The State of the Global Coatings Industry
Orr & Boss estimates that in 2012 the global coatings industry was U.S. $110 billion on approximately 34 billion liters.
While not a universally held view, many economists and other pundits expected that 2013 would be the year that the global economy finally fully rebounded from the recession and began to show signs of universal growth.
But at least for the near term, a significant acceleration in growth is not expected. In fact, the International Monetary Fund has lowered its outlook for the world economy this year, cutting its forecast for global Gross Domestic Product growth to 2.9 percent in 2013 and 3.6 percent in 2014. This is a reduction in forecast growth of 0.3 and 0.2 points, respectively, on its mid-year predictions, which had also been revised downward. These lowered economic growth forecasts have significant implications on the global coatings industry.
In late 2012, the International Paint and Printing Ink Council (IPPIC) published the third edition of its respected Global Paint and Coatings Industry Market Analysis report. As with previous versions, IPPIC retained Orr & Boss to prepare this comprehensive market analysis. The coatings market data presented in this article follows the basic market segmentation structure used in these industry reports.
Orr & Boss estimates that in 2012 the global coatings industry was U.S. $110 billion on approximately 34 billion liters. In 2012, the Asia Pacific region represented approximately 40 percent of the value and 47 percent of the volume. Europe comprises 27 percent of the value and 22 percent of the volume. North America, in contrast, makes up approximately 21 percent of the value ($23 billion) and 16 percent of the market volume (about 5.4 billion liters). The remainder is split between Latin America and the Rest of the World (ROW)—primarily the Middle East and Africa.