KUALA LUMPUR, Malaysia - The Asia Pacific (APAC) decorative coatings market has seen steady progress since 2010, outperforming the global decorative coatings market in volume and value. This surge in volume can be explained by the heavy investments in infrastructure developments by populous countries such as China, India, Indonesia and Vietnam.
A new analysis from Frost & Sullivan, Competitive Benchmarking of Decorative Coatings Companies in Asia Pacific, recorded market revenue of $14.10 billion in 2010, which is likely to reach $18.20 billion by 2012. Growth is expected to be stable, with a compound annual growth rate (CAGR) of 13.5 percent.
Leading decorative coatings companies are eyeing the APAC region, as it shows tremendous potential with double-digit growth rates. Meanwhile, the equally low domestic consumption indicates vast untapped potential.
Current price escalation trends, however, could lead to market stagnation or replacement by alternate materials. Further, some countries have distinct methods of device classifications, and their processes may not be transparent, making it hard for international decorative coatings companies to conduct business.
"International market penetration will be challenging due to the current political tensions, fluctuating currencies, disasters in Indonesia and Japan, and the complicated regulatory processes," notes Frost & Sullivan Consulting Analyst Raja Izzuddin. "In addition, the APAC decorative coatings market is likely to be affected by the continued economic uncertainty, volatile oil prices, and the limited supply of key raw materials in the APAC and the rest of the world."
On the other hand, rising environmental awareness and the demand from the middleclass population in the Asia Pacific have popularized environment-friendly decorative coatings. Market participants have to constantly innovate to meet global megatrends and deliver novel, affordable and high-quality products with value-added functionalities.
“The APAC decorative coatings companies will benefit from strategic partnerships and joint ventures with strong local companies and key suppliers,” notes Izzuddin. “Such associations will usher in new technologies, enhance their equity value and facilitate the companies’ establishment in a local market.”
Existing companies should focus on competitive pricing and boost income through new distributor channels or direct sales. Additionally, they can expand and invest in organic growth to establish their local presence and capabilities, rapidly enhancing their market share.
Market players also need to be aware of the Association of Southeast Asian Nations (ASEAN) integration, which takes place in 2015, to take advantage of this new regional regulation and thrive in this dynamic market.
For additional information about the report, contact Donna Jeremiah, Corporate Communications, at email@example.com.