure development.

Large population base and rapid urbanization in countries in the region is driving growth of decorative paints and coatings market in the region. Additionally, rising disposable income and purchasing power of consumers in Asia Pacific is creating possibilities of higher demand for innovative and more advanced decorative paints and coatings. Countries such as Japan, Korea, Australia, and mainly China are expected to be major revenue contributors in the Asia Pacific market. Extensive expansion of automotive and construction industries is also driving growth of decorative paints and coatings market in the region. For instance, according to the new ‘Housing for All by 2022 Act’, India plans to provide housing for all in urban areas by 2022. The growth rate of the Indian construction industry is expected to rise prominently by 2028, which is expected to drive decorative paints and coatings market in the country. This is expected to support revenue growth of the Asia Pacific market. In September 2021, Asian Paints launched ColourNext 2021 for top engineers, architect, and interior designers across Bangladesh. Color of the year Cherish was a source of inspiration for this year’s color range launch. Asian Paints collaborates with experts from different fields to put together comprehensive collection of materials, textures, colors, finishes and trends.

Based on the application, architectural coatings are used in applications for commercial purposes, such as office buildings, warehouses, retail convenience stores, and shopping malls to residential buildings. Such coatings can be applied on outer and inner surfaces, and they include sealers or specialty products. Architectural coatings can be mainly divided into interior and exterior coatings. Durability, hide, stain resistance, and low VOC are integral to every interior paint formulation. They are used not only for decorative purposes but also for a wide range of functionalities depending on the environment in which they are used. For example, because of moisture, bathroom walls need wipe-ability to keep them clean. Paints with glossier sheens have a tighter molecular structure than flat paints, making it more difficult for moisture to penetrate. So, these types of paints are used in bathrooms. Besides, non-residential infrastructure is expected to grow considerably. The aging population in the country is creating a demand for the construction of healthcare facilities and new hospitals. The structural changes in the Chinese economy over the past few years, with the service sector taking a larger share of the total GDP, gave rise to the construction of huge commercial and office spaces. The segment is anticipated to grow with 6.58% CAGR by 2023-28.

Recent Developments:

• October 2022: Asian Paints planned to develop a manufacturing site for VAE (Vinyl Acetate Ethylene Emulsion) and VAM (Vinyl Acetate Monomer) in India used in the production of paints and coatings. This facility will have a capacity of 100,000 tons p.a. for VAM and 150,000 tons p.a. for VAE.
• June 2022: To boost its capacity for supplying water-based texture paints of Dulux products used in interior decoration, architecture, and leisure, Akzo Nobel NV expanded its production capacity in Shanghai, China. The new facility is 2,500 square meters.
• February 2022: Akzo Nobel NV invested in an in-house resin manufacturing facility. These resins are a key ingredient for making coatings. This will help the company for sustainable business growth and support its innovation pipeline and sustainability targets.
• June 2022: Nippon Paint (India) Private Limited, Asia’s leading paint manufacturer, has announced the launch of AirCare VG and Sumo Xtra Dust Shield. The company’s Sumo Xtra Dust Shield with the color-lock technology formulated on water-based exterior emulsion keeps the walls bright and clean for years to come. AirCare VG is used for interior surfaces and is formulated with Silver Ion and Unique Absorption technology that helps to stay the indoor environment safer and hygienic.

Major Companies present in the market:

Akzo Nobel N.V, PPG Industries, Inc., The Sherwin-Williams Company, Cabot Corporation, Wacker Chemie AG, BASF SE, Hempel A/S, Kansai Paint Co.,Ltd., Noroo paint & coatings Co., Ltd., RPM International Inc, Henkel AG & Co. KGaA, Nippon Paint Holdings Co., Ltd, Axalta Coating Systems Ltd., Terraco Group Limited, Jotun Group, Sika AG, DAW SE, Berger Paints Ltd , Asian Paints Ltd.

Considered in this report

• Geography: Asia-Pacific
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Asia-Pacific Paints & Coatings market with its value and forecast along with its segments
• Country-wise Paints & Coatings market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:

• China
• Japan
• India
• Australia
• South Korea

By Product Type

• Waterborne Coatings
• Solvent-borne Coatings
• Powder Coatings
• UV Cured Coatings
• Others Segment Includes (Speciality Coating (Primer, Topcoat, Undercoat, etc.), Electron Beam Cure coating, High Solids Coatings, etc.)

By Application Type

• Architectural
• Industrial

 Protective Coatings

 Automotive (OEM and After) Coatings

 Other Transportation Coatings

 Wood Coatings

 Marine Coatings

 Coil Coatings

 Packaging Coatings

 Aerospace Coatings

 Rail Coatings

 General Industrial Coatings

 Others Coatings

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Paints & Coatings industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.