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Above-average demand in North America will help fuel overall increases in worldwide demand for architectural paint and coatings through 2013, new market research indicates.
Despite economic weakness in some major markets, worldwide demand for architectural paint is forecast to rise 3.6% per year through 2013 to 22.8 million metric tons, valued at $51 billion, according to the new study from The Freedonia Group Inc., Cleveland, Ohio.
The study, “World Architectural Paint,” projects that demand growth will slow in comparison to the 2003-2008 period due to a decrease in global building-construction growth through 2013. But volume gains will remain strong by long-term historical standards as a result of global economic growth and continuing gains in the world’s urban population that will put a strain on existing housing stocks, the report states.
The report forecasts that, as was the case over the past decade, the most rapid increases in architectural coatings demand will be seen in the world’s emerging markets, most prominently in Asia. This expansion will be driven primarily by continued economic growth in the massive Chinese and Indian markets. Although Japan is projected to post gains that will lag behind the global average through 2013, the country’s architectural paint market will see a reversal of the declines experienced during the 1998-2008 period, the study says.
The study also projects the following.
• North America will post slightly above-average volume gains through 2013. The housing and mortgage problems that have plagued the U.S. since 2006 will subside, providing opportunities for coatings sales to the new-home market. Also, sales to the much-larger home-repaint segment will benefit as sales of existing homes improve, since existing homes are often repainted when they are put up for sale or after they are sold.
• In 2008, Western Europe accounted for 21% of total architectural paint demand, but the region’s share of the global market will continue to retreat as Europe records weak volume increases due to below-average economic and building-construction growth. Also factors are mortgage-sector weaknesses in some countries and stagnant regional population gains. Still, Western Europe will remain the world’s leading regional net exporter of architectural paint, due largely to the prominence of the German industry.
More information: The Freedonia Group Inc., www.freedoniagroup.com.
WORLD ARCHITECTURAL PAINT DEMAND
(000 metric tons)
% Annual Growth
Item 2003 2008 2013 2003- 2008-
| Architectural Paint Demand |
15660 |
19120 |
22800 |
4.1 |
3.6 |
| North America |
4060 |
3525 |
4250 |
-2.8 |
3.8 |
| Western Europe |
3600 |
4030 |
4395 |
2.3 |
1.7 |
| Asia/Pacific |
4145 |
6145 |
7995 |
8.2 |
5.4 |
| Other Regions |
3855 |
5420 |
6160 |
7.1 |
2.6 | © 2010 by The Freedonia Group, Inc.
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