• Aditya Kaushal

Paints and Coatings Market: Competitive Scenarios in different Regions and Sustainable Actions


Paints and Coatings Market: Competitive Scenarios

Coronavirus or COVID-19 is currently in a hot trend as it has become a pandemic and has affected thousands of lives and the global economy at a tremendous rate. Started from China, it has now spread in all five continents, and most of the governments’ have taken the decision to block international transportation to further stop the spread of the COVID-19. The stock markets in India, France, Germany, Russia, UK, USA, Argentina, Brazil, etc. have shown the red mark and very high declining trend in double digits in the last two months. The fear among the investors and the public in different nations due to novel coronavirus and blockage of the international transport & trade is creating heavy losses to the global economy and lives. The current situation requires no panic and high support among the public and the countries to stop this pandemic. This can only be solved by Collaboration among the nations. This pandemic has shown the world how human health can be a big cause of destruction and only collaboration and group support can be helpful to stop this virus and save humankind.


Nature has always shown hints and given clues to human beings to not play with the environment. The increasing global warming and pollution have become a concern among countries and corporations. Governments of the countries & intergovernmental organizations like the United Nations are creating awareness and strict laws & regulations are supporting the sustainable production and usage of sustainable products to save the environment. Paints and coatings which either symbolically beautify every product and/or protect them from the external environment, are one of the biggest markets which have started contributing to sustainable products in the last decade. According to my research, in 2019, the global “paints and coatings market” (hereafter in the article referred to as “market”) is estimated to value about USD 152 billion and the top 10 manufacturers accounted for the market share of about 48% globally.


In 2019, the Asia-pacific market is estimated to be the leading market followed by the European, North American, Middle-East & African (MEA), and South American region respectively. There are more than thousands of paints and coatings manufacturers across these regions, however, European, North American, and South American regional markets were mostly consolidated by the big players whereas Asia-Pacific & MEA regional market share represented scattered and highly competitive market by a large number of local players. Let’s check the comparison of 2018 vs 2019(estimated) paints and coatings market shares by region.


ASIA-PACIFIC

Asia-Pacific Paints and Coatings Market Share 2018
Asia-Pacific Paints and Coatings Market Share 2019

The Asia-pacific market is very competitive, with many small manufacturers (more than thousands). The local manufacturers have more cost advantage and higher bargaining power than the international players. However, the big manufacturers have a brand advantage and a threat to the new entrants in the region. Mergers and acquisitions are also playing a big role in gaining a higher market share in the region. In 2019, most of the companies have acquired revenue. However, the market share has decreased, as it suggests that the small players have shown higher revenue too. The increase in bio-based and no-VOC coatings products has also given the opportunity to new and small players in the region.


EUROPE

Europe Paints and Coatings Market Share 2018
Europe Paints and Coatings Market Share 2019

The European market is consolidated, and the top 13 manufacturers accounted for over 65% of the regional market share in 2019. The competition among the top players is also very high, with most of them having a global presence. The follow of strict regulations and the increase in demand for eco-friendly paints & coatings products have given an advantage to these global players to acquire a higher market share with their sustainable products and innovative solutions. The local manufacturers have an advantage in some countries where they have high dominance and presence, and they have the cost advantage and brand advantage too. Some local players have a specific coatings market presence based on their specialty coatings in a few end-user applications markets. By end-user industries, the market share by manufacturers differs in the European countries. Local players are showing high competition with the big international manufacturers.