Kusumgar, Nerlfi & Growney has announced the commencement of its third Global Paint & Coatings study.  According to the firm, global consumption of coatings in 2016 is a projected 88 billion pounds (40 MM tons) worth some $130 billion. Growth has slowed in recent years following the modest bounce back from the recession year of 2009.  The Asia-Pacific region continues to lead the way in growth.  However, growth in Asia-Pacific has also slowed owing to global and local economic uncertainties. The recent decline in raw material prices has contributed to downward pressure on coating prices.

The Asia-Pacific Region remains the largest consumer of coatings with an estimated 47% of the volume in 2016. China accounts for over one-half of the region’s consumption with growth moderating the last 2-3 years following the rocket rise in prior years.  India is now about 15% of the regional volume and continues to increase its share.

Europe is the second largest market for coatings taking a projected 23% of the global volume in 2016. Growth remains low in most EU countries with the decline in the Russian economy a drag on consumption. The prospect of waning growth in Turkey is a headwind for the near future. North America was an outlet for 17% of the global coating volume in 2016 and has mature growth prospects. The South and Central America region represents 7% of the global demand in 2016.  Growth in the region has slowed significantly with the recession in Brazil the leading cause.