The Sri Lanka paints and coatings market is expected to grow at a CAGR of over 3% during the forecast period. Major factor driving the market studied is growing demand of paints and coatings from architectural coating. On the flip side, fluctuating automotive industry and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
- Growing infrastructural activities in Sri Lanka is forecasted to offer various opportunities for the growth of the market over the forecast period.
- By resin type, acrylics is expected to dominate the market studied over the forecast period.
Key Market Trends
Acrylic Resins to Dominate the Market
- Acrylic resins have properties, such as transparency, high color ability, and UV resistance, in coating solutions. They are used in water-borne systems very often, which result in low VOC emission.
- The application of acrylic coatings leads to high surface hardness. In certain applications, such as walls, decks, and roofing, acrylic coatings provide elastomeric finishes to improve the UV resistance of the surface, if employed with some fluids.
- Application of acrylic coatings is primarily found in the construction industry, for high-end finishing in roofs, decks, bridges, floors, and other applications. Water-based acrylic coatings are high in demand, owing to the environmental concerns, like the negative impact of VOCs affecting the air quality in the environment.
- Some additional applications of acrylic paints and coatings are found in marine vessels and structures, automotive, electrical products, machinery, and various metal product, among others
- Owing to the above mentioned factors demand for acrylic resin type is likely to dominate the market studied over the coming years.
Architectural Coatings to Dominate the Market
- Paints and coatings are not only used in the interiors of houses to add colors or decorative purposes, but also to perform a wide range of functions. Their functions vary depending on the type of environment and room that they are used on.
- Paints and coatings are applied on the exterior of the house to not only to give them a new look, but also to protect them from blistering summers, freezing winters, soaking rain, and the daily bombardment of UV radiation without fading, peeling away, and cracking.
- The modern advancements in paint technology, specifically in the acrylic formulations, have offered a wide range of weatherproof coatings.
- The government of Sri Lanka has given tax break to the construction industry along with some other sector to boost investment and growth. The tax rate applicable on the construction industry is reduced to 14% from 28% in the December 2019.
- The country hass been in crisis from the past two years. Additionally, the spread of Covid-19 is likely to hamper the growth of architectural paints and coatings sector in the short/mid term. However, in the long run market is forecasted to recover at a steady state.
The Sri Lanka paints and coatings market is partially consolidated in nature with only few major players dominating the market. Some of the major companies are lankem ceylon plc, Asian Paints, Nippon Paint (Lanka) Pvt ltd, AkzoNobel Paints and Macksons Paints Lanka (Pvt).
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