World Paints & Coatings - The Freedonia Group
World Paints & Coatings with forecasts to 2005 and 2010
New study finds: • World demand for paints and coatings is forecast to expand 3.7 percent per year to more than 28 million metric tons in 2005 • The most rapid gains will arise in the world's emerging markets, most prominently the Asia/Pacific region, although Latin America and Eastern Europe also are forecast to experience growth significantly above the global average • The industry is dominated by large, globally oriented companies for which coatings are a core product line, and in 2000 the industry supported eleven firms with at least $1 billion in annual paint revenues and together accounted for 43 percent of total sales
Freedonia Industry Study #1437
World Paints & Coatings
Study Publication Date: July 2001 Price: $4,700 Pages: 451
World Paints & Coatings, a new study from The Freedonia Group, provides you with an in-depth analysis of the major trends for world paints and coatings and the outlook for product segments and major markets -- critical information to help you with strategic planning. This brochure gives you an indication of the scope, depth and value of Freedonia's new study, World Paints & Coatings. Ordering information is included on the back page of the brochure.
Brochure Table of Contents Study Highlights ............................................................................... 2 Study Table of Contents and List of Tables and Charts ................... 4 Sample Pages and Tables from: Market Environment .................................................... 6 World Market Overview .............................................. 7 Supply and Demand by Country & Region ................. 8 Market Share ............................................................... 9 Company Profiles ...................................................... 10 List of Companies Profiled ........................................ 11 Forecasting Methodology ............................................................... 12 About the Company ....................................................................... 13 Advantages of Freedonia Reports ................................................... 13 About Our Customers .................................................................... 14 Related Studies ............................................................................... 15 Ordering Information ..................................................................... 16
Study Highlights
World Paints & Coatings #1437 2
•
World demand for paints and coatings is forecast to expand 3.7 percent per year to more than 28 million metric tons in 2005.
•
In addition to new construction activity, steady gains in income levels throughout the developing world are boosting demand for discretionary projects, which will promote demand for paints used in repainting activities.
•
Motor vehicle markets will offer below-average gains as the large OEM sector sees relatively sluggish growth based on a slower outlook for global motor vehicle production.
•
Other markets, including applications such as appliances and furniture, as well as special purpose coatings such as marine coatings, industrial maintenance coatings and traffic paints, will post solid gains on a healthier outlook for the global economy.
•
The most rapid gains will arise in the world's emerging markets, most prominently the Asia/Pacific region, although Latin America and Eastern Europe also are forecast to experience growth significantly above the global average.
•
The industry is dominated by large, globally oriented companies for which coatings are a core product line, and in 2000 the industry supported eleven firms with at least $1 billion in annual paint revenues and together accounted for 43 percent of total sales.
Freedonia Industry Study
Study Highlights
World Paints & Coatings Demand by Region, 2000 North America 29.7% Western Europe 23.8%
China 8.1%
Rest of World 18.7% Japan 7.8%
Other Asia/Pacific 11.9%
World Paints & Coatings Demand by Region (thousand metric tons) % Annual Growth Item
1995
2000
2005
2010
00/95
05/00
World GDP (bil US 1998$) kg per 000$ GDP
30484 0.68
36230 0.65
43460 0.65
52510 0.65
3.5 --
3.7 --
World Paints & Coatings Demand North America Western Europe China Japan Other Asia/Pacific Rest of World
20730 5977 4960 1303 1956 2511 4023
23600 7010 5605 1903 1851 2815 4416
28300 33950 8010 9215 6400 7335 2625 3450 2060 2300 3685 4810 Sample Table 5520 6840
2.6 3.2 2.5 7.9 -1.1 2.3 1.9
3.7 2.7 2.7 6.6 2.2 5.5 4.6
-280
-80
--
--
--
--
World Paints & Coatings Production 20450 Architectural & Decorative Paints 11775 Industrial & Special Purpose Coatings 8675
23520 13160 10360
28300 15580 12720
33950 18400 15550
2.8 2.2 3.6
3.8 3.4 4.2
2.72 64.1
2.95 83.5
3.20 108.5
1.3 4.2
1.6 5.4
+ net exports/stockpiles
average $/kilogram World Paints & Coatings Prdn (bil $)
2.56 52.3
© Copyright by The Freedonia Group, Inc.
World Paints & Coatings #1437
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Table of Contents Tables and Charts are featured for each region and country. Historical data and forecasts are presented for 1995, 2000, 2005 and 2010.
For each country/region, the following are given: Population GDP per capita Gross Domestic Product Other Key Indicators: Fixed Investment Expenditures Motor Vehicle Production Motor Vehicles in Use kg/000$ GDP Paints & Coatings Demand Construction Markets Motor Vehicle Markets: OEM Refinish Other Markets + net exports Paints & Coatings Production Architechtural & Decorative Industrial & Special Purpose $/kilogram Paints & Coatings Production
World Paints & Coatings #1437 4
I. EXECUTIVE SUMMARY Summary Table ................................................................ 3 II. MARKET ENVIRONMENT General ................................................................................. 4 World Economic Overview .................................................. 6 Table - World Gross Domestic Product by Region ........... 8 World Population Overview ................................................. 8 Table - World Population by Region ................................ 9 World Fixed Investment Overview ..................................... 10 Table - World Gross Fixed Investment by Region .......... 13 World Motor Vehicle Production ....................................... 13 Table - World Motor Vehicle Production by Region ...... 16 World Motor Vehicles in Use ............................................. 16 Table - World Motor Vehicles in Use by Region ............ 18 Environmental & Regulatory Considerations ..................... 18 Environmental Trends by Region ................................... 20 United States .................................................................. 23 Western Europe .............................................................. 27 Japan .............................................................................. 28 Other Regions ................................................................. 28 III. WORLD PAINTS & COATINGS OVERVIEW General ............................................................................... 30 Table - World Paints & Coatings Supply & Demand .... 32 Pricing32 Table - Regional Pricing Trends for Paints & Coatings ... 35 Demand by Formulation .................................................... 36 Table - World Paints & Coatings Demand by Formulation ............................................................. 39 Chart - World Paints & Coatings Demand by Formulation, 2000 .................................................. 39 Chart - Coating Formulations in Regional Markets, 2000 ..... 40 Solvent-based Coatings ................................................... 41 Table - World Solvent-based Coatings Demand by Region .................................................................. 43 Water-based Coatings ..................................................... 43 Table - World Water-based Coatings Demand by Region .................................................................. 46 Powder Coatings ............................................................. 46 Table - World Powder Coatings Demand by Region .... 50 Radiation-curable Coatings ............................................. 50 Table - World Radiation-curable Coatings Demand by Region .................................................................. 51 Demand by Market ............................................................ 51 Table - World Paints & Coatings Demand by Market .... 53 Construction Markets ..................................................... 54 Table - World Construction Markets for Paints & Coatings ................................................ 56 Motor Vehicle Markets ................................................... 56 Table - World Demand for Motor Vehicle Coatings by Segment & Formulation ...................................... 58 OEM Coatings ........................................................... 59 Table - World Demand for OEM Motor Vehicle Coatings ......................................... 61 Suppliers of OEM Automotive Coatings ..................... 62
Freedonia Industry Study
Market Environment Chart - World Market Share for OEM Automotive Coatings by Company, 2000 ............ 64 Refinish Coatings ........................................................ 64 Table - World Demand for Motor Vehicle Refinish Coatings .................................................. 67 Suppliers of Automotive Refinish Coatings ................. 67 Chart - World Market Share for Automotive Refinish Coatings by Company, 2000 .................. 70 Other Markets for Paints & Coatings .............................. 71 Table - World Demand for Paints & Coatings in Other Markets ....................................................... 73 Demand by Region ............................................................ 73 Table - World Paints & Coatings Demand by Region .... 75 Per Capita Demand ............................................................ 75 Table - Per Capita Demand for Paints & Coatings by Region & Country ................................................... 77 Net Exports ........................................................................ 78 Table - World Paints & Coatings Net Exports by Region ..... 80 Production by Region & Type ........................................... 80 Table - World Paints & Coatings Production by Region & Type ........................................................ 84 Architectural & Decorative Paint Production .................. 84 Table - World Architectural & Decorative Paint Production by Region ............................................... 86 Industrial & Special Purpose Coatings Production .......... 86 Table - World Industrial & Special Purpose Coatings Production by Region ............................................... 88 IV. NORTH AMERICA Overview ............................................................................ 89 Supply & Demand ......................................................... 91 Suppliers & Market Share ............................................... 94 United States ...................................................................... 99 Canada ............................................................................ 106 Mexico ............................................................................ 113 V. LATIN AMERICA Overview ......................................................................... 122 Supply & Demand ...................................................... 125 Suppliers & Market Share ............................................ 128 Argentina ......................................................................... 132 Brazil ............................................................................. 138 Venezuela ........................................................................ 145 Other Latin America ........................................................ 148 VI. WESTERN EUROPE Overview ......................................................................... Supply & Demand ...................................................... Suppliers & Market Share ............................................ France ............................................................................. Germany ......................................................................... Italy ............................................................................. The Netherlands ............................................................. Spain ............................................................................. Sweden ............................................................................ United Kingdom ............................................................. Other Western Europe ....................................................
World Paints & Coatings #1437
154 155 158 160 165 171 177 182 186 191 198
VII. EASTERN EUROPE Overview ......................................................................... 203 Supply & Demand ...................................................... 205 Suppliers & Market Share ............................................ 207 Czech Republic ............................................................... 210 Hungary .......................................................................... 214 Poland ............................................................................. 218 Russia ............................................................................. 224 Other Eastern Europe ..................................................... 232 VIII. AFRICA/MIDEAST Overview ......................................................................... Supply & Demand ...................................................... Suppliers ...................................................................... South Africa .................................................................... Turkey ............................................................................ Other Africa/Mideast .......................................................
237 238 240 241 247 252
IX. ASIA/PACIFIC Overview ......................................................................... 258 Supply & Demand ...................................................... 260 Suppliers & Market Share ............................................ 263 Australia .......................................................................... 266 China ............................................................................. 271 India ............................................................................. 280 Japan ............................................................................. 287 South Korea .................................................................... 293 Taiwan ............................................................................ 299 Other Asia/Pacific ............................................................ 303 X. MARKET SHARE & COMPETITIVE STRATEGIES General ............................................................................ 309 Market Share & Industry Concentration ......................... 311 Table - World Paint & Coating Sales by Company, 2000 ................................................... 313 Decorative & Architectural Paints ................................ 315 Table - World Sales of Architectural & Decorative Paints by Company, 2000 ..................................... 316 Industrial & Special Purpose Coatings ......................... 317 Table - World Sales of Industrial & Special Purpose Coatings by Company, 2000 ................................. 318 Mergers, Acquisitions & Industry Restructuring .............. 319 Table - Selected Acquisitions & Divestitures ................ 321 Joint Ventures & Cooperative Agreements ...................... 325 Table - Selected Cooperative Agreements ..................... 327 Marketing & Competitive Strategies ................................ 337 Research & Development ................................................ 338 Table - Research & Development Expenditures for Leading Paint & Coating Producers ..................... 340 Company Profiles ..................................................... 340-451
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Market Environment The Market Environment Section discusses key indicators that drive demand for paints and coatings, including demographic, motor vehicle and construction trends and Freedonia’s uniquely developed macroeconomic indicators.
MARKET ENVIRONMENT
Environmental & Regulatory Considerations - Western Europe
This information provides you with an understanding and an analysis of the climate in which the global paints and coatings industry operates and helps you build your market strategy to sustain long-term growth.
As is the case in the United States, the coatings industry in Western Europe is in the midst of a major shift with regard to its product offerings, manufacturing processes and application methods. Much of the shift is attributable to the region's recent economic unification, which is prompting the establishment of more uniform environmental laws among member nations, since there are wide
SAMPLE PAGE
disparities in VOC regulations among the 15 EU nations. Many of these changes are being generated from within, particularly by industry associations, since manufacturers have learned that it is more advantageous to be proactive in this regard rather than to wait for legislation to be imposed from without by governmental organizations. For instance, a leading industry association, The European Confederation of Paint, Printing Ink and Artists' Colour Manufacturers Association (CEPE) has been quite active in advocating new guidelines for VOC reductions among coating manufacturers. The European Union Council of Ministers is expected to pass the new VOC directives, entitled "Control of VOC Emissions from Solvent Using Industries," with few amendments. The program will require existing installations to meet interim reduction targets by 2005 and final targets by 2007. New installations will need to meet the standards by 2004. As is the case in the US, manufacturers will meet the tougher emission standards through a variety of means, including a switch to waterborne formulations where feasible, an increase in solids-content in solventborne products (which can reduce solvent content from about 45 percent to about 15 percent), the greater use of non-solvent coatings such as powders, a switch to more efficient application technologies, and the installation of solvent recovery systems. Environmental & Regulatory Considerations - Other Regions Environmental regulations vary widely throughout the rest of world, both in terms of the applicable laws and the intensity with which they are enforced. As noted © Copyright by The Freedonia Group, Inc.
World Paints & Coatings #1437 6
Freedonia Industry Study
World Market Overview The Market Overview Section high-
WORLD PAINTS & COATINGS OVERVIEW
lights the key issues that have affected the global paints and coatings market over the past ten years and summarizes contributing growth factors.
Powder Coatings World demand for powder coatings is forecast to increase 7.2 percent per year to 835,000 metric tons in 2005, which is among the strongest annual gains of any of
SAMPLE PAGE the larger volume types of coatings (certain niche products, such as radiation-cured This information helps you:
coatings, offer stronger annual gains). Demand for powders will benefit from continued displacement of traditional, solvent-borne liquid coatings in myriad
•
industrial and commercial coating applications. While gains are decelerating in
Focus your sales and marketing efforts on high growth areas.
the important North American market, where in the span of a decade powders have moved from being a niche material to one of the major segments of the larger industrial coatings market, new usage in emerging markets in Latin America,
•
Propose new areas for development
Asia and Eastern Europe should continue to propel strong volume increases. In the world's developed regions, where powders are well established, suppliers are striving to expand market share with new applications, including wide use in existing markets, such as automotive primers and clearcoats, and greater use on non-metal substrates, particularly wood and plastics. Powder coatings are 100 percent solids that are melt-mixed (extruded) and pulverized into fine powders. They are applied to a substrate through either electrostatic or fluidized bed systems and then fused by heat (although some newer systems may be cured through exposure to UV light). The heat melts the powder,
causingfor it to Motor flow and form a continuous film. This process is valuable in situations World Demand Vehicle Refinish Coatings where the surface of the metal may contain imperfections, since the powder fills in
(thousand metric tons)
the depression and then fuses to a smooth, continuous surface. For thermosets, which account for the vast majority of demand, heat also stimulates the chemical
Item
1990 Curing 1995 2000 2005 reaction necessary for curing. agents determine the type of 2010 chemical bond formed and the degree of crosslinking between resin chains. They also modify the
Motor Vehicles in Use (million) 579.0 654.1 741.5 829.0 918.0 characteristics of the powder coating, such as the chemical resistance, electrical kgs per 000 vehicles 898 871 924 935 953 properties, durability and physical properties. Technological and application
SAMPLE TABLE
improvements will remain an essential key to sustained growth of powder coatings. Aftermarket Motor Vehicle Coatings 520 570 685 775 875 North America 187 205 246 275 305 Western Europe 136 154 177 191 202 Asia/Pacific: 138 143 179 210 250 Japan 108 98 113 123 131 Other Asia/Pacific 30 45 66 87 119 Rest of World 59 68 83 99 118
% aftermarket Motor Vehicle Coating Demand
31.6 1645
31.8 1795
32.9 2080
33.6 2305
34.1 2565
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World Paints & Coatings #1437
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Supply & Demand by Country & Region The Country Sections analyze supply and demand trends and consider the threats and opportunities in each area.
WESTERN EUROPE
Supply & Demand Demand for paints and coatings in Spain is forecast to increase 3.7 percent per year to 670,000 metric tons in 2005, slightly outpacing real (inflation-adjusted) growth in the Spanish economy. With the motor vehicle market expected to be
SAMPLE PAGE
sluggish, the primary factor behind this solid growth will be a healthy outlook for real fixed investment spending, which should create significant new demand for both interior and exterior architectural paints. Based on these trends, total demand for paints and coatings in construction-related markets is forecast to expand 3.3 percent per year to 400,000 metric tons in 2005. In contrast, demand ASIA/PACIFIC for motor vehicle coatings will be flat at 80,000 metric tons per year due to Suppliers
declines in motor vehicle production levels. Strongest gains are forecast for other markets, which are dominated by industrial and special purpose coatings such as
SAMPLE PAGE marine paints, traffic paints, packaging coatings and industrial machinery and The paints and coatings industry in Japan was valued at $6.1 billion in 2000, and maintenance coatings. Demand for these materials has greatly benefited from the industry supported more than 200 significant producers. The two leading rising levels of industrialization in Spain. producers are Kansai Paint and Nippon Paint, which have roughly equal market shares and together account for nearly 50 percent of the Japanese market. Turkeyof- paints Paints & Coatings Demand Production and coatings in Spain isSupply forecast to & expand 4.1 percent per Nippon Paint is the leading paint producer in Japan. The company produces a full tons) year to 660,000 metric(thousand tons in 2005,metric valued at $1.8 billion. The Spanish paint range of coatings, including architectural, industrial and automotive paints. In industry will remain essentially in balance. Production is dominated by architecJapan, architectural and other trade-use paints are marketed by Nippon Paint tural paints. Projected advances will continue to be impacted by competition from 1995 2000 2005 2010 Hanbai Hokkaido, Nippon Item Paint Hanbai Higashinihon, Nippon Paint Hanbai 1990 distemper, which is widely used throughout southern Europe, particularly Italy, Chubu, Nippon Paint Hanbai Nishinihon and Nippon Paint Hanbai Shikoku. Portugal and(bil Spain. is a paint-like product Gross Domestic Product US Distemper 98$) 223 261 composed 315 mainly 396of chalk. 501 Nippon Paint Marine Coatings, a subsidiary, manufactures marine coatings, However, within these statistics, it is 1.02 not considered to be 1.07 paint. kg/000$ GDP 1.07 1.04 0.99 including tin-free INTERSLEEK antifoulings. Nippe Home Products produces and markets DIY household paints for the Japanese market. Although Nippon Paint
Paints & Coatings Demand 228 Construction Markets 158 paints and coatings sales in 2000, or $1.6 billion, with other countries in Asia Motor Vehicle Markets: 9 accounting for most of the remainder. In 2000, Nippon Paint had a market share 7 OEM of 25 percent in Japan. Refinish 2 Other Markets 61
278 191 12 10 2 75
336 230 16 13 3 90
410 275 21 18 3 114
495 330 25 21 4 140
-30
-21
-20
-15
140 37
248 190 58
315 235 80
390 290 100
480 350 130
2.06 365
2.30 570
2.51 790
2.76 1075
3.02 1450
continues to expand geographically, Japan accounted for nearly 90 percent of its
Kansai Paints is the second largest paint producer in Japan. The company
net exports produces decorative coatings,+ OEM and refinish automotive coatings, and a wide -51
SAMPLE TABLE
range of industrial coatings. Kansai Paints products are designed to coat such items
Paints & materials, Coatings furniture, Production as cars, trains, buildings, construction wood products, cans, 177 Architectural & Decorative Industrial & Special Purpose $/kilogram Paints & Coatings Production (mil $) © Copyright by The Freedonia Group, Inc.
World Paints & Coatings #1437 8
Freedonia Industry Study
Market Share Sample page from Freedonia Industry Study Gain a better global understanding of #1111 World Security Products your temscompetition and analyze your company's position in the industry with information about:
& Sys-
MARKET SHARE & COMPETITIVE STRATEGIES
• market share Mergers, Acquisitions & Industry Restructuring
• industry concentration
The world coating industry continues to restructure, an ongoing process driven by efforts to improve the performance and range of products offered, as well as the
• mergers & acquisitions
rising cost of environmental compliance. Beyond simple consolidation, however, producers are selectively acquiring and divesting specific coatings operations in
• industry restructuring
order to further concentrate their resources in a particular market or to gain access to new geographic markets (e.g., the Pacific Rim and Latin America).
• cooperative agreements
The global paints and coatings industry SAMPLE has seen a number of major acquisitions in PAGE the last several years. PPG Industries has risen to the top position in the coatings
• joint ventures
industry in 2000 after an aggressive acquisition campaign in recent years. In particular, PPG Industries greatly benefited from the restructuring conducted by
• marketing & competitive strategies
Akzo Nobel after its acquisition of Courtaulds. In 1998 and early 1999, PPG bought the former packaging coatings business and the US architectural business (Porter Paints) of Courtaulds. In July 1999, PPG acquired PRC-DeSoto, the
• research & development
aerospace coatings unit of the former Courtaulds. PPG also benefited from ICI's restructuring efforts, which were aimed at strengthening ICI's position in its core architectural paint business. As part of this program, ICI sold its global automotive refinish and industrial coatings business to PPG in July 1999. PPG has expanded its architectural paint business in the US with deals including its purchase of New Dean & Barry in October 2000 and Monarch Paint in February 2000, as well as its purchase of the US paint business of Australia-based Wattyl in July 1999. Professional Paint, a newly formed private holding company, became a leading North American supplier of paints and coatings when it acquired the North American Paint Group of UK-based Williams in May 2000. The purchase included four subsidiaries: Frazee Industries, Kwal-Howells and Parker Paint Manufacturing
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World Paints & Coatings #1437
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Company Profiles The profiles section analyzes 34 companies active in the world paints and coatings industry. These profiles represent a sampling or cross-section of the types of companies involved in
COMPANY PROFILES
the industry. RPM Incorporated 2628 Pearl Road
Divisions, subsidiaries, joint
Medina, OH 44258
ventures, etc., are discussed under
330-273-5090
appropriate parent companies. RPM is a holding company that is principally involved in the manufacture and
Sources for profiles included:
marketing of specialty coatings. The Company operates in two segments: Industrial and Consumer. RPM had FY 2000 sales of $2 billion ($1.5 billion to the
SAMPLE PAGE US, $168 million to Canada, $176 million to Europe and $81 million to other • Information provided by key staff members in the respective companies
countries). The Company employed 7,960 in FY 2000. The Company is active in the world paints and coatings industry through both of its segments. The Industrial segment operates through three product groups: RPM II, Tremco and StonCor. RPM II consists of subsidiaries which manufacture and
• Annual reports
market industrial coatings and related products. RPM II includes Chemical Coatings Incorporated, Dryvit Systems Incorporated,
• 10-K reports
Kop-Coat, Mohawk Finishing Products Incorporated, Westfield Coatings Corporation, TCI Incorporated , RPM Belgium NV and Alteco Technik GmbH. Chemical Coatings (Hickory, North Carolina) manufactures industrial coatings
• Security analysts reports
mainly for wood furniture applications. These products are produced at a facility in Hudson, North Carolina and include ultraviolet (UV)-cure, high-solids, waterborne, two-component and conventional products sold under such brand names as
• Corporate product literature
ARISTO-COAT, GRAIN-PERFECT and HYDROGOLD. Dryvit (West Warwick, Rhode Island) is a manufacturer of exterior insulation and finish systems at facilities in West Warwick, Rhode Island; Columbus, Georgia; Tulsa Oklahoma; and Woodlake, California in the US. Other operations include Dryvit Systems Canada, which has production facilities in Stouffville, Ontario,
© Copyright by The Freedonia Group, Inc.
World Paints & Coatings #1437 10
Freedonia Industry Study
Companies Profiled
World Paints & Coatings #1437
Akzo Nobel NV Akzo Nobel Nippon Paint Holding BV Vachon SA Ameron International Corp. Amercoat Mexicana SA de CV Asian Paints Ltd. Asian-PPG Industries Ltd. Delmege Forsyth & Co. Paints Pacific Paints Co. BASF AG BASF NOF Coatings Co. Ltd. Hydro Coatings Group Morton Industrial Coatings Becker (Wilhelm) AB Granyte Surface Coatings plc Progetto Due SpA Berkshire Hathaway Inc. Benjamin Moore & Co. Janovic/Plaza Lathrop Paint & Supply Plaza Paint and Decorating Center Technical Coatings Co. Virginia Paint Co. Bruder (MA) & Sons Inc. Paint America Chugoku Marine Paints Ltd. CMP Coatings Comercial Mexicana de Pinturas Amercoat Mexicana SA de CV Comex Paints USA Dai Nippon Toryo Co. Ltd. DPI Co. Ltd. Daihan Automotive Coatings Co. Ltd. Daihan Paint & Ink Co. International Paint Korea PPG Daihan Packaging Coatings Dunn-Edwards Corp. DuPont (EI) de Nemours Hitachi Chemical DuPont MicroSystems LLC KDK Automotive Coatings Co. Nason Automotive Finishes Renner DuPont Pinturas Automotrices Industriales SA Shinto Herberts Automotive Systems Spies Hecker GmbH Standox GmbH Duron Inc. Ebert Paints & Wallcoverings Ferro Corp. Fuller (HB) Co. EFTEC AG Foster Products Corp. Imperial Chemical Industries plc Glidden Co. Grandes Pinturerias del Centro ICI Paints Jotun A/S Jotun NOF Singapore Pte Ltd. Products, Research, Services Inc. Kansai Paint Co. Ltd. Chongqing Kansai Paint Co. Ltd. Goodlass Nerolac Paints Hunan Kansai Automotive Coatings Co. Ltd. KDK Automotive Coatings Co. Polycoat Powders Ltd. Kelly-Moore Paint Co. Inc. Paint America Ponderosa Paint Mfg. Inc. Kemira Oy Alcro-Beckers AB Tikkurila Kumgang Korea Chemical Co. Ltd. Minnesota Mining and Mfg. Co.
Nippon Paint Co. Ltd. Akzo Nobel Nippon Paint Holding BV Daihan Automotive Coatings Co. Ltd. Morton Nippon Coatings NOF Corp. BASF NOF Coatings Co. Ltd. PPG Industries Inc. AECI Coatings Ltd. Asian-PPG Industries Ltd. Bellaria SpA ICI Refinish and Industrial Coatings ICI Specialty Coatings Keeler & Long Inc. Monarch Paint Co. Porter Paints PPG Daihan Packaging Coatings PRC-DeSoto International Wattyl Paint Corp. Professional Paint Inc. Frazee Industries General Paint Ltd. Kwal-Howells Parker Paint Mfg. Co. Inc. Red Spot Paint & Varnish Co. Inc. Seibert-Oxidermo Renner Herrmann SA Renner DuPont Pinturas Automotrices Industriales Rock Paint Co. Ltd. Valspar Rock Co. Ltd. Rohm and Haas Co. Morton International Morton Nippon Coatings Pulverlac RPM Inc. Alteco Technik GmbH Bondo Corp. Carboline Co. Chemical Coatings Inc. Dryvit Systems Inc. Euclid Chemical Co. Flecto Co. Inc. Kop-Coat Mathys (Martin) NV Mohawk Finishing Products Plasite Protective Coatings Rust-Oleum Corp. StonCor Stonhard Inc. TCI Inc. Tremco Inc. Westfield Coatings Corp. Zinsser (William) & Co. Sherwin-Williams Co. General Polymers Norfolk Paint Co. Pulverlack Tintas SA, Schaefer Auto Supply ScottWarren SpA Sico Inc. Pinturas Industriales Sicorel SK Kaken Co. Ltd. Sumitomo Chemical Co. Ltd. Shinto Paint Co. Tohpe Corp. Total Fina Elf SA SigmaKalon Group BV Valspar Corp. Farboil Co. Federal Flooring Inc. Lilly Industries Inc. Plasti-Kote Co. Polycoat Powders Ltd. Valspar Rock Co. Ltd. Wattyl Ltd.
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Forecasting Methodology Freedonia does not just collect and reprint data; Freedonia develops data. Our analysts thoroughly investigate an industry by extensively interviewing key industry participants and analyzing information from sources such as associations, government and trade literature. Once this research is complete, Freedonia establishes one set of forecasts. All writing, editing and forecasting is done in-house to assure quality and consistency. In cases where data does not exist, Freedonia develops the data based on input/output ratios, bills of materials and flow charts. The following chart summarizes Freedonia's methodology.
The Freedonia Economics Group
Freedonia In-house Research
Consistent framework of indicators on . . . • Construction Trends • Gross Domestic Product • World Motor Vehicle Production . . . and many others
• Quantitative forecasting • Industry structure & market share analyses • Product analyses & forecasts
Methodology for
World Paints & Coatings
Extensive Interviews • Key participants • Industry experts • End-users
World Paints & Coatings #1437 12
Proprietary Electronic Database • Trade publications • Government reports • Corporate literature • Online databases . . . and many others
Freedonia Industry Study
About The Freedonia Group
The Freedonia Group, Inc. is a leading international industry study/ database company. Since 1985, Freedonia has published over 1,600 titles covering areas such as plastics, chemicals, coatings and adhesives, building materials, industrial components and equipment, health care, packaging, household goods, security, and many other industries. Freedonia has produced a wide variety of titles, including: • • • •
Automotive Coatings World Emulsion Polymers Powder Coatings Radiation-Cured Products
Because Freedonia is a reliable information source, our forecasts are cited in numerous publications such as The Wall Street Journal, Chemical Week, European Chemical News, Purchasing and Modern Paints & Coatings.
Advantages of Freedonia Reports
In-house operations Because all of our staff work at the same location, interaction between analysts and departments provides a strong system of checks and balances.
Consistency Our Economics Group develops indicators that are used by all analysts. Therefore, every Freedonia study is based on a consistent set of economic assumptions (GDP, construction trends, motor vehicle production,` etc.).
Reliable forecasts Because all of our forecasts consider the environment in which a product or industry is operating, as well as threats and opportunities to the market, Freedonia forecasts are reliable indicators of future performance.
One-on-one interviews All studies are produced by conducting interviews with key industry participants and end-users.
Proprietary electronic database Freedonia’s analysts can tap into an extensive in-house electronic database containing corporate literature (including private company information), trade publications, government reports and many other sources of information.
World Paints & Coatings #1437
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About Our Customers Freedonia's clients include major US and international companies in the manufacturing, services, consulting and financial sectors. Typical purchasers of Freedonia studies : •
Key Executives
•
Corporate Planners
•
Market Researchers
•
Financial Analysts
•
Information Centers
•
New Product Developers
•
Merger & Acquisition Specialists
Since 1985 we have provided research to customers ranging in size from global conglomerates to one person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia research to help with their strategic planning. Some of Freedonia's customers in the paints and coatings industry include: Akzo Nobel, BASF, DuPont and PPG Industries.
World Paints & Coatings #1437 14
Freedonia Industry Study
World Emulsion Polymers
Related Studies From Freedonia For more information about these or other Freedonia titles, please contact us at: The Freedonia Group, Inc. Phone: (440) 684-9600 (800) 927-5900 Fax: (440) 646-0484
World emulsion polymer demand will reach US$19.4 billion in 2005. Styrene-butadiene latex will lead gains based on wide use in paper coatings and carpet backing adhesives. Acrylic emulsions will benefit from strength in latex paint and general purpose adhesives. Demand will remain concentrated in North America and Western Europe. This study analyzes the world emulsion polymer industry to 2005 and 2010 by type, end use, region and for 14 countries. It also evaluates market share and profiles key firms. #1457. . . . . . . . 9/01. . . . . . . . . . $4,600
Automotive Coatings, Sealants & Adhesives Demand for coatings, sealants and adhesives in US car production and repair will top 2.2 billion pounds in 2005. Adhesives and sealants will benefit from the displacement of mechanical fasteners and consumer demands for better noise insulation. Coatings volume per-vehicle will continue to shrink as powders and radiation-curables gain favor. This study analyzes the US automotive coatings, sealants and adhesives industry to 2005 and 2010 by type and market. It also details market share and profiles key firms. #1459. . . . . . . . 8/01. . . . . . . . . . $3,700
Powder Coatings Demand for powder coatings in the US will rise 7.9% per year to 505 million pounds in 2005. Gains will be driven by environmental benefits over non-compliant solvent-based coatings, excellent adhesion and favorable performance. Suppliers are also rapidly expanding the functional range of powders into non-metal substrates such as wood and plastics. This study analyzes the $1 billion US powder coatings industry to 2005 and 2010 by product and end use. It also evaluates market share and profiles key firms. #1426. . . . . . . . 5/01. . . . . . . . . . $3,700
Radiation-Cured Products Demand for radiation-cured (radcure) products in the US will grow 9.4% annually. Gains will be driven by intense product development and increased awareness of radcure’s benefits among end users. Coatings and inks will remain the largest products, with packaging the leading outlet. Flooring will replace printing and publishing as the second largest market. This study analyzes the $1 billion US radcure products industry to 2005 and 2010 by type and market. It also presents market share data and profiles key firms. #1399. . . . . . . . 3/01. . . . . . . . . . $3,700
World Paints & Coatings #1437
Paints & Coatings Private Companies Report In 1999, eleven private US producers each had worldwide coating sales of at least $100 million, including retail sales. Nine other private companies had global coatings sales of at least $100 million, including products other than coatings. This report profiles over 150 privatelyheld US companies (e.g., MA Bruder & Sons, Dunn-Edwards, Duron, Benjamin Moore, KellyMoore Paint, TruServ) and lists them by product and location. It also forecasts industry demand and examines recent acquisition trends. #1342. . . . . . . . 10/00. . . . . . . . . . $3,200
Paint & Coating Materials: Resins, Pigments & Solvents US demand for paint and coating materials will approach 11 billion pounds in 2004. Gains will be driven by more environmentally compliant coatings (e.g., water-based, high-solids, powder, radiation-cured) which require higher raw material loadings. Solvent-based paints will remain a major raw material in key heavy duty coating segments. This study analyzes the $6.8 billion US paint and coating materials industry to 2004 and 2009 by type and market. It also evaluates market share and profiles key firms. #1334. . . . . . . . 10/00. . . . . . . . . . $3,500
Paints & Coatings Demand for paints and coatings in the US will reach 1.5 billion gallons in 2004. Durable equipment coatings will lead gains based on expanding US durables production and robust growth in coatings exports. Aerospace coatings will benefit from gains in aircraft production and maintenance requirements. This study analyzes the $17 billion US paints and coatings industry to 2004 and 2009 by type and application. It also profiles key firms and evaluates market shares. #1303. . . . . . . . 8/00. . . . . . . . . . $3,700
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New study finds: • World demand for paints and coatings is forecast to expand 3.7 percent per year to more than 28 million metric tons in 2005 • The most rapid gains will arise in the world's emerging markets, most prominently the Asia/Pacific region, although Latin America and Eastern Europe also are forecast to experience growth significantly above the global average • The industry is dominated by large, globally oriented companies for which coatings are a core product line, and in 2000 the industry supported eleven firms with at least $1 billion in annual paint revenues and together accounted for 43 percent of total sales
Freedonia Industry Study #1437
World Paints & Coatings
Study Publication Date: July 2001 Price: $4,700 Pages: 451
World Paints & Coatings, a new study from The Freedonia Group, provides you with an in-depth analysis of the major trends for world paints and coatings and the outlook for product segments and major markets -- critical information to help you with strategic planning. This brochure gives you an indication of the scope, depth and value of Freedonia's new study, World Paints & Coatings. Ordering information is included on the back page of the brochure.
Brochure Table of Contents Study Highlights ............................................................................... 2 Study Table of Contents and List of Tables and Charts ................... 4 Sample Pages and Tables from: Market Environment .................................................... 6 World Market Overview .............................................. 7 Supply and Demand by Country & Region ................. 8 Market Share ............................................................... 9 Company Profiles ...................................................... 10 List of Companies Profiled ........................................ 11 Forecasting Methodology ............................................................... 12 About the Company ....................................................................... 13 Advantages of Freedonia Reports ................................................... 13 About Our Customers .................................................................... 14 Related Studies ............................................................................... 15 Ordering Information ..................................................................... 16
Study Highlights
World Paints & Coatings #1437 2
•
World demand for paints and coatings is forecast to expand 3.7 percent per year to more than 28 million metric tons in 2005.
•
In addition to new construction activity, steady gains in income levels throughout the developing world are boosting demand for discretionary projects, which will promote demand for paints used in repainting activities.
•
Motor vehicle markets will offer below-average gains as the large OEM sector sees relatively sluggish growth based on a slower outlook for global motor vehicle production.
•
Other markets, including applications such as appliances and furniture, as well as special purpose coatings such as marine coatings, industrial maintenance coatings and traffic paints, will post solid gains on a healthier outlook for the global economy.
•
The most rapid gains will arise in the world's emerging markets, most prominently the Asia/Pacific region, although Latin America and Eastern Europe also are forecast to experience growth significantly above the global average.
•
The industry is dominated by large, globally oriented companies for which coatings are a core product line, and in 2000 the industry supported eleven firms with at least $1 billion in annual paint revenues and together accounted for 43 percent of total sales.
Freedonia Industry Study
Study Highlights
World Paints & Coatings Demand by Region, 2000 North America 29.7% Western Europe 23.8%
China 8.1%
Rest of World 18.7% Japan 7.8%
Other Asia/Pacific 11.9%
World Paints & Coatings Demand by Region (thousand metric tons) % Annual Growth Item
1995
2000
2005
2010
00/95
05/00
World GDP (bil US 1998$) kg per 000$ GDP
30484 0.68
36230 0.65
43460 0.65
52510 0.65
3.5 --
3.7 --
World Paints & Coatings Demand North America Western Europe China Japan Other Asia/Pacific Rest of World
20730 5977 4960 1303 1956 2511 4023
23600 7010 5605 1903 1851 2815 4416
28300 33950 8010 9215 6400 7335 2625 3450 2060 2300 3685 4810 Sample Table 5520 6840
2.6 3.2 2.5 7.9 -1.1 2.3 1.9
3.7 2.7 2.7 6.6 2.2 5.5 4.6
-280
-80
--
--
--
--
World Paints & Coatings Production 20450 Architectural & Decorative Paints 11775 Industrial & Special Purpose Coatings 8675
23520 13160 10360
28300 15580 12720
33950 18400 15550
2.8 2.2 3.6
3.8 3.4 4.2
2.72 64.1
2.95 83.5
3.20 108.5
1.3 4.2
1.6 5.4
+ net exports/stockpiles
average $/kilogram World Paints & Coatings Prdn (bil $)
2.56 52.3
© Copyright by The Freedonia Group, Inc.
World Paints & Coatings #1437
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Table of Contents Tables and Charts are featured for each region and country. Historical data and forecasts are presented for 1995, 2000, 2005 and 2010.
For each country/region, the following are given: Population GDP per capita Gross Domestic Product Other Key Indicators: Fixed Investment Expenditures Motor Vehicle Production Motor Vehicles in Use kg/000$ GDP Paints & Coatings Demand Construction Markets Motor Vehicle Markets: OEM Refinish Other Markets + net exports Paints & Coatings Production Architechtural & Decorative Industrial & Special Purpose $/kilogram Paints & Coatings Production
World Paints & Coatings #1437 4
I. EXECUTIVE SUMMARY Summary Table ................................................................ 3 II. MARKET ENVIRONMENT General ................................................................................. 4 World Economic Overview .................................................. 6 Table - World Gross Domestic Product by Region ........... 8 World Population Overview ................................................. 8 Table - World Population by Region ................................ 9 World Fixed Investment Overview ..................................... 10 Table - World Gross Fixed Investment by Region .......... 13 World Motor Vehicle Production ....................................... 13 Table - World Motor Vehicle Production by Region ...... 16 World Motor Vehicles in Use ............................................. 16 Table - World Motor Vehicles in Use by Region ............ 18 Environmental & Regulatory Considerations ..................... 18 Environmental Trends by Region ................................... 20 United States .................................................................. 23 Western Europe .............................................................. 27 Japan .............................................................................. 28 Other Regions ................................................................. 28 III. WORLD PAINTS & COATINGS OVERVIEW General ............................................................................... 30 Table - World Paints & Coatings Supply & Demand .... 32 Pricing32 Table - Regional Pricing Trends for Paints & Coatings ... 35 Demand by Formulation .................................................... 36 Table - World Paints & Coatings Demand by Formulation ............................................................. 39 Chart - World Paints & Coatings Demand by Formulation, 2000 .................................................. 39 Chart - Coating Formulations in Regional Markets, 2000 ..... 40 Solvent-based Coatings ................................................... 41 Table - World Solvent-based Coatings Demand by Region .................................................................. 43 Water-based Coatings ..................................................... 43 Table - World Water-based Coatings Demand by Region .................................................................. 46 Powder Coatings ............................................................. 46 Table - World Powder Coatings Demand by Region .... 50 Radiation-curable Coatings ............................................. 50 Table - World Radiation-curable Coatings Demand by Region .................................................................. 51 Demand by Market ............................................................ 51 Table - World Paints & Coatings Demand by Market .... 53 Construction Markets ..................................................... 54 Table - World Construction Markets for Paints & Coatings ................................................ 56 Motor Vehicle Markets ................................................... 56 Table - World Demand for Motor Vehicle Coatings by Segment & Formulation ...................................... 58 OEM Coatings ........................................................... 59 Table - World Demand for OEM Motor Vehicle Coatings ......................................... 61 Suppliers of OEM Automotive Coatings ..................... 62
Freedonia Industry Study
Market Environment Chart - World Market Share for OEM Automotive Coatings by Company, 2000 ............ 64 Refinish Coatings ........................................................ 64 Table - World Demand for Motor Vehicle Refinish Coatings .................................................. 67 Suppliers of Automotive Refinish Coatings ................. 67 Chart - World Market Share for Automotive Refinish Coatings by Company, 2000 .................. 70 Other Markets for Paints & Coatings .............................. 71 Table - World Demand for Paints & Coatings in Other Markets ....................................................... 73 Demand by Region ............................................................ 73 Table - World Paints & Coatings Demand by Region .... 75 Per Capita Demand ............................................................ 75 Table - Per Capita Demand for Paints & Coatings by Region & Country ................................................... 77 Net Exports ........................................................................ 78 Table - World Paints & Coatings Net Exports by Region ..... 80 Production by Region & Type ........................................... 80 Table - World Paints & Coatings Production by Region & Type ........................................................ 84 Architectural & Decorative Paint Production .................. 84 Table - World Architectural & Decorative Paint Production by Region ............................................... 86 Industrial & Special Purpose Coatings Production .......... 86 Table - World Industrial & Special Purpose Coatings Production by Region ............................................... 88 IV. NORTH AMERICA Overview ............................................................................ 89 Supply & Demand ......................................................... 91 Suppliers & Market Share ............................................... 94 United States ...................................................................... 99 Canada ............................................................................ 106 Mexico ............................................................................ 113 V. LATIN AMERICA Overview ......................................................................... 122 Supply & Demand ...................................................... 125 Suppliers & Market Share ............................................ 128 Argentina ......................................................................... 132 Brazil ............................................................................. 138 Venezuela ........................................................................ 145 Other Latin America ........................................................ 148 VI. WESTERN EUROPE Overview ......................................................................... Supply & Demand ...................................................... Suppliers & Market Share ............................................ France ............................................................................. Germany ......................................................................... Italy ............................................................................. The Netherlands ............................................................. Spain ............................................................................. Sweden ............................................................................ United Kingdom ............................................................. Other Western Europe ....................................................
World Paints & Coatings #1437
154 155 158 160 165 171 177 182 186 191 198
VII. EASTERN EUROPE Overview ......................................................................... 203 Supply & Demand ...................................................... 205 Suppliers & Market Share ............................................ 207 Czech Republic ............................................................... 210 Hungary .......................................................................... 214 Poland ............................................................................. 218 Russia ............................................................................. 224 Other Eastern Europe ..................................................... 232 VIII. AFRICA/MIDEAST Overview ......................................................................... Supply & Demand ...................................................... Suppliers ...................................................................... South Africa .................................................................... Turkey ............................................................................ Other Africa/Mideast .......................................................
237 238 240 241 247 252
IX. ASIA/PACIFIC Overview ......................................................................... 258 Supply & Demand ...................................................... 260 Suppliers & Market Share ............................................ 263 Australia .......................................................................... 266 China ............................................................................. 271 India ............................................................................. 280 Japan ............................................................................. 287 South Korea .................................................................... 293 Taiwan ............................................................................ 299 Other Asia/Pacific ............................................................ 303 X. MARKET SHARE & COMPETITIVE STRATEGIES General ............................................................................ 309 Market Share & Industry Concentration ......................... 311 Table - World Paint & Coating Sales by Company, 2000 ................................................... 313 Decorative & Architectural Paints ................................ 315 Table - World Sales of Architectural & Decorative Paints by Company, 2000 ..................................... 316 Industrial & Special Purpose Coatings ......................... 317 Table - World Sales of Industrial & Special Purpose Coatings by Company, 2000 ................................. 318 Mergers, Acquisitions & Industry Restructuring .............. 319 Table - Selected Acquisitions & Divestitures ................ 321 Joint Ventures & Cooperative Agreements ...................... 325 Table - Selected Cooperative Agreements ..................... 327 Marketing & Competitive Strategies ................................ 337 Research & Development ................................................ 338 Table - Research & Development Expenditures for Leading Paint & Coating Producers ..................... 340 Company Profiles ..................................................... 340-451
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Market Environment The Market Environment Section discusses key indicators that drive demand for paints and coatings, including demographic, motor vehicle and construction trends and Freedonia’s uniquely developed macroeconomic indicators.
MARKET ENVIRONMENT
Environmental & Regulatory Considerations - Western Europe
This information provides you with an understanding and an analysis of the climate in which the global paints and coatings industry operates and helps you build your market strategy to sustain long-term growth.
As is the case in the United States, the coatings industry in Western Europe is in the midst of a major shift with regard to its product offerings, manufacturing processes and application methods. Much of the shift is attributable to the region's recent economic unification, which is prompting the establishment of more uniform environmental laws among member nations, since there are wide
SAMPLE PAGE
disparities in VOC regulations among the 15 EU nations. Many of these changes are being generated from within, particularly by industry associations, since manufacturers have learned that it is more advantageous to be proactive in this regard rather than to wait for legislation to be imposed from without by governmental organizations. For instance, a leading industry association, The European Confederation of Paint, Printing Ink and Artists' Colour Manufacturers Association (CEPE) has been quite active in advocating new guidelines for VOC reductions among coating manufacturers. The European Union Council of Ministers is expected to pass the new VOC directives, entitled "Control of VOC Emissions from Solvent Using Industries," with few amendments. The program will require existing installations to meet interim reduction targets by 2005 and final targets by 2007. New installations will need to meet the standards by 2004. As is the case in the US, manufacturers will meet the tougher emission standards through a variety of means, including a switch to waterborne formulations where feasible, an increase in solids-content in solventborne products (which can reduce solvent content from about 45 percent to about 15 percent), the greater use of non-solvent coatings such as powders, a switch to more efficient application technologies, and the installation of solvent recovery systems. Environmental & Regulatory Considerations - Other Regions Environmental regulations vary widely throughout the rest of world, both in terms of the applicable laws and the intensity with which they are enforced. As noted © Copyright by The Freedonia Group, Inc.
World Paints & Coatings #1437 6
Freedonia Industry Study
World Market Overview The Market Overview Section high-
WORLD PAINTS & COATINGS OVERVIEW
lights the key issues that have affected the global paints and coatings market over the past ten years and summarizes contributing growth factors.
Powder Coatings World demand for powder coatings is forecast to increase 7.2 percent per year to 835,000 metric tons in 2005, which is among the strongest annual gains of any of
SAMPLE PAGE the larger volume types of coatings (certain niche products, such as radiation-cured This information helps you:
coatings, offer stronger annual gains). Demand for powders will benefit from continued displacement of traditional, solvent-borne liquid coatings in myriad
•
industrial and commercial coating applications. While gains are decelerating in
Focus your sales and marketing efforts on high growth areas.
the important North American market, where in the span of a decade powders have moved from being a niche material to one of the major segments of the larger industrial coatings market, new usage in emerging markets in Latin America,
•
Propose new areas for development
Asia and Eastern Europe should continue to propel strong volume increases. In the world's developed regions, where powders are well established, suppliers are striving to expand market share with new applications, including wide use in existing markets, such as automotive primers and clearcoats, and greater use on non-metal substrates, particularly wood and plastics. Powder coatings are 100 percent solids that are melt-mixed (extruded) and pulverized into fine powders. They are applied to a substrate through either electrostatic or fluidized bed systems and then fused by heat (although some newer systems may be cured through exposure to UV light). The heat melts the powder,
causingfor it to Motor flow and form a continuous film. This process is valuable in situations World Demand Vehicle Refinish Coatings where the surface of the metal may contain imperfections, since the powder fills in
(thousand metric tons)
the depression and then fuses to a smooth, continuous surface. For thermosets, which account for the vast majority of demand, heat also stimulates the chemical
Item
1990 Curing 1995 2000 2005 reaction necessary for curing. agents determine the type of 2010 chemical bond formed and the degree of crosslinking between resin chains. They also modify the
Motor Vehicles in Use (million) 579.0 654.1 741.5 829.0 918.0 characteristics of the powder coating, such as the chemical resistance, electrical kgs per 000 vehicles 898 871 924 935 953 properties, durability and physical properties. Technological and application
SAMPLE TABLE
improvements will remain an essential key to sustained growth of powder coatings. Aftermarket Motor Vehicle Coatings 520 570 685 775 875 North America 187 205 246 275 305 Western Europe 136 154 177 191 202 Asia/Pacific: 138 143 179 210 250 Japan 108 98 113 123 131 Other Asia/Pacific 30 45 66 87 119 Rest of World 59 68 83 99 118
% aftermarket Motor Vehicle Coating Demand
31.6 1645
31.8 1795
32.9 2080
33.6 2305
34.1 2565
© Copyright by The Freedonia Group, Inc.
World Paints & Coatings #1437
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Supply & Demand by Country & Region The Country Sections analyze supply and demand trends and consider the threats and opportunities in each area.
WESTERN EUROPE
Supply & Demand Demand for paints and coatings in Spain is forecast to increase 3.7 percent per year to 670,000 metric tons in 2005, slightly outpacing real (inflation-adjusted) growth in the Spanish economy. With the motor vehicle market expected to be
SAMPLE PAGE
sluggish, the primary factor behind this solid growth will be a healthy outlook for real fixed investment spending, which should create significant new demand for both interior and exterior architectural paints. Based on these trends, total demand for paints and coatings in construction-related markets is forecast to expand 3.3 percent per year to 400,000 metric tons in 2005. In contrast, demand ASIA/PACIFIC for motor vehicle coatings will be flat at 80,000 metric tons per year due to Suppliers
declines in motor vehicle production levels. Strongest gains are forecast for other markets, which are dominated by industrial and special purpose coatings such as
SAMPLE PAGE marine paints, traffic paints, packaging coatings and industrial machinery and The paints and coatings industry in Japan was valued at $6.1 billion in 2000, and maintenance coatings. Demand for these materials has greatly benefited from the industry supported more than 200 significant producers. The two leading rising levels of industrialization in Spain. producers are Kansai Paint and Nippon Paint, which have roughly equal market shares and together account for nearly 50 percent of the Japanese market. Turkeyof- paints Paints & Coatings Demand Production and coatings in Spain isSupply forecast to & expand 4.1 percent per Nippon Paint is the leading paint producer in Japan. The company produces a full tons) year to 660,000 metric(thousand tons in 2005,metric valued at $1.8 billion. The Spanish paint range of coatings, including architectural, industrial and automotive paints. In industry will remain essentially in balance. Production is dominated by architecJapan, architectural and other trade-use paints are marketed by Nippon Paint tural paints. Projected advances will continue to be impacted by competition from 1995 2000 2005 2010 Hanbai Hokkaido, Nippon Item Paint Hanbai Higashinihon, Nippon Paint Hanbai 1990 distemper, which is widely used throughout southern Europe, particularly Italy, Chubu, Nippon Paint Hanbai Nishinihon and Nippon Paint Hanbai Shikoku. Portugal and(bil Spain. is a paint-like product Gross Domestic Product US Distemper 98$) 223 261 composed 315 mainly 396of chalk. 501 Nippon Paint Marine Coatings, a subsidiary, manufactures marine coatings, However, within these statistics, it is 1.02 not considered to be 1.07 paint. kg/000$ GDP 1.07 1.04 0.99 including tin-free INTERSLEEK antifoulings. Nippe Home Products produces and markets DIY household paints for the Japanese market. Although Nippon Paint
Paints & Coatings Demand 228 Construction Markets 158 paints and coatings sales in 2000, or $1.6 billion, with other countries in Asia Motor Vehicle Markets: 9 accounting for most of the remainder. In 2000, Nippon Paint had a market share 7 OEM of 25 percent in Japan. Refinish 2 Other Markets 61
278 191 12 10 2 75
336 230 16 13 3 90
410 275 21 18 3 114
495 330 25 21 4 140
-30
-21
-20
-15
140 37
248 190 58
315 235 80
390 290 100
480 350 130
2.06 365
2.30 570
2.51 790
2.76 1075
3.02 1450
continues to expand geographically, Japan accounted for nearly 90 percent of its
Kansai Paints is the second largest paint producer in Japan. The company
net exports produces decorative coatings,+ OEM and refinish automotive coatings, and a wide -51
SAMPLE TABLE
range of industrial coatings. Kansai Paints products are designed to coat such items
Paints & materials, Coatings furniture, Production as cars, trains, buildings, construction wood products, cans, 177 Architectural & Decorative Industrial & Special Purpose $/kilogram Paints & Coatings Production (mil $) © Copyright by The Freedonia Group, Inc.
World Paints & Coatings #1437 8
Freedonia Industry Study
Market Share Sample page from Freedonia Industry Study Gain a better global understanding of #1111 World Security Products your temscompetition and analyze your company's position in the industry with information about:
& Sys-
MARKET SHARE & COMPETITIVE STRATEGIES
• market share Mergers, Acquisitions & Industry Restructuring
• industry concentration
The world coating industry continues to restructure, an ongoing process driven by efforts to improve the performance and range of products offered, as well as the
• mergers & acquisitions
rising cost of environmental compliance. Beyond simple consolidation, however, producers are selectively acquiring and divesting specific coatings operations in
• industry restructuring
order to further concentrate their resources in a particular market or to gain access to new geographic markets (e.g., the Pacific Rim and Latin America).
• cooperative agreements
The global paints and coatings industry SAMPLE has seen a number of major acquisitions in PAGE the last several years. PPG Industries has risen to the top position in the coatings
• joint ventures
industry in 2000 after an aggressive acquisition campaign in recent years. In particular, PPG Industries greatly benefited from the restructuring conducted by
• marketing & competitive strategies
Akzo Nobel after its acquisition of Courtaulds. In 1998 and early 1999, PPG bought the former packaging coatings business and the US architectural business (Porter Paints) of Courtaulds. In July 1999, PPG acquired PRC-DeSoto, the
• research & development
aerospace coatings unit of the former Courtaulds. PPG also benefited from ICI's restructuring efforts, which were aimed at strengthening ICI's position in its core architectural paint business. As part of this program, ICI sold its global automotive refinish and industrial coatings business to PPG in July 1999. PPG has expanded its architectural paint business in the US with deals including its purchase of New Dean & Barry in October 2000 and Monarch Paint in February 2000, as well as its purchase of the US paint business of Australia-based Wattyl in July 1999. Professional Paint, a newly formed private holding company, became a leading North American supplier of paints and coatings when it acquired the North American Paint Group of UK-based Williams in May 2000. The purchase included four subsidiaries: Frazee Industries, Kwal-Howells and Parker Paint Manufacturing
© Copyright by The Freedonia Group, Inc.
World Paints & Coatings #1437
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Company Profiles The profiles section analyzes 34 companies active in the world paints and coatings industry. These profiles represent a sampling or cross-section of the types of companies involved in
COMPANY PROFILES
the industry. RPM Incorporated 2628 Pearl Road
Divisions, subsidiaries, joint
Medina, OH 44258
ventures, etc., are discussed under
330-273-5090
appropriate parent companies. RPM is a holding company that is principally involved in the manufacture and
Sources for profiles included:
marketing of specialty coatings. The Company operates in two segments: Industrial and Consumer. RPM had FY 2000 sales of $2 billion ($1.5 billion to the
SAMPLE PAGE US, $168 million to Canada, $176 million to Europe and $81 million to other • Information provided by key staff members in the respective companies
countries). The Company employed 7,960 in FY 2000. The Company is active in the world paints and coatings industry through both of its segments. The Industrial segment operates through three product groups: RPM II, Tremco and StonCor. RPM II consists of subsidiaries which manufacture and
• Annual reports
market industrial coatings and related products. RPM II includes Chemical Coatings Incorporated, Dryvit Systems Incorporated,
• 10-K reports
Kop-Coat, Mohawk Finishing Products Incorporated, Westfield Coatings Corporation, TCI Incorporated , RPM Belgium NV and Alteco Technik GmbH. Chemical Coatings (Hickory, North Carolina) manufactures industrial coatings
• Security analysts reports
mainly for wood furniture applications. These products are produced at a facility in Hudson, North Carolina and include ultraviolet (UV)-cure, high-solids, waterborne, two-component and conventional products sold under such brand names as
• Corporate product literature
ARISTO-COAT, GRAIN-PERFECT and HYDROGOLD. Dryvit (West Warwick, Rhode Island) is a manufacturer of exterior insulation and finish systems at facilities in West Warwick, Rhode Island; Columbus, Georgia; Tulsa Oklahoma; and Woodlake, California in the US. Other operations include Dryvit Systems Canada, which has production facilities in Stouffville, Ontario,
© Copyright by The Freedonia Group, Inc.
World Paints & Coatings #1437 10
Freedonia Industry Study
Companies Profiled
World Paints & Coatings #1437
Akzo Nobel NV Akzo Nobel Nippon Paint Holding BV Vachon SA Ameron International Corp. Amercoat Mexicana SA de CV Asian Paints Ltd. Asian-PPG Industries Ltd. Delmege Forsyth & Co. Paints Pacific Paints Co. BASF AG BASF NOF Coatings Co. Ltd. Hydro Coatings Group Morton Industrial Coatings Becker (Wilhelm) AB Granyte Surface Coatings plc Progetto Due SpA Berkshire Hathaway Inc. Benjamin Moore & Co. Janovic/Plaza Lathrop Paint & Supply Plaza Paint and Decorating Center Technical Coatings Co. Virginia Paint Co. Bruder (MA) & Sons Inc. Paint America Chugoku Marine Paints Ltd. CMP Coatings Comercial Mexicana de Pinturas Amercoat Mexicana SA de CV Comex Paints USA Dai Nippon Toryo Co. Ltd. DPI Co. Ltd. Daihan Automotive Coatings Co. Ltd. Daihan Paint & Ink Co. International Paint Korea PPG Daihan Packaging Coatings Dunn-Edwards Corp. DuPont (EI) de Nemours Hitachi Chemical DuPont MicroSystems LLC KDK Automotive Coatings Co. Nason Automotive Finishes Renner DuPont Pinturas Automotrices Industriales SA Shinto Herberts Automotive Systems Spies Hecker GmbH Standox GmbH Duron Inc. Ebert Paints & Wallcoverings Ferro Corp. Fuller (HB) Co. EFTEC AG Foster Products Corp. Imperial Chemical Industries plc Glidden Co. Grandes Pinturerias del Centro ICI Paints Jotun A/S Jotun NOF Singapore Pte Ltd. Products, Research, Services Inc. Kansai Paint Co. Ltd. Chongqing Kansai Paint Co. Ltd. Goodlass Nerolac Paints Hunan Kansai Automotive Coatings Co. Ltd. KDK Automotive Coatings Co. Polycoat Powders Ltd. Kelly-Moore Paint Co. Inc. Paint America Ponderosa Paint Mfg. Inc. Kemira Oy Alcro-Beckers AB Tikkurila Kumgang Korea Chemical Co. Ltd. Minnesota Mining and Mfg. Co.
Nippon Paint Co. Ltd. Akzo Nobel Nippon Paint Holding BV Daihan Automotive Coatings Co. Ltd. Morton Nippon Coatings NOF Corp. BASF NOF Coatings Co. Ltd. PPG Industries Inc. AECI Coatings Ltd. Asian-PPG Industries Ltd. Bellaria SpA ICI Refinish and Industrial Coatings ICI Specialty Coatings Keeler & Long Inc. Monarch Paint Co. Porter Paints PPG Daihan Packaging Coatings PRC-DeSoto International Wattyl Paint Corp. Professional Paint Inc. Frazee Industries General Paint Ltd. Kwal-Howells Parker Paint Mfg. Co. Inc. Red Spot Paint & Varnish Co. Inc. Seibert-Oxidermo Renner Herrmann SA Renner DuPont Pinturas Automotrices Industriales Rock Paint Co. Ltd. Valspar Rock Co. Ltd. Rohm and Haas Co. Morton International Morton Nippon Coatings Pulverlac RPM Inc. Alteco Technik GmbH Bondo Corp. Carboline Co. Chemical Coatings Inc. Dryvit Systems Inc. Euclid Chemical Co. Flecto Co. Inc. Kop-Coat Mathys (Martin) NV Mohawk Finishing Products Plasite Protective Coatings Rust-Oleum Corp. StonCor Stonhard Inc. TCI Inc. Tremco Inc. Westfield Coatings Corp. Zinsser (William) & Co. Sherwin-Williams Co. General Polymers Norfolk Paint Co. Pulverlack Tintas SA, Schaefer Auto Supply ScottWarren SpA Sico Inc. Pinturas Industriales Sicorel SK Kaken Co. Ltd. Sumitomo Chemical Co. Ltd. Shinto Paint Co. Tohpe Corp. Total Fina Elf SA SigmaKalon Group BV Valspar Corp. Farboil Co. Federal Flooring Inc. Lilly Industries Inc. Plasti-Kote Co. Polycoat Powders Ltd. Valspar Rock Co. Ltd. Wattyl Ltd.
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World Paints & Coatings
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World Paints & Coatings #1437 12
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World Paints & Coatings #1437
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World Paints & Coatings #1437 14
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World Emulsion Polymers
Related Studies From Freedonia For more information about these or other Freedonia titles, please contact us at: The Freedonia Group, Inc. Phone: (440) 684-9600 (800) 927-5900 Fax: (440) 646-0484
World emulsion polymer demand will reach US$19.4 billion in 2005. Styrene-butadiene latex will lead gains based on wide use in paper coatings and carpet backing adhesives. Acrylic emulsions will benefit from strength in latex paint and general purpose adhesives. Demand will remain concentrated in North America and Western Europe. This study analyzes the world emulsion polymer industry to 2005 and 2010 by type, end use, region and for 14 countries. It also evaluates market share and profiles key firms. #1457. . . . . . . . 9/01. . . . . . . . . . $4,600
Automotive Coatings, Sealants & Adhesives Demand for coatings, sealants and adhesives in US car production and repair will top 2.2 billion pounds in 2005. Adhesives and sealants will benefit from the displacement of mechanical fasteners and consumer demands for better noise insulation. Coatings volume per-vehicle will continue to shrink as powders and radiation-curables gain favor. This study analyzes the US automotive coatings, sealants and adhesives industry to 2005 and 2010 by type and market. It also details market share and profiles key firms. #1459. . . . . . . . 8/01. . . . . . . . . . $3,700
Powder Coatings Demand for powder coatings in the US will rise 7.9% per year to 505 million pounds in 2005. Gains will be driven by environmental benefits over non-compliant solvent-based coatings, excellent adhesion and favorable performance. Suppliers are also rapidly expanding the functional range of powders into non-metal substrates such as wood and plastics. This study analyzes the $1 billion US powder coatings industry to 2005 and 2010 by product and end use. It also evaluates market share and profiles key firms. #1426. . . . . . . . 5/01. . . . . . . . . . $3,700
Radiation-Cured Products Demand for radiation-cured (radcure) products in the US will grow 9.4% annually. Gains will be driven by intense product development and increased awareness of radcure’s benefits among end users. Coatings and inks will remain the largest products, with packaging the leading outlet. Flooring will replace printing and publishing as the second largest market. This study analyzes the $1 billion US radcure products industry to 2005 and 2010 by type and market. It also presents market share data and profiles key firms. #1399. . . . . . . . 3/01. . . . . . . . . . $3,700
World Paints & Coatings #1437
Paints & Coatings Private Companies Report In 1999, eleven private US producers each had worldwide coating sales of at least $100 million, including retail sales. Nine other private companies had global coatings sales of at least $100 million, including products other than coatings. This report profiles over 150 privatelyheld US companies (e.g., MA Bruder & Sons, Dunn-Edwards, Duron, Benjamin Moore, KellyMoore Paint, TruServ) and lists them by product and location. It also forecasts industry demand and examines recent acquisition trends. #1342. . . . . . . . 10/00. . . . . . . . . . $3,200
Paint & Coating Materials: Resins, Pigments & Solvents US demand for paint and coating materials will approach 11 billion pounds in 2004. Gains will be driven by more environmentally compliant coatings (e.g., water-based, high-solids, powder, radiation-cured) which require higher raw material loadings. Solvent-based paints will remain a major raw material in key heavy duty coating segments. This study analyzes the $6.8 billion US paint and coating materials industry to 2004 and 2009 by type and market. It also evaluates market share and profiles key firms. #1334. . . . . . . . 10/00. . . . . . . . . . $3,500
Paints & Coatings Demand for paints and coatings in the US will reach 1.5 billion gallons in 2004. Durable equipment coatings will lead gains based on expanding US durables production and robust growth in coatings exports. Aerospace coatings will benefit from gains in aircraft production and maintenance requirements. This study analyzes the $17 billion US paints and coatings industry to 2004 and 2009 by type and application. It also profiles key firms and evaluates market shares. #1303. . . . . . . . 8/00. . . . . . . . . . $3,700
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