World demand for architectural paints is forecast to increase 3.6 percent per year through 2013 to 22.8 million metric tons, valued at $51 billion. While this represents a deceleration from the 2003-2008 pace, advances in the architectural paint market will still be quite healthy, as worldwide building construction spending and economic activity rebound from several years of slow growth (caused by the global financial crisis). In addition, continuing gains in the world' s urban population will place a strain on the existing housing stock -- prompting increased residential construction spending at both the public and private levels.
In most developing countries, the existing DIY sector represents less than 20 percent of the overall architectural paint market. However, as large scale retail paint and general home improvement stores continue to proliferate into previously unpenetrated locales, and as labor costs grow, DIY paint jobs will become more common in the developing world.
As was the case over the past decade, the most rapid gains will arise in the world' s emerging markets, most prominently in Asia. Gains in Asia are based primarily on continued healthy expansion in the large Chinese and Indian markets. Although Japan is projected to post gains that will significantly lag the worldwide architectural paint market will exhibit a reversal of the declines experienced during the 1998-2008 period. Due to these factors, the Asia/Pacific region will continue to gain market share, projected to account for 35 percent of total architectural paint demand in 2013, up from 32 percent in 2008.
North America will post slightly aboveaverage gains through 2013. Going forward, the housing and mortgage crisis that has plagued the US since 2006 is likely to subside, providing opportunities for paint sales to the new homes market. Moreover, sales to the much larger home repainting segment will also benefit as sales of existing homes improve -- being that existing homes are often repainted when they are to be sold. An improvement in the large US market will benefit aggregate growth in the region.
In 2008, the West European region accounted for 21 percent of total architectural paint demand. Western Europe' s share of the market will continue to slip as the region registers weak growth, the result of below-average economic and building construction growth prospects, mortgage sector weaknesses in some constituent nations, and stagnant regional population growth. Nevertheless, Western Europe will remain the world' s leading regional net exporter of architectural paints, due largely to the presence of Germany.
This new Freedonia industry study, World Architectural Paints, presents historical demand data for the years 1998, 2003 and 2008, as well as forecasts for 2013 and 2018. Data is presented for six regions and 23 countries by market (residential building and nonresidential building), formulation (waterbased and solvent-based) and end user (professional and DIY/consumer).
In addition, market share is provided for leading architectural paint suppliers, along with an overview of competitive strategies, recent merger and acquisition activity, regulatory issues and macroeconomic factors. Profiles of key global producers of architectural paints -- Akzo Nobel, Asian Paints, Comex, DAW, Masco, PPG Industries and Sherwin- Williams -- are included.
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