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.
According to AKI Research, the global paints and coatings market is estimated to reach USD 135,096.48 million with a declining y-o-y rate of -11.18% in 2020. The consumption of paints and coatings by volume also decreased by more than 5,046.7 thousand tons in 2020. The global paints & coatings market is estimated to grow at a CAGR of 5.50% by revenue during 2020-2024.
In the year 2020, the paints and coating manufacturers have strong effects due to the following key factors:
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.
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: