Decorative Coatings Market

[368 Pages Report] The global decorative coatings market size is estimated to be USD 71.3 billion in 2021 and projected to reach USD 91.6 billion by 2026, at a CAGR of 5.1%. The global decorative coatings market is witnessing high growth owing to technological advancements and growing demand in APAC. The economic growth in developing countries, increasing investment in infrastructure, stringent environmental regulations, growing purchasing power, and the rising demand for green and environment-friendly coatings lead to the market growth.

Global Decorative Coatings Market Trends

To know about the assumptions considered for the study, Request for Free Sample Report

Decorative Coatings Market Dynamics

DRIVERS: Durable coatings with better performance and aesthetics

The chemicals that are currently used to manufacture coatings are better than solventborne coatings. Products are currently sold with multi-year guarantees against corrosion, mostly due to improvements in the performance of coatings. Decorative coatings can protect the exteriors of the buildings from heavy rainfall, strong wind, and snowfall. These coatings offer several benefits: durability, high flexibility, crack bridging ability, waterproofing & weatherproofing, and resistance to dirt, mildew, and chemicals. In addition, producers are continuously introducing new products that are eco-friendly. The improved durability of coatings leads to the painting of window frames and doors less often, thus reducing the costs incurred by end users. The enhanced scratch resistance allows parquet floors to be renovated less often.

RESTRAINT: Stringent and time-consuming regulatory policies

Regulatory policies have a significant impact on the paints & coatings industry. Potential changes in regulations can create uncertainty throughout the value chain. This uncertainty refers to the time taken by the manufacturers at each node to accept the new regulation and adopt a new technology. Different time-consuming regulatory changes in different regions can affect the raw material producers, formulators, channel partners, and end users. With the increasing number of governments implementing stringent regulatory policies, decorative coating producers must constantly evolve their processes to comply with the new policies and reduce VOC emissions.

OPPORTUNITIES: Opportunities in less-regulated regions

The decorative coating manufacturers in North America and Europe have to follow stringent government rules and policies. However, the developing regions have fewer or no rules for this segment. Hence, the markets for decorative coatings in APAC and other emerging economies are rapidly growing as the developed regions such as Europe have imposed many stringent policies. Thus, until these rules are imposed, the growth opportunities for the market in APAC and other emerging regions are tremendous.

CHALLENGES: Volatility in prices of titanium dioxide

Titanium dioxide (TiO2) is an essential ingredient in the manufacturing of decorative coatings. TiO2 comprises 20–30% of the total expenditure on raw materials. There are many global suppliers for TiO2, and there is no substitute available for this ingredient. TiO2 pigments are traded internationally; however, the fluctuations in the price of TiO2 have increased in both amplitude and frequency in the last decade. These frequent changes in the prices make it difficult for the buyers to plan their spending and affect their profit margin.

Acrylic decorative coatings segment to dominate the market in 2020

Acrylic is an extensively used resin in decorative coatings due to its low cost, good water resistance, and good stain protection. The market for this segment is also projected to witness the highest CAGR during the forecast period. The weathering and oxidation resistance of acrylics is better than oil-based paints, alkyds, or epoxies. The chief components of acrylic polymers provide a polymer structure that has little tendency to absorb UV light. Acrylics possess good color and gloss retention. They are well-known for their durability as they protect the underlying substrate from degradation caused by exposure to rain, snow, wind, and UV light. Acrylic paints & coatings are easy to apply, economical, and can be cleaned up with water.

Waterborne coatings technology to hold largest share of the decorative coatings market in 2020

The main technology type used for decorative coatings is waterborne technology, which accounted for largest share of the overall market, in terms of value, in 2020. The shift from solventborne to waterborne coatings has been witnessed in the sector of decorative coatings. There is increasing demand for green products, which has created the need for green raw materials for coatings, especially waterborne resins. Advances in waterborne alkyd technologies have enabled the production of virtually zero-VOC alkyd resins with the same performance as that of solventborne alkyd.

Residential application is expected to have largest CAGR during the forecast period

Economic growth and higher incomes in the last few years have resulted in the construction of several new houses and the remodeling of old ones. Decorative coatings for residential construction applications include new paint and repainting. These coatings mainly include architectural and functional products, such as paints, stains, lacquers, primers, and cleaners. Decorative coatings are used in both interior and exterior applications in the residential sector. Repainting is associated with giving a new look to an old or worn-out interior and exterior of constructions.

APAC is expected to be the fastest growing region during the forecast period.

APAC is projected to be the fastest-growing decorative coatings market during the forecast period. The market in APAC is witnessing high growth, which is expected to continue because of increasing residential construction and improved home remodeling practices. The leading global companies are shifting their production base, establishing sales offices, and enhancing distribution channels to regions, including APAC, which offer a sustained demand. The gradual shift of manufacturing facilities to countries with high demand and lower production costs positively influences the market's growth.

To know about the assumptions considered for the study, download the pdf brochure

Environmentally-friendly coating systems

The increasing demand for environmentally-friendly properties has been one of the most important trends observed in the coatings industry for the last 10 years, largely influenced by stringent EU regulations regarding the reduction of volatile organic compounds (VOC) emissions in the coating life cycle. This has shifted the demand from solventborne coatings to environmentally-friendly products such as waterborne and powder coatings. New rules and regulations such as the Eco-product Certification Scheme (ECS) are set by the European Commission and other federal government agencies. These regulations ensure a green and sustainable environment with minimum or zero harmful VOC emissions. Also, the regulations on lead control in household and decorative coatings were implemented in 2016, after the Quality Council of India (QCI), Pollution Control Board Authorities, and the National Referral Centre for Lead Projects in India (NRCLPI) strongly recommended to the Government of India (GOI) to fix lead content below 90 ppm for all decorative and household paints in the country.

The decorative coatings market is dominated by a few globally established players such as The Sherwin-illiams Company (US), PPG Industries Inc. (US), AkzoNobel N.V. (Netherlands), BASF SE (Germany), Asian Paints Limited (India), among others.

Get online access to the report on the World's First Market Intelligence Cloud

• Easy to Download Historical Data & Forecast Numbers
• Company Analysis Dashboard for high growth potential opportunities
• Research Analyst Access for customization & queries
• Competitor Analysis with Interactive dashboard
• Latest News, Updates & Trend analysis

Request Sample

Click on image to enlarge

Scope of the Report

This research report categorizes the decorative coatings market based on resin type, end-use industry, application, and region.

By Resin Type:

• Acrylic
• Alkyd
• Vinyl
• Polyurethane
• Others

By Technology:

• Waterborne coatings
• Solvent-borne coatings
• Powder coatings

By Coating Type:

• Interior
• Exterior

By User type:

• DIY
• Professional

By Product Type:

• Emulsion
• Wood Coatings
• Enamels
• Others

By Color Type:

• White
• Others

By Application:

• Residential
• Non-residential

By Region:

• APAC
• Europe
• North America
• South America
• Middle East & Africa

Recent Developments

• In June 2021, PPG Industries Inc. announced the completion of its tender offer for all the shares of Tikkurila. The completion of the tender offers more than 66.7% of the outstanding shares of Tikkurila and additional customary conditions to completion. Tikkurila is headquartered in Vantaa, Finland, and is a leading producer and distributor of decorative paints & coatings with operations in 11 countries.
• In June 2021, AkzoNobel N.V. expanded its business in South and Central America after acquiring Colombia-based paints and coatings company Grupo Orbis. Grupo Orbis is present in 10 countries in South America and Central America, and the Antilles.
• In October 2020, Asian Paints Limited’s new Royale Luxury Emulsion Health Shield is the first interior paint effective against COVID-19. It is said to kill 99% of bacteria. The product has a five-year performance warranty with an advanced surface protector, providing stain resistance and purifying the air by neutralizing formaldehyde.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst