Did you know that the paint and coating industry is one of the most regulated industries in the world? Although there are many different producers of paints and coatings on the market, most of these companies are only regional producers. 

In addition, there is an ever-increasing demand for protective coatings, while the supply is relatively low. Demands in the Asia-Pacific region are among the fastest growing in the world. 

Paint And Coating Demand

The global paint and coating demand continues to increase, as these coatings are extremely valuable for general industrial use. The types of coatings are used for both decoration and protection, used to maintain buildings and machinery. Powder coatings, oil-based coatings and other coating types are needed to increase the lifespan of industrial products.

The demand for paints often directly reflects the overall health of a nation’s economy. This is especially apparent in the construction industry for architectural coatings for housing and in the automobile manufacturing business. These industries are often the force driving the market.

Coating manufacturers have seen major changes in the coating technology over the past few decades. These new technologies are improving the longevity of these coatings, as well as the safety of these coatings. As time moves forward, more environmental regulations are being put in place. This is driving the development of new technologies in the global protective coatings market.

How Large is the Paint and Coating Industry?

The paint and coating industry is one of the major subsections of the global chemical industry. In 2020, the industry was estimated to be worth over $150 billion. Asia accounts for the largest portion of the market.

As stated previously, paints and coatings for architectural purposes make up a huge portion of the demand for these chemical products. 

Key Challenges in the Paint and Coating Industry

1. Increasing Regulations and Restrictions

One of the biggest challenges facing the paint and coatings industry today is increasing regulations in the industry. The paint and protective coatings industry is extremely regulated. 

Regulations have caused the industry to create new coating technologies to meet growing regulations. This has led to the rise of low-solvent technologies in the industry.

Regulations in the paint and coating industry are becoming even stricter, as concerns over the environment grow. Many of these paints and coatings, in fact, almost all of them, contain volatile organic compounds. 

What this means is that paint and coating products release gasses into the air. Many of these gasses are harmful and can react with other gasses forming air pollutants.

Regulations are driving the development of paints and coatings without harmful volatile organic compounds. This will be a permanent change to the industry. There are many challenges in creating high-performance industrial coatings and paints without these chemicals.

2. Raw Material Costs

Another major challenge facing the paint and coating industry is that the price of raw materials is quickly rising. These costs are being driven up by high levels of demand that exceed the expected forecast period.

In addition, many production plants have closed, lowering the supply of raw materials needed to make these coatings. As the raw material markets tighten, the prices of raw materials will continue to rise.

3. Globalized Markets

The final major challenge the paint and coatings industry is seeing is a globalization of the market. Now, customers are internationally located, which causes the suppliers and manufacturers to follow them. 

Instead of predictable competition, expectations of the industry are changing. More suppliers are entering the field, changing the game for everyone in the business. 

4. Other Challenges

Other challenges to the painting and coating industry include driver shortages. In addition, there is a shortage of raw materials and supply chain problems. 

In Summary

The painting and industrial coating industry account for a large subsection of chemical manufacturing. Demand for these products continues to increase, as they are an important part of the general industry and the construction industry. 

There are many challenges facing the painting and coating industry today. These include raw material shortages and the globalization of the painting and coating market. Other challenges include increasing regulations due to environmental concerns and an increase in manufacturing costs and raw materials.