• Aditya Kaushal

Global & European Paints & Coatings Market Highlights: 2020

The year 2020 will be known as the pandemic year, which caused great loss and volatility in everyone’s life worldwide, either in terms of economy or daily life or both. But the year will also be seen as the year of learning, changed lifestyle, innovations, and collaboration. Color not only beautifies the surrounding environment but also could protect the environment. The innovative anti-microbial coatings and launching of other new paints & coatings products in 2020 have helped the industrial as well as decorative segments to use in different applications.

In the year 2020, the paints and coating manufacturers have strong effects due to the following key factors:

  • COVID-19 pandemic

  • Global economic and political scenario, including increasing selling price

  • Product innovation and competition by foreign and domestic competitors

  • Fluctuations in cost and availability of raw materials

  • Customer inventory levels

  • Supplier/Distributors relationships and arrangements

  • Difficulties in integrating acquired businesses/JV/Collaboration

  • Difficulties in Acquiring target market and penetrate existing foreign and domestic markets

  • Foreign exchange rates and fluctuations in such rates,

  • Environmental regulations, unexpected business disruptions, employee retention, etc.

Key factors in increasing market share in paints and coatings market | Market Research Reports

The market is seeing a very good recovery since the second quarter of 2020 after the lockdown restrictions were removed in different countries and trade and transport goods supply resumed inside and outside the country, including limited restrictions and precautionary measures against covid-19. The paints and coatings manufacturers, too, have contributed towards innovations and new product launches in the pandemic year. They also stepped forward towards manufacturing sustainable coatings solutions and products for the customers.

Few examples include:

  • In Dec 2020, AkzoNobel N.V. got breakthrough innovation in developing sustainable resins using bio-based monomers derived through sugar derivatives isolated from biomass which could provide futuristic functionality to the coating products, in collaboration with the Dutch Advanced Research Center Chemical Building Blocks Consortium (ARC CBBC). In Oct 2020, AkzoNobel N.V. introduced the first time 100% UV Cured wood coating product, which provides a more efficient and sustainable production process with a new instant drying solution.

  • In Nov 2020, PPG Industries introduced PPG ENVIROCRON HeatSense powder coating, which can be applied to heat-sensitive wood and wood-composite applications, such as medium-density fiberboard (MDF), hardwood, plywood, etc. This powder coating can be a game-changer in wood coatings by benefiting key wood coating applications such as cabinetry, office furniture, building products, etc. In Nov 2020, the company also launched Anti-Bacterial Matt paint of JOHNSTONE’S™ brand to prevent the spread of bacteria on buildings/home walls. In Sep 2020, PPG Industries also launched a comprehensive line of products in Floor Coating applications based on the specific work environment, including general-purpose flooring, wear-resistant flooring, chemical-resistant flooring, and urethane cement flooring. In Oct 2020, for Food & Beverage manufacturing facilities, PPG Industries launched low VOC coating, i.e., SANISHIELD™ 3000/5000 two-part polyurea coating system for walls and ceilings.

  • In April 2020, Sherwin Williams launched Powdura® ECO Coatings made from recycled plastic to promote sustainability throughout the supply chain. It uses an innovative polyester resin comprised of 25 percent pre-consumer recycled plastic (rPET) to reduce the environmental footprint.

  • In April 2020, Nippon Paint with Corning Inc. developed antivirus surface coating solutions using Corning’s Guardiant™ Antimicrobial Particles and Nippon Paints’ Antivirus Kids Paint.

  • In Dec 2020, Axalta Coatings launched AquaECTM 3500 EP, a new environmentally responsible, and cathodic tin-free electrocoat primer that provides excellent corrosion and chemical resistance. It can be useful in various applications in coatings of automotive parts & accessories, ACE (agriculture, construction, and earth-moving equipment, other general industrial sectors.

The year 2020 also has seen few acquisitions where top paints and coatings manufacturers have adopted acquisition strategy to broaden their product line or acquire technology or expand the business targets in the new geographical region to gain market share, etc. More announcements where a deal is offered or definitive agreement will be finalized in the year 2021. There are other collaborations and acquisitions to penetrate the new market or innovate Eco-friendly products as per sustainability development program or to gain the market share post the pandemic through new antimicrobial coatings products & other new efficient and cost-effective coating products for target applications in different sectors. 10 notable acquisition by top coating manufacturers include:

  1. On 23rd Dec. 2020, AkzoNobel N.V. agreed to acquire New Nautical Coatings, a leading player in yacht coatings to increase its share in the North American yacht coatings market.

  2. On 19th Oct. 2020, AkzoNobel N.V. announced to acquire the decorative paints business of Spain’s Industrias Titan S.A.U. to further increase the market share in the European region. The acquisition is expected to complete after regulatory approvals at the end of quarter 1 of 2021.

  3. On 2nd Sep. 2020, AkzoNobel N.V. announced the acquisition of Stahl Performance Powder Coatings which provided the company a unique low curing technology to apply powder to temperature-sensitive substrates such as thermoplastics, MDF, plywood, and composites.

  4. On 29th June 2020, Akzonobel N.V. announced the collaboration with five companies under their Paint the Future supplier collaboration program. Those five companies include Lonza Microbial Solutions (real-time microbial detection method), IGM Resins (instant-drying hybrid decorative paints), ICL Group (safe and stable paint formulations), Croda Smart Materials (self-healing coatings), and Wagner Painting (zero overspray application equipment).

  5. On 6th March 2020, AkzoNobel N.V. announced to acquire the remaining 25% stake in Akzo Nobel Boya Sanayi ve Ticaret A.S., which was a leading JV in powder coatings in Turkey. This acquisition has strengthened the position of the company as the leading market share of the Powder coatings market in Turkey and gained market share in the European region.

  6. On 11th Jan 2021, PPG Industries announced to acquire Wörwag, a global manufacturer of coatings for industrial and automotive applications headquartered in Germany. Completion of the acquisition is expected to end by the first half of 2021.

  7. On 5th Jan 2021, PPG Industries announced to acquire VersaFlex a US-based coating manufacturer specializing in polyurea, epoxy, and polyurethane coatings for water and wastewater infrastructure, flooring, transportation, and industrial applications. This acquisition is expected to complete by the 1st quarter of 2021.

  8. On 5th Jan 2021, PPG Industries and Tikkurila Oyj announced that they have agreed to the revised amended offer under which PPG Industries will acquire Tikkurila Oyj and the transaction will complete by the second quarter of 2021. This acquisition will gain better market share to PPG and can be at the top position in terms of overall paints and coatings market share in the European region in 2021, Currently, in 2020, AkzoNobel N.V. holds the top position in paints & coatings with a very narrow difference to PPG Industries in Europe. The year 2021 will see a very tough competition between these global 2nd ranked PPG Industries and 3rd ranked AkzoNobel N.V. to hold the top position in the European paints and coatings market.

  9. On 24th Dec 2020, PPG Industries announced the acquisition of Ennis-Flint, a US-based global leader in pavement markings and traffic safety solutions. This acquisition will benefit PPG Industries to strengthen their existing mobility technologies, expand their product offerings and gain the market share at the global market and it will also gain market share to reach the top position in the global market.

  10. On 4th Jan 2021, Innovative Chemical Products (ICP Group) has announced that it has acquired the Gardner-Gibson and Sun Coatings, (“Gardner-Gibson”) a Florida-based leading manufacturer of liquid-applied roof coatings, roofing products, driveway sealers, and specialty paints for commercial and residential applications. This acquisition will boost the ICP’s product line and target market in the USA and Canada with a strong network of retailers and recognized premium brands (Gardner®, Black Jack®, APOC®, and Dyco® brands) by Gardner-Gibson.

Paints and coatings market share | AKI Research | Market Research Reports
Paints and coatings market share  | Market Research Reports

According to AKI Research & Consulting (OPC) Pvt Ltd, in the year 2020, it is estimated that the top 10 paints & coatings manufacturers accounted for a market share of 48.62% of the total global paints and coatings market in comparison to the market share of 45.71% in 2019. An increase of the joint market share from top 10 players was as expected due to pandemic, which has hit high to many mid-scale and small-scale coating manufacturers. There is very strong competition to get the top position between PPG Industries and Sherwin Williams. In 2020, it is estimated that Sherwin Williams accounted for the top position with a market share of 11.07%, followed by PPG Industries with 10.27% (excluding revenues from Ennis-Flint & VersaFlex acquisition).

The European region has a very high competitive scenario in order to gain market share and strategically the top players like PPG Industries, AkzoNobel N.V., etc. are targeting key companies on either geographical basis or technology basis. In 2019, the top player in the European paints & coatings market AkzoNobel N.V. had 1.52% more market percentage share than PPG Industries, which is estimated to further increase to about 3.07% in 2020. However the definitive agreement to acquire Tikkurila Oyj by PPG Industries will gain the market share in 2021 and will also strengthen the position with a narrow difference in market share to AkzoNobel N.V. If we add estimated revenues of Tikkurila Oyj in PPG Industries for the year 2020, the total market share of (PPG + Tikkurila) will be about 15.21% in comparison to 16.06% market share of AkzoNobel N.V. In 2019, the top 10 players accounted about 59.65% market share of Europe paints and coatings market. However, in 2020, the top 10 players are estimated to account for 63.51% of market share (*Tikkurila revenue share taken as an individual player).