London-based IRL has published the ninth edition of A Profile of the Asia-Pacific Paint Industry, which provides information on the paint industries and markets of 11 major economies in the region.

Based on these 11 major economies, the Asia-Pacific paint market has been rated at almost 13.9 million tons in 2009, and is forecast to grow by about 7.9% per year in the period to 2014, when the market will top over 20 million tons as seen below:

Market Forecast for Paint Demand in the Asia Pacific Region, 2009 – 2014 (Tons)

Country                     Market Size in 2009 (Tons)                     Market Size in 2014 (Tons)

China                         7,566,300                                                12,185,600
India                           1,813,500                                                2,920,700
Indonesia                   636,700                                                   852,100
Japan                        1,418,400                                                 1,282,100
Malaysia                    140,000                                                    166,300
Philippines                 277,700                                                    347,700
Singapore                  219,000                                                    307,200
South Korea              867,000                                                    1,080,400
Taiwan                      256,800                                                    297,700
Thailand                    406,300                                                    496,700
Vietnam                     280,800                                                    384,700
Total                          13,882,500                                               20,321,200

Source: IRL

China and India are the major growth drivers in the region with paint demand in these two countries likely to continue growing at more than 10% pa in the coming years.

At varying rates, many of the other Asian economies are recovering from the effects of the global economic crisis of 2008-9, some of these being particularly impacted by the decline in consumer goods demand in the west. These are economies, which are being boosted through governmental stimulus packages, which have been conceived to ensure continued economic growth in the face of otherwise potential collapse.

Three countries in the region have paint demand exceeding one million tons. These are China (approximately 7.5 million tons), India (1.8 million tons) and Japan (1.4 million tons). In contrast to the other two, the Japanese paint market is struggling against a backdrop of traditional expectations and a reluctance to accept much greater waterborne paint use. Very, very few segments of the Japanese paint market are growing at the moment, but great hopes are being pinned on a revival of home repair paints with the introduction of the ‘200-Year House’ concept, which unites the ideas of recycling, maintenance and strategic reviews of how the national housing stock is used as it deals with an increasingly aging population and a declining birth-rate.

Some of the smaller but growing economies are also poised to hand opportunity to the coatings industry in the near- and longer-term.

• Indonesia emerges as a good market for the future. It has enjoyed strong growth in recent years and is winning international investment and confidence from industry. General and wide-ranging expansion of the tourism industry and the establishment of economic development zones will be among the key driving forces for the Indonesian paint market.

• Vietnam, which has attracted significant industry investment in recent years, is one of the fastest-growing economies in the Asian region and like Indonesia, it will become a good prospect for the paint industry, but on two levels. Firstly there is strong investment in construction and infrastructure. Secondly, accession of Vietnam to the World Trade Organization in the future is likely to liberate industry, which will translate into further industrial development, particularly in segments such as cars and manufacturing.

• Singapore remains a strong market and one of the greatest consumers of paint per capita in the world at 47 kg/head. Strong growth in the architectural, marine and protective coatings segments is expected to continue in the future.

• The Philippines also represent a lively market to look for in the future. This is an industry in which local partners are usually sought, rather than direct participation on the part of the paint companies. The Philippines offer a broad spread of opportunities for the coatings industry, especially in terms of civil construction, architectural, marine and protective applications.

For more information on this report, contact Cathy Galbraith at Information Research, +44 (0) 20 8832 7830; Fax: +44 (0) 20 8566 4931; Email: [email protected]. Visit IRL on the web at www.informationresearch.co.uk.