Future predictions for the Asian coatings market

The covid-19 pandemic may have a long-term impact on the Asian coatings market. Some changes in the market may be:

Integration: The Asian coatings market is more fragmented than the North American or European coatings market. This is especially true in China and Southeast Asia and other parts of Asia. Before the global economic recession, Orr&Boss believes that the Asian coatings market has matured. The global economic downturn may accelerate this process. Will the global recession lead to the acquisition of many small and medium-sized paint companies? Some of these SMEs may not be able to cope with the financial pressure brought about by the economic downturn. If your company is interested in expanding in Asia and has longer-term interests, now may be a good time to start making acquisitions in Asia.


DIY: The DIY market in the Asian market is much smaller than in North America or Europe. This is especially true for China, Southeast Asia and India. Will the pandemic change people's behavior? In other words, do consumers in these countries still want paint contractors to enter their houses to paint their houses? Or, through educational activities, can the coating industry make any progress in the DIY market in these countries? Orr&Boss does not know the answers to these questions, but Orr&Boss believes that this may be an opportunity to increase the DIY market.

Raw material prices: Oil prices have fallen sharply this year. Although they have rebounded recently. However, the average oil price in 2020 is still 37% lower than in 2019. In the past, when we saw oil prices drop to this level, after about 6-12 months, we saw raw material prices drop by 10-15%. Orr&Boss expects something similar to happen this time.

Anti-virus and anti-bacterial coatings: This year, people's interest in anti-virus and anti-bacterial coatings has grown significantly. Orr&Boss expects that in the rest of 2020 and 2021, interest in these products will continue to grow.

Infrastructure: Infrastructure-related coatings may perform well in 2020 and 2021. The governments of China and other countries are considering large investments in infrastructure to stimulate the economy. This may lead to increased demand for infrastructure-related coatings.


So far, it has been a difficult year for the Asia-Pacific coatings market. But Orr&Boss believes that the worst has passed, and the economy and coatings market will gradually begin to recover. Orr&Boss believes that by 2021, the Asia-Pacific coatings market will return to close to the 4% growth level before the pandemic. On the positive side, Orr&Boss also believes that low oil prices will lead to lower raw material prices, and believes that the anti-virus and anti-bacterial and infrastructure coatings market will have growth opportunities. Orr&Boss also believes that this epidemic may have a significant impact on the future Asia-Pacific coatings market. As the economic recession has a greater impact on small and medium-sized paint companies, the integration trend may accelerate. At the same time, because consumers are unwilling to allow contractors to enter their homes, the Asian market may have an opportunity to expand the scale of the DIY coating market.

source:Orr&Boss