The market for water-borne latex paints is expected to grow at a CAGR of more than 5.5% during the forecast period. Major factors driving the market studied is stringent environmental, and regulations to control VOC emissions.
- On the flip side, longer curing time is likely to hinder the market.
- Asia-Pacific dominated the market across the globe with the largest consumption in a country such as India, China, etc.
Key Market Trends
Construction Segment to Witness Strong Growth
- The increasing middle-class population, coupled with their increasing disposable income, has facilitated the expansion in the middle-class housing segment, thereby, increasing the use of residential construction, during the forecast period.
- The governments in many countries have also supported to fulfill the supply-demand gap, for housing.
- For instance, to provide for the UK’s housing supply crisis, the Manchester city council has collaborated with other developers to build 500 sites, through individual development programs across Greater Manchester and Liverpool.
- The highest growth is expected to be registered in the Asia-Pacific region, due to the expanding housing construction market in China and India.
- The Asia-Pacific has the largest low-cost housing construction segment, which is led by China, India, and various Southeast Asian countries.
- In India, the government initiated project ‘Housing for All by 2022’, which is expected to immensely drive the low-cost residential construction segment in the country, throughout the forecast period.
- All the aforementioned factors are likely to augment the market over the forecast period.
China to Dominate the Asia-Pacific Region
- China is the largest consumer of water-born latex paints market in Asia-pacific. Latex-based waterborne coatings makeup approximately 80 percent of demand in the market and are being widely used in architectural applications, where consumers are willing to pay a premium for less toxic paints, and the automotive sector, which is traditionally a key user of latex-based paints demand in the region.
- The Chinese government is stepping up its restrictions on coatings with a high volatile organic compound (VOC) content. Such stringent regulations are boosting the consumption of water-borne latex paints market.
- Currently, China is majorly focusing on increasing the production and sale of electric vehicles in the country. For this purpose, the country has planned to increase the production of electric vehicles (EVs) to 2 million a year by 2020, and 7 million a year by 2025. The target, if achieved, is expected to increase the share of electric vehicles to 20% of total new car production for China, by 2025. This is further likely to increase the production of vehicles in the country, in the coming years.
- Hence, with the anticipated increase in the production of electric vehicles in the country, the demand for water-borne latex paints is also expected to increase in the transportation industry, during the forecast period.
- Under China’s 13th Five Year Plan, there are numerous airport construction projects that are either in the development or planning stage. These include Beijing Capital International Airport, Chengdu Shuangliu International Airport, Chongqing Jiangbei International Airport, Guangzhou Baiyun International Airport, etc.
- Hence, all such market trends in the country are likely to drive the demand for water-borne latex paints, during the forecast period.
The water-borne latex paints market is consolidated. The major players include AkzoNobel N.V, BASF SE, PPG Industries Inc, The Sherwin-Williams Company, Arkema Group, among others.
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