Did you know that the average lifespan of a coat of interior paint is just 3 years? To keep a home or business looking fresh, both inside and out, regular painting needs to take place. Although some are opting for a paint-free appearance, nothing is as easy to apply or affordable to put up than paint.
Global Paint Industry
The value of the global paint covering market was 13% higher in 2012 than just 2 years before.
Nearly 45% of the paint that is produced every year goes toward either decorative purposes or to protect new construction. A new coat of paint can do an excellent job at maintaining existing structures as well. Another 40% of the market is used to protect or decorate industrial products. As you can see, paint does two jobs: it makes things look nice while keeping items protected from the elements.
Essentials Facts About the Paint Industry
1. The average cost of an industrial coating of paint was $5 per liter, compared to $3.50 per liter for residential or business settings.
2. Raw material costs for the paint industry are increasing in price by an average of 4% every year.
3. Titanium dioxide, one of the key components in the manufacture of paint, increased in price by 40% in 2011 alone.
Takeaway: The paint industry is very much subject to the key economic factors that drive income. People tend to ignore paint in residential and business settings unless they have extra disposable income to “spruce up” the place. In comparison, industrial applications are almost always needed to maintain equipment – just look at the constant painting on the Golden Gate Bridge as an example of this. As prices increase, expect more people to put off painting until they no longer can.
Additional Essential Facts About the Paint Industry
1. The paint industry is expected to grow faster in developing countries than it is in established industrial countries. India, for example expects to see an annualized 12% growth in this industry. Latin American countries are expecting 8% growth. The United States, on the other hand, is just expecting 3% growth.
2. Japan is expecting just a 0.5% growth in the paint industry through 2018.
3. More stringent air pollution laws that are expected to take place on a global scale may impact these numbers in either positive or negative ways.
4. Radiation curable paints still make up a small market within the industry, despite their potential exposure dangers.
5. Demand in Asia for paint consumes about 50% of the world’s annual supply of created product every year.
6. Large developing markets may see a discounted price on paint coatings due to a need for “budget” paint, making it up to $1 less per liter. In these markets, however, automotive paint coatings usually sell for a premium price.
Takeaway: The paint industry really follows the priorities of people. Industrial paints will always be consistently priced because of need, but residential paints can fluctuate based on demand. Some people just don’t prioritize the need for home paint and this is reflected in budget pricing in some communities. Yet it is also in this “budget communities” that the paint industry expects the most growth. Would the same growth occur if established markets received a $1 per liter discount too?