U.S. Demand for Coatings to Reach 1.5 Billion Gallons in 2017
CLEVELAND - U.S. demand for coatings is forecast to rise 4.2 percent annually to 1.5 billion gallons in 2017, valued at $30.6 billion. This will be a notable improvement over the volume declines recorded during the 2007-2012 period, supported by an improving economic outlook and increased consumer confidence. In particular, advances will be driven by a strong rebound in construction activity, which will propel demand for architectural paint and for metal building component coatings. These and other trends are presented in Paint & Coatings, a new study from The Freedonia Group Inc., a Cleveland-based industry market research firm.
The architectural market is the leading outlet for paint and coatings and will grow at an above-average pace through the forecast period. The residential segment will offer the best opportunities for growth, as the country recovers from the housing crisis that greatly reduced demand for residential architectural paint, particularly for new housing. Demand for interior paint will grow faster than demand for exterior paint. Increasing environmental awareness and greater consumer concern regarding indoor air quality will spur demand for low- or no-VOC products, especially those that are marketed as having low odor or being odor-free.
Paint and coatings demand in manufacturing markets is expected to expand at a healthy pace through 2017. The metal building components segment is projected to achieve particularly rapid gains, promoted by the increased utilization of prefabricated metal building systems in nonresidential construction applications due to the functionality and labor cost savings these systems provide. Furniture coatings will also account for a sizable share of new demand between 2012 and 2017, benefiting from rapid gains in new housing completions, which will boost demand for home furnishings.
Maintenance and specialty coatings will remain the smallest market through 2017. Demand in the industrial maintenance sector will be supported by expanding nonresidential improvement and repair activity, while growth in the marine coatings segment will stem from increased output of marine equipment and the need to maintain large tankers, ships and cruise liners, as well as offshore drilling rigs and platforms. In the auto refinish sector, rising motor vehicle sales will provide opportunities, although gains will be held down somewhat by the trend toward fewer vehicle accidents and the improved quality of OEM automotive coatings.
For additional details about the report, contact Corinne Gangloff at 440/684.9600, or e-mail pr@freedoniagroup.com.
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