Paint and coating industry in the US was valued at USD 31.5 billion in 2018 and is estimated to reach USD 32.44 billion in 2019. It is to grow at the CAGR of 3.92% within the forecasted time period of 2019-2024.
It will reach USD 37.61 billion by 2024 because of the increasing new residential and commercial construction projects.
- Definition / Scope
- Market Overview
- Market Risks
- Market Trends
- Industry Challenges
- Technology Trends
- Other Key Market Trends
- Market Size and Forecast
- Market Outlook
- Technology Roadmap
- Competitive Landscape
- Competitive Factors
- Key Market Players
- Strategic Conclusion
Definition / Scope
Paint is the substances either solid or liquid which forms a film on the surface being used through spread, adherence and hardening. They are mainly used for the purpose of decorating and protecting new construction and maintain the existing structures (apartments, public buildings, industrial plants, traffic paints).
Here almost 45% of it is used for the protecting and decorating new construction and 40% of it is used to protect industrial products. Paint and coating industry is concerned with the production, distribution, and sale of these products. On the basis of the product type and end users, its market is segmented into following types.
In architectural sector, coating are used for maintenance of residential, commercial, institutional and industrial buildings while industrial coating are used for automobiles, buses, transportation, equipment, metal building products, metal container and paper.
Special purpose coating includes marine paints, traffic, highway markings, and aerosol paints.
Globally, the United States is the second largest producer of paints and coatings where the overall demand for coating industry is expected to increase to 2%, which is quite low in comparison to the global annual growth of this market(4%).
The market size of the paint and coating industry in the US was valued at USD 31.5 billion in 2018, increased from USD 27.34 million in 2014. It contribute to almost 20% of total global paint and coating market.
It was growing at the rate of 1.7% within the time horizon of 2014-2018. It is further expected to grow at the CAGR of 3.92% within the forecasted time period of 2019-2024 to reach USD 37.61 billion by 2024.
Rising construction activities and increasing demand for the architectural sector is driving the growth of its market. Here, the architectural segment as the end user of this market is dominating the market with the largest market share of 59% of total paint and coating market in the US.
The key market players engaged in this market are PPG Industries Inc., Sherwin-Williams Company, RPM International, Axalta Coating Systems, and Nippon Paint Holdings Co. Ltd.
- Harmful environmental effects of solvent based coating
The use of the organic solvents in coating are known to deteriorate the air quality and can cause the acute and long-term harmful effect on the human health.
For instance, the acute health effects associated with the use of this paints are headache, dizziness, seizures, unconsciousness, and even death. Along with this, the chronic adverse effects associated with it are leukemia (benzene), renal cancer (chlorinated hydrocarbons), and other neurotoxicity.
Although the use of water based paint are in increasing trend and contribute to the almost 80% of total household paints, the solvent based paint are still in use for industrial purposes because of its good adhesion, durability, and excellent resistant against weather conditions.
In the context of US, the solvent based coating accounts for 65% of the coating used for the industrial purpose. So, the harmful health effects associated with this paints might create the risk for the growth of its market.
- Regulatory restrictions against lead paints
In the context of US, environmental regulations such as Toxic Substances Control Act, Residential lead-based Paint Hazard Reduction Act of 1992, Lead-Based Paint Poisoning Prevention in certain Residential Structures) has banned the use of the lead paint.
However, still the lead based paint are in use. In 2018, almost 37 million apartments were found with the lead paint in the US. Its existing use might restrain the growth of the paint and coating market in the US.
Top Market Opportunities
- Rising consumer preference towards eco-friendly products
In the context of the US, consumer preference are changing towards the use of the less harmful environmental friendly products. A survey of 1,000 US individuals has revealed that about 70% of the participants had reported the product sustainability as the somewhat important while purchasing the product and more than one-third of them will pay 25% more for these products.
Along with this, about 42% of consumer prefer to buy from the companies with a strong environmental reputation. Consumer preferences towards the green products can create the significant opportunity for the growth of the green and sustainable paint and coating market.
- Rising economic growth and investment activities
The economic activities is growing at the annual growth rate of 1.9% and personal consumption expenditures is also rising at the annual growth rate of 2.9% in the context of the United States. The residential investments has shown the growth rate of almost 5.1%.
Along with this, the manufacturing and construction market for factories and plants is one of the largest in the world and expected to grow at a rate of 3.9% in 2019. It will provide the opportunity for the rising demand of the paint and coating products in residential and commercial buildings.
- Rising demand for paint and coatings
In the context of United States, the demand for the paint and coating is in increasing trend. The demand for these products is expected to increase from 1,169 million gallons in 2014 to 1,410 million gallons in 2019.
More specifically, its demand is the highest for architectural industry, which is expected to increase from 642 million gallons in 2009 to 826 million gallons in 2019.
Besides this, the demand for manufacturing and maintenance purpose is estimated to increase to 397 million gallons by 2019. This increasing demand of this product by almost 20.61% is driving the growth of the paint and coating market in the US.
- Increasing new commercial and residential construction activities
Construction sector holds the largest segment as end user for paint and coating industry. Commercial construction activities such as construction of malls, restaurants, skyscrapers etc are in the phage of construction in the US.
Major projects under construction are 984 feet super-tall skyscrapers, the Washington state convention center in Seattle, Children’s hospital expansion in New Orleans, Comcast Technology Center in Philadelphia, etc.
Along with this, the construction of the residential building are also in rising trend. Within a year the residential construction activities has increased by 10.58%. In 2018, the total housing construction activities for the construction purpose is about 14,989 thousand houses.
It is driving the market for the paint and coating in the US.
- Rising cost of the raw materials for paints
The raw materials used for the production of the paints are the pigment, the binder, the solvent, and the additives. The price of these raw materials used for the production of the paint is in increasing trend.
For instance, the cost of the epoxy resins used for the production of the paint has increased by 31 cents/lb. in 2018. The price of the aceton and butylacetat is increased by almost by 100%, while the price of xylol and toiluol is increased by 20%.
The Vinyl acetate has the price of USD 1080 in 2019. This rising raw materials cost might restrain the growth of the paint and coating market.
The new technologies adopted in this market are waterborne coating, high-solid coating, powder coating, and radiation curable coating. Some of the technological changes occurred in the paint and coating market are as follows:
- Nanotechnology: Using this technology, very small ceramic and metallic practices of size 10-70 nanometers are added in the paint formulation with a view to modify the specific properties such as scratch, corrosion, UV resistance, etc.
- Moisture vapor barrier interior latex primer: It is the cost effective solution for the problem of the moisture loss faced in manufactured housing facilities. It is the quick-drying coating, which is used to reduce the moisture from the housing parts such as celling, walls, etc.
- Fluoropolymer topcoats: It has the strong carbon-fluoride bonds with low mass, which reduces friction and resist corrosion. It acts as insulator and is water resistant. It is widely used for electronics, automotive, airplanes, and others.
The total production cost of the painting and coating formulations depends upon the cost of the raw materials, which accounts for 50-60% of its cost. Besides this, the price of the paint and coating depend upon brand name, quantity, product type, and application.
For instance, the price of the oil color paint is about USD 24.35 for ten 21 ml tubes while it costs USD 33.6 for ten 37 ml tubes. The cost of acrylic paint is USD 11.49 per paint set while the aluminium paint tubes costs USD 41.46.
The average of the paint ranges from USD 15 to USD 30 per gallon. The average room requires almost 2-3 gallons and its cost ranges from USD 370 to USD 790.
The environmental protection Agency (EPA) in the US is responsible for enforcing the acts and laws related with the toxic chemical products at national level.
Besides this, the federal and local authorities are also responsible for the regulation of the paints and coating industry. For instance, the state of California has developed its own laws under the governing authority California Air Resource Board.
More specifically, the regulations related with the paint and coating market in the US are as follows:
- Toxic Substances Control Act : On the basis of it, the chemical substances contained in paint and their toxicity are checked in order to ensure the permission for manufacturers and importers. It any new chemical substances are used then the prior notice must be provided to Environmental Protection Agency at least 90 days prior to manufacture and import of chemical.
- Hazard Communication standard: It is developed by Occupation Safety and Health Administration to protect the safety of workers in workplace settings from any sorts of chemical substances.
- Fair Packaging and Labeling Act: It provides the guidelines for the labeling of the information related to the product use. The paint product must be labelled on the basis of characteristics of the substances such as toxic, flammable, irritant, etc.
- Federal Hazardous Substances Act: It ensure the availability of information about the hazardous chemicals in legible and conspicuous manner.
- Clean Air Act: If the paint contain any form of VOC then the paint and coating industry must compliant to this act. The emissions of VOC must in compliance to this act and is regulated by EPA.
Market Size and Forecast
Globally, the paint and coating industry was valued at USD 178900 million in 2018. it is expected to reach USD 242700 million by the year 2025. It is expected to grow at the CAGR of 4.5% within the forecasted time period of 2019-2024.
The United States is the second largest producer of paints and coatings where the overall demand for coating industry is expected to increase to 2%. Its market size was valued at USD 31.5 billion in 2018, increased from USD 27.34 million in 2014.
It was growing at the rate of 1.7% within the time horizon of 2014-2018 and expected to grow at the CAGR of 3.92% within the forecasted time period of 2019-2024. It will reach USD 37.61 billion by 2024.
On the basis of product type
- Water based coating is leading the US paint and coating market with the market share of 34.28% of total paint and coating market. Its market size was valued at USD billion in 2018.
- Powder based paint accounts for almost 22.85% of total paint and coating market share. Its market size was valued at USD billion in 2018.
- Solvent based coating holds 20% of total US paint and coating market share with the market value of USD billion in 2018.
- Other type of paints such as high solids, radiation curing, etc is holding the market share of almost 22.85% of total paint and coating market in US.
On the basis of end users
- Architectural segment is dominating the market with the largest market share of 59% of total paint and coating market followed by manufacturing and specialty industry . The market size of architectural segment was valued at USD 18.58 billion in 2018.
- The architectural segment is expected to grow at the CAGR of 3% within the time horizon of 2019-2024 while Manufacturing segment is expected to grow at the CAGR of 2.4% within the time horizon of 2019-2024.
- The demand of paint and coating is the highest for the architectural segment i.e. 826 million gallons in 2019 in comparison to other end user segment.
The paint and coating market in the US is expected to grow at the CAGR of 3.92% within the forecasted time period of 2019-2024. Its market value is estimated at USD 32.44 billion by the year 2019. Further, it will reach USD 37.61 billion in 2024 because of the rising demand from new construction activities.
Distribution Chain Analysis
The key stakeholders engaged in this market are raw materials suppliers, paint and coating manufacturing company, distributor and suppliers, hardware, retail sales and end users.
Firstly, the raw materials such as solvent, resins are supplied to the paint manufacturing company, which creates the product for painting and coating either in solvent, water or powder based form.
The manufactured products are available at hardware, retail shops. They are basically used in residential, industrial, commercial and other special purpose sector.
Key Market Players
In the context of US, there are almost 1,181 companies engaged in the painting and coating market.
The key market players engaged in this market are PPG Industries Inc., Sherwin-Williams Company, RPM International, Axalta Coating Systems, Masco Corporation, etc. Short profile of some of the market players are discussed as follows:
|Sherwin-Williams Company||It is the world’s largest paint and coating industries. It operates almost 4,700 in the US as well as in other countries.|
|PPG industries||It is ranked the second largest company in the industry with the market value of USD 15 billion in 2018.|
|RPM International||It is the manufacturing company specialized in the production of coatings, sealants, and specialty chemicals. It operated 156 manufacturing facilities in 26 countries with the market value of USD 5.6 billion.|
|Axalta Coating Systems||It is the global coating manufacturing company operating in more than 30 countries with almost 50 manufacturing facilities. Its market size was valued at USD 4.7 billion in 2018.|
|Masco Corporation||It is the manufacturer of products for the house construction activities. It has almost 60 manufacturing facilities in the United States and more than 20 in other parts of the world.|
|Benjamin Moore||It has excellence in the production of premium paints with independent paint and hardware stores. It also manufactures own resins and proprietary Gennex colorants.|
|Wacker Chemie AG||It is basically the company engaged in the production of the chemical products along with production of paint and coating. It has the market value of USD 4.98 billion in 2018.|
|Akzo Nobel NV||It is the manufacturers of paint and coating brands such as Dulux, Sikkens and Interpon. It is operated in more than 150 countries including the US.|
Paint and coating industry in the US is in the growth stage and is growing at a rate of 3.92% annually because of the rising construction activities and increasing consumer preferences for the green and sustainable products.
However, rising cost of the raw materials and harmful health effects associated with solvents used for the production of the paint might restrain the growth of its market. So, the market players must be focused on the production of eco-friendly green and sustainable paint and coating products through the use of the raw materials in effective and efficient manner.
- Lb= Libra (a pound by weight)
- EPA= Environmental Protection Agency
- VOC= Volatile organic compounds
- USD= United States Dollar
- CAGR= Compound Growth Rate