Turkey continuesto rise as one of the world's growing, stronger economies and also continues to rise at the same speed in the paint industry. The Turkish paint industry's total annual production capacity is 850,000 tons/year, and it has approximately a 2% share of the world paint market, with 65% of this capacity. Turkey, which competes with Russia in the regional market, is today the 6th largest paint manufacturer in Europe. According to data from the year 2011, Turkey ranks third in European decorative paint sales.
Inthe Turkish market, per capita coatings consumption is 11 kg/head (population 78.8 million). The coatings market segments (by tonnage) are: 58% decorative coatings (494,000 metric tons), 12% industrial wood coatings (102,000 metric tons), 11% general industrial finishes (93,000 metric tons), 6% transportation coatings, 4% powder coatings (34,000 metric tons), 5% printing inks (43,000 metric tons), 2% marine coatings (for 17,000 metric tons) and 2% other coatings (17,000 metric tons). Wood coatings represent the second largest market share with 12%.
In addition to approximately 20 key manufacturers that have advanced production technology, there are many local small and medium-sized companies in the decorative coatings sector of the Turkish market. The main players are Kayalar Kimya, AkzoNobel, Betek Boya San.AS., DYO, Jotun, Marshall, Polisan and SG-Weber Markem.
According to BOSAD (The Association of Paint Industry in Turkey), the decorative coatings market was expected to increase from 665,450tons in 2005 to 1,132,900 tons in 2013. Demand for interior and exterior paints are increasing with urban regeneration projects and environmental awareness. In addition, purchasing power, aesthetic appearance demands and an increase in the young population also are factors affecting Turkey’s decorative coatings market. About 80% of the total decorative paintconsumptionis used for renovation demands, and the share of new construction is approximately 20%. A dynamic construction sector, the increase in the young population, and providing housing rights to foreign nationals directly affect this consumption. Developments in this sector helped Turkey's paint market reach $3 billion annually with the domestic and the export market. An export target of $500 billion in 2023 is one of the country's national objectives, and is one of the driving forces for growth of in the construction and paint sector.
Factors that support the growth of Turkey's paint market are: Production capacity of leading companies of sector accordance with national mandatory quality standards and international norms; increasing effect of the rate of urbanization on the production and consumption of paint; Turkey is highly attractive for foreign investments intheglobalpaintmarket as one of the regions with high growth potential due to provided benefits for techno parks and R&D centers, creation of new opportunities for R&D and raw materials; Turkey’s proximity to the Middle East, Central Asia, North Africa, the Balkans, Eastern Europe and sub-Saharan African countries.
The industrial wood coatings market has the largest market share after decorative paints. Turkeyis the third largest furniture manufacturer in Europe(Source: BOSAD), and the wood coatings sector is directly affected from the export capacity of the furniture industry.
While there are many local competitors, foreign trade is alsohighly effective in the domestic market. Kayalar Kimya, with brand name Genç, has the biggest market share with 25%, and the closest competitor has approximately a 16% market share. Theother major manufacturersare AkzoNobel, DYO and IBA.
While conventional products (solvent-based 2K polyurethane and acrylic) still maintain their lead in the wood coating market, technological developments in the international market, environmental factors and performance needs have created an increase in the demand for new technologies.High solid and water-based coatings and water-based UV-curing systems are increasing their application areas, and their consumption is increasing day by day. UV systems began to show commercial success in the last five years. One ofthe driving forces in the increase of the market share of these systems is due to the VOC regulations related to the REACH directive. The REACH directive is one of the factors affecting the technological changes in the industry.
Tolga Kayalar, Executive Vice President/Marketing and Sales Manager, Kayalar Kimya, evaluated the paint market in Turkey for PCI Magazine. “Turkey’s furniture production has increased by about a 13% growth rate every year. Rapid growth in the construction and furniture industries directly affects the coatings market. Kayalar Kimya is carefully monitoring the local market needs as well as the export market. Leading manufacturers that export their products to European countries conduct compliance with international regulations and the obligations of the REACH directive in order to maintain their exports.Kayalar Kimya exports its coating products to 43 countries with the Genç brand name. Climates, styles, trendsand regulations of each region are different, so we meet our customers' demands with mostly customized wide range of products.”
UV systems have increased due to changes in customers’ preferences for faster and more efficient manufacturing technologies in the wood coatings market. High-speed production lines in the integrated facilities provide increasing demands of more rapid curing and good adhesion in products. Kayalarsays that “StrongR&D infrastructure is essential in order to provide fast and effective actions inthe market. R&D collaboration with our customers is very important for us because they identifytheirproblems andneeds best. To increase R&D investments for the coatings sector and to competein the market withhigh technologyproducts are the priority issues in the coatings market for Turkey's NationalChemical SectorStrategies. Kayalar Kimya R&D Center, is one of the supported R&D Center by Ministry of Science, Industry and Technology and where is employed more than 50 R&D people to meet customer demandsand innovative solutions. We offer fast, effective and customized solutions in our R&D center focused on projects in different technologies.”