The decorative coating industry comprises the application of coatings or paints to improve the appearance of various surfaces and protect them from environmental elements. This market can be divided into three segments- product, technology, and application. The product segment is divided into three categories- primer, enamel, and emulsions. Primers are used as a base coat to give adhesion, corrosion protection, and surface uniformity. Enamels are high-performance coatings that produce a glossy, long-lasting finish. They are typically employed on surfaces that have to be resistant to wear and strain. Emulsions are water-based coatings that provide good coverage, are easy to apply, and dry quickly, making them suitable for interior and outdoor wall painting.
Additionally, the technology segment is divided into waterborne and solventborne coatings. Waterborne coatings employ water as a solvent, which makes them environmentally benign and low in VOC emissions. They are frequently utilized in household applications and as aesthetic elements. Solventborne coatings are appropriate for commercial and industrial applications since they employ common solvents such as petroleum-based solvents.
Key Drivers of the Decorative Coating Market
Increasing Urbanization
In the urban environment, decorative coatings are in high demand. The need for such coatings has been rising due to the fast rise of cities, which is mostly attributable to population growth and urbanization. According to the World Bank data (October 2022), cities are home to 56% of the world's population or 4.4 billion people. This trend is predicted to continue, with the urban population doubling by 2050, when roughly 7 out of 10 people will live in cities. This urbanization growth will fuel the demand of the market further.
Material Advancements and Sustainability
Two significant aspects driving innovation and growth in the decorative coating industry are technological improvements and sustainability. The advancement of new coating methods and materials has made it possible to create coatings that are more robust, long-lasting, and perform better. For instance, volatile organic compounds (VOCs) are dangerous substances contained in conventional coatings. Low-VOC coatings have grown in popularity due to their eco-friendliness and low toxicity, making them suitable for use in both residential and commercial environments. Governments are also prompting companies to use low VOC materials in their coatings and paints. Recently, in May 2022, as part of the British Coatings Federation (BCF)'s VOC Globe initiative, decorative paint producers adopted the statement 'TRACE' Volatile Organic Compounds (VOC) to better communication with customers by emphasizing which products have the lowest amounts of VOCs. The TRACE globe will be used for items containing less than 0.1% VOC. Additionally, another technical development that has transformed the decorative coating industry is nanotechnology. Nano coatings are composed of nano-sized particles that have been developed to give improved performance properties such as scratch resistance, durability, and water repellence.
Growing Construction Industry
The construction industry is expanding rapidly, and with it comes an increase in demand for decorative coatings. Renovation and restoration of existing structures need the use of decorative coatings, which supports market development. According to the April 2023 reports of the Office for National Statistics, in the UK, monthly construction production climbed by approximately 2.4% in volume terms in February 2023, with February 2023 representing the greatest monthly value of £15,558 million ($19.4 billion) since January 2010. According to the same source, the main contributors of the market were private housing repair and maintenance. China is also witnessing a significant growth in the construction industry. For instance, in October 2022, China State Construction Engineering Corporation, a state-owned company acquired several large-scale residential building and infrastructure projects. The total value of the 10 projects is CNY 33.89 billion (USD 4.89 billion).
Expansions and Innovations by Major Market Players
The decorative coating market has significant contributors such as AkzoNobel N.V., Asian Paints Ltd., Avaluxe, BASF SE, All Tech Decorating, Benjamin Moore & Co., Kansai Paints Co., Ltd., Masco Corp., Jotun A/S, Nippon Paint Holdings Co., Ltd., and PPG Industries, Inc., among others. These players assist in the market’s growth with the launch of new products and through collaborations and investments. Some of the recent developments in the market include-
• In April 2023, AkzoNobel introduced the superdurable Interpon D2000 powder coating for architects and designers in the North American market. This coating can give aluminum surfaces the appealing natural appearance and feel of stone without any of the hassle or cost associated with utilizing the actual material.
• In December 2022, BASF's ColorBrite® Airspace Blue ReSource basecoat made its premiere in China, having been certified by REDcert using a biomass balancing technique. BASF's biomass balancing automobile OEM coatings were launched to Asia for the first time since its official launch in Europe in May 2022. This basecoat product reduces the carbon impact of the product by about 20%.
• In December 2022, DIMO, a Sri Lankan business, launched the GRAPHENSTONE, the first eco-friendly paint of its type in the country. The paint, developed in Spain, blends lime and graphene technology to produce a one-of-a-kind mixture known as GRAPHENSTONE Innovative Technology. Natural and artisanal lime are combined with graphene materials to boost strength and flexibility, leading to high-quality environmentally friendly paint with a longer lifespan and lower maintenance needs, resulting in cost savings.